How Much for a New Furnace?

As a fervent HVAC enthusiast, I’m here to shed some light on a topic that often stirs confusion amongst homeowners like yourselves – furnace costs.

If you’ve ever found yourself wondering “How much is a new furnace?” you’re not alone.

The answer isn’t always clear-cut, given the variety of furnace types, fuel sources, and the size furnace appropriate for your home.

However, by understanding the basics and factors influencing the cost, you can make an informed decision. So, let’s jump right in!

Overview of Furnace Types

Furnaces can be broadly classified into four types, each with its unique features, costs, and benefits. These types of furnaces are electric furnaces, oil furnaces, gas furnaces, and natural gas furnaces.

Factors to Consider When Buying a New Furnace


The first thing to consider when buying a new furnace is your local climate. If you live in a colder climate, you’ll need a furnace with a higher heat output, usually measured in British Thermal Units (BTUs). For milder climates, a smaller, less powerful furnace may suffice.

Square Footage of Your Home

The size of your home directly influences the size of the furnace you need. Larger homes require larger furnaces to effectively heat all areas. Understanding your home’s square footage is crucial to purchasing a furnace that meets your heating needs.

Energy Efficiency

Energy efficiency is another vital factor to consider. High-efficiency furnace models may have higher upfront costs but can significantly reduce your energy bills in the long term. Look for models with a high Annual Fuel Utilization Efficiency (AFUE) rating and those certified by Energy Star.

Type of Fuel

The type of fuel your furnace will use (natural gas, oil, or electricity) can greatly impact both the furnace cost and your ongoing energy bills. The availability and cost of these fuel types can vary greatly depending on your location.

Installation Costs

Keep in mind that the cost of the furnace itself is not the only cost. Professional installation can add significantly to the total cost. Be sure to factor this into your budget.

Potential Additional Costs

Additional costs may include modifications to your home’s current heating system, such as ductwork repairs or upgrades, and the installation of a new thermostat. These costs can add up, so it’s important to account for them when budgeting for a new furnace.

Long-Term Maintenance and Operation Costs

Consider the long-term costs of operating and maintaining the furnace. This includes regular servicing, potential repairs, and your monthly utility bills. Some types of furnaces, such as those powered by gas or oil, may require more frequent maintenance than electric models.

Furnace Warranty

A good warranty can protect your investment and save you money if your furnace breaks down.

Look for a furnace with a comprehensive warranty that covers both parts and labor.

Future Plans

If you plan on selling your home in the near future, a new, high-efficiency furnace could increase its value. However, if you plan on staying in your home for many years, it might be more cost-effective to purchase a mid-efficiency furnace.

In conclusion, purchasing a new furnace involves considering various factors that can affect both the upfront and long-term costs. Being aware of these factors can help ensure you make an informed decision that balances both your heating needs and your budget.

Electric Furnaces

Electric furnaces convert electrical energy into heat. They are typically smaller and safer than other types of furnaces.

Average Cost of an Electric Furnace

The average cost of an electric furnace ranges from $700 to $7000 for the unit itself, excluding installation costs.

Benefits of an Electric Furnace

Energy Efficiency

Electric furnaces are known for their high energy efficiency. They can convert almost all the electricity they use into heat, making them a smart choice if you’re concerned about your energy usage and want to save money on your energy bills.


Since electric furnaces do not burn fuel to generate heat, they eliminate the risks associated with carbon monoxide poisoning and gas leaks. This makes them a safer option compared to gas or oil furnaces.

Lower Installation Costs

Installation costs for electric furnaces are generally lower than those for gas or oil furnaces. This is mainly due to the fact that electric furnaces do not require a flue to vent exhaust gases, which simplifies the installation process.

Quiet Operation

Electric furnaces tend to operate more quietly than their gas or oil counterparts. This can be a significant benefit if noise levels are a concern in your household.

Lower Maintenance

As electric furnaces have fewer moving parts, they typically require less maintenance than gas or oil furnaces. This can result in savings in terms of both time and money over the lifespan of the furnace.


Electric furnaces often last longer than other types of furnaces, given proper maintenance. This longer lifespan can make an electric furnace a more cost-effective option over time.


Electric furnaces can be used in any home with access to electricity, making them a versatile option. They do not require access to a natural gas line or a supply of heating oil, which can be an advantage in some areas.

In conclusion, electric furnaces offer several benefits that can make them a great choice for many homeowners. From their high energy efficiency to their quiet operation and lower maintenance needs, they provide a reliable and cost-effective heating solution.

Oil Furnaces

Oil furnaces use oil as their primary energy source, providing efficient heating in colder climates.

