How Much Does an Electric Furnace Cost to Install?

Normal range: $1,861 - $7,401

The average electric furnace costs $4,631, but it can range between $1,861 and $7,401, depending on the size, installation complexity, and whether you need ductwork.

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Allie Ogletree
Written by Allie Ogletree
Updated October 18, 2022
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Photo: Jasmina007 / E+ / Getty Images

Electric furnaces cost between $1,861 and $7,401 on average. This includes approximately $800 to $2,600 for the units themselves (although some larger units can cost as much as $4,500 in some cases) and $800 to $2,500 for the labor. 

Installing an electric furnace is a great way to keep your home comfy during those long winter months. Electric furnaces are great for homes without ready access to natural gas or coal, as electricity is available just about everywhere. They also tend to be slightly cheaper than gas furnaces and can last upwards of 30 years, compared to 10 to 15 years for a gas furnace.

See the price range for electric furnace installations in

your area
How we get this data
Normal range for U.S.
$1,861 - $7,401
  • Average
  • $4,631
  • Low end
  • $150
  • high end
  • $11,000

Electric Furnace Cost Breakdown

Your climate and the number of people in your house will affect the cost of your furnace installation, as will factors like whether or not you need new ductwork and a dedicated electrical circuit. Here’s a closer look at the factors that determine the total cost of your electric furnace installation.

Size of Electric Furnace Unit

The square footage of your home plays a key role in determining the size of your electric furnace unit. The larger the house, the bigger the furnace you’ll need—and the higher the price tag. You’ll find that the size of an electric furnace is measured in British thermal units (BTU), which tells you the amount of heat the unit can produce.

Refer to the following chart to help you estimate your electric furnace cost by size:

Square FootageElectric Furnace Size (BTU)Average Cost
Less than 1,00040,000$800 – $2,600
1,000 – 1,50040,000 – 55,000$900 – $2,700
1,500 – 2,00050,000 – 70,000$1,100 – $2,800
2,000 – 2,50070,000 – 90,000$1,200 – $3,400
2,500 – 3,50090,000 – 100,000$1,400 – $4,500

Though this chart will give you a good idea of how much you might need based on your home’s square footage, remember that the price ultimately depends on the number of people in your house, the energy efficiency of your home, and your climate zone.

Your Climate

The chart above is a good jumping-off point for determining what size electric furnace your house will need, but you should also take your climate into consideration.

Homeowners in the warmest climates in the U.S. can calculate a rough estimate of BTUs needed by multiplying the number of square feet in the home by 30 to 35 BTU, while homeowners in the coldest regions will need to multiply their home’s square footage by 50 to 60 BTU.


Installing a new electric heater is labor-intensive, so count on paying out for three to four hours of labor for a replacement unit and eight to 12 hours for a brand-new unit. An HVAC professional near you will likely charge $50 to $150 per hour, though complex installations may require additional team members. The total labor cost is $300 to $800 for replacing a unit and $800 to $2,500 for installing a new furnace.

Electrical Circuit and Wiring

If this is your first electric furnace, you will have to hire a local electrician to build a dedicated electrical circuit. This circuit cannot supply power to anything other than the furnace or you will likely violate a building code and be subject to fines. A brand-new electrical circuit with an associated circuit breaker costs $500 to $2,000. If you are replacing an electric furnace, however, this cost will disappear, as the circuit already exists.


You may need to run some ductwork for heat distribution. Ductwork costs $35 to $55 per linear foot, with a total cost of $500 to $2,000 for an average single-family home. Chances are, however, you already have all the ductwork you need, as gas and electric furnaces share ducts. Even if your ductwork is up to date, you should have it thoroughly cleaned by a professional to improve the efficiency of your heating system. Cleaning ductwork costs $250 to $500.

Additional Costs to Consider

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Photo: Jasmina007 / E+ / Getty Images

Trying to calculate the cost of your electric furnace installation may feel like piecing together a complex equation, but knowledge is key to budgeting for your project. With this in mind, here are a few additional factors to consider to help you make your estimates.

