How Much Does It Cost to Install a Furnace?

Your furnace installation quote considers several factors, including:

• Furnace size & capacity (BTUs). Typically, larger homes require bigger furnaces with a higher British thermal unit (BTU) output, which increases costs.
• Energy efficiency ratings (AFUE). Systems with higher annual fuel utilization efficiency (AFUE) ratings typically cost more up front.
• Ductwork condition. Furnace installers usually consider the condition of your ductwork during their initial evaluation. Costs typically increase if you require cleaning or repairs.
• Venting & electrical work. If your system needs upgrades to the venting or electrical system, you're responsible for the costs.
• Permits & code compliance. Permit costs can vary by municipality, but expect to see them in your bill.

Furnace manufacturers set their recommended price ranges based on factors such as extra features. Regardless of brand, you can expect a 15- to 20-year lifespan.

• Carrier (mid- to upper-range price). These systems are renowned for their energy efficiency and reliability. Carrier furnaces tend to cost between $1,000 and $2,800 before installation. Customers can choose either a 10-year parts warranty or a 5-year parts and 3-year labor warranty.
• Lennox (premium price). People choose Lennox when they want one of the most energy-efficient furnaces on the market. These systems are pricey, averaging between $1,100 and $3,700 before installation costs. Manufacturer warranties can last anywhere from 2 to 10 years, depending on the model.
• Trane (mid- to upper-range price). If you value durability and longevity, a Trane furnace is a good choice. Most Trane furnaces cost between $3,000 and $8,500 for the system alone, making them a large upfront investment. However, they're backed by strong manufacturer warranties that can be extended up to 25 years.
• Goodman (mid-range price). These more affordable furnaces come with moderate price tags, typically ranging between $900 and $3,100. Most Goodman warranties last between 5 and 10 years.
• Rheem (mid-range price). Rheem furnaces balance affordability with reliability, with most systems falling between $850 and $4,100 before installation. Most Rheem furnaces have a 10-year parts warranty, but some also include a lifetime heat exchanger warranty.

If you're on the fence between repairing or replacing your furnace, here's what you should consider:

• Furnace age. In most cases, it's worth repairing units under 10 years of age.
• Repair cost threshold. We typically recommend a replacement once the cost of repair exceeds 50% of a new system.
• Frequency of breakdowns. More frequent breakdowns are a telltale sign that it's time for a replacement.
• Energy bill increases. Inefficient older furnaces typically increase your energy bill, costing more to operate over time compared to modern units.

A few simple tricks can help you reduce installation costs. As you shop, be sure to:

• Get multiple quotes from heating companies. Pay attention to the actual details included with each quote, not just the final prices.
• Find seasonal promotions with local installers during the summer.
• Seek rebates from manufacturers and utility companies.
• Consider investing more up front for a higher-efficiency model. They offer long-term savings on your energy bills.
• Always hire a licensed, experienced HVAC professional to ensure your system is installed correctly the first time.