Skip to main content

New Furnace Installation Costs: How Much Should You Expect to Pay?

4 minute read

Devon Taylor

By Devon Taylor

A new furnace installation isn’t cheap. But it’s also something you can’t really avoid. After all, you need a reliable and safe way to heat your home. If your furnace is acting up (or is just really old), search online for professionals in your area who can replace it.

How much should you expect to pay? Like most things related to your home and money, it depends. Factors like where you live, what type of furnace you want, and the cost of labor all play a part in the final bill. An online search will give you a rough idea of your expected cost.

Factors That Affect the Price of New Furnace

When thinking about the price of a new furnace installation, it’s important to look at the factors that affect the price. After all, you don’t want to end up spending too much on your new furnace. That’s a waste of money. You also don’t want to spend too little, and have unreliable heat in your home.

The biggest factors that will impact the price of a new furnace are your location, the price of labor, and the type of furnace you need installed. According to HomeGuide, the average furnace installation costs between $2,000 and $5,400. However, a high-efficiency system could run up to $10,000. If you have a unique set-up, like a geothermal heat pump, the costs can easily soar above $15,000 or more. If you have a particularly large home, you may need a unit capable of heating more square footage. That will be more expensive too.

What You Should Know Before You Start Shopping

If you’re about to buy a new furnace for your home, it’s important to know a few things before making a purchase. If you decide to work with a professional, be sure to ask about price and timing. In general, the labor alone will cost anywhere between $50 and $150 per hour. However, most companies will quote you an “all in” price, which includes the furnace itself, plus the installation.

Gas furnaces are the most common in North America, and generally cost the least to operate. Opting for a high efficiency furnace will cost you more up front, but saves an average of $150 per year on energy bills. Electric, oil, coal, or propane furnaces are also common. They cost a little bit more to replace then a standard gas furnace.

How To Reduce Furnace Installation Costs

Choosing a high-efficiency furnace can reduce installation costs by 10-t0-15 percent. There are other ways to save on installation, too. For example, you might be able to get a contractor who’s also an HVAC technician (or gas fitter) to do your work for less than someone who just does installations. If you have any friends or family members who have recently installed furnaces in their homes, ask them about their experiences and how much they paid—you may be able to get some useful information that will help you negotiate with contractors.

If you’re not getting an “all in” installation price, then do whatever you can to save labor costs. That means moving all the junk you have stacked in the basement corner beside your old furnace out of the way. Basically, you want to make it easy as possible for your HVAC professional to get the job done quickly.

How To Decide Which Furnace Company to Hire

Deciding which furnace company to hire isn’t always an easy task. With many companies competing for your business, it can be difficult to narrow down your options and choose a winner. Just remember that your home is important! Plus it’s your money being spent, so don’t hand it over to the first sales guy you talk to. Call multiple HVAC companies and request estimates. Then compare and contrast their services (and costs) to pick the one that you like the most.

The first thing you should consider when choosing a furnace company is whether or not they have experience installing furnaces like yours. If you have an older furnace that needs replacing, then look for one that specializes in older furnaces. If you have purchased one of those fancy high-efficiency furnaces that are so popular today, look for one that specializes in them.

The Bottom Line

The average cost of a new furnace installation is usually around $5,000, but prices can vary greatly depending on the size of your home and the brand you choose. Depending on the size of your home and the brand you choose, costs can range from as low as $2,000 up to more than $10,000 or more. In any case, it’s important to seek out a trustworthy contractor who will walk you through the entire process clearly.

If you don’t have a “go-to” furnace guy, you should start by shopping around. Get multiple quotes from a few different furnace installation pros in your area. Pro tip: Don’t always go with the cheapest one. They may be cutting corners to reduce costs and earn your business. Always make sure your quotes are providing the same services (installation, pipe fitting, duct work, testing, thermostat hookup, cleanup, and even hauling the old furnace away).

Shutterstock

Devon Taylor

Managing Editor

Devon is an experienced writer and a father of three young children. He's simultaneously trying to build college funds and plan for an eventual retirement. He's been in online publishing since 2013 and has a degree from the University of Guelph. In his free time, he loves fanatically following the Blue Jays and Toronto FC, camping with his family, and playing video games.

Explore

Flipping Houses Home Ownership

How to Start Flipping Houses (And Actually Make Money)

House-flipping is often portrayed as a foolproof path to quick riches. While this inaccuracy can create unrealistic expectations, flipping houses can definitely be profitable if you do it right. And that’s the trick: the people most successful at flipping houses are generally the most experienced. That said, they all started somewhere. There’s nothing like completing […]

Read More about How to Start Flipping Houses (And Actually Make Money)

6 minute read

Young couple moving into their first house Home Ownership

How Your Rental History Might Finally Help You Qualify For a Mortgage

Even if you previously had a mortgage application rejected, you may want to try again. Fannie Mae recently announced changes to their underwriting process. The new calculations will include your history of rental payments. That’s great news for anyone that’s been a reliable tenant for years while saving for a house. This new process should […]

Read More about How Your Rental History Might Finally Help You Qualify For a Mortgage

3 minute read

See All In Home Ownership