Cranking up The Heat: A Complete Breakdown of The Cost of Furnace Replacement

So, you’re probably here because your furnace is acting up, or maybe it’s just getting old.

That means you’re staring down one of the most common expenses homeowners have to face – furnace replacement cost.

Whether you’re dreading it or budgeting for the inevitable, understanding the ins and outs of the cost of furnace replacement can save you time, money, and a whole lot of frustration.

Furnace Replacement Costs by Type of Furnace

The kind of furnace you choose plays a massive role in the final price tag.

You’ve got options: gas, electric, propane, and oil. Each comes with its own pros, cons, and price points.

Electric Furnaces: A Solid Choice for Mild Climates

Electric furnaces are the most affordable upfront, typically costing between approximately $1,700 to $6,750 to install.

These work best in milder climates because, although they’re efficient, running one in the dead of winter can lead to sticker shock when the electric bill arrives.

They also do not require a gas line, making installation simpler if your home already uses electricity.

Gas Furnaces: Powerful Heating for Colder Regions

Gas furnaces are the most popular choice across the US. They provide excellent heating power, making them ideal for battling those frigid winters.

The average gas furnace replacement cost comes in between approximately $3,800 and $10,670.

However, this usually requires an existing gas line and proper venting, which could add to installation costs.

Propane Furnaces: A Viable Option for Off-Grid Homes

Propane furnaces are your go-to if a gas line isn’t an option for your home.

You’re looking at a furnace replacement cost between approximately $3,400 and $7,135.

Installation often includes adding a propane tank, either buried in your yard or above ground.

Oil Furnaces: A Dying Breed?

Oil furnaces are mainly found in older homes and have become less common because oil prices are notoriously volatile.

They can be cheaper to install upfront, from approximately $6,140 to $9,800, but the long-term running costs are unpredictable.

They also require delivery and storage of oil, which can be inconvenient.

6 Factors That Affect Furnace Replacement Cost

Beyond just the type of furnace, many elements influence the final number you see on that estimate.

1. Furnace Size

Sizing a furnace correctly is key for efficient and even heating. You need enough BTUs (British Thermal Units) to keep your entire space comfortable, but an oversized unit will short cycle, wasting energy (and your hard-earned cash.).

Experienced HVAC professionals, like our team at Spartan Mechanical, can help you calculate the proper size based on your home’s square footage, insulation, and climate.

A bigger, more powerful furnace will cost you more money upfront, while a small but mighty system will go easier on your wallet.

2. Energy Efficiency (AFUE Rating)

The higher the AFUE (Annual Fuel Utilization Efficiency) rating, the more efficiently your furnace burns fuel.

This translates to big savings on heating costs over time.

While a high-efficiency model will cost more upfront, it’ll be gentler on your wallet in the long run and is a greener way to heat your home.

Look for the ENERGY STAR label on your furnace; they independently verify and rate furnaces.

3. Brand Name and Features

Just like with cars, some furnace brands cost more than others, often because of perceived quality, advanced features, or fancier designs.

While going top-tier might make sense for some homes, simpler, reliable options often deliver just as well without the hefty price tag.

Consider what features are important to you and what fits your budget.

4. Labor Costs

Installation labor usually makes up a significant chunk of the overall furnace replacement cost and can vary significantly depending on complexity.

Removing the old furnace from the depths of your basement definitely takes more time and effort.

Also, factors like the accessibility of the work area also come into play. Contact Spartan Mechanical for a FREE estimate.

5. Permitting and Inspections

Don’t forget, depending on where you live, permits are almost always a must-have for furnace replacement.

The requirements vary based on location, so check with your local building department or a contractor familiar with your area.

Permit costs can add to the overall expenses.

6. Warranties

A solid warranty provides peace of mind. If something goes wrong (and let’s be honest, with any mechanical system, there’s always a chance), you’re covered.

Pay close attention to what each warranty covers. Is it just the unit itself? Or does it also cover labor for furnace repairs? How long does the coverage last?

A good warranty adds to the total cost of furnace replacement, but it buys you peace of mind.

4 Additional Costs Related to Furnace Replacement

Be sure to factor these potential extras into your overall budget for a new furnace.

1. Ductwork Repairs or Replacement

While installing that brand-new furnace, your HVAC contractor might find your existing ductwork is leaky, damaged, or inefficient (especially common in older homes).

Replacing or repairing your ductwork can significantly impact heating costs down the road but will also add to the upfront furnace replacement cost.

2. Electrical System Upgrades

Upgrading to a larger, more powerful furnace could require beefing up your home’s electrical panel to handle the increased energy demand.

An electrician can assess your electrical system and determine if any upgrades are necessary to accommodate a new furnace.

3. Upgrading Thermostat

Newer thermostats offer advanced features and programmability, such as smart thermostats.

If you decide to pair a smart thermostat with your new system, you’ll enjoy optimal efficiency and control over your home’s temperature, but keep in mind this could impact the total cost.

Programmable thermostats help save money on your energy bills by adjusting the temperature based on your schedule.

4. Unexpected Surprises

As with any home improvement project, there’s always the possibility of unexpected hiccups.

That’s why it’s crucial to have some wiggle room in your budget to account for those unforeseen furnace replacement costs.

Common unexpected issues include unforeseen damage and the need for additional materials.

5 Signs You Need a Furnace Replacement

Knowing when it’s truly time for a new furnace can be tricky. Here are a few telltale signs to look out for:

1. Aging Unit

Like that old car in your driveway, your furnace has a finite lifespan.

Once a furnace hits that 15-20-year mark, its performance starts declining.

It might seem okay to squeeze out another year or two, but more frequent breakdowns and escalating repair bills can quickly turn into a money pit.

The cost of repairs for an old furnace can outweigh the cost of a new, energy-efficient furnace over time.

2. Rising Energy Bills

Noticing a steady climb in those monthly heating bills?

That could mean your furnace is losing efficiency and working harder to maintain your desired temperature.

Replacing an aging, inefficient unit can offer a significant return on investment over time, not to mention increase your comfort and peace of mind.

3. Strange Noises

Listen closely.

While a few groans and creaks now and then are to be expected (just like us humans.), any loud, unusual sounds like banging, screeching, or rumbling from your furnace can be a sign of a serious mechanical issue that could warrant replacement.

Ignoring those noises for too long can be costly—both in terms of emergency repairs and potentially larger problems down the line.

4. Inconsistent Heating

Are certain rooms colder or hotter than others?

This can signal a problem with your furnace’s distribution system, thermostat, or even a failing motor that can’t adequately circulate heated air throughout your entire home.

Poor insulation, closed vents, and ductwork issues can also contribute to inconsistent heating.

In such cases, replacement might be the best option.

5. Excessive Dust

You’re not imagining it.

If dusting seems never-ending or allergies seem worse than usual, that increase in dust could mean your furnace’s air filter is struggling to do its job properly.

This can be a sign that the unit is nearing retirement. Regularly replacing your furnace filter can improve air quality and extend the lifespan of your furnace.

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