How Much Does It Cost To Replace A Furnace In 2022?

When you start to notice your home furnace is acting abnormally, you might start to picture your savings account shrinking. While your furnace may have lasted 20 years or longer, the cost of a new one can be quite painful, especially in 2022 with energy costs and inflation soaring. With so many new furnace options, add-ons, and potentially hidden fees, you might even struggle to understand exactly how much it will cost to replace your furnace.

It will cost between $3,500 to $8,000 to replace your furnace. The size of your home, your choice of a high efficiency versus a moderate efficiency furnace, and choosing a gas or electric furnace all have impacts on cost. The installation is the largest variable expense in furnace installation, and varies significantly based on labor costs and the amount of additional work needed in your home during the install.

When you start to cost out your furnace replacement, you will quickly learn there are many considerations to factor in when calculating price. In order to get an accurate picture of how much money to allocate to a new furnace install, you need to make several decisions and weigh some long-term versus short-term cost factors.

Furnace installation is not like screwing in a light bulb. It is a very involved process. For this reason, those who install furnaces are often licensed, and are not simply handymen types.

Installing a furnace can also be quite dangerous. The installation process involves moving heavy equipment, working with live wires and potentially working with natural gas lines (maybe even installing one). Your installation professional likely needs certain levels of insurance to perform these tasks, which makes the rates higher.

An entry-level furnace will cost you between $3,000 and $5,000. The exact price varies based on the size and model of the exact furnace you select. The installation price may change a bit based on what additional modifications are required.

An entry-level furnace is popular for those who are looking for a reliable furnace but are cost conscious. An entry-level furnace is a “single stage” furnace. This means it has only an on and off switch. There are no additional burn levels. An entry level furnace works for those on a budget looking for a furnace that works well, and also for those in mild climates who have limited furnace needs.

A mid-range furnace will currently cost you between $3,500 – $6,500. The exact price will depend on your installation needs and the exact model you select. The biggest difference between the entry-level and mid-range furnaces, other than the price, is the fact that mid-range furnaces have more features. These features include a “two stage” gas valve.

A Two stage gas valve allows your furnace to operate at low fire and high fire temperatures. This gives you flexibility on how you heat your home and make yourself comfortable. Mid-range furnaces are popular as they give you a good deal of options at an approachable price.

High-end, or top of the line furnaces, range anywhere from $4,300 all the way to $8,000 and higher. The exact price of a high-end furnace depends on exactly how many advanced features your furnace has, and also the equipment within the furnace itself. High-end furnaces are often made to be very energy efficient. This means that they maximize the energy they use, which cuts down on energy costs long term. They are, however, much more expensive at first.

There are also a variety of additional features when it comes to high-end furnaces. They can include variable speed blowers, and also whisper quiet technology – meaning you don’t hear a loud sound every time your furnace kicks on and off.

These features can show some real cost saving in the long term, but this technology will cost you more up front. If, however, you are looking for the best that money can buy, this is a good choice for you. If you plan to live in the home for a long time (20 years or more) this might also be a good choice. After all, over time, you will slowly enjoy the cost-saving benefits of the high end furnace.

High efficiency furnaces, not surprisingly, are more efficient than moderate efficiency furnaces. As a rule of thumb, these furnaces provide an efficiency of 90% AFUE or higher. This means only 10% or less of the fuel is lost, with the rest of the energy going directly towards heating your home.

It is important to understand the difference between the two, as there is often a large difference in price point. High efficiency furnaces often cost much more (25% to 50% more) than moderate efficiency furnaces. These furnaces are likely to cost between $3,500 to $8,000.

However, if you do the math, you may find that a high efficiency furnace might quickly start saving you money in energy and costs, making it the cheaper option. The colder the climate and higher the need for heat, the more likely you can benefit from a high efficiency furnace.

Electric furnaces are a common option for those with no access to gas, or for those who live in milder climates. It is common to pair an electric furnace with a heat pump, which is a popular option for those in mild climates.

Electric furnaces are also much less expensive than gas furnaces initially. They are also very easy to install compared to gas furnacesThey are, however, much less efficient than gas furnaces, as they are less energy efficient and often less powerful. Between the two types of furnace, electric furnaces tend to last longer, up to 30 years, compared to gas furnaces (20 years).

Gas furnace can cost twice as much as an oil furnace, and three times as much as an electric furnace. This initial sticker shock may make you want to steer clear of gas furnaces. It is important to remember, however, that these furnaces save you money over time.

Gas furnaces are also very complicated to install, which means the professional installation costs will add to an already-high initial cost. They are, however, the better option in colder climates when heat is a common necessity, as they will quickly save money over time, and heat your home better.