How much does a new furnace replacement cost in 2023

We mentioned each and everything about furnace replacements, and here we you give variety of prices ranges for the installation of your equipment and for purchasing purpose. It helps you to fix your budget and through this you are able to make best decision for your home.

How much does a new furnace replacement cost

How much does a new furnace replacement cost?

Basically, the replacement of new furnace between $3,000 to $8,500. All this depends upon the size of your house and efficiency of the new furnace, also it depends on the complexity of your HVAC system. The price ranges which we have mentioned above include labour cost and the permit fees instead of just HVAC system cost.

The ranges which i have mentioned above is suitable for 5000 square feet or for that house which is smaller then this size. In this range, the single stage and two stages, variable speed HVAC system and the best efficiency models are also include. The more choices you make in order to get more comfort and the home sizes are also affect in the price ranges.

Many poeple don’t know or even having an idea about the cost of a new furnace. If you are among those people’s then don’t worry about this, because there are many poeple’s who didn’t  buy any furnace for more then 20 years and many poeple are going to buy furnaces for the first time.

There are so many thing through which prices increases. But a lot of people only notice the final result  of  how HVAC system provide heating of house. Also, some people having no idea about what affect the cost and how?

Also Read: How does a Furnace Works?

We will provide you variety of price ranges which helps you to fix your budget. But not only this, we will provide you that how prices increases and why these preices exist and why each of these prices is benfical for your whole comfort.

furnace cost

We will give you a complete cost of HVAC system and also the installation cost. Those price ranges which we will provide you, in those ranges inspection permit cost are also included, which is often included as a hidden fees. Some guides will only show the price of equipment and some show the price equipment with the addition of certain extra fees which is totally misleading.

Well, its true that if you do some modification or additions these things will increases the cost. But the price ranges we provided, these ranges are very suitable for many house-owners. Also, we have to cover all those things through which you face alot of additinal equipement costs. In the end, you guys are able to make your budget for the new furnace.

There are few items which affect the intallation cost of new furnace:

  • Size (Capacity) of the new Furnace.
  • How efficiecncy of the new furnace is related to the full HVAC system.
  • Additional options of speed regarding blower motor through which it helps to increases the comfort but also increases the cost.
  • Matching that equipment which is compatible with the technology.

Some additional cost of new furnace are included such as:

  • Modification of ductwork or ventilation.
  • If you want to convert your furnace into gas furnace then gas lines installation.
  • Addition of indoor products which increases the quality of air such as: humidity filters or media filter which increase the cost of furnace. But it saves your money for the long term.

Size of the Residential furnace:

When HVAC contractor visit your house, they performed Manual J load calculations just to make sure that how much the size is needed in the HVAC system for providing heating and cooling accurately and properly to your house.  These calculation standards are maintained by ACCA (Air Conditioning Contractor of America).

furnace details

So, in this way you can tell the house owners that how much capacity is required to service your house. There are many factor which matters alot like how many number of window and their directions and the size of the house.

Large house needs large size of furnace that cost you much, that’s why it is very important to get the exact size of the house, if you don’t do this then you loose so much efficiency it depends on weather your furnace size is little or so much.

Efficiency of furnace and its cost:

For measuring the efficiency of air conditioners, one of the common metric is the SEER rating which calculate the usage of energy by cooling.

furnace Efficiency

Basically, for the furnaces the common metric is AFUE(Annual Fuel Utilization Efficiency)  which is measured from 1 to 100 on scale. Example: An 80% of AFUE  means that 80% of fuel is used for heating purpose and the 20% is vented through the system of exhaust.

Well the average range of efficiency depends on the fuel types, the average efficiency of new furnace is 78% and the highest efficiency units in the markets todays is from 90 to 87%. Modem HVAC systems are more efficient than older system. You can not measure the total efficiency of your HVAC system by the aspect of efficiency rating.

Generally, higher efficiency have to two things:

  • Higher initial Cost.
  • Lower long term cost.

