How much does furnace installation cost?
Furnace installation costs $2,500 to $6,500 on average, depending on furnace type and efficiency rating.
Cost Breakdown
| Service | Low | High | Notes |
|---|---|---|---|
| Gas furnace (80% AFUE) | 2500 | 4000 | Standard efficiency |
| Gas furnace (95%+ AFUE) | 3500 | 6000 | High efficiency |
| Electric furnace | 1500 | 3500 | Lower install, higher operating |
| Installation labor | 500 | 1500 | 4-8 hours typical |
Furnace Installation Cost
Most homeowners spend $2,500 to $6,500 on furnace installation, with high-efficiency models reaching $8,000+.
Types and Costs
Gas furnaces: $2,500-$5,000 installed. Electric furnaces: $1,500-$3,500 (higher operating cost). Oil furnaces: $3,000-$6,500 (common in Northeast).
Efficiency Ratings
Standard 80% AFUE models cost less upfront. High-efficiency 95%+ AFUE models cost $1,000-$2,000 more but save $200-$400 annually on heating bills.
When to Replace
Consider replacement if your furnace is over 15 years old, requires frequent repairs, heats unevenly, or energy bills are increasing.
Installation
Professional installation takes 4-8 hours including removing the old unit, connecting gas and electrical, testing, and ensuring proper venting.
Related Questions
How long does a furnace last?
Most furnaces last 15 to 20 years with proper maintenance.
Repair or replace?
If over 15 years old and repairs cost more than 50% of new, replacement is more cost-effective.
What size furnace do I need?
Depends on square footage, insulation, and climate. A professional heat load calculation determines correct BTU output.