A winter evening, a cold house, and a simple goal
The thermostat blinks. The house feels colder by the minute. You search “ furnace installation cost near me” and hope for a straight answer. We get it. You want heat fast, a fair price, and no upsells. At The Furnace Outlet, we give direct-to-consumer pricing, fast free shipping, and honest guidance from licensed techs. We also tell you when a low-cost fix beats a full replacement. In this guide, we translate contractor talk into plain English. You’ll see what drives furnace cost, what you can skip, and how to save. We’ll also point you to tools, like our sizing guide. Let’s remove the mystery and warm the house.
The quick answer: what most people pay in 2025
Most homeowners spend $4,800–$6,500 installed in 2025. The national range runs $3,200–$9,500. Costs vary by home size, fuel type, efficiency, and region. Here’s how a typical invoice breaks down.
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Equipment: 60–70% of the total.
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Labor and installation: $1,000–$3,000 (30–40%).
A higher-efficiency furnace adds cost up front. It can lower bills for years. Bigger homes need more BTUs, which raises equipment size and price. Cold regions often pay more due to labor rates and code rules. If a tech suggests a full system, ask for options. Our licensed team will outline repair-first choices when smart. You can also browse our furnaces and see financing options in plain language on our HVAC financing page.
Home size and BTUs: the math behind the quote
Furnace size is measured in BTUs. A quick rule is 30–60 BTUs per square foot, depending on climate and insulation. Proper sizing uses a Manual J load calculation. Oversizing wastes money and comfort. Undersizing leaves rooms cold. Start with our step-by-step sizing guide.
|
Home size |
BTU range |
Typical install cost |
|
1,000 sq ft |
30,000–60,000 |
$1,200–$2,000 |
|
1,500 sq ft |
45,000–90,000 |
$1,800–$3,000 |
|
2,000 sq ft |
60,000–120,000 |
$2,400–$4,000 |
|
2,500 sq ft |
75,000–150,000 |
$3,000–$5,000 |
|
3,000 sq ft |
90,000–180,000 |
$3,600–$6,000 |
|
4,000+ sq ft |
120,000–240,000 |
$4,800–$8,000 |
For a 2,000 sq ft home, plan on 80k–100k BTUs and $6,000–$13,000 installed, depending on features.
Fuel types compared: electric, gas, propane, and oil
Fuel type sets both up-front price and monthly bills.
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Electric: $2,000–$7,300. Low upfront. Bills can rise in cold regions. Suits mild climates or homes without gas.
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Natural gas: $3,800–$10,000. Most popular. Lower operating cost in many areas. Strong fit for cold climates.
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Propane: $3,700–$14,200. Common off-grid choice. Fuel costs vary and often run higher than gas.
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Oil: $6,700–$10,000. Powerful heat. Common in the Northeast. Needs a storage tank.
If fuel prices confuse you, check EIA’s clear explainers on energy costs and fuels (EIA). When you’re weighing tradeoffs, our techs can help in chat. We’ll share simple math and link to the right accessories when needed.
Where you live changes the price
Region matters. Labor rates, climate, and codes all affect bids.
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Northeast: $2,050–$14,280. Higher labor and strict codes.
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Midwest: $1,775–$12,370. Competitive contractor market.
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South: $1,680–$8,875. Lower heating demand reduces costs.
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West Coast: $2,210–$11,370. Higher living costs and regulations.
Urban quotes often beat rural prices. Expect 20–40% higher costs an hour from a major city. Go two to three hours out, and premiums can hit 50–60%. Canada follows similar patterns: $4,000–$6,500 in cities, $4,800–$9,600 in remote areas. We offset distance with fast, free shipping where available and straightforward pricing. Want a ballpark before a site visit? Use our photo upload tool to get a quote by photo.
AFUE efficiency: paying more to save more
AFUE shows how much fuel becomes heat. 80% AFUE is standard. 90–98% means less waste and lower bills. Higher AFUE raises equipment cost but trims ongoing expense.
|
AFUE |
Type |
Cost premium |
Typical savings |
Payback |
|
80% |
Standard |
Base |
Base |
— |
|
90% |
High-eff |
+$1,000–$2,000 |
10–15% |
5–8 yrs |
|
95% |
High-eff |
+$1,500–$2,500 |
15–20% |
7–10 yrs |
|
96–98% |
Premium |
+$2,000–$3,000 |
20–25% |
8–12 yrs |
Learn the basics at DOE Energy Saver (DOE).
Brands and features: value without the fluff
Brand affects price, warranty, and features.
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Budget: Goodman, York, Coleman. Solid performance and 10-year parts. Great for tight budgets.
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Mid-range: Bryant, Carrier. Balanced cost and features. Broad dealer networks.
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Premium: Lennox, Trane, American Standard. Top AFUE, advanced controls, long warranties.
Features like variable-speed blowers and modulating burners boost comfort and savings. Lennox offers up to 99% AFUE. Trane is known for durable cabinets and heat exchangers. You can browse units at our furnace collection and compare must-have add-ons in our accessories. Not sure which feature matters in your climate? Ping our licensed techs. We’ll tailor advice and avoid upsells you don’t need.
Invoice anatomy: equipment vs labor, line by line
A clear bill reduces stress. Expect two big buckets.
Equipment (60–70%) includes the furnace, controls, venting kits, and small parts. High-efficiency models add condensate pumps and specialized vents. Labor (30–40%) covers removal, setup, gas/electric connections, venting, testing, and cleanup. Complexity and code items can add time. Planning a bigger system change or dual fuel? Our Design Center can map the parts list and save you surprises.
Complexity factors you might not expect
Some homes need extra work. These items swing bids the most:
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Duct changes: Add $2,100–$4,900 when resizing or sealing.
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Code upgrades: Vary by city and existing system.
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Permits: $50–$300, usually paid by the contractor.
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Venting: High-efficiency furnaces often need new PVC runs.
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Electrical: Dedicated circuits or surge protection may be required.
Before you panic, send photos and notes. Our team can flag simple fixes first through quote by photo. For deeper dives, browse our help center and HVAC Tips blog. We keep the language simple and the steps clear.
Local pro vs big-box checkout: candid advice
Contractors favor local purchase for good reasons. Proper sizing needs a load calculation. Gas, venting, and wiring require certified hands. Many brands require pro install to keep the warranty. Big-box and random online buys can lead to wrong sizing, weak installs, or limited support. We respect that. Our role is simple: give wholesale pricing, ship fast, and back you with licensed techs. We’ll even suggest a budget repair before a full swap when it makes sense. Read our story on the About Us page, or contact us for straight talk via the Help Center.