New Electric Furnace Installation vs Replacement 

A new furnace is around three times as costly as a replacement furnace. That’s because a homeowner who’s looking to replace their existing electric furnace will already have the basic ductwork and wiring in place. A replacement unit typically costs between $1,300 and $8,400 to install, while a brand new electric furnace costs between $4,700 and $19,100 to install. 

The time it takes to install a new furnace is also anywhere from two to three times as long as replacing a furnace. It can take between four and eight hours to install a new furnace, while a replacement furnace should only take a few hours. Since labor falls anywhere between $50 and $150per hour, the installation time really plays a part in the total price. 

Building Permits and Inspection Fees

Just as with a gas furnace, installing an electric furnace will require paying for building permits and inspection fees. Obtaining a building permit costs $200 to $500 but will depend on where you live. Generally speaking, permits and licenses are cheaper in small towns compared to large metropolitan areas. 


You may want to build a dedicated furnace room located in the basement, attic, or near a crawlspace. This is an entirely optional step, though it will increase the aesthetics of your home. A reputable contractor will frame out a furnace room for $1,000 to $3,000, making sure the furnace has proper ventilation and plenty of room to do its thing. 

Removal and Disposal

If you are replacing a pre-existing electric furnace, your pro will have to properly dispose of the old unit. This disposal costs $100 to $300, but be sure to talk to the installation expert to see if they’ll do it as part of your installation fee. You can also contact a local recycling center or scrap yard if you want to handle disposal by yourself. 

Thermostat Replacement

The typical range for thermostat replacement costs is anywhere from $100 to $250. High-tech thermostats like smart thermostats usually come with a higher price tag. If you’re installing a new thermostat in a new location, keep in mind that there will likely be additional costs for wiring it. This can add up to $300 to the price.

Electrical Panel Upgrades

If your home needs a new circuit breaker box, higher amperage, or a complete rewire, you’ll see a noticeable increase in the cost of your electric furnace. The cost to replace the average 150-amp circuit breaker box ranges anywhere from $500 and $1,800. Meanwhile, the basic cost of rewiring a house could run you up to $1,500.


You’ll need to service and clean your furnace every fall with a licensed tune-up technician near you to keep your system running efficiently. This inspection can cost anywhere from $150 and $500 on average. During the inspection, your technician will check the ductwork, air handler, heating elements, and the electrical system as a whole. The technician might adjust or tighten the system to protect your home from electrical shut-downs. 

Energy Bill

The average cost of residential electricity is 13 cents per kilowatt-hour. A furnace runs through a heating cycle once to three times per hour, depending on the weather, with each cycle clocking in at 10 to 15 minutes. That adds up to an average of two to four hours of active heating per day. 

Considering the average home uses about 20,000 watts per hour of heating, the figures come out to $2.60 per hour, $5.20 to $10.40 per day, roughly $160 to $315 per month, and about $1,900 to $3,800 per year. These figures are subject to differ because electricity prices fluctuate according to the weather, and so do home sizes. Depending on the age of your furnace, you may want to upgrade to a more energy-efficient model to save on your energy bill.

Cost to Install an Electric Furnace Yourself

Installing an electric furnace is not a DIY project. You’ll need a professional electrician to ensure you’ve selected the right equipment for your home and to install the unit correctly. You may need permits, especially if you need to remove your old furnace. In some areas, it could even be illegal to DIY your installation without the required licensing. This is because an improper installation can quickly become a safety hazard. To avoid a potential fire hazard, work with a local electrician

On average, the cost to hire an electrician falls anywhere between $150 and $500. Local professionals know exactly where to obtain the correct permits and inspections. They also have the experience needed to install your new electric furnace correctly so that you can make the most out of your investment.

Frequently Asked Questions

Installing an electric furnace is not a simple DIY project, so you should probably leave it to the experts. There are building permits to obtain, electrical circuits to maneuver, ducts to clean and inspect, and a bulky furnace to haul to its correct location. 

Additionally, many parts of the country only allow licensed professionals to do this kind of work. If you are a licensed electrician or HVAC expert, however, expect to save $400 to $2,000 on labor costs. If not, kick back and relax and let the pros handle it.

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