The Ultimate Guide to Furnace Installation Costs in the USA

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The following prices are meant to be a guideline. It depends on different factors like what you’re having done, where you live and what you’re having installed.


Replacing a furnace is one of the more expensive repairs or upgrades you could choose to do. Having a warm house or business is well worth the cost, and putting the effort into researching your options will pay off in the long run. The unit itself could cost from several hundred to several thousand dollars, On top of that, you will need to consider the hourly labor rates of the HVAC professional performing the job.

Call several people and ask them for quotes. Be sure whoever you choose is licensed, bonded and insured. See if they offer a labor warranty as well. Even though these extras might cost more, the peace of mind from having a quality professional in your home is worth it in the long run. Monthly plan programs provide a flat monthly fee that might be more feasible than the cost of buying a unit to own outright.


Installation and removal costs

The original cost of a furnace includes the installation cost unless you have acquired it personally. You might have to pay your local hvac contractors installation costs ranging from $2500 to $6000. Notably, acquiring a heating and air conditioning unit on your own might interfere with the installation terms in the contractor’s warranty because the contractor does not know how your home air conditioning unit was transported before installation, treated and stored. Additionally, you will incur additional costs for removing your old furnace like the cleanup costs and installing an instant hot water heater. Notably, you need to check with your contractor to be clear on what the cleanup costs include because it could only cover debris cleanup cost. Therefore, inquire from your contractor if the cost of removing the old furnace is included in the estimation costs or you might have to incur extra costs, and then compare the cost with other hvac service near me.

Some key factors in installation costs are where the furnace is located. This can affect how easy it is to access and the hourly rate associated. A unit in a crawlspace might be more expensive to repair or upgrade than one in a more accessible location. Another factor that contributes to costs is whether or not vents need to be upgraded. This is an additional parts and labor cost that will impact the overall price. Also, during the installation there might be necessary adjustments to the hardware or the building in order to adhere to safety codes. This can add up in the final cost. Other factors that impact the installation are condensation draining and chimney liners. Finally, changing the type of furnace, such as from oil to natural gas, can contribute to the costs.

Another factor that impacts the installation cost is where you live. In a busy city center, the cost might be considerably less than in a rustic part of the world. For one, homes in urban areas have more access to businesses and the pricing might reflect that competition. Also, it is overall cheaper to work with existing infrastructure. Repairs or upgrades made in the country have additional travel costs and delivery costs associated with it.


When choosing a new furnace, be sure to pick one that has the features and reliability you’re looking for. Ask for the opinions of the installation technician, and be sure to ask family and friends what they would recommend.

In the HVAC industry, Lennox, Trane and Carrier are three of the most well known brands. Keep this in mind when purchasing your new furnace, as it might be easier to find someone who works on these brands or to find replacement parts. Also, you can also find these cost less or at a better discount. The other brands are also good, but going with a brand that is top ranked can mean you have more savings in the long run as it’s easier to replace and maintain.

Find a brand that has parts that are easily sourced and is within your recommended cost. All of the major companies offer single stage, double stage, and modulating furnaces. Every brand specializes in their products and have been making furnaces for decades. Choose one that will be easiest to maintain to extend the life of your product.


  • Amana Furnace Prices 2019

    Average Amana furnace prices installed: $4500 to $7500
    Popular models: AMVC96, AMVM96, AMVC8, AMVC95, AMVM97, AMVM96

    Amana is a solid furnace – its the premium end of the Goodman brand. We’ve installed Amana in situations requiring a large blower capacity at a good price. Amana furnaces are manufactured by Goodman. Their furnaces range between 80% AFUE to 98% AFUE. Their furnace technology uses a durable tubular heat exchange. Amana offers furnaces that are multi position which makes them easier to install. Some models even include control boards and electronic ignition. These include special feature that help to determine the causes of any problem or issues. They have a large selection of high efficiency products. Amana offers owners a significant warranty agreement. All models have a lifetime warranty on the heat exchanger, and the parts have a 10 year warranty.

  • American Standard Furnace Prices 2019

    Average American Standard furnace cost installed: $4700 to $7700
    Popular models: Platinum ZV, AUHMB060ACV3VB

    American Standard has long been high rated high on the various rating magazines. A solid pick. There is a nice selection of furnaces in the American Standard collection. They have different lines like the American Standard, Silver, Gold and Platinum line. Their furnaces have a cabinet like design that can make installation convenient. Users can register their product for an outstanding warranty.

