New furnace cost vary widely, ranging from $1,600 to $10,000, with installation included. This range depends primarily on the type of furnace and its installation complexities. Electric furnaces are cheaper, whereas gas and oil furnaces are comparatively costlier. Labor also plays a role in determining how much you’ll be charged for the installation.Â
This article will discuss the various types of furnaces, their costs, the factors affecting pricing, and other factors you should consider before purchasing. We will also break down the cost analysis to assist you in choosing the right furnace for your home.
What is the Average Cost of a New Furnace?
A new furnace costs between $1,600 and $10,000. The price depends on several factors, such as the fuel type, size, energy efficiency, and installation costs. You must consider all these factors to ensure you get the best value for your money.
Average Furnace Cost Based on Type
There are three common types of furnaces: electric, gas, and oil. Each has its price range. Let’s take a look at the cost of each kind.
| Furnace Type | Unit Cost | Installation Cost | Total Cost (with installation) |
| Electric | $2,000–$7,000 | $500–$2,000 | $2,500–$9,000 |
| Gas | $3,800–$10,000 | $2,000–$5,000 | $5,800–$15,000 |
| Oil | $6,750–$10,000 | $2,000–$4,000 | $8,750–$14,000 |
Furnace Cost in Different States
Installation costs for furnaces also depend on your area. Installation varies from state to state because of distinct labor rates and climate factors. Below, a table gives typical furnace installation costs per state. These are state averages but do vary according to specific parameters.
| State | Furnace Cost (Electric) | Furnace Cost (Gas) | Furnace Cost (Oil) |
| New York | $2,500–$8,000 | $4,500–$12,000 | $7,500–$13,000 |
| California | $2,200–$7,500 | $4,000–$11,000 | $6,500–$12,500 |
| Texas | $2,300–$7,200 | $4,200–$10,500 | $7,000–$13,000 |
| Florida | $2,000–$6,500 | $3,800–$9,800 | $6,500–$11,000 |
| Illinois | $2,400–$7,800 | $4,400–$11,500 | $7,200–$12,500 |
| Ohio | $2,100–$6,900 | $4,000–$10,800 | $6,800–$12,000 |
Why Furnace Costs Vary by State
The cost of a furnace in each state is influenced by several factors, including:
- Labor rates: Some states have relatively higher labor costs than others, which increases the price of a furnace installation.
- Climate: Colder states usually require more powerful and energy-efficient furnaces, which raises prices. For example, New York and Illinois will have higher gas or oil furnace prices because of their colder winters.
- Local demand: Prices might also be high because heating systems are in high demand in certain places.
Factors Affecting Furnace Costs
Several factors will determine the cost of a furnace. The following are significant ones to remember while budgeting for a new furnace.Â
1. Fuel Type
The cost of the furnace is greatly affected by the type of fuel used. Electric furnaces are the least expensive since they have a more straightforward internal structure than gas or oil furnaces. Gas and oil furnaces, on the other hand, have more complex operational systems and are usually quite expensive.Â
2. Furnace Size
The furnace type you choose will depend on how big your home is and how well it is insulated. Larger houses or houses in colder climates require furnaces with a high BTU rating (British Thermal Unit). More BTUs means the stove is more extensive and thus costs more. Always have your stove sized appropriately so as not to let it be either too large or too small, as that leads to overspending.Â
3. Energy Efficiency
Apart from the size of the furnace, the second major factor influencing the price is the energy efficiency. Furnaces with a higher AFUE (Annual Fuel Utilization Efficiency) rating convert more energy into heat for your house and ultimately save you on energy bills as time passes. Though these units may cost a little more, they are worth investing in for future benefit.
4. Installation Costs
Installing a furnace can add a significant expense to the initial cost. Installation costs vary greatly based on its complexity, need for new ductwork, and the house’s location. Replacement of an existing furnace with minimal ductwork would be on the low end of the price scale; adding new ductwork and/or electrical upgrades will increase costs.
How to Save on Furnace Costs
Buying a new furnace can be an expensive enterprise, but the good news is that there are ways in which you can lessen the overall cost. Here are some tips:Â
1. Shop Around for Multiple Quotes
Getting more than one quote before settling on an installer is always a good idea. Comparing prices will enable you to secure the best price for your furnace installation.
2. Choose the Right Furnace for Your Needs
Do not waste money on a fancy furnace you don’t need; an electric one could serve well enough in a not-so-extreme climate. Only go for anything more expensive if necessary to ensure your home’s heating requirements.Â
3. Take Advantage of Rebates and Tax Credits
Many states offer rebates or tax credits to homeowners who install energy-efficient furnaces. Those savings mean a great deal in cutting down on initial costs. Be sure to ask the installer about any available incentives.Â
4. Buy During the Off-Season
There’s little use for heating systems in spring and summer, so it is during these months that prices are relatively low. Consider getting an installation in the off-season if you want to save on your furnace installation.
Conclusion
The cost of a new furnace depends on the type, installation considerations, and where you live. Generally, it ranges from $1,600 to $10,000. Carefully evaluating fuel type, efficiency, size of unit, and local costs helps you choose one that fits your budget and heating requirements.Â
While replacing an old model or installing a new unit, obtain several estimates, view any rebates, and select the correct unit for your home. Investigating prices and learning what factors affect them will help you guarantee that a new furnace will pay for itself in years to come.
FAQS
Q1. How Much Does It Cost to Use a Furnace?
Furnace costs depend on fuel type and efficiency, but homeowners can expect to spend from $500 to $2,500 on heating yearly on average.
Q2. How Much Does a New Furnace Cost in Canada?
A new furnace in Canada can cost anywhere between CAD 2,500 and CAD 8,000, depending on type, size, and efficiency.
Q3. How Much Does It Cost to Replace a Furnace in Minnesota?
The furnace replacement cost in Minnesota is usually between $4,000 and $10,000, depending on the type of furnace, size, and local installation rates.