Furnace Efficiencies:

Level of efficiency Average fuel utilization efficiency (AFUE) Ratings
Low Efficiency with (old Units)less or below 78 percent
Low Efficiency with (Modern Units)from 80 to 89 percent efficiency
Medium Efficiency from 90 to 95 percent efficiency
Hight Efficiencyfrom 96 percent efficiency or greater

You can choose that budget which is suitable for you. Well, its your personal decision, On this topic you will discuss with your HVAC contractor.

Speed options in furnace:

When we are discussing about HVAC system, you heard a specific term called variable speed.  Well, it usually regarding with air conditioners but it also concerns with your furnace. More importantly, it usually concerns blower motor which is placed in your furnace, which is used to move air from your system.

When we are discussing about HVAC system, you heard a specific term called variable speed.  Well, it usually regarding with air conditioners but it also concerns with your furnace. More importantly,

furnace speed option

it usually concerns blower motor which is placed in your furnace, which is used to move air from your system.

Basic HVAC system means furnace comes with the blower of single stage. It is having just two functions like “on, off”. For controlling, there are no more options between these two points.  Furnaces with two stages of blower motor comes with 100 percent settings, which provide more comfort and with extra control.

There are various individual settings of speed in the variable speed system, for heating and cooling purpose this shows a control of granular levels.

Well unsurprisingly, its cost you more at the initial stage. In this article, like various other items, the trade off is tied up with the initial cost, comfort and with level of controls and also with the energy costs which is used for long term purpose.

Variable speed HVAC unit will use minimum energy, that’s why it is best for the investments of long terms. 

Blower motor is basically fixed inside your furnace and it is compatible with your air conditioner. It means the matching of equipment’s with the system is also very important.

Matching of HVAC equipment’s:

All technologies are going to move towards smartness. Means, it usually communicates with the other systems dynamically. Equipment’s of HVAC is not totally different, there are different levels of communications, all this is depending on your system.

Equipment of furnace of a single stage, two stage or variable speed must be matched. As we mentioned above, that furnace elements are providing air flow for the unit of air conditioner.

Similarly, the source of fuel and the equipment sizing make the equipment more efficient or less efficient when its paired with the different equipment’s. 

furnace outdoor unit

You have to understand the option of your HVAC system and How it is related to the prices. If you are having an air conditioner of variable speed and you are not ready to replace your air conditioner, then you need a compatible furnace through which it limits your options and put you in the category of high price. If you want to upgrade your furnace to variable speed, but your HVAC system only support the single stage, then you are not able to upgrade because it decreases the furnace efficiency, until you will change the whole HVAC system.

All these things can be discussed with professional HVAC contractor. Basically, you do not have to perform any heavy lifting by yourself. 

 Sources of power and its costs:

Many furnaces work on oil and gas or electricity. You have to know general facts of about different types of furnace, including fees of labour and materials and cost of each HVAC system will be dicussed in this article.

Environment friendly Furnaces:

Sources of Power (Green)Price Ranges of furnace on installation
Geothermal power sourceFrom $2100 to $35,100
Solar power sourceFrom $10,800 to $31,000

Gas Furnace:

  • It is very common type of furnace.
  • It generally used gas as a fuel but you can convert your furnace from natural gas to propane.
  • Gas furnace heat your house quickly and increase temperature instead of electric furnaces.
  • Gas furnace is the cheapest furnace to use but not so much cheapest one to install. 
  • Risk of gas leakage when you are using gas furnace.
  • It’s necessary to be connected through a gas line.
  • Gas furnace is the best option for these areas where weather becomes harsh in winters.
  • Installation cost of gas furnace between $2,900 to $7400.

Electric Furnace:

  • Its very cheap and very easy to install.
  • Expensive because it give you higher utility bills.
  • It takes more time to provide heat than gas furnace.
electric furnace
  • Maintenance of electric furnace is very low instead of gas and oil furnace.
  • It operates quieter than other various types of furnaces.
  • It works very well on those areas where weather remains normal or mild in winters.
  • Installation cost of electric furnace is $1867 to $4455.