  • Trane Furnace Prices 2019

    Average Trane furnace cost installed: $4400 to $8000
    Popular models: XR95, XL80, XV95

    Trane has a selection of single-stage and double stage furnaces, but only one modulating furnace. Their furnaces carry varying warranties. Their single stage furnace starts at 80% efficiency, and their modulating or two stage furnaces have 95% efficiency and up. These have the Comfort R solution that is made to ensure even heating. Trane furnaces also have CleanEffects air filtration available. Another feature is ComfortLink II which is advanced communicating ability.

  • Goodman Furnace Prices 2019

    Average Goodman furnace prices installed: $3900 to $7200
    Popular models: GMVC96, GMVM97

    Goodman is one of the leaders in the furnace market. Their products are affordable and all come with a warranty. They have been in business since the 80’s. The company invests in new manufacturing equipment to produce heating systems that are high quality and affordable. They sell the only dual-diameter, tubular gas furnace heat exchanger on the market. It is made to be especially durable.

  • Rheem Furnace Prices 2019

    Average furnace prices installed: $4400 to $8000
    Popular models: GMVM97, Prestige RGFG, R97V Prestige Series Gas Furnace

    Rheem has three product lines and all kinds of furnaces, including single-stage, two-stage and modulating gas furnaces. They have many units that have lower Nox emissions and with trademarked EcoNet™ technology. All of their products carry a reliable warranty. In order to benefit from the warranty, you need to register your furnace within 60 days of purchase. All of the furnaces have a 10 year parts warranty.

  • Lennox Furnace Prices 2019

    Average furnace prices installed: $4800 to $9000
    Popular models: SLP98V Variable Capacity Gas Furnace, EL296V

    Lennox is a solid overall pick. quiet, efficient and durable. Lennox has three gas furnace lines, and four furnaces that qualify for ENERGY STAR rating. They produce both gas and oil furnaces. Their furnaces are designed for efficient warmth and to save money. The highest efficiency model is one of the highest on the market, with 98.7AFUE. They have special technology like the Surelight ignitor and a Sunsource solar modular capability which means you can heat your home with the sun. This qualifies you for the residential renewable energy tax credit.

  • Other Furnace Brands

    Popular furnace brands in the US are Armstrong, ComfortMaker, Coleman, Heil, Payne, Tempstar, Ruud and Luxaire. These are not as common as the major brands but they are still reliable and trustworthy


Different gas furnace models and brands contain various features, and you might require more or less heating capacity than what some brands and models offer. You can look at some of the top brands discussed below and their approximate cost, which include installation costs. However, you need to note that manufacturers usually sell the brands to distributors who then sell on wholesale to contractors.

In the United States, the minimum standard efficiency rating of a newly installed furnace is 78%. A mid efficiency furnace usually has a AFUE of between 80 and 85 percent. A high efficiency unit is between between 90 and 97 percent. In the Northern states, including Iowa, Nebraska, and South Dakota, gas furnaces must have a minimum rating of 90%.

The efficiency rating is measured by annual fuel utilization efficiency, and it represents the amount of gas that is actually converted into heat for your home.

The colder the climate, the more you will save with higher efficiency ratings.

Some air conditioners and furnaces, if energy efficient, can qualify you for tax deductions or rebates. Be sure to ask. Some companies provide rebate checks for trading in older units.

Propane and natural gas tanks have similar cost, but because propane tanks are installed in rural areas more often, the cost could increase.



High efficiency furnaces are also known as condensing furnaces. These units score between 90 to 95 efficiency ratings. The newer technology helps to conserve gas and creates a more efficient system.

It works by filtering in cold air from the home and heating it, then expelling it into the atmosphere. There are a few technological improvements in condensation filters. One is the heat recovery ventilator. Another is the use of air filters. Condensation furnaces have an electric blower motor and blower compartment used to retain heat.

Upgrading your furnace is an investment in your home that will raise its resale value.

  • Furnace Replacement

    Older furnace units may need to be replaced to comply with efficiency rules and because of the general wear and tear associated with long term use. Whether the unit is out of warranty or you’re looking for an upgrade in general, a furnace that is more than 10 years old and is having issues might need to be replaced.

