Furnace Installation: Costs & What to Expect

A new furnace installation is typically a one-day job. Price depends on the fuel type, the efficiency (AFUE) you choose, the size your home needs, and any venting or gas-line work.

What a furnace installation involves

A furnace installation removes the old unit and sets a new one sized to your home's heating load, then connects the gas or electrical supply, the venting, the ductwork, and the thermostat, and commissions the system. High-efficiency (90%+ AFUE) furnaces use sealed PVC venting and produce condensate that needs a drain.

If your air conditioner shares the same coil and blower and is also aging, replacing both at once keeps the system matched and usually costs less than two visits.

What drives the price

What affects furnace installation cost

Fuel type

Natural gas is the most common. Propane and oil furnaces cost more; electric furnaces are cheaper to install but expensive to run.

Efficiency (AFUE)

80% AFUE is the baseline; 90–98% high-efficiency models cost more up front and cut fuel use, and add sealed venting and a condensate drain.

Size (BTU)

Roughly 30–40 BTU per square foot, confirmed by a load calculation. An oversized furnace short-cycles.

Venting changes

Switching from an 80% to a 90%+ furnace usually means new PVC venting and a condensate line.

Gas line & electrical

Upsizing a gas line or adding a circuit for the blower adds cost.

Permit & startup

A permit, combustion analysis, and startup test should be included.

Cost

Typical furnace installation cost

Installed ranges for a typical home. Tailor it with the Furnace Replacement Cost Calculator.

Furnace typeTypical range
Gas furnace, 80% AFUE$3,000 – $5,500
Gas furnace, 90–96% AFUE$4,500 – $8,000
Propane furnace$3,500 – $7,000
Oil furnace$5,000 – $9,000
Electric furnace$2,500 – $5,000
Venting conversion (80% → 90%+)+$500 – $1,500
Full system (furnace + AC)$8,000 – $16,000

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The install

What installation day looks like

A furnace replacement is usually a single-day job. A typical install includes:

  • Disconnecting and removing the old furnace
  • Setting and leveling the new furnace and connecting the ductwork
  • Gas connection and a leak check, or the electrical hookup for an electric unit
  • Venting — reusing the flue for an 80% unit, or new PVC for a 90%+ unit
  • A condensate drain for high-efficiency models
  • A permit, a combustion analysis, and a startup test, then inspection

Gas work must be done by a licensed professional. Never attempt furnace gas connections or venting yourself.

Questions to ask a furnace installer

  • Did you size the furnace with a load calculation?
  • What AFUE are you quoting, and why that level for my climate?
  • Does the price include new venting and a condensate drain if needed?
  • Is a permit, combustion analysis, and inspection included?
  • What's the heat-exchanger warranty and the labor warranty?
  • Which rebates or tax credits does this furnace qualify for?
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FAQ

Furnace Installation Questions

How much does a new furnace cost installed?

An 80% AFUE gas furnace runs about $3,000–$5,500 installed; a 90–96% high-efficiency model runs $4,500–$8,000. Propane, oil, and electric furnaces fall outside that range. Estimate yours with the Furnace Replacement Cost Calculator.

Is a high-efficiency furnace worth it?

In cold climates with high heating bills, usually yes — the fuel savings add up. In mild climates the payback is longer. A 90%+ furnace also requires new sealed venting and a condensate drain, which adds to the install cost.

How long does furnace installation take?

A like-for-like furnace replacement is typically done in one day. Converting from an 80% to a 90%+ furnace adds a few hours for the new venting.

Can I install a furnace myself?

No. Furnace installation involves gas connections, venting, and combustion safety that must be handled by a licensed professional and permitted and inspected.

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