Average Cost of an Oil Furnace

The average cost of an oil furnace is around $6000 to $10000.

Benefits of an Oil Furnace

Powerful Heating

Oil furnaces are known for their high heat output, making them particularly effective in colder climates. This can ensure your home stays warm and comfortable even during the coldest winter months.

Durable and Long-lasting

Oil furnaces are generally quite durable and can last many years with proper maintenance. This longevity can make an oil furnace a worthwhile investment for homeowners planning to stay in their home for an extended period.

Independent Fuel Supply

Unlike natural gas furnaces, which rely on a municipal gas supply, oil furnaces utilize a refillable oil tank. This means that even if there’s a disruption in the local gas supply, your home’s heating system can continue to operate.

Cost-effective Where Oil is Cheap

In some regions, heating oil is a more cost-effective fuel source than natural gas or electricity. If you live in such an area, an oil furnace could help keep your heating costs down.

Potential for High Efficiency

Modern oil furnaces can offer high-efficiency levels, reducing energy waste and keeping utility bills lower. Look for models with a high Annual Fuel Utilization Efficiency (AFUE) rating for maximum efficiency.

Gas Furnaces

Gas furnaces are popular due to their efficiency and lower operating costs.

Average Cost of a Gas Furnace

The average cost of a gas furnace varies from $2000 to $5500, excluding the cost of professional installation.

Benefits of a Gas Furnace

High Energy Efficiency

Modern gas furnaces can achieve high energy efficiency ratings, reducing wasted energy and saving you money on your utility bills. High-efficiency gas furnace models can convert up to 98% of the fuel they burn into usable heat.

Lower Fuel Costs

In many regions, natural gas is a more cost-effective fuel source compared to electricity or oil. This means that running a gas furnace can be cheaper in the long run, even if the initial cost of the furnace and installation are higher.

Powerful Heating

Gas furnaces can provide powerful, consistent heat, making them a good choice for colder climates. They can heat up your home quickly and maintain a consistent temperature even during the coldest winter months.

Long Lifespan

With proper maintenance, a gas furnace can last for many years. This makes them a sound investment for homeowners who plan on staying in their home for a long time.

Environmental Considerations

Natural gas is a cleaner burning fuel than oil, which can make gas furnaces a more environmentally friendly option. If you’re concerned about reducing your carbon footprint, a gas furnace could be a good choice.

Natural Gas Furnaces

Natural gas furnaces are a subtype of gas furnaces, using natural gas as the fuel source.

Average Cost of a Natural Gas Furnace

The average cost of a natural gas furnace ranges from $3800 to $10000, installation costs not included.

Benefits of a Natural Gas Furnace

Consistent and Reliable Heating

Natural gas furnaces are known for providing consistent and reliable heat. Even in the coldest conditions, they can warm up your home quickly and efficiently, ensuring a comfortable living environment.

Cost-Effective Operation

Natural gas is often more affordable compared to other fuel sources like electricity or oil, especially in areas where natural gas is readily available. This can result in significant savings on your heating bills over time.

Energy Efficiency

Modern natural gas furnaces are designed to be highly efficient, with many models achieving over 90% efficiency. This means they convert most of the fuel they use into heat, reducing waste and lowering your energy bills.

Environmentally Friendly

Natural gas burns cleaner than other fossil fuels, leading to fewer emissions and less impact on the environment. If minimizing your carbon footprint is a priority, a natural gas furnace can be a more eco-friendly heating option.

Long Lifespan

Natural gas furnaces are typically built to last, often providing reliable service for 20 years or more with proper maintenance. This longevity can make a natural gas furnace a solid long-term investment.

Labor Costs for Installing a New Furnace

The labor cost for furnace installation can significantly add to the total cost. These costs depend on the complexity of the installation, your location, and the professional you hire. On average, installation costs range from $500 to $2,000.


Understanding the costs and benefits of various types of furnaces can help you make an informed decision when you need a furnace replacement.

Remember, while the upfront costs might seem high, a high-efficiency furnace can offer significant savings on your utility bills in the long run.

It’s always worth consulting with professional furnace installers to help you select and install the right furnace for your home. As homeowners, our ultimate goal should be comfort and efficiency, and the right furnace can provide just that!

With the knowledge you’ve gained from this article, you’ll be better prepared to manage your furnace repairs, replacements, and overall energy usage. Happy heating!

About Roy Cohen

Roy Cohen has a burning passion for heating, cooling, and ventilation. He aims to help you save money on expensive repairs and bring you the best HVAC products. He has years of experience behind him in HVAC repair and garage maintenance.

You can find Roy at his LinkedIn or his email: [email protected]

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