How Much Does a New Furnace Cost in Phoenix? [2025 Data]

Normal Range: $3,067 - $8,208

A new furnace in Phoenix costs $5,425 on average, with most homeowners paying between $3,067 and $8,208, depending on the furnace type, home size, and efficiency rating.

Photo: Sana/ Adobe Stock

Written by Paige Bennett

Contributing Writer

Updated Jul 22, 2025

Highlights

A new furnace costs around $5,425 in Phoenix, AZ.
Winter temperatures can dip into the 40s in Phoenix, making a furnace important to keeping warm.
The average Phoenix home needs a furnace with 67,800–135,600 BTUs.
Natural gas or electric furnaces are most common in Phoenix.

A new furnace costs around $5,425 in Phoenix, Arizona, with most households spending between $3,067 and $8,208 for the initial installation. The city is one of the hottest cities in the U.S, but with average winter low temperatures dipping into the 40s, a furnace can help keep out the overnight chill. Ultimately, how much you spend will depend on the type of furnace you want to install, plus the size of your home and the furnace efficiency rating.

Furnace Cost Factors

The cost of a furnace will depend on the size of your home, the size of the furnace, the type of furnace, and how efficient it is. Here are the most common cost factors for furnace installation.

Size

The size of your furnace, or its heating capacity, is measured in British thermal units (BTUs). To calculate the amount of BTUs you need, you can estimate about 30 to 60 BTUs per square foot. With a median home size of 2,260 square feet in Phoenix, you’d need 67,800 to 135,600 BTUs.

Or, you can let an HVAC pro in Phoenix, Arizona, determine the right size furnace for your home.

Home Size in Square Feet	Furnace Size in BTUs	Average Cost Range
1,200	36,000–72,000	$900–$3,560
1,500	45,000–90,000	$1,830–$4,440
1,800	56,700–113,400	$2,200–$5,330
2,000	60,000–120,000	$2,400–$5,920
2,260	67,500–135,000	$2,760–$6,680
2,500	75,000–150,000	$3,050–$7,400
3,000	90,000–180,000	$3,660–$8,880
3,500	105,000–210,000	$4,270–$11,000

Type of Furnace

In Phoenix, there’s a wide range of the type of furnace you might find in an average home. Many homes rely on natural gas or electricity for heat, and heat pumps are also common. If you live further out from the city center, you may also come across propane or oil heating.

In 1999, Arizona began enforcing a ban on wood-burning fireplaces and certain wood-burning stoves in newly constructed homes for cities with populations over 1.2 million, so wood-fueled heating is less prevalent in the city.

Here are the average costs for different types of furnaces:

Furnace Type	Average Cost Range	Pros	Cons
Natural gas	$3,800–$10,000	Low energy costs	Requires gas connection
Electric	$2,000–$7,000	Energy-efficient	Higher energy costs
Propane	$3,700–$11,000	Quick, effective heating	Less energy-efficient
Oil	$6,750–$10,000	Long lifespan	High maintenance
Wood	$1,500–$4,000	Lower energy costs	Requires space for wood storage

Efficiency

The higher the fuel utilization efficiency (AFUE) rating, the less you’ll spend on energy costs for your furnace. Higher-performance furnaces may come with a higher upfront cost for the unit, but ongoing energy or fuel costs will be lower compared to less efficient models.

Performance	AFUE Rating	Average Cost Range
High-efficiency	96% or higher	$6,680–$11,000
Mid-efficiency	90%–95%	$2,760–$6,680
Low-efficiency	80%–89%	$100–$2,760

Ductwork

If you need to repair or replace ducts for a forced-air furnace, you’ll spend anywhere from $450 to $1,590 in addition to the cost of labor and materials for the furnace unit itself. You need tightly sealed ducts for your furnace to adequately and efficiently heat your home, so hire an HVAC pro to check your ducts and make any adjustments as needed.

Furnace Pro Costs

HVAC labor costs are about $1,500 to $4,000 per project, plus the cost of permits.

You’ll need the right permits to install a furnace, and permit fees are based on the cost of the project. There’s a base fee of $150 for projects up to $1,000, plus $9 for every partial or full $1,000. If you have a complex furnace installation that costs more than $10,000, the rate is around $230 for the first $10,000 and another $8 for each additional $1,000 in project value.

Sounds confusing? Thankfully, your local furnace pro will handle the entire permitting process and can build the fees into their contract.

Does a New Furnace Increase Home Value?

Installing a new furnace can slightly increase home value in Phoenix, but you’ll get more value by upgrading your entire HVAC system. In this hot climate, having a reliable AC is critical, and many buyers will appreciate an energy-efficient heating system for the cooler winter days.

How Angi Gets Its Cost Data

Home is the most important place on earth, which is why Angi has helped more than 150 million homeowners transform their houses into homes they adore. To help homeowners with their next project, Angi provides readers with the most accurate cost data and upholds strict editorial standards. We survey real Angi customers about their project costs to develop the pricing data you see, so you can make the best decisions for you and your home. We pair this data with research from reputable sources, including the U.S. Bureau of Labor Statistics, academic journals, market studies, and interviews with industry experts—all to ensure our prices reflect real-world projects.

Want to help us improve our cost data? Send us a recent project quote to [email protected]. Quotes and personal information will not be shared publicly.

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Learn more about our contributor

Written by Paige Bennett

Contributing Writer

Paige Bennett is a professional editor and writer with experience covering design, DIY projects, food, health, and travel, and holds a bachelor's degree in journalism from Ohio University.