Oil Furnace:

  • Oil furnaces are rarely installed and used.
  • You must have to store fuel in your house or where you want install.
  • Very environmental friendly than a gas furnace.
  • Very Expensive to install or run such type of furnace instead of others.
  • Installation cost of oil furnace is $4,756 to $7,310.

Replacement cost of new furnaces:

Now, you are able to know the cost of mid efficiency(~80%) and higher efficiency (90%+) furnaces and what ar the facts that why final prices increases just because of each area.

Furnaces of Medium Efficiency(~80%):

Single stage furnaces$2930 to $4,050
Two Stages Furnaces$3,7,80 to $5,266
Vaiable Speed Furnaces$4290 to 5,390

Furnaces of Higher Efficiency(90%+):

Single Stage furnace$3,370 to $4,925
Two stages Furnace$4,270 to $6,530
Variable Speed Furnace$6,230 to $8,380

In these prices only installation and its related feeses are included. It does not include modification of vents and ductwork or air quality products because these things are not included in every installation process of furnaces. So, you can a better idea of How much does a new furnace replacement cost

And many other things are also not included in these prices such as rebates and taxes or incentives which are generally offered by the companies and manfacturers. These are the things which we will dicuss later in the article. These things can reduce the cost of furnace significantly.

When you are ready to invite professional HVAC contractor to your house, than you must have to compare furnace cost with furnace installation procedure, through which you are able to ensure the efficiency of your HVAC system.

Installation of half and full HVAC system:

Well, if you are having only one choice to replace the furnace, you can paired the installation of furnace with the installation of air conditioner through this you are able to save money.

Installation of both at once normally reduces the labour cost instead of when you are installing both seperately.you can save thousands of dollars, all this is depends on what type of system you are installing.

Also, you have to ensure that equipments are matching with your system, and by checking warranties make schedule for maintenance.

If the replacement of both air conditioner and heat pump and system. This is the best option for you. Or if it requires only one replacement either air condition or heat pump and system, half installation is normally common.

Also Read: Furnace Installation Process Step by Step (Complete Guide)

Modification of ventilation and the ductwork:

If full installation of furnace reduces the cost, than doing modification in the ductwork and the ventilation increase the cost of your furnace. There are not so many ductwork in the old houses in order to manage the flow of air.

furnace ducts

If you left this, it decreases the efficiency of furnce and it affect the systems health for not providing the enough space for air circulation.

Similarly, the flue of chimney might need a liner, if the materials inside it is not capable for controlling the heat and pressure from new HVAC system. This gurantees the best performance or safety of your new HVAC system.

Well, both of these are very common in th old houses, it always best to inquire that if there is any necessary adjustments as the parts of installation or not.

Indoor products for the air quality:

Cost of the furnace is not tied up with the size or quality of air filters but depending upon the size or quality of air will affect the price in a various ways.

There are various products like humidifiers or dehumidifiers and products for the purification of air which increases the heath of your family. This will help your equipments to work more efficiently.

Incentives and rebates or taxes:

Basically, the offers depends on the time, equipmenet’s which you purchased or the area of any country. But there are many incentives available for the HVAC investments.

These are some following things:

  • Tax credits: it is usually available for the equipment’s with higher efficiency. For years, the government provide programs of tax credits. Well, there is no assurance that they will be offered at that time when you want to purchase, but it very beneficial for you to check.
  • Rebates: Manufacturers and the utility companies offers incentives for purchasing their products means equipment’s, in term of rebates. If your professional HVAC contractor are very helpful, they will process all these things for you and decrease your bill amount exactly to similar amount So, in this way you don’t need to concern about handling the rebate on your own.
  • Local incentives: sometimes the companies will offer special individual deals or discounts offers especially for the army officers and government employees. It totally unpredictable, but they are still worth investigating.
  • Ideal investments for HVAC system: So, you understand know that what are thing you can accept in the terms of costs, in this way you are able to set your budget easily.

There are many other resources like the new furnaces cost and many related furnaces topic through which you can learn more about furnaces.

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