Heating and air conditioning service costs depend on your project and location. Check with a local pro for your specific job.
New furnace installation costs between $2,823 and $6,896 on average, with your furnace type and size impacting your total.
The fuel type you choose and the efficiency rating of your furnace will determine how much you save on monthly heating bills.
You should account for old furnace removal fees, building permits, and potential ductwork upgrades when creating your budget.
Hiring a local furnace installation professional ensures your system is sized correctly and keeps your home safe from carbon monoxide risks.
You probably haven’t had to install a new furnace recently because they last 20 years on average. So if you haven’t gone furnace shopping in a while, they might look a little different than your current unit. New furnace installation costs can fluctuate, but anticipate spending between $2,823 and $6,896 on average.
While it would be great to think about the cost of a furnace as a one-size-fits-all price, it's not that simple. There are different sizes and types of furnaces, and even the brand can play a part in the overall cost.
Furnace capacity is measured in BTUs, or British thermal units, with each unit measuring the amount of heat needed to raise the temperature of one pound of water by one degree Fahrenheit. An average home will need a furnace with about 80,000 to 100,000 BTUs per hour. You can also determine what furnace size you need by figuring about 30 to 60 BTUs needed per square foot.
| Home Size | BTUs Needed | Average Cost Installed |
|---|---|---|
| 1,000 square feet | 30,000–60,000 | $1,200–$2,000 |
| 1,500 square feet | 45,000–90,000 | $1,800–$3,000 |
| 2,000 square feet | 60,000–120,000 | $2,400–$4,000 |
| 2,500 square feet | 75,000–150,000 | $3,000–$5,000 |
| 3,000 square feet | 90,000–180,000 | $3,600–$6,000 |
| 3,500 square feet | 105,000–210,000 | $4,200–$7,000 |
| 4,000 square feet | 120,000–240,000 | $4,800–$8,000 |
| 4,500 square feet | 135,000–270,000 | $5,400–$9,000 |
| 5,000 square feet | 150,000–300,000 | $6,000–$10,000 |
The type of furnace—yes, there's more than one—can also impact what you'll be spending. Even though all furnaces heat your home, the way they are powered can be different.
| Furnace Type | Average Cost Installed |
|---|---|
| Electric | $2,000–$7,000 |
| Natural gas | $3,800–$10,000 |
| Oil | $6,750–$10,000 |
| Propane | $3,700–$14,200 |
When shopping for a new furnace, the first question you’ll need to answer is which type of fuel you want to use. The four most common types are natural gas, propane, oil, and electric.
Natural gas furnaces are the most prominent choice for homeowners. According to Angi customer data, 58% have a natural gas furnace, while 12% use oil and another 12% use electric furnaces. You should consult a local furnace professional to determine the best furnace for your home.
Location affects the cost of furnace installations since labor rates are more expensive in areas with higher living costs or higher demand. You can expect to pay at least $5,000 for a new furnace in states like Maryland, California, and Virginia.
While the more efficient furnaces are often the most expensive, it’ll be worth it to your wallet in the long run. The less heat wasted through ductwork, pipes, or a chimney, the more heat there is available to warm up your home.
High-efficiency furnaces have an annual fuel utilization efficiency (AFUE) rating of 96% or higher. Mid-efficiency furnaces have an AFUE rating of 90% to 95%, and low-efficiency furnaces have an AFUE rating of 80% to 89%.
In most cases, labor costs for installing a new furnace can run from $75 to $100 per hour. Labor costs can vary by location, though; for example, if you live in a place with a higher cost of living, you can expect labor costs to be higher.
In some locations, it’s required to have a permit to install a new furnace. While this isn’t necessary for every city and municipality, this additional cost could run between $400 and $1,500. Your local furnace installer will be able to tell you if a permit is needed in your area.
In most circumstances, if you’re installing a new furnace, you’ll need to have your existing furnace removed. Most local HVAC contractors can dispose of the old furnace for you during installation but will charge a fee. The fee to remove an existing furnace can range from $60 to $330, depending on your location.
Depending on the age of your existing unit, you might need to install new ductwork when installing a new furnace. If your existing ductwork is incompatible with the new furnace or is insufficient to heat your home, your HVAC tech might suggest installing new ductwork to make sure your home is heated properly. Installing new ductwork will cost about $2,000 to $5,000.
While the cost of furnace maintenance won’t be hitting your wallet at the time of installation, it's essential to keep it in the back of your mind. Regardless of the type of furnace you choose, it’ll need tune-ups and maintenance at least once a year to hopefully avoid major repairs. Typically, HVAC maintenance fees cost between $60 and $550.
This is one home improvement project you should leave to the pros. Replacing a furnace involves gas or electrical connections, ventilation systems, air handling equipment, ductwork, and detailed system sizing. If you choose the wrong size system or install it incorrectly, you’ll deal with higher energy bills, uneven heating, and shortened equipment life. Instead, hire a local furnace installer to get the job done right the first time.
A furnace installer will ensure that your new system is properly installed and operates safely. Here are other reasons to hire a pro for this job:
They have the tools and expertise to calculate heating load, meaning your furnace won’t be oversized or undersized—and it won’t waste energy or leave you cold.
Professionals install and test gas or electrical connections to ensure they comply with building codes, keeping homes safe.
HVAC technicians can inspect ductwork for leaks or restrictions that impact furnace performance and efficiency.
Furnace installers understand proper venting techniques to prevent carbon monoxide risks.
Many furnace manufacturers require professional installation to protect warranty coverage.
Depending on your location, HVAC pros must hold certifications or a license and can inform you if a permit is required.
You might be heating up at the thought of spending a lot of money on a new furnace, but there are some ways to save on the overall cost. Comparing the type of furnace you need along with different brands is a great way to save money upfront, even before the installation. Here are few other ways to save money on the cost of a new furnace:
Ask for quotes from multiple HVAC professionals to ensure you’re getting the best deal.
Scope the internet and mailers for deals, coupons, and rebates from installers.
Try to learn the age of your existing furnace. Save money every month to replace it versus financing, if possible.
According to EnergyStar, gas furnaces that are 97% or more efficient and some oil furnaces are eligible for a tax rebate. This credit is effective for those furnaces purchased and installed from January 1, 2023, through December 31, 2032, and can be worth up to 60% of your total project cost, up to $600.
Your furnace installer can help you balance up-front costs with long-term operating expenses and share options for furnace size, fuel type, and efficiency ratings.
Ask if your existing ductwork needs sealing, repair, resizing, or other work to improve airflow and comfort.
Review warranties on equipment and labor, and understand the necessary steps to maintain them.
Understand the expected lifespan and maintenance required to keep your new system running smoothly.
Inquire about rebates or tax incentives for energy-efficient upgrades and whether you qualify.
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’ve surveyed over 10,000 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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