How Much Does a Goodman 96% AFUE Furnace Cost to Install? Real-World Pricing & Labor Tips

Real-World Pricing & Labor Tips from Mark

By Mark Callahan

When homeowners shop for a new furnace, one of the first questions that comes up is simple: “How much will it cost to install?”

The answer, though, isn’t always simple. Between the unit price, labor, venting, ductwork, and local codes, furnace installation costs can vary widely — especially for high-efficiency systems like the Goodman 96% AFUE 120,000 BTU Two-Stage Variable-Speed Gas Furnace (Model GRVT961205DN).

After installing one in my own home and helping friends through the same process, I’ve seen everything from budget installs to full system overhauls. In this guide, I’ll break down real-world furnace pricing, labor details, regional cost differences, and ways to save money — all from a homeowner’s perspective.

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💡 Why Installation Costs Vary So Widely

A high-efficiency furnace is an investment — one that depends heavily on your home’s design and the complexity of the job.

On average, a 96% AFUE Goodman furnace costs between $3,500 and $6,000 installed. But that range can shift depending on:

• 📏 Furnace size and BTU rating — larger homes need more heating power.

• ⚙️ Efficiency level (AFUE) — 96% models require special venting and condensate lines.

• 🧰 Labor costs — HVAC labor rates vary from $85–$150/hour depending on location.

• 🌡️ Climate — cold regions may require larger or multi-stage systems.

• 🧱 Ductwork condition — poor airflow or leaky ducts can increase installation time.

💬 “When I first got quotes for my Goodman 96% furnace, they ranged from $3,800 to nearly $6,000 — for the same model. Once I learned how venting, ducting, and labor factored in, it made sense.” — Mark

For context, ENERGY STAR notes that efficiency upgrades often require new venting or drain systems, which can add cost but ensure proper operation and long-term reliability.

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🧾 National Average Furnace Installation Costs (2025 Data)

Here’s a breakdown of what homeowners typically pay for a Goodman 96% AFUE furnace installation in 2025:

Larger systems like the 120,000 BTU Goodman GRVT961205DN tend to fall toward the higher end of this range — particularly if your home needs duct upgrades or new vent routing.

Source: Furnace Installation Costs

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🧰 Labor Costs — What’s Included (and What’s Not)

Installation labor is the biggest variable in your quote — and also the most important.

What’s Typically Included:

• Removal and disposal of the old furnace.

• Setting up the new Goodman unit and connecting gas lines.

• Installing PVC intake/exhaust vents and condensate drain.

• Electrical and thermostat wiring.

• Safety and efficiency testing.

What Might Cost Extra:

• Replacing undersized ductwork.

• Gas line extensions or modifications.

• Adding a new condensate pump for basements.

• Running new PVC venting through walls or ceilings.

• Permit and inspection fees (varies by city).

💬 “A quality install should take a full day with two trained techs. If someone promises to do it in half that time, they’re probably skipping important checks.” — Mark

Reference: ACCA – HVAC Contractor Standards

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🔧 Unit Cost vs. Installed Cost: What You’re Really Paying For

When you browse furnaces online, the unit price might look appealing — often $2,000 or less for the Goodman GRVT961205DN. But the installed price includes:

• Professional labor and tools.

• Venting and drainage components.

• Electrical and gas safety work.

• Commissioning and warranty validation.

Installing a 96% AFUE furnace isn’t a DIY project. These systems produce condensation and require precise gas pressure, vent slope, and exhaust management.

💬 “Goodman’s warranty is one of the best — lifetime on the heat exchanger, 10 years on parts — but it only applies when installed by a licensed HVAC pro.”

Reference: Goodman – Warranty Registration

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📍 Regional Cost Differences Across the U.S.

Where you live can significantly affect furnace installation costs due to labor rates, energy codes, and local demand.

For perspective, the EIA notes that heating demand in northern states can be more than double that of southern ones — influencing both equipment sizing and installation pricing.

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🧮 Estimating Your Total Project Budget

Don’t forget about secondary costs when budgeting for your Goodman furnace upgrade.

Additional Expenses:

• Permits & Inspections: $100–$400 (varies by city)

• Smart Thermostat Upgrade: $200–$500

• Extended Warranty or Service Plan: $200–$600

• Optional Accessories: Air purifier, humidifier, surge protection

Example “All-In” Budget for 120,000 BTU Goodman System:

$4,500–$6,000 total, including installation, thermostat, and permits.

💬 “Budget for the job, not just the unit. The difference between a $4,000 and $6,000 install is usually the craftsmanship — not the furnace.” — Mark

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💨 Do You Need New Ductwork?

One of the most overlooked cost drivers is ductwork. A high-efficiency, variable-speed furnace like Goodman’s performs best with properly sized, sealed ducts.

Signs You May Need Duct Upgrades:

• Uneven heating between floors.

• Whistling or rattling ducts.

• Dust accumulation near vents.

• Cold spots in corners or near windows.

Typical duct repair or replacement runs $500–$2,000, depending on access and size.

Reference: EnergyStar – Duct Sealing and Efficiency

💬 “I upgraded