How Much Does It Cost To Install A Furnace?

$5,700

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Furnace Installation Costs

Indoor Cost Guides      Air-Conditioning & Heating (HVAC)      Furnace Installation Costs

The acronym HVAC means Heating, Ventilation, and Air Conditioning. It clearly has a lot of different meanings in terms of the equipment it requires. From heat pumps for cooling to furnaces for heating, it is a very complex matter. The options include: oil furnaces, propane furnaces, and gas furnaces.

Each will have various pros and cons, and each will have a specific cost dependent upon a list of factors. These include issues like zones and ductwork, location of the home, the associated tasks such as running gas or fuel supply lines as well as electrical supplies.

Furnace installation: by type of furnace for a 1,500 sq.ft. home, labor included in the cost.

Type Average Cost
Oil furnace: with the removal of old equipment, the actual furnace, the labor, and oil tank installation. $3,300-$10,300
Propane furnace: with the removal of old equipment, the actual furnace, the labor, and oil tank installation. $2,675-$5,700
Suspended gas furnace: with the furnace itself, installation, and upgrades. $1,233
Floor gas furnace: with the furnace itself, installation, and upgrades. $1,974
Electric furnace: with the removal of old equipment, the actual furnace, the labor, and oil tank installation. $2,064

 

Other considerations and costs

  • It is best to consider the entire installation process when making a choice. For example, switching from an oil to a gas furnace necessitates the installation of gas lines and perhaps gas service, and at a cost to the homeowner. Consider all of the steps it would take to make the shift and ignore the cheapest option in the list above as those figures do not take the costs associated with making a change to the entire system in the home.
  • Consider your desire or willingness to commit to one type of fuel. For example, propane and gas furnaces mean leasing a tank from the fuel supplier. Oil means committing to a tank and regular upkeep as well as fossil fuels.
  • Take the time to find out the output and efficiency of any particular fuel or furnace and make a decision based on a comparison of the efficiency of the furnace versus the fuel costs. Sometimes, an efficient furnace cancels out the inefficient fuel.
  • Look at warranty and lifespan on the unit to see which is the right investment for your financial capabilities.

Check out our guide if you need a loan for your home improvement project.

DIY considerations

  • Furnace installations are never a DIY project. They require permits (for additional fees) and may even require some inspections and approvals. Work with trusted contractors and find out if they make service contracts available.

References

  • Craftsman Estimator Costbook, complete series year 2019.
  • Latest prices found on Home Depot and other vendor Web sites.
  • Literature review of DIY Web sites.
How much does it cost to install a furnace in your city?
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Cost by city

  • New York, NY$9,156
  • Bronx, NY$7,524
  • Brooklyn, NY$6,271
  • Philadelphia, PA$7,823
  • Washington, DC$6,789
  • Atlanta, GA$6,142
  • Miami, FL$5,586
  • Fort Lauderdale, FL$5,851
  • Minneapolis, MN$6,864
  • Chicago, IL$7,998
  • Houston, TX$8,249
  • San Antonio, TX$5,538
  • Austin, TX$6,270
  • Denver, CO$5,298
  • Phoenix, AZ$5,589
  • Las Vegas, NV$6,135
  • Los Angeles, CA$6,912
  • San Diego, CA$6,273
  • San Jose, CA$7,577
  • Seattle, WA$5,547

Local costs have been calculated by accounting for labor and material cost differences across different cities. To get accurate cost estimates, indicate yours: