Determining the cost of a new furnace isn’t a straightforward process. Ask several HVAC professionals, “How Much Does A New Furnace Cost?” and you’ll likely hear, “It depends.” Generally, you can expect to invest anywhere from $2,000 to $14,200 for a new furnace. However, this range is influenced by various factors like furnace efficiency, type, size, and installation complexities. Modern furnaces in 2025 offer advanced technologies for enhanced comfort, making them far more sophisticated than older models.
For instance, Carrier provides a wide range of furnace options designed to meet diverse needs and budgets. With models ranging from basic, minimum-efficiency units to high-end ENERGY STAR® certified furnaces boasting up to 98.5% efficiency and advanced features, furnace prices can fluctuate considerably.
Installation is another critical cost factor. Are you installing a furnace for the first time, or replacing an existing system? Will the ductwork require modifications? Are there disposal fees for the old furnace? What about potential rebates offered by government or utility programs? Considering all these variables, the most accurate estimate for a new furnace will come from a qualified HVAC professional who can assess your home, comfort requirements, and budget.
Key Factors Influencing New Furnace Costs
Several elements contribute to the overall cost of a new furnace. Here’s a detailed breakdown:
1. Furnace Manufacturer and Brand Reputation
The brand of the furnace significantly impacts the price. Are you considering a furnace from a top-tier manufacturer or a less established brand? Leading brands like Carrier typically command a higher price due to their commitment to superior materials, rigorous reliability testing, and stringent quality control throughout the manufacturing process. Investing in a reputable brand often translates to long-term reliability and performance.
2. Furnace Installation Costs and Labor
When budgeting for a new furnace, remember that the unit’s price is only one component. Installation and labor costs can significantly increase the overall expenditure. Replacing an older furnace often requires modifications to the existing ductwork to accommodate the new model’s dimensions. Duct cleaning and sealing may also be necessary to optimize efficiency.
Additionally, the new furnace might not perfectly align with the existing gas line, electrical connections, or exhaust venting. Upgrading to a high-efficiency (90%+ AFUE) furnace often necessitates the installation of intake and exhaust PVC piping. Some smart thermostats require 4-wire installations; if only two wires are present, additional wiring may be needed.
Furnace installation costs can also vary among different HVAC dealers. Some dealers may offer discounted equipment pricing as part of an annual service agreement, or offer discounted pricing on last year’s models.
It’s crucial to entrust furnace installation to a licensed and trained HVAC technician to ensure proper and safe operation. Contact a reputable HVAC contractor, such as a Carrier dealer, for expert installation services.
3. Furnace Efficiency (AFUE Rating)
A furnace’s energy efficiency rating plays a crucial role in its cost. Higher efficiency models generally have a higher upfront cost, but they can lead to substantial savings on utility bills over the furnace’s lifespan.
The Annual Fuel Utilization Efficiency (AFUE) rating indicates how effectively a furnace converts fuel into usable heat. This rating is displayed on the yellow Energy Guide label required by the Department of Energy. Higher AFUE ratings translate to greater energy savings. You can find AFUE ratings on manufacturers’ websites or by consulting with a local Carrier dealer.
High-Efficiency Furnaces (90-99% AFUE)
High-efficiency furnaces, with AFUE ratings between 90% and 99%, can significantly reduce energy consumption compared to lower-efficiency models. These furnaces are often more expensive due to the advanced components needed to achieve such high efficiency. Many high-efficiency furnaces are condensing-type models, featuring two heat exchangers instead of the single heat exchanger found in mid- or low-efficiency furnaces.
Mid-Efficiency Furnaces (80-83% AFUE)
Mid-efficiency furnaces typically have AFUE ratings between 80% and 83%. The Department of Energy sets 80% AFUE as the minimum efficiency standard for new furnaces in the United States. While these models are more efficient than older furnaces (56-70% AFUE), they offer less savings than high-efficiency models. Mid-efficiency furnaces generally have lower material costs due to the use of a single heat exchanger and less sophisticated controls.
4. Furnace Size (BTU/h)
Furnace size refers to its heating capacity, measured in BTU/h (British thermal units per hour). A larger furnace with a higher heating capacity often has a larger cabinet to accommodate additional components. Consequently, the cost of a larger furnace is generally higher than that of a smaller one. Variable-capacity furnaces, which adjust their heating output to precisely match the home’s needs, tend to be among the most expensive models.
Determining the correct furnace size for your home is best done by a qualified HVAC professional. Factors such as home size, ductwork condition, number of windows, insulation quality, and floor plan all influence the appropriate heating capacity. Obtain multiple estimates from reputable HVAC contractors to ensure you get the best-priced and properly sized furnace for your home.
Permits and Regulations
Local codes and safety regulations may require a permit for furnace installation. Permit fees and inspection costs can vary based on your location and the complexity of the installation.
Hiring a licensed HVAC professional is advisable, as they can obtain the necessary permits and ensure the installation complies with local regulations. Failing to obtain a permit can result in fines, insurance complications, or difficulties when selling your home.
Type of New Furnaces
The type of furnace you choose impacts the overall cost. Carrier offers natural gas, electric, propane, and oil furnaces, each with various models to suit different needs and budgets.
| Furnace Type | Average Cost Installed |
|---|---|
| Electric | $2,000-$7,000 |
| Natural Gas | $3,800-$10,000 |
| Oil | $6,750-$10,000 |
| Propane | $3,700-$14,200 |
Gas Furnaces
Gas furnaces typically range from $3,800 to $10,000 installed. While the upfront cost might be slightly lower than oil furnaces, natural gas is generally less expensive than heating oil, leading to potential long-term savings.
Oil Furnaces
Oil furnaces generally cost between $6,750 and $10,000 installed. The initial cost tends to be higher than natural gas models, and ongoing expenses include the cost of heating oil, which is often more expensive than natural gas. Oil furnaces also require an oil storage tank and may require more frequent maintenance.
Electric Furnaces
Electric furnaces range from $2,000 to $7,000 installed, making them an affordable option. However, operating costs can be higher due to electricity prices, especially in colder climates.
Propane Furnaces
Propane furnaces range from $3,700 to $14,200 installed. Propane is generally more expensive than natural gas but can be more economical than oil in some areas. Propane furnaces tend to be less efficient than natural gas furnaces but more efficient than oil furnaces.
Strategies to Save on Furnace Costs in 2025
Several strategies can help you save on the cost of a new furnace:
- Tax Credits and Rebates: Explore local and federal programs that offer tax credits or rebates for purchasing energy-efficient furnaces.
- Multiple Quotes: Obtain quotes from multiple HVAC dealers to find the best price for the unit and installation.
- Bundle Installation: Consider bundling furnace installation with other home system upgrades to potentially receive discounts.
- Proper Sizing: Ensure the furnace is correctly sized for your home to optimize efficiency and avoid unnecessary costs.
- Prioritize Efficiency: Choose a high-efficiency furnace to save on energy bills over the long term.
Contact a Professional for Accurate Furnace Cost Estimates
To get the most accurate answer to the question “How much does a new furnace cost?”, contact a local Carrier dealer. A qualified dealer can assess your home’s specific needs, properly size the furnace, and provide a detailed cost estimate that includes installation, potential rebates, and ongoing operating expenses. Contact a Carrier dealer today to receive a personalized estimate for your home.