    If the furnace isn’t properly looked after or maintained, after a certain amount of time it needs to be upgraded to a newer model. The unit can gradually decline in effectiveness and might end up costing you money. Replacing the unit with better energy efficiency could be a good idea. You might end up spending up to 40% less on your heating bill.

    Another indication you need a new furnace is a noticeable increase in utility bills. If the cost of heating is rising every year, then you might need a new unite.

    Also, another indication of needing a replacement is whether or not there is visible damage to the furnace, or if it’s simply not working.

  • What is AFUE?

    AFUE is an acronym for annual fuel utilization efficiency. It is a ratio of how much energy is converted to heat. For every dollar spent, it indicates how many cents of that dollar is spent on heating costs. The higher the AFUE, the better the rating is, and the more heating you are getting for your dollar.

  • What is BTU?

    This means British thermal unit. It is the amount of energy used to raised one pound of water by one degree Fahrenheit.
    The BTU is used across the industry as a standard to measure the efficiency of a furnace. When looking at the BTU of a furnace, the furnace rating is how many BTUs it uses in an hour. For example, the average BTU rating is between 80,000 or 100,000.

    Choosing the right furnace for your home is important. If a homeowner chooses one that has a low rating for cost, and they have a large home, then it’s possible that the unit will turn on and off too frequently. This can damage the unit and it will need to be replaced, which can cost more in the long run. However, if you pick one that has a BTU that is too high, then it might result in energy bills that are too high. Consulting with an HVAC professional is the best way to find the right furnace for all of your home’s needs.

  • The Types of Furnaces

    The two types of forced air furnaces are condensed air furnaces and conventional furnaces. Conventional furnaces work by quickly exhausting hot air through a chimney. The condensation furnaces capture the hot air, and allow them to cool and condense. This makes them more efficient.. Condensing furnaces capture heat with two heat exchangers. One is for the first heat exchange, and the other is used to handle the exhaust gasses that are corrosive and the carbon dioxide.

  • Single Stage

    A single stage furnace has two modes, on and off. When it is one, it runs at its full capacity to heat your home. One advantage to these is that they can usually cost less. One disadvantage is that they are noisy. Another is that they are not as efficient, and the heat isn’t evenly distributed throughout the home. Finally, it might result in higher energy bills. If the target temperature in a house is 72, the single stage furnace might result in temperatures from 68 to 76.

  • Double Stage

    Double stage furnaces have two modes, low and high. This gives you some more control over the temperature output. This improves the temperature in the home. The energy costs are lower than single stage furnaces, and it is quieter. Double stage furnaces cost more than single stage furnaces. The second flame setting means the actual temperature is closer to the target temperature. A target temperature of 72 can have an actual temperature of between Double stage furnaces are simplified versions of variable furnaces or modulating furnaces.

  • Variable Furnaces

    Variable furnaces are the most efficient type of furnace. These provide precise temperature control in your house. Variable furnaces are quieter and decrease electricity consumption. Also, they have better airflow.

  • Modulating Furnaces

    Modulating furnaces reduce temperature fluctuations and can help make the home temperatures more comfortable. These can have efficiency levels up to 98%. The temperature of these furnaces is closest to the target temperature. They are also more comfortable than the other kinds of furnaces and there is less time in a room that is too hot or too cold. The downside is that they can be more expensive.

  • ENERGY STAR Furnaces

    ENERGY STAR furnaces use new technology to optimize energy use and safety to bring down the cost of running them. One feature in these furnaces is that they have ECM motors. An ECM motor is an electronically commutated motor. It has speeds to adjust for precise and consistent airflow. Another is that ENERGY STAR furnaces have dual heat exchangers which conserve energy and more effectively heat. Also, it uses state of the art electronic ignition. ENERGY STAR has smart thermostats built in that can adjust the temperature when you’re not at home to help reduce the cost of bills.

  • Furnace Fuel Types

    The two most common types of furnace fuels are oil and gas. There are also electric furnaces, but these are more expensive. Oil and gas furnaces are the most common in the United States. There are two types of gas furnaces, natural gas furnaces and propane furnaces. Most furnaces in urban areas are natural gas furnaces.

