The average furnace costs $2,500 to $6,500 for the unit, plus $150 to $500 per hour for installation. These figures are for the cost of a new furnace, not repairs to upgrade an old furnace.
British Thermal Units (BTUs) measure a furnace’s heat output. This refers to the amount of energy needed to raise the heat of one pound of water by one degree Fahrenheit. Most homeowners need 30 to 50 BTUs per square foot of their home. For example, an 80,000 BTU furnace can heat a 2,000-square-foot home.
While size affects how much you pay for furnace installation, the total cost largely depends on the type of furnace you order.
Electric Furnace Installation Cost
An electric furnace costs $800 to $1,100 for the unit or $2,000 to $4,000 with installation.
Because electric furnaces use electricity to heat your home, they’re often considered the most efficient. Your electric bills will be higher, but installation is cheaper. This type of furnace is also one of the easiest to maintain.
Natural Gas Furnace Installation Cost
Natural gas furnaces cost $700 to $3,000, or $3,000 to $8,000 with installation. Replacing an electric furnace with a gas furnace costs an additional $200 to $500 because you’ll need to install a gas line.
Gas furnaces are one of the most common furnace types. They use methanol gas from your local municipal line to ignite a gas burner. This hot combustion raises the temperature of the air. Natural gas furnaces have low annual costs and are considered more eco-friendly than other gas furnaces, such as oil or propane. However, a gas line must be near your home to install one of these furnaces.
Oil Furnace Installation Cost
Oil furnaces (also called pressure burners) cost an average of $600 to $2,500, or $3,000 to $5,000 with installation. These furnaces spray oil into a combustion chamber at high pressure, which then ignites by an electric spark. The oil continuously burns as the oil mist is sprayed. Oil furnaces produce maximum heat, as oil burns hotter than gas. However, energy bills from oil furnaces are higher than for gas options.
Propane Furnace Installation Cost
Propane furnaces cost $800 to $2,000, or $2,000 to $5,000 with installation. These furnaces are a great option for homeowners who don’t have access to natural gas, though they require propane tank installation. Once the propane is released, the furnace converts it to gas. The gas ignites, heats up, and forces hot air through your ductwork.
Heating costs for propane furnaces vary greatly depending on the furnace’s efficiency. The cost of propane gas also varies based on your home’s location.