Furnace Cost

• Replacing a gas furnace can cost $400 -$2,000 for a self-contained and vented wall unit that provides hot air directly to the surrounding space; $900 -$3,500 for a gas floor furnace (heat rises from a grill flush with the floor); $1,700 -$7,500 for a mid-efficiency gas furnace in a central heating system; and $2,500 -$12,000 or more for a high-efficiency gas furnace in a central heating system.
• Replacing an oil-fired furnace in a central heating system starts typically costs $2,000 -$5,000 for a basic installation, but can reach $6,000 -$10,000 or more for complex installations.

• A heating system that is too weak or too powerful for the size of the house won't run properly and make the home uncomfortable. A contractor should calculate the actual capacity needed based on industry standards.
• Replacing a floor or wall furnace typically takes a day or less. A self-contained floor or wall furnace must be vented (typically through an exterior wall) but there is no ductwork to carry air to other parts of the home.
• Replacing a furnace in a central heating system can take a day or two, and possibly longer depending on the condition of the existing lines and pipes. A furnace in a central heating system typically has a burner, where the fuel is delivered and consumed; a heat exchanger (or exchangers) to transfer heat from the burner to the air; and blowers/fans to distribute the heated air into the ductwork. Mr. Fix-It has a detailed overview that includes basic terms and standard system set-ups.

• A building/mechanical permit is usually required to replace a furnace. Permit and inspection fees are typically about $50 -$300, but can cost more in some locations. Many contractors include getting the proper permits and inspections as part of the installation process, but might bill for these fees separately.
• Replacing an old furnace with a high-efficiency new one can also require installing a chimney liner for about $300 -$700 for a gas furnace or $700 -$1,800 for a fuel oil model. If needed, make sure this is included in all estimates.
• Removing an old fuel oil tank can cost $500 -$3,000 or more, depending on local rates and the tank's size, condition and accessibility.
• Older ductwork might contain asbestos, creating unpredictable additional costs for asbestos removal.

• It might be possible to get a low-cost loan, rebate or tax credit for installing an energy-efficient central heating system. The database of State Incentives for Renewables & Energy Efficiency tracks energy-efficiency incentives offered by utilities and by state, federal and local government agencies. For example, utility companies in Wisconsin pay a $125 "reward" for furnaces with a 90% AFUE rating and $275 for 95% models.
• It is possible to make an old furnace work better or to buy a smaller, less-expensive model by taking energy-saving steps such as finding and sealing any air leaks, adding insulation or upgrading/replacing inefficient doors and windows. The American Council for an Energy-Efficient Economy offers detailed guidelines.
• Try to schedule work in the spring or fall, when contractors typically have fewer emergency calls for heating or air conditioning work. It can be easier to get the work done, and to get the lowest rates.

• The American Council for an Energy-Efficient Economy provides guidelines for deciding when to replace an old heating system, and the Environmental Protection Agency lists tips for hiring a heating and cooling contractor.
• Shopping for a furnace typically means calling contractors and getting estimates. Referrals are available from the North American Technician Excellence certification program and the Air Conditioning Contractors of America.
• Request and check references; ask about length and type of experience; and be sure they are properly bonded, insured and licensed. Check for complaints with the Better Business Bureau.

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