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How Much Does it Cost to Install a New Furnace? (Updated January 2026)

furnace and water heater in boiler room

​​Thinking about replacing your furnace or installing a new heating system? For Harrisburg homeowners in colder climates, a reliable furnace is essential. When winter temperatures drop and snow starts piling up, your furnace becomes the heart of your home’s comfort, keeping you warm without relying on layers of blankets.

Before choosing a new system, it’s important to ask:

  • Is a new furnace within my budget?

  • Which type of furnace is best for my home and climate?

Furnace installation costs can vary widely depending on your home’s size, location, and the type of system you choose. On average, furnace unit costs range from $2,672 to $6,575, while a full furnace installation typically costs between $4,820 and $9,350 nationwide.

These totals usually include:

  • The furnace unit

  • Labor and installation fees

  • Removal and disposal of the old furnace

  • Ductwork modifications (if needed)

  • Permits and system upgrades

Let’s break down furnace types, costs, and what factors influence pricing so you can make an informed decision for your Harrisburg, PA home.

Average Furnace Installation Costs by Type

While natural gas furnaces are the most popular, oil and electric furnaces are also common options, depending on location and fuel availability.

Furnace Type Average Unit Cost Average Installation Cost
Natural Gas Furnace Installation $1,825 $5,500
Propane Gas Furnace Installation $1,400 $3,750
Oil Furnace Installation $1,500 $4,000
Electric Furnace Installation $850 $3,000

Cost Differences Between Gas, Oil, and Electric Furnaces

Each furnace type offers unique benefits and trade-offs. While all systems are designed to heat your home effectively, fuel source, efficiency, installation complexity, and long-term operating costs vary.

Below is a closer look at each option.

Natural Gas Furnace Installation Cost

Average unit cost: $1,825
Average installation cost: $5,500

Natural gas furnaces are the most commonly installed heating systems in homes today. Natural gas is supplied through a municipal line and ignited in a burner, producing heated air that’s distributed through your ductwork.

Pros:

  • Lower annual fuel costs

  • Widely available in urban and suburban areas

  • Less environmentally harmful than oil or propane

Cons:

  • Requires access to a gas line

  • May not be available in rural areas

Cost range details:

  • Furnace unit: $650 – $3,000

  • Total installed cost: $3,000 – $8,000

If you’re converting from an electric furnace to gas, expect an additional $200–$500 for gas line installation.

Propane Furnace Installation Cost

Average unit cost: $1,400
Average installation cost: $3,750

Propane furnaces are commonly used in areas without access to natural gas. Propane is stored in a tank and converted to gas when released, igniting to produce heat.

Pros:

  • Good alternative for rural locations

  • Reliable heat output

Cons:

  • Propane prices fluctuate by location

  • Requires propane tank installation

Cost range details:

  • Furnace unit: $800 – $2,000

  • Total installed cost: $2,500 – $5,000

System size, efficiency rating, and brand significantly impact final pricing.

Oil Furnace Installation Cost

Average unit cost: $1,500
Average installation cost: $4,000

Oil furnaces — also known as pressure burner furnaces — spray oil into a combustion chamber where it’s ignited by an electric spark. Oil burns hotter than gas, delivering strong heat output.

Pros:

  • Produces high heat output

  • Effective in extremely cold climates

Cons:

  • Higher long-term fuel costs

  • Requires oil storage and delivery

Cost range details:

  • Furnace unit: $500 – $2,500

  • Total installed cost: $3,000 – $5,000

Electric Furnace Installation Cost

Average unit cost: $850
Average installation cost: $3,000

Electric furnaces rely entirely on electricity to generate heat. While they are efficient at converting energy into heat, electricity tends to cost more over time.

Pros:

  • Lower upfront installation costs

  • Simpler installation than gas systems

Cons:

  • Higher monthly operating costs

  • Must be properly sized to avoid excessive cycling

Cost range details:

  • Furnace unit: $700 – $1,100

  • Total installed cost: $2,000 – $4,000

Electric furnaces are typically cheaper to install but more expensive to operate long term.

What Factors Affect Furnace Installation Cost?

Several variables influence the final price of a furnace installation.

1. Location

Furnace costs vary by state and region due to:

  • Local permit requirements

  • Fuel availability

  • Labor rates

Rural homes may have fewer fuel options, which can affect overall cost.

2. Furnace Brand

Higher-quality or high-efficiency furnace brands typically cost more upfront but may last longer and perform better. Some systems are designed for larger homes, while others suit smaller spaces.

3. Installation Space

Labor costs can increase if:

  • The furnace is in a tight or hard-to-access area

  • The installation requires relocation

  • Additional framing or ventilation is needed

Larger homes also require larger, more expensive systems.

4. Previous Furnace Type

Switching fuel types can increase costs. For example:

  • Converting from electric to gas may require new gas lines ($200–$500)

  • Additional ductwork may be needed

5. Furnace Size (BTUs)

Furnace size is based on square footage and heating demand. Larger homes require higher BTU output, increasing system cost.

Home Size (Sq. Ft.) Typical Furnace BTUs
700 – 1,500 40,000 – 60,000
1,300 – 3,000 80,000 – 100,000
1,600 – 4,000 100,000 – 125,000
2,000 – 5,000 125,000 – 150,000

AFUE (Annual Fuel Utilization Efficiency) ratings also affect true heating capacity and efficiency.

6. Labor Costs

Labor typically ranges from $75–$100 per hour, depending on location and job complexity. Additional costs may include:

  • Assistant labor (around $50/hour)

  • Furnace inspection fees ($200–$260)

Choose a Trusted HVAC Company for Furnace Installation in Harrisburg, PA

As you can see, furnace installation costs can vary significantly. While system type and home size matter, the HVAC company you choose has the biggest impact on overall value and long-term performance.

WM Buffington Company Heating, Cooling & Plumbing has been installing furnaces throughout Harrisburg and Central Pennsylvania since 1952, delivering reliable workmanship and competitive labor pricing. Our certified technicians help homeowners choose the right furnace for their space, budget, and comfort needs.

If you’re planning a furnace replacement or new installation, contact our team today for expert guidance and dependable service in Harrisburg, PA, and surrounding areas.

Stay warm, Pennsylvania!

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