New Furnace Cost: Replacement vs. Repair Costs

Furnaces remain the most common way for homeowners in North America to heat their homes. This buying guide has all the research and information needed to help you understand your gas furnace options, so you can make a buying decision you’ll be happy with for the next 15-20 years.

The focus is on gas furnaces, since most furnaces are fueled by natural gas (NG) or, with a simple gas valve change, liquid propane (LP). However, for comparison, we also briefly discuss oil furnaces.

New Gas Furnace Installation Cost

On average, you can expect to pay between $3,500 and $5,500 to install a mid-range gas furnace in a typical house. With replacements, the removal of the old furnace will typically add an additional $500 to the cost of installation.

When efficiency, size and performance are factored into the equation, expect the following unit pricing tears:

  • Basic: $750 to $1,550
  • Better: $1,100 to $2,550
  • Best: $1,850 to $2,950

Furnace installation costs are based on the complexity of the furnace, sheet metal work required to connect it to the existing ductwork, and how difficult it is to access the installation location such as a crawlspace or attic. Expect estimates for the installation work in these ranges:

  • Basic installation: $1,500 to $2,500
  • Mid-range installation: $1,750 to $2,900
  • High-end installation: $2,500 to $3,900
Gas Furnace Installation Cost Only (Not including the cost of the unit being installed)

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Central Heat & AC Installation Cost – Home HVAC Pricing Guide

Most new heating and cooling systems cost $16,000 to $18,000 this year. Premium systems can cost more than $24,000.

Price hikes of more than 20% have hit the HVAC industry over the last few years – Trane is up 25% after announced increases each of the last two years. Add to that increased costs for local installers, and the consumer is paying at least 30% more.

Buy now or wait? Will prices fall to more “normal” levels if you wait a year or two to buy? Will it pay off to pour money into an old system to keep it going in the meantime?

We’re not optimistic. The best advice is probably to buy a system now, because your dollars are losing value with each passing month. 🙁

This guide is focused on the cost of central heating and cooling systems, and explaining the top available options. Our goal is to help you get a system with the best return on investment, meaning you won’t spend more upfront than you can recoup through lower energy costs or go too cheap (inefficient) and get burned by high operating costs, since energy prices are rising, too.

How Much Does an HVAC System Cost?

Each type of central heating and cooling system is explained below with pros and cons, cost factors and best uses.

This HVAC system cost comparison shows price ranges based on system size, performance, and efficiency. They are listed by popularity – a central AC and gas furnace remain the bestselling heating and cooling system.

E.R. = Efficiency Rank among the system types listed.

System Average Cost Sizes E.R. Full Cost Range
AC & Furnace $16,500 1.5 to 5.0 Tons 5 $11,500 – $23,000
Heat Pump & Air Handler $17,200 1.5 to 5.0 Tons 4 $11,900 – $23,500
Heat Pump & Furnace $18,500 1.5 to 5.0 Tons 3 $12,800 – $24,500
Gas Package $10,500 2.0 to 5.0 Tons 7 $8,600 – $13,800
Electric Package $11,700 2.0 to 5.0 Tons 6 $9,100 – $15,000
Mini Split $13,900 .5 to 7.0 Tons 2 $3,100 – $26,000
Geothermal $27,500 2.0 to 7.0 Tons 1 $18,000 – $40,000

Average cost: These are heating and cooling prices for an average-sized system installed, which is 3-4 tons for an AC or heat pump and 80,000 to 100,000 BTU for a gas furnace where applicable.

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Top 10 Best Value Gas Furnaces in 2022: Costs by Model Installed

A great value gas furnace must be above average in quality and reliability, while also being priced competitively to make our list.

Lower-quality, cheaper gas furnaces don’t offer the best value because they don’t last long enough to justify the installation expense in the first place. Low quality furnaces are also more prone to breaking down in the middle of a nasty stretch of cold weather.

Value = good quality + reasonable cost

Your climate suitability for a particular model and the quality of the installation job also play an important role in the overall value you get.

Top 10 Gas Furnaces that Deliver the Best Value for the Money

  1. Day & Night G96VTN QuietComfort 96
  2. Trane S9X1
  3. Goodman GMVC96
  4. Payne 95 PG95ESA
  5. Armstrong Air A951E
  6. Goodman GMSS92
  7. Carrier Comfort 92 59SC2
  8. Day & Night N80ESN Performance 80
  9. Rheem Classic Series R801C/R801S
  10. Trane S8X1

That’s our list – and each model is reviewed below including cost, efficiency, performance, warranty and why it makes our list.

Before those reviews, we cover information about what makes for a good value gas furnace, installation costs, the cost of ductwork, if you need it, and other relevant information.

If you’d rather jump to the furnaces, select the Day & Night furnace that heads the list, and you’ll be taken directly to the reviews.

Gas Furnace Installation Cost – Warrantied Professional Installation/Labor

The professional installation (labor, supplies, building permits, and labor warranty) part of your bill will be about $2,600 on average, if your installation is of average difficulty.

The range is from about $1,500 for a very simple installation (not including the furnace) in new construction (not including the cost of ductwork) to about $4,000 (not including the furnace) for more involved jobs where the gas line needs replacing and/or other variables come into play, requiring more materials and warrantied professional labor.

A high-end, touchscreen, WiFi thermostat can also boost the cost of the overall job with a price tag of $500 or more.

Here’s a gas furnace installation cost breakdown showing where your money typically goes:

Gas Furnace Installation Cost Only (Not including the cost of the unit being installed)

The plenum connects the furnace to the hot air ducts. The return connects the furnace to the cold air return ducts.

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