How much does a new furnace cost?
If your apartment building or home is relatively old, chances are it has a furnace. This furnace works by blowing heated air into your house's ducts and vents, keeping it warm and cozy when it’s chilly outside.
Many factors go into a furnace's pricing and repair costs. It can be challenging to determine whether it's wiser to repair your furnace or buy a new unit. If you’re buying a furnace for the first time, you might struggle to understand how the different types work, which one is the best furnace for you, and how much it should cost.
We’re here to help. Read on to understand the different types of furnaces and their pricing so you can make the most financially sensible and energy-efficient decision for your home.
How much does a furnace replacement cost (including labor)?
If you’re in the market for a new furnace, knowing what costs to expect can help you budget to prepare for your purchase. You can expect a new furnace to cost anywhere between $3,000 and $7,600, including labor costs.
However, furnace prices can vary based on factors like:
- Furnace size or capacity
- Efficiency of the new furnace
- Motor blower speed
- Cost of any additional equipment and fuel type
- Cost of ductwork repairs
- Cost of air-quality products, such as media filters
Another major factor affecting cost is the type of furnace you choose. For example, your furnace can run on natural gas, oil or electricity. The type of furnace you use will also affect the amount you pay on monthly bills, regular maintenance costs and additional costs. Let’s look at the national average cost of a new furnace by type.
Average cost of a new furnace by furnace type
The type of furnace you choose for your air-conditioning system will depend on several factors, like whether you have a natural gas supply, how cold it gets where you live, the size of your home, and how much you want to invest in your new furnace.
To make the best decision for your comfort, let's look at the differences between the three most commonly used furnace types and compare their prices.
Average cost of a natural gas furnace
New gas furnace costs are relatively high, ranging from $1,700 to $9,700. This includes a unit cost ranging from $700 to $6,200 and new furnace installation costs of approximately $1,000 to $3,500. Furnaces using gas (methane or the mixture of propane, butane and ethane) as a fuel source are one of the most common types used by homeowners. This is because of their increased furnace efficiency, which saves a significant amount on energy costs each month.
The U.S. Department of Energy says new high-efficiency furnaces can have up to a 98.5% Annual Fuel Utilization Efficiency (AFUE) rating.
So, although the initial investment on high-efficiency models that are Energy Star-certified is more, a natural gas furnace could be your most efficient and cost-effective option if you face extremely cold climates.
If you want to spend less money upfront, you can purchase a mid-efficiency model with around 80% to 88% AFUE. The total cost for models with a mid-efficiency rating would typically be on the lower end of the price range.
A gas furnace requires a natural gas line. If you don’t have access to one or if you already have a heat pump installed, an electric furnace would be better suited for you. The overall efficiency of these furnaces also depends on fluctwwwing natural gas prices. These are usually quoted in dollars per the amount of natural gas, which generates 1 million British thermal units (Btu) of heat energy when burned.
If you’re still keen on having a gas furnace even though you don’t have a gas line, you can contact your energy company and look into how feasible it would be to install one.
Average cost of an electric furnace
Electric furnaces cost between $1,600 and $6,200, including a unit cost of $600 to $2,700 and installation costs of around $1,000 to $3,500.
This furnace uses electric currents to heat the air that flows through your ducts. Although electric furnaces are relatively cheap to purchase and install, the monthly electricity bills are more expensive than gas or oil furnaces. They’re also less efficient at heating your home than gas and oil furnaces.
However, if you live in a place that doesn’t get extremely cold, electric furnaces are the best option for you. Not only do they have a lower upfront cost, but they’re also better for the environment and require relatively less maintenance work.
Average cost of an oil furnace
Oil furnaces were widely used in the mid-20th century but were replaced by natural gas furnaces due to availability and lower natural gas costs. However, if you live in an extremely cold climate and your home doesn’t get a supply of natural gas, an electric furnace might not give you the comfort you desire. In such a case, an oil furnace is your next best option. This option is also more friendly on your pockets in the long run because this type of furnace is cheaper to run than an electric furnace.
However, the upfront investment on an oil furnace is higher than that of an electric one. You can expect the cost of an oil furnace to range from $4,300 to $9,200.
This range includes an approximate unit cost of $1,800 to $3,200 and estimated labor charges of $2,500 to $6,000.
Signs you may need to replace your furnace
When you factor in the potential discomfort and downsides of a furnace that doesn’t work correctly, you might agree that it’s much better to be proactive and notice when you need a new heating system instead of waiting until the heater stops working on a cold winter day.
Signs that it’s time to replace your furnace include:
- High energy bills. If you’re paying a significantly higher energy bill than you usually pay in similar weather when there has been no rate change, it can mean that your furnace’s efficiency per square foot of the house has reduced. A furnace is one of your home's most significant energy users; if it isn’t running with fair efficiency, your energy bills will be on the higher end.
- Health concerns. If you see an increase in the spread of dust, carbon monoxide or mold in your home, a malfunctioning furnace could be the culprit. A furnace that isn’t working correctly can also exacerbate asthma and allergic reactions, so it’s good to recognize early signs of a malfunctioning furnace and fix them promptly.
- Your furnace is old. If you have an old furnace with a life span of more than 10 years, it’s time for an HVAC tuneup.
- Physical damage. If you see signs of corrosion or rust around your furnace unit, consider getting it checked by a professional or HVAC contractor for any potential malfunctions.
Here's a little secret: Costs of repairing or replacing a damaged furnace can be covered under a home warranty, like those offered by Cinch.
Costly furnace repairs and replacement are covered under a Cinch warranty
With a Cinch Home Services warranty, you can get protection for any of your house appliances, HVAC systems like air conditioners, and even your entire home. Every Cinch plan comes with rust and corrosion coverage, protection for unknown pre-existing conditions and discounts on new appliances.
What’s more? Your Cinch home warranty plan can offset any costly furnace repairs you might incur. Get a quote for your home and rest easy knowing your home and its appliances and systems are protected.