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How Much Does it Cost to Install a New Furnace?

furnace and water heater in boiler room

​​Thinking about getting your furnace replaced or looking to install a new furnace system? Many homeowners that live in colder climates desire a furnace that can run through any temperature. When the snowy season comes around, your furnace will be the source of your comfort so you aren’t piling the blankets on to keep warm.

Before you make any decisions, ask yourself, is a new furnace in your budget? And if so, which type of furnace will best suit your needs?

You’ll be looking at a different cost depending on the location of the furnace, the size of your home, and the type of furnace. But the average cost per unit can range anywhere from $2,672 - $6,575. 

The national average is $4,820 - $9,350 for a full furnace installation. This includes the furnace itself, labor fees, ductwork, removal, and disposal of the old furnace, as well as other installation costs or upgrades included.

While gas-powered furnaces are the most popular, oil and electric furnaces are options as well.

Furnace TypeAverage Unit CostAverage 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

The Cost Differences Between Gas, Oil, and Electric Furnaces

There are more furnace choices than you may think! Each type of furnace has its own purpose and benefit. While all furnaces are made to keep you warm in your home, there are upsides and downsides for the various furnaces we list below. Depending on the furnace type, you’ll find that the price differs.

Take a look at the prices and benefits of each furnace to determine which furnace is right for your home.

Natural Gas Furnace Installation Costs

Average Cost of Unit: $1,825

Average Cost of Installation: $5,500

Gas furnaces are the most commonly found furnace unit in homes to date. Gas (methanol) is piped into the municipal line which leads to the gas burner igniting and the hot combustion gas then raises the temperature of the air. Natural gas furnaces have some of the lowest yearly costs and are overall less harmful to the environment in comparison to oil or propane. However, there needs to be a gas line in place near the location of the home which may not be the case in more rural areas. 

The average cost for the individual unit is a minimum of $650 to a maximum of $3,000. The total cost averages from $3,000 to $8,000 including installation. However, if you currently have an electric furnace, there will be an additional cost to convert to gas which includes installing a gas line at about $200 to $500 more.

Propane Furnace Installation Cost

Average Cost of Unit: $1,400

Average Cost of Installation: $3,750

Propane furnaces are a good option for areas where natural gas or other materials are unavailable. However, heating costs vary greatly depending on the efficiency of the furnace you choose. A propane tank would also need to be installed, and propane gas can vary in price depending on the location of your home. The propane converts to gas once it’s released, the gas then ignites and heats up which forces hot air through the ducts. 

The average cost for the individual unit is a minimum of $800 and a maximum of $2,000. The total cost varies from $2,500 to $5,000 including installation. However, the brand and the size of the furnace greatly impact the total price.

Oil Furnace Installation Cost

Average Cost of Unit: $1,500

Average Cost of Installation: $4,000

An oil furnace is also known as a pressure burner. Oil is sprayed into a combustion chamber at a high pressure which is then ignited by an electric spark. The oil continues to burn as the oil mist is sprayed. Oil also burns hotter than gas, producing maximum heat. However, heating up the oil costs more than gas in the long run.

The average cost for the individual unit is a minimum of $500 and a maximum of $2,500. The total cost averages $3,000 to $5,000 including installation. 

Electric Furnace Installation Cost

Average Cost of unit: $850

Average Cost of Installation: $3,000

Electric furnaces only use electricity, which is the most efficient method of heating, however, it creates a higher electricity bill in the end. They are also less intensive to install than a gas furnace. It is extremely important to have the right furnace for the size of your house or else it will either run constantly or turn on and off too frequently, wearing it down.

The average cost for the individual unit is a minimum of $700 to a maximum of $1,100. The average installation cost is $2,000 to $4,000 including the installation. Electric is typically cheaper to install than a gas furnace, however, there are higher operational costs. 

What Affects the Price of a Furnace?

1. Location

Prices for furnaces can vary from state to state. Certain permits are required depending on where the furnace is located. Some rural areas don’t have access to propane or gas lines which could affect your furnace options.

2. Brand 

The brand of the furnace also affects the price due to the fact that some are higher in quality, or can sustain a larger space than others. Some brands are meant for bigger houses with more square footage, while others are meant for smaller homes. Upgrades or higher efficiency brands can also increase the cost.

3. Space

The area where the furnace is located can also be a factor in the cost due to the difficulty of installation and therefore the labor cost may be higher. The size of the building or house also greatly impacts the price since a larger space will need a larger unit. The price will also be affected if you are changing the style of the unit to one that requires more space, or a different location in the home.

4. Previous Furnace Type

Previous furnace types also affect the price. If there was previously an electric furnace installed and is being replaced by a gas furnace, there would need to be gas lines installed, which would increase costs anywhere from $200 to $500. There may also need to be additional ductwork installed which can also increase labor costs.

5. Size  

Your home will require a different furnace size depending on its square footage. On average, most homes will need roughly 100,000 BTUs of heating capabilities. Remember that the AFUE (or Annualized Fuel Utilization Efficiency) rating will affect the true heating capacity of your furnace. When picking out a new furnace, you’ll need to factor in your heating needs and pick a furnace size accordingly. The higher the BTUs, the more expensive the furnace will typically be.

Square Footage of HomeTypical Furnace BTUs
700 - 1,50040,000 - 60,000
1,300 - 3,00080,000 - 100,000
1,600 - 4,000100,000 - 125,000
2,000 - 5,000125,000 - 150,000

6. Labor 

Typically, labor can cost anywhere from $75 to $100 an hour depending on the company and area as well as the complexity of the job. There could be an additional $50 an hour for an assistant. As well as charges for inspection of the furnace ranging from $200 to $260. 

Choose a Trustworthy HVAC Company for Furnace Installations

As you can tell, there are huge gaps in the cost of installing a furnace based on multiple factors. However, the most important factor, and definitely the one that affects the price the most, is the HVAC company that services you.

WM Buffington has installed furnaces in the Central Pennsylvania area since 1952 while providing the best price on labor costs. If you’re looking to install a new furnace, contact our certified team of technicians to get the best furnace for the best price.

Stay cozy Pennsylvania!

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