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Furnace Installation Cost Guide

Whether you're building a new home and need a heating system installed or you have to replace a dead furnace, the installation of new heating equipment will be a costly proposition. A home's heating and air conditioning system is the costliest mechanical system or appliance within the home. Some diligent research and working with an experienced contractor can help you get the most value on a new system.

National Install a Furnace Costs

Cost data is based on actual project costs as reported by ImproveNet members.

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Average reported cost

based on 5874 cost profiles


Minimum cost


Maximum cost

Most homeowners spent between:




National Install a Furnace Costs
Average reported cost $3,764
Number of Cost Profiles 5874 cost profiles
Minimum reported cost $60
Maximum reported cost $8,000
Most homeowners spent between: $2,883 to $4,428

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The Average Cost to Install A Furnace

The average cost to put in a furnace is $3,835. Most homeowners report paying between $3,250 and $4,420 for the installation of a new furnace. The lowest price that a homeowner might pay is $1,500, while the maximum price a homeowner has reported paying for a furnace installation was $6,990. The actual cost that you can expect to pay for a furnace installation will depend on the size and type of the furnace as well as its energy efficiency and other features.

Types of Furnaces

Furnaces can operate using propane, natural gas or electricity as the power source. Oil furnaces, geothermal furnaces and solar-powered furnaces are alternative options that a homeowner might consider. The U.S. Department of Energy offers Energy Star ratings to highly efficient furnaces. To determine a furnace's efficiency, look up its AFUE, or Annual Fuel Utilization Efficiency, rating. The higher the AFUE value, the more efficient the furnace.

Considerations When Installing a New Furnace

Size is one consideration when installing a furnace. Electric furnaces are smaller but often less efficient than other types of furnaces. Gas furnaces require the availability of natural gas and require regular maintenance to ensure that no gas or carbon monoxide is leaking. The furnace must be properly sized to the home, as a furnace with excess capacity will use extra power while an undersized furnace will not effectively heat the home. Some homeowners add accessories such as a humidifier and air purifier, which further increase the project cost.

Furnace Maintenance

Regular furnace repair or maintenance can bolster its efficiency and lifespan. During the winter, change the furnace filter every month. Before the winter, schedule an annual tune-up with a licensed heating service company.

Last updated on May 17, 2016

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