Aspects That Influence Furnace Prices
What is the price of a new furnace for your home? A number of variables will determine the actual price.
While furnaces operate similarly, their power sources vary. Electric, natural gas, and oil are the three most common varieties of furnaces.
Electric furnace installation will range between $2,000 and $7,000. This type of furnace contains heat exchangers that preheat the air before distributing it throughout the house via vents and ducts. Electric furnaces, like other electrical appliances, are measured in kilowatts. It is an effective method of heating a residence but requires a great deal of electricity. Therefore, this form of furnace is more prevalent in regions with moderate winters.
For homeowners in extremely cold climates, natural gas furnaces are an ideal heating solution due to the warmth of their output. The upfront installation price for these models ranges from $3,800 to $10,000, although more efficient systems will be priced higher than standard models. In the long run, the cost savings on energy bills may outweigh the initial expenditure.
Oil furnaces are popular in the Northeast, an area with colder winters. Installing an oil furnace costs between $6,750 and $10,000, depending on the brand and model. Although oil is more expensive than natural gas, it can provide more robust heating results when compared to other fuel sources.
Regular maintenance and furnace air filter replacements will contribute to higher upkeep costs but may be offset by the fact that oil furnaces are typically safer than gas furnaces due to a decreased risk of carbon monoxide leaks or explosions. As long as proper care is given to this appliance type, their longevity often exceeds that of their gas furnace counterparts, lasting up to 10 years longer.
Similar to air conditioning filters with the AC air filters, the capacity of a furnace is measured in BTUs (British thermal units). Multiplying the square footage of the area you wish to heat by 40 will provide you with a ballpark estimate of the required BTUs.
So, if you have a 2,000-square-foot home, you'll need a furnace with approximately 80,000 BTUs, though you can go higher if you live in a region with particularly severe winters.
In general, a 40,000 to 60,000 BTU furnace for a 700 to 1,500-square-foot home will cost between $2,000 and $3,000. For extremely large residences up to 5,000 square feet, expect to pay closer to $6,500. Consider that if your home has cathedral ceilings or drafty windows and doors, you may need to increase the BTUs in order to heat the space adequately.
When it comes to cooling or heating a residence, efficiency is the watchword. When a furnace heats proficiently, you will reduce monthly energy costs. However, when it comes to selecting a new furnace for your home, high-efficiency appliances are typically more expensive initially; however, you will likely save money over time due to reduced energy costs.
An easy way to estimate your cost savings is by multiplying the upgraded energy efficiency of your new appliance by your usual monthly energy bill. To illustrate, if you buy a furnace that provides 25% more efficiency than before, multiply 25% by your average utility expenses each month - and you will come up with an approximate amount of potential savings.
Numerous appliance manufacturers produce furnaces for residential installation. As with other appliances, your brand choice will determine whether you can save money on the cost of a new furnace or whether you will spend more. Your options will be largely determined by the type of furnace you require and what is available in your area.
Installation versus Substitution
Consider your budget when deciding between a new furnace installation or replacement and additional air filter for home HVAC. For instance, if you choose to change an old oil with a new oil furnace, you'll likely benefit from cost savings due to the availability of already-prepared installation materials.
Here are the average replacement costs for the three most common categories of furnaces. Consider that the price includes installation, evacuation of the previous unit, and the furnace itself:
Electric between $2,000 and $7,000
The gas between $3,800 and $10,000
Oil between $6,750 and $10,000
For example, if you are converting an oil furnace to a gas furnace, significantly more labor is involved in preparing the space for the new furnace. The same principle applies if you wish to relocate the furnace.
If you are only moving it a few feet within the same room, you will only need a small amount of additional ductwork. However, relocating it to a different room or an entirely different floor will increase the total price of a new furnace.
When to Install a New Heating System
Even though you will need a new furnace if your current one completely stops working, there are some significant warning signs to watch out for:
Your heating system is older than 15 years.
It has begun making noisy or unusual sounds.
Several spaces in your home need to be heated.
Your energy bills have gone up.
The appliance is corroded or otherwise damaged.
How much should I invest in a replacement furnace?
Generally, a 40,000 to 60,000 BTU furnace for a 700 to 1,500-square-foot home will cost between $2,000 and $3,000. For extremely large residences up to 5,000 square feet, expect to pay closer to $6,500.
Does it make sense to replace a furnace?
It is prudent to invest in an energy-efficient furnace replacement to reduce your heating costs over time. A high-efficiency heat pump can heat and chill your home, improve indoor air quality, and save money on energy bills.
Why is HVAC replacement so expensive?
The primary reason your furnace installation is so expensive is that you are making a long-term investment. As mentioned in this article, your furnace will last at least 15 years.
If you need a new furnace, hire a professional HVAC installer. By endeavoring to install your furnace, you risk squandering a significant amount of money and endangering your family. Consider the scale of your home, the power source you want your furnace to operate on, and the other factors we've discussed to determine your specific new furnace budget.