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how much do it cost to install a furnace

As the weather begins to cool, many homeowners may need to consider replacing their furnaces. Whether you’re facing a costly repair or your furnace is simply getting old and inefficient, you’re likely wondering how much it will cost to install a new one.

Several factors can influence the furnace installation cost, making it difficult to know exactly how much to budget. These factors include the type and size of furnace you need, where you live, and the furnace’s efficiency rating.

In this article, we’ll explore the average costs associated with furnace installation and provide an overview of the factors influencing those costs. By the end of this article, you’ll have a better idea of what to expect when installing a new furnace, which can help you plan and budget accordingly.

Factors that Affect Furnace Installation Costs

When installing a new furnace, there’s no doubt that cost is a primary factor to consider. The total cost of furnace installation can be affected by several different factors, sometimes making it difficult to know exactly what to expect.

Let’s look at four key factors that can impact furnace installation costs.

Type of Furnace

The type of furnace you choose can be critical in determining your overall installation costs. Here are a few examples of how different types of furnaces can affect your cost:

Natural Gas Furnace: A natural gas furnace is a popular choice for many homeowners, as it can be fairly efficient and cost-effective over time. However, installing a natural gas furnace can be costly upfront, with installation costs ranging from $2,500 to $7,500 on average.

Propane Furnace: A propane furnace may be a good alternative if you don’t have access to natural gas. However, propane can be more expensive than natural gas, so you can expect to pay a similar amount for installation costs: typically between $2,500 and $7,500.

Electric Furnace: Electric furnaces can be the most affordable installation option, ranging from $1,500 to $5,500. However, electric furnaces are less efficient than gas-powered options, so you may pay more in the long run.


Where you live can also majorly affect your furnace installation costs. Here are a few ways location can impact your costs:

Urban vs. Rural: If you live in a more populated area, you can generally expect to pay more for furnace installation, as labour and material costs are higher in urban areas.

Regional Variations: Costs vary by region, with some areas of the country generally experiencing higher or lower installation costs than others.

Size of Furnace

The size of your furnace can also impact your installation costs, as larger furnaces tend to cost more to install. Here are a few examples of how furnace size can impact installation costs:

Small Furnaces: Smaller furnaces can cost as little as $1,500 to install, depending on the type and location. However, smaller furnaces may not be sufficient for larger homes or spaces.

Medium Furnaces: Medium-sized furnaces typically cost between $2,000 and $4,000 to install. They are a good option for many homes but may not be adequate for very large spaces.

Large Furnaces: If you need a furnace for a larger space, you can expect to pay upwards of $4,000 for installation. Larger furnaces are more energy efficient and are a good option for larger homes or commercial spaces.

Efficiency Rating

Finally, the efficiency rating of your furnace can also impact your installation costs. Here are a few examples of how furnace efficiency can affect your total costs:

Low-Efficiency Furnaces: Low-efficiency furnaces tend to be less expensive upfront but can end up costing more energy bills over time. Installation costs typically range from $2,500 to $5,500.

High-Efficiency Furnaces: High-efficiency furnaces can be more expensive to install, ranging from $3,000 to $10,000. However, they can significantly reduce your energy bills and save you money in the long run.

Considering these four key factors when planning for furnace installation, you can better understand what to expect regarding total costs. However, it’s always a good idea to seek professional advice to ensure you get a reliable estimate for your specific circumstances.

Additional Costs to Consider

In addition to the cost of your new furnace, there are several other expenses you’ll need to consider when planning your installation. These additional costs can vary depending on your circumstances but can significantly impact your overall budget.

We’ll look closely at a few of the most common additional costs associated with furnace installation.

Ductwork Installation Costs

If your home doesn’t already have ductwork in place, or if you need to replace existing ducts, you’ll need to factor in the cost of ductwork installation. Here are a few examples of how ductwork installation costs can vary:

New Ductwork Installation: Installing new ductwork can be a significant expense, typically ranging from $2,000 to $4,000. However, it’s a necessary expense if your home doesn’t currently have ductwork in place.

Duct Cleaning/Sealing: In some cases, cleaning or sealing existing ductwork can be more cost-effective than installing new ducts. The cost of duct cleaning or sealing can range from $300 to $1,000, depending on the size and complexity of your existing ductwork.

Permit Fees

In some areas, it may be necessary to obtain a permit before installing a new furnace. The permit cost can vary widely depending on your location, so it’s a good idea to research local permit fees before beginning your installation.

For example:

City Permits: In some cities, you may need to obtain a permit from the local government before installing a new furnace. Permit fees vary widely, ranging from as little as $50 to several hundred dollars.

State Permits: In some cases, obtaining a state permit for furnace installation may also be necessary. Again, permit fees can vary widely depending on your location.

Maintenance Costs

Finally, it’s important to consider ongoing maintenance costs when planning for furnace installation. Proper maintenance can help extend the life of your furnace and prevent costly repairs down the line. Here are a few examples of maintenance costs you may incur:

Annual Tune-Ups: Most HVAC experts recommend scheduling a yearly furnace tune-up to keep your system running smoothly. A yearly tune-up can range from $100 to $300, depending on your location and the type of furnace you have.

Filter Replacements: It’s essential to replace your furnace filter regularly to keep your system running efficiently. The cost of replacement filters can vary depending on the type of filter you need.


Regarding furnace installation, several factors can impact your overall costs. From the cost of the actual furnace and ductwork installation to permit fees and maintenance costs, it’s essential to consider all potential expenses when planning for installation. By researching your options thoroughly and seeking professional advice, you can ensure an accurate estimate of total costs and avoid expensive surprises.

By taking the time to research your options and seek professional advice when considering furnace installation, you can make sure that you get a reliable estimate of total costs and avoid any unexpected expenses later on. With careful planning, you can be confident that your furnace installation will provide many years of efficient and reliable service.

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