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A new furnace installation can cost you from $3,064 to $3,870 for a gas furnace. If you have ductwork already in place, the cost range may come down to $774 to $1,422. 

A gas furnace is the most common furnace type installed in the U.S. due to its ease of installation, durability, and operation. For other furnace types, the price for the unit will change, while the ductwork and labor charges would remain within a similar range. Here are the types of furnaces with costs: 

• Electric Furnace Prices: $585–$1,074 


• Gas Furnace Prices: $774–$1,422 


• Oil Furnace Prices: $3,142–$5,773 


• Solid Fuel Furnace Prices: $6,721–$12,347 

When installing a new furnace, it is important to know what you are looking for so you can make the best decision for your new heating unit installation. The top things you will want to research should be: 

• Does your current furnace need to be repaired, or should you just replace it altogether? If you are unsure, you can ask your contractor to help determine the condition of your existing furnace and provide recommendations. 


• What size of furnace will you need for your home to adequately heat each room without energy waste? 


• Is there an energy efficiency level you want to save money on energy bills in the long run? 


• Which local furnace installer will be the most reliable and within your project budget? 

Gas furnaces are most commonly installed in areas of the U.S. where the climate is much colder, and temperatures can drop below freezing. They are one of the most energy-efficient heating units you can install, and their AFUE percentage rating (energy efficiency level) can go up to 95% on higher end furnaces. 

Gas furnaces are a type of home heating unit that work with forced air to circulate heat throughout your home during colder months. They use natural gas or propane as their main energy source, delivered through a main gas line or stored in onsite tanks (if a gas line is unavailable in your area). 

An alternative to a gas furnace is an electric furnace if you are looking for an eco-friendly option. The low cost of installation and safety provinces also drives homeowners towards electric furnaces. Read our blog on pros and cons of gas and electric furnaces here. 

When looking for the best furnace installers near you, there are a few ways to be sure you have found the most reliable installation contractor in your neighborhood. Here are a few things that an experienced furnace service technician should be able to knowledgeably answer upon request and that you should know before hiring anyone to install your new electric or gas furnace. 

• Ask which brands of furnaces your installer has experience with. Though most new furnace systems are similar in installation process, it’s good to know that the contractor you work with has access to your desired HVAC brand and experience getting it installed properly. 


• The next question you will want to ask is what the markup on their HVAC parts and units is. Some furnace installers will have a cheaper labor price; however, the cost is hidden in a markup on the price of your new HVAC system. 


• Ask for a detailed price estimate for the scope of your furnace installation. You want to be sure everything is posted on your initial cost outline to ensure you aren’t going to incur hidden costs once the project is finished. Ask for exact model numbers of your new furnace and scheduled project completion dates as well. 

Installing a new furnace is an important investment and you should make sure you are doing your research on selecting the right heating unit and choosing the right contractor for the job.  

Your next step will be to meet in-person with your choice of best contractors to review the specific details and expectations of your furnace repair and installation project. Be sure to discuss the following with each contractor: 

• Ask for proof of insurance, which should provide their insurance company name, policy number, and policy limits. 


• Ask about their HVAC license and work permits. 


• Discuss who will manage warranty details and responsibility for your AC unit. 


• Make sure to get a fixed price on the project before signing a contract whether it is servicing, repair, replacement, or installation of the whole furnace unit.