Home Furnace Installation Cost

Total Installation Cost Range: $2,200 - $3,500
Average Materials Cost:
Average Labor Cost:
Avg. Time to Complete: 4-8 Hours for 2 Installers

Usually Includes: Furnace, All Supplies, Installation, Disposal, Labor, Permits and Inspections.

Gas, oil, or electric furnaces are used to keep your home warm during the colder months of the year. They are usually installed by HVAC Contractors (heating, ventilation, air conditioning) and a forced air furnace may also be installed during the installation of a heat pump system or central air conditioner. In the majority of cases, a furnace installation takes between 6-8 hours, by 1-2 qualified installation technicians.

In this installation cost guide, we will help you understand more about installation processes, the various tools used, as well as other skills needed that may effect the cost of oil or gas furnace installations.

Items Usually Included in Home Furnace Replacement

These items are usually included in a furnace replacement cost estimate:

  • Price of the new furnace needed for your home.
  • New thermostat if needed.
  • All related plumbing supplies and parts needed .
  • Miscellaneous sheet metal used for fitting into existing duct system.
  • Duct or vent insulation supplies as needed.
  • Electrical breakers or new disconnects as needed.
  • Permits and inspections as required by local laws.
  • Removal and disposal of old furnace.
  • All labor to perform the furnace installation up to local code.

Other items that may also be included in the cost to install a furnace or complete hvac system are listed below:

  • Cleaning of oil tank. (oil furnaces)
  • CO2 detector for gas systems.
  • Central AC condensing unit.
  • Heat Pump condensing unit.
  • Air Cleaners or Purifiers.
  • Humidifier Systems.

Specialized Tools & Equipment Needed

While most companies do not include an itemized list of the different tools they use during a furnace installation. Along with a basic set of hand tools, you can be sure if you tried to do it yourself you would need to purchase these specialized tools as well.

  • Truck – To carry the furnace from the supply house to yours, as well as carrying the used furnace to the dump.
  • Sheet Metal Tools – When fitting the furnace into place, sheet metal work will need to be cut, bent and fitted into place.
  • Plumbing Tools – Whether you work with soft copper tubing or black steel pipes, you are going to need pipe wrenches, specialized cutting tools, pipe flaring tools, etc.
  • Leak Detectors – You need to check the system for both gas and CO2 leaks after its running.
  • Electric Multimeter – For checking line voltage to the thermostat and power supply.
  • AC Vacuum Pump – If you have to disconnect any of the refrigerant lines to your AC unit, you need to clean them when done.

Factors that Effect Installation Costs

There are many different factors that can effect the total furnace replacement cost. Where the unit is located (physical location) in your home and how hard it is for the installers to get to it, can have the most impact. For instance, if the furnace is in a utility closet on the ground floor of your home, its going to be much easier to install, than having a furnace in the attic space of a 2 story home, with nothing more than a access panel in your ceiling.

Other factors include:

  • Current workload on contractor.
  • Type of furnace being installed.
  • Age of the old system and modifications that may be required for the new.
  • Outside temperatures.
  • Local disposal fees, permit and inspection costs.

Save on Installation Costs!

Who doesn’t want to save a little money on their furnace installation cost, right? In most cases, furnace installation is best left to a pro from start to finish, but there may be a few things you can do to save a bit of money.

  • Buy the replacement furnace yourself online.
  • Offer to barter partial payment with your specific skills.
  • Take care of disposing of the old unit.
  • Offer to work as a helper on the project.

The bottom line is that there are several things to drop or raise the cost to install a furnace. The only way to learn is to talk with each of the contractors you get price quotes from, ask as many questions as you can, and use a comparison sheet to get the best price.

Learn More about Furnace Installation

For more information about the process of installing a furnace, pitfalls of doing it yourself, or even what goes into comparing detailed furnace installation cost estimates, review some of the links below.

HVAC For Beginners – A very basic guide to whats involved in the furnace installation. From load calculations to starting up the furnace after its installed.

Furnace Compare – Great heating system website with volumes of information about home furnaces.

FourSeasons HVAC Chicago – An article that outlines the dangers of trying to install your own furnace.

Head over to our user submission form, and email us to provide details about your own furnace installation cost.

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