  • Natural Gas Furnaces

    These are most often used in homes and businesses in the United States. Homes and businesses in more populated areas use natural gas furnaces because they are easily accessible to a natural gas line. Natural gas is more fuel efficient than propane. Gas furnaces are more efficient than oil furnaces. Electric furnaces are almost 100% efficient. Newer furnaces are more efficient than older ones by up to 30%.

    About 50% of home in America are heated with gas. 8% are heated with oil.

    Oil furnaces are most commonly found in the northeastern part of the United States. Their AFUE ratings are commonly between 80% and 90%. They provide more BTU, but they require a storage tank. They need to be regularly cleaned and serviced in order to work properly, and they might be easier to upkeep. Oil furnaces cost less up front than gas furnaces, but the fuel costs are much higher.

  • Propane Furnaces

    Propane furnaces are used in rural areas without access to pipelines. The mechanics of these types are similar to gas furnaces. These run on propane tanks that need to be refilled occasionally.

  • Things to consider when searching for in a high-efficiency furnace

    Almost every homeowner wants to reduce heating costs, and one of the best ways to achieve this is by investing in natural gas. Natural gas offers an easy and energy efficient method of heating homes. However, most people do not know about the cost of buying a home air conditioning. Its price varies, but, basically, it depends on an array of factors like the square footage of your home, whether you want to purchase the portable air conditioner personally or buy it through a contractor, and the amount of ductwork required to install the furnace.

    One of the primary concerns for homeowners who want to install natural gas furnace is the cost of buying, installation cost, and maintenance cost. The price of a new gas furnace is based on an array of factors, including the British Thermal Units (BTUs). It measures the amount of energy that is required to melt one pound of ice at one degree Fahrenheit. The number depends on the number of windows in your home when installing a window air conditioner, degree of insulation, and the square footage amount in your home. Studies have revealed that a typical house in the United States needs from 30 to 60 BTUs per square foot, though it varies based on the insulation rating of the home and the regional climate. Notably, a cold region requires more BTUs as compared to warmer areas in the United States. The hvac contractors near me are well-trained on how to determine how many BTUs you require as you gather quotes from them.

    The other important thing to put into consideration when buying a furnace for your house is its efficiency levels. Investing in a high-efficiency and standard gas furnace model is paramount. The Annual Fuel Efficiency (AFUE) rating is used to measure the efficiency levels of a HVAC unit. Contractors consider furnaces that have AFUE in the 90s to be high-efficient while the ones in the 80s are considered standard furnaces. The AFUE number shows the average fuel efficiency over a specific heating season. Furnaces that have an AFUE rating of 80 are 80 percent efficient while those with a score of 90 are 90 percent efficient. Also, you might have to spend more money buying and installing a high-efficient model, but it will save you money in the long run, unlike a standard air conditioning unit that is less expensive to buy, but you spend more money in the long-run.

    Additionally, high-efficient models use more advanced motors because they are manufactured using the latest technology; thus, they use less fuel and are quieter than the standard models. Notably, some municipalities offer incentives to homeowners who use high-efficiency natural gas model. Besides, most models attract federal tax credits and rebates that can end up saving you hundreds of dollars ultimately. High-efficiency equipment has a longer lifespan than standard models. Surprisingly, standard and less-efficient models, with an AFUE of 80 do not significantly impact on your monthly utility bills. However, you will incur little money for its initial cost. Also, the models rarely have quiet motors, though many people do not mind the noise that is generated by the standard models.

  • Warranty

    When purchasing a new furnace, you might want to keep in mind the warranty offered by the labor provider as well as by the manufacturer.

    Different companies provide varying levels of warranties. You can find parts warranties, 5 year warranties, 10 year warranties or even lifetime warranties. Often these depend on the level of maintenance you use for the system.

    Be sure to ask the qualified professional you choose about the details of the warranty.

    Rebates and Incentives

    Be sure to see the rebates in your area. Different states provide tax breaks and rebates for new furnaces that are energy efficient.

  • Humidifiers and Air Filtration

    Humidifiers and air filtration can help to improve the air quality in the home. Allergens might be reduced and sensitive individuals might experience less allergic reactions. Built in systems filter the air and take out contaminants. They will also adjust humidity levels to be more comfortable.

    Zoned heating helps to keep the most used areas of the house warm, while letting the other areas cool down a bit. This can help to save on energy costs.

  • Home Assessment

    The size of the home is only one thing to consider when buying a new furnace. There are many other attributes to look at that effect the type of furnace that you need.

    When you do a home assessment, there are plenty of factors to consider. All of these contribute to the cost of installing a furnace. The climate is one of them. The type of climate you have will affect the kind of furnace that is installed. Another thing to keep in mind is the windows, and how many windows there are and the direction they face. The building material will also affect the type of furnace you need. Seals play a role in keeping heat in, as well as whether or not the house has air leaks. Vents and ductwork can impact the type of vent needed. Also, keep in mind the type of insulation and how much there is.

    The right HVAC professional will determine all of these factors and provide you with a home heating system which meets home’s needs.



Several other factors determine the final price of a furnace. Unfortunately, some people are not usually aware of some of these additional costs. These factors will determine the total cost of a furnace.

  • Ductwork

    You might require installing new ductwork if you have never had a gas furnace previously. Therefore, you might have to pay between $8 and $12 per linear foot for a new ductwork installation. The cost is based on the average national hourly wages, cost of materials, and unit labor productivity rates. Also, your estimate ought to include other things, such as cleanup and debris removal, mobilization, labor setup and hourly rates, and preparation of the a/c unit installation site, which includes finishes, protection of existing structures and materials. However, the cost estimation does not include the tax fees and fees that general contractors supervising the site incur, which usually ranges from 12 % to 19% of the total cost.

  • Permit and inspection fees

    Homeowners ought to organize for an inspection before installing a new gas furnace if their homes have existing ductwork. Notably, ductwork that has leaks causes a loss of between 10% and 30% of the heat generated from the furnace. An adequately sealed ductwork will reduce the loss to less than 5%. Additionally, improperly sealed ductwork pose health hazards to your family because the system attracts microbes, mold, radon gas, and dust into your living space. The United States Environmental Protection Agency considers that issue as a significant contribution to lung cancer and respiratory diseases. The beauty of inspection especially for old homes is that you discover asbestos, and getting rid of asbestos is not only unpredictable, but also expensive. Therefore, it is necessary to inspect your home for asbestos to avoid surprise costs. You might have to replace or add backdraft pampers if the contractor discovers asbestos.

  • Fees and permits

    You need to hire a licensed contractor who will get the necessary permits for the heating and air unit installation. Additionally, ensure that your home is inspected before the installation to be sure that it is safe. Improperly installed ductwork is hazardous to your family and visitors because it causes carbon monoxide leaks and fire risks. It is advisable to hire contractors from different organizations to inspect and install your forced air heating and conditioning unit.

  • Conversions

    The cost of replacing an oil heater with a gas water heater furnace ranges between $500 and $6500. The water heater cost will depend on the location of the tank, local regulations, and the size of the tank. Notably, you will have to incur maintenance cost for your furnace. However, the maintenance costs are usually lower than replacing parts or buying a new furnace. Besides, HVAC units have warranties.

  • Advantages of natural gas

    Natural gas has more advantages than other forms of furnaces because it is eco-friendly and efficient. The oil and electric heating forms produce the greenhouse gas carbon dioxide, but natural gas produces more heat per carbon dioxide output than the two heating forms. Also, other heating methods, such as wood, solar and geothermal entail costly initial investments and high-maintenance cost, which make them unpopular.

  • Natural gas vs. electricity

    You need to hire a licensed contractor who will get the necessary permits for the heating and air unit installation. Additionally, ensure that your home is inspected before the installation to be sure that it is safe. Improperly installed ductwork is hazardous to your family and visitors because it causes carbon monoxide leaks and fire risks. It is advisable to hire contractors from different organizations to inspect and install your forced air heating and conditioning unit.

  • Natural gas vs. oil

    The other common heating fuel is oil. However, one common limitation of oil is that its costs fluctuate with oil prices. On the contrary, natural gas costs are likely to remain steady. Also, another limitation of oil is that it must be delivered and stored in a tank in your home and you must keep watch on the oil levels in the tank to ensure that the oil heat pump functions smoothly. You should also provide regular maintenance of the oil tank to prevent leaks and ensure that the tank is clean. Additionally, almost every homeowner opts for a tankless water heater because it is energy efficient. Some insurance companies also do not issue policies to homeowners who have oil tanks in their homes because they are associated with environmental, fire, and health risks.