How Much Does a New Furnace Cost in Denver? [2025 Data]
Installing a new furnace in Denver costs an average of $4,924, with most homeowners paying between $2,914 and $6,933 for a new furnace. Costs are based on the size and type of furnace, labor, old furnace removal, and more.
An energy-efficient natural gas or oil furnace may be eligible for tax credits worth 30% of the project cost, up to $600.
A furnace installation or HVAC pro will install your new furnace correctly, avoiding safety risks and potentially costly repairs.
Denver HVAC pros charge $70 to $175 per hour in labor costs for furnace installation.
The price of a new furnace varies depending on its size, fuel type, removal costs, labor costs, and other factors.
Installing a new furnace in Denver costs an average of $4,924, with most new furnaces costing between $2,914 and $6,933. Denver’s cold temperatures mean you want your furnace running at maximum efficiency, and an old, inefficient furnace can cost you in both energy costs and comfort. Take a look at some of the things that contribute to how much you’ll pay in new furnace costs in Denver, Colorado.
New Furnace Cost Factors
A home’s furnace is responsible for keeping your home warm and comfortable throughout Denver’s cold winters, so if it’s no longer working properly or is at the end of its lifespan, you’ll need to replace it. The cost for a new furnace in Denver depends on various factors—we’ve broken down some of the most common ones so you can budget correctly for this project.
Furnace Size
Bigger homes need bigger furnaces to keep them warm, and the larger the furnace, the higher the price tag. A good rule of thumb is that you’ll need 30 to 60 BTUs, or British thermal units, per square foot of your home. Here are some common Denver home sizes, what size furnace they need, and the average furnace cost.
| Home Size (Sq. Ft) | BTUs Needed | Average Cost |
|---|---|---|
| 1,000 | 30,000–60,000 | $1,200–$2,000 |
| 1,500 | 45,000–90,000 | $1,800–$3,000 |
| 2,000 | 60,000–120,000 | $2,400–$4,000 |
| 2,500 | 75,000–150,000 | $3,000–$5,000 |
| 3,000 | 90,000–180,000 | $3,600–$6,000 |
| 3,500 | 105,000–210,000 | $4,200–$7,000 |
| 4,000 | 120,000–240,000 | $4,800–$8,000 |
| 4,500 | 135,000–270,000 | $5,400–$9,000 |
| 5,000 | 150,000–300,000 | $6,000–$10,000 |
Furnace Type
The type of furnace you’re installing will affect the cost as well. Electric furnaces have a comparatively low upfront cost, but will cost you more in energy bills on a month-to-month basis. Natural gas furnaces cost more to install but are highly efficient and can save you money on energy costs throughout the year.
| Furnace Type | Average Cost Installed | Pros | Cons |
|---|---|---|---|
| Electric | $2,000–$7,000 | Lowest maintenance | Highest monthly energy costs |
| Natural gas | $3,800–$10,000 | Most efficient | Requires ductwork |
| Oil | $6,750–$10,000 | More eco-conscious | High fuel costs |
| Propane | $3,700–$14,200 | Low monthly costs | High installation costs |
| Heat pump | $2,800–$10,000 | Long-term energy savings | High initial cost |
Old Furnace Removal and Disposal
Your old furnace will need to be removed and properly disposed of before you install a new one. Removal costs should be included in your project quote, but confirm with your HVAC contractor that removal and disposal are included.
Ductwork Installation
In some cases, you may need to install or update your home’s ductwork when you install a new furnace. Installing new ductwork can cost between $2,000 and $4,000, so check to see if your existing ductwork is compatible with the new furnace when budgeting for installation.
Tax Credits and Rebates
According to EnergyStar, an energy-efficient natural gas or oil furnace may be eligible for tax credits worth 30% of the project cost, up to $600. Check the requirements to see if your furnace qualifies and to ensure you have everything you need to claim the credit.
New Furnace Pro Costs
Hire a local furnace installation pro to install your new furnace or to check your HVAC system to see if your furnace needs to be replaced. Furnace installation isn’t a DIY project. An improperly installed furnace can pose serious safety risks, such as carbon monoxide poisoning. DIY installation could also void your furnace’s warranty—most manufacturers require professional installation.
HVAC Pro Costs
Hiring a Denver HVAC pro will cost an average of $70 to $175 per hour in labor costs, on top of the cost of your new furnace. Labor fees depend on contractor experience, the complexity of the installation, and the type of furnace. Confirm labor costs before hiring an HVAC pro.
Permits and Fees
According to the City of Denver, you’ll need a permit to install a new furnace to ensure compliance with local codes and regulations. Fees depend on the project cost and administrative fees, so confirm that you have the necessary permit and have paid all applicable fees before work begins.
Does a New Furnace Increase Home Value?
A new furnace can increase home value and has an average return on investment (ROI) of around 30%. How much value your new furnace adds to your home depends on the type of furnace, how much that type of furnace is in demand compared to other similar homes in your area, the furnace’s expected lifespan, and more.
Keeping up on HVAC maintenance and repairing or replacing your furnace when it shows signs of aging or damage can make your home more competitive when it comes time to sell. A new, well-maintained furnace assures prospective buyers they won’t get hit with big repair bills or the cost of a new furnace in the near future.
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.
- Furnace Repair
- Air Conditioning Repair
- HVAC Repairs
- Furnace Installation
- Wood & Pellet Stove Repair
- Dehumidifier & Humidifier Repair
- Heat Pump Companies
- Swamp Cooler Repair
- Wood Stove Services
- HVAC Companies
- Commercial A/C Repair
- Geothermal Installation
- Air Conditioning Installation
- Boiler Repair
- 24 Hour Furnace Repair
- Geothermal Repair
- Heat Pump Repair
- Humidifier Installation
- Thermostat Repair
- Thermostat Installation
- Nest Installation
- Heating & Cooling
- Heating Repair
- Furnace Cleaning
- Furnace Tune-Up
- HVAC Technicians
- Subcontractors
- Furnace Maintenance
- Plumbing & Heating Companies
- Wood Stove Inspection
- Mini Split Installation
- Wall Heater Repair
- Duct Installers