How much does a furnace cost?
The majority of homes in the U.S. have a gas furnace, but some still have an oil-burning furnace. The cost of a gas vs. oil furnace is rather similar, but the cost to heat your home each month will depend largely on the cost of fuel.
Two Main Factors That Influence the Cost of a Furnace
- Size of home — The size of your home will determine the size of the furnace - the larger the furnace, the greater the cost. Some large homes may even require two furnaces to provide enough heat, but bigger isn't always better when it comes to furnaces. If your furnace is too large for your home it will cycle off and on more frequently, decreasing efficiency and increasing fuel costs. Your local HVAC professionals can help you determine the proper size for your home.
- Efficiency rate — A furnace's efficiency is measured in terms of its annual fuel utilization efficiency, or AFUE. This is the amount of heat the furnace puts out compared to the total energy it uses. According to EnergySavers.gov, an AFUE of 90% means that 90% of the energy in the fuel becomes heat for the home and the other 10% escapes up the chimney and elsewhere. And the AFUE doesn't include the heat losses of the duct system or piping, which can be as much as 35% of the energy for output of the furnace when ducts are located in the attic. Learn more about energy-efficient furnaces and getting the most energy savings out of your heating system on EnergySavers.gov.
As a general rule, the higher the efficiency rate, the more the furnace will cost. If you intend to stay in your home for more than a few years, it makes sense to get the highest efficiency rate that you can afford. Over time, those lower energy bills will more than pay for the additional up-front cost of a more efficient furnace.
Typical Cost for a Furnace
- Low-End Estimate: $2,500 - $5,000
- High-End Estimate: $3,000 - $10,000
- These prices include installation.
Any Extra Costs Associated With Buying a Furnace?
- Most cities require a permit to install a new furnace. The cost can vary substantially by city and state, but typically costs between $25 - $50.
- Some cities may also require an inspection once your furnace is installed, which averages $25 - $80.
- If you are replacing an older furnace with a high-efficiency furnace, you may need to replace the ductwork, add chimney liners, and install a drainage system to accommodate the potential condensation.
- Adding an electronic air cleaner to your furnace system will add $400 - $1,000.
- A programmable thermostat can cost anywhere from $150 to $400 (including installation).
- Some HVAC companies will include the extras in your estimate - make sure you understand what is included in the price and any potential extra charges.
More About Saving Money With Energy-Efficient Furnaces