Not many homeowners are familiar with the cost of installing or replacing a new furnace. This is often due to the fact that they have never replaced their furnace or because they did it a very long time ago – seeing a furnace has a lifespan of around 20+ years.
If you’re one of these homeowners, there is also nothing much to worry about. This piece gives you all the information you should know about the cost of replacing your furnace.
For starters, the average replacement cost for a furnace usually falls between $2,500 and $7,150. This generally includes the system’s purchase price along with materials and installation costs.
The huge variance in the average furnace replacement cost is affected by several factors. Some of these will include the size of the furnace, the type, energy efficiency level, and the square footage of the house.
Our team at IMS Heating & Air have put together a list of some of the factors that affect the total cost of replacing your furnace.
So, how much does a new furnace cost? The cost of a furnace replacement is affected by the following factors:
There are several types of furnace units that you can install in your house based on your preference. These include gas, oil, electric, propane, heat pumps, and solar/geothermal furnaces. Each of these units will have a different replacement cost.
The average gas furnace replacement cost is between $2,000 and $5,200. And these are the most efficient types of furnaces and also boast long lifespans. They are the most common type of furnace in residential spaces.
An electric furnace will cost you anything between $1,900 and $5,600, whereas an oil furnace can cost from $2,500 to $6,000. On the other hand, installing a new heat pump can cost you between $3,800 to $8,200. A geothermal furnace is the most expensive, costing even up to $35,000.
It goes without saying that the size of a furnace will determine how much it costs. Large furnaces, in terms of capacity, cost more as they are designed to heat large spaces. However, you should ensure that your furnace is not too large for your house. It’s paramount to install the right-sized furnace, as oversized ones will cost you more in terms of energy bills and comfort. For instance, an oversized furnace heats the house unevenly.
The size of the new furnace goes hand-in-hand with the square footage of the house. Higher-capacity furnaces are ideal for larger homes and will cost more.
Besides the type and size of a furnace, energy efficiency is a major factor determining the purchase price of a furnace. The energy efficiency of a furnace is the measure of how much energy the furnace can convert to heat.
Usually, a furnace efficiency level is measured through a standard metric known as AFUE (Annual Fuel Utilization Efficiency). It is a scale ranging from 1-100%, with higher-efficiency furnaces scoring up to around 98%. A furnace with an AFUE score of 95% means that the furnace is converting 95% of energy to heat.
A high-energy-efficiency gas furnace will cost between 30% and 50% more. However, these furnaces are quite efficient and can help you save up to $200 yearly on energy bills. Also, their operating costs are lower as they need less maintenance and can last for around 15-25 years. Lastly, natural gas furnaces work perfectly in most climates, ensuring your home is comfortable for the entire cold season.
A mid-efficiency furnace of around 80% AFUE will cost between $3,000 and $5,400. This depends on whether it’s a single-stage, two-stage, or variable-speed furnace. On the other hand, a high-efficiency furnace, around 90% AFUE and above will cost between $3,400 and $7,600.
The brand name of a furnace product generally determines how much money you’re going to pay for it. This is not any different with furnaces, as the most respected brands tend to cost more.
However, while the cost of these popular brands may appear to be quite high, the products have premium features that make them worth every penny. Their performance, efficiency, reliability, comfort, and warranties make them worth it in the long run.
All in all, you need to remember that the brand you choose will affect your entire furnace replacement cost.
You cannot talk about the cost of installing a furnace without considering the cost of labor. How much can you expect to pay if you want to get a new furnace system installed in your home?
Well, this will depend on the company installing the system for you. Different contractors will charge different prices and your negotiation skills play a big role in how much you end up paying. As such, ensure that you look for a company that matches your budget, but ensure they are professionals.
Installation costs can also vary depending on the complexity of the job. For instance, is there an existing ductwork system in the house? If not, is it a new or an old house that needs ductwork installation?
If you own a house with existing ductwork, it will generally cost you less to install a furnace. In contrast, installing new ductwork in a new house tends to be less expensive than old houses. Taking all these things into consideration can help you estimate the entire cost.
Furnace replacement costs will also depend on whether you want to install a furnace unit only or a full combined system. A full combined system includes a furnace and an AC. Pairing these two can save you a significant amount of money in the long run.
But how much does pairing a new furnace and AC cost? Well, this will depend on all the above-mentioned factors. However, installing both systems comes with added advantages of combined lower labor costs as well as better equipment matches. You can also synchronize other things like maintenance schedules and warranties.
However, this type of installation is only feasible when both of these systems are nearing replacement age. For instance, it will not be economical to replace a two-year-old AC system just because you are replacing your furnace. In this case, replacing the furnace alone is the ideal decision.
If you are thinking about replacing your furnace in the near future, don’t hesitate to contact our team at IMS Heating & Air. We will help you buy and install just the ideal system for your house.