The cost of a new furnace can vary greatly, depending on a number of factors. Let’s look at the factors that affect the average cost of a new furnace and how to get the best price on a new furnace and installation.
Average cost of a new furnace
The cost of a new furnace can range from $1,795 to $6,290, with most homeowners paying an average of $3,817. Furnace cost varies depending on brand, type, size of furnace, and efficiency rating. For example, the average cost of a new gas furnace versus the average cost of a new oil furnace installation will be very different.
Average cost of electric furnaces
Electric furnaces are typically the least expensive, costing an average of $2,000. However, they can be quite expensive to run depending on the price of electricity where you live. Electric furnaces are best suited to mild climates, or areas with inexpensive electricity.
Average cost of gas furnaces
Gas furnaces are the most popular type of furnace and sit in the middle in terms of price. Most people pay an average of $3000 for a new gas furnace. Gas furnaces are relatively efficient in most climates.
Average cost of oil furnaces
Oil furnaces are the most expensive type of furnace, running an average of $6,000. These furnaces are not widely used anymore and
can be expensive to run given the high cost of heating oil.
Other factors that affect the cost of a new furnace
The brand you choose will affect the cost of your new furnace. Carrier is a premium furnace brand and will be more expensive than a mid-range brand like Bryant. Goodman positions itself as a low-cost brand, but is still highly reliable. You can read about our favorite furnace brands here.
The cost of a furnace tends to go up with its efficiency rating. While the replacement furnace cost is an investment, the monthly savings will quickly add up. Homeowners who replace their gas furnaces or oil furnaces with energy efficient models report energy cost savings of 25% or higher.
Size of furnace
The cost of a furnace goes up with its size, because larger homes have larger heating needs. The best way to determine the correct furnace size for your home is to choose a reputable installer. An expert will be able to calculate your home’s heating needs based on industry standards. These calculations take the climate and your home’s size, design, and construction into account.
New furnace installation cost
The installation can vary by thousands of dollars and will depend on the contractor you choose. It's important to hire a local furnace contractor who will give you a fair furnace cost and installation estimate. You should feel confident that the price you receive at the time of the quote is what you will be paying.
How much does it cost to install a furnace?
Furnace installation in the U.S. ranges from $2,500 to around $6,000, with most homeowners paying around $4,200. This price varies depending on the contractor’s pricing and other factors such as the type and size of furnace, if your furnace has a lot of additional features, or if the installation requires new ductwork.
How to find the lowest furnace cost and installation
Choose a contractor who offers fair, transparent pricing, and can guarantee their work in some way.
InHome guarantees the lowest furnace installation cost because our buying power gets us wholesale prices on products and materials. Plus, we don’t use sales people so we can pass even more savings onto you. All our quotes are fair and firm, and include the cost of the furnace and installation—no surprises on installation day. If you find a better quote, we’ll beat it by $300. Get your instant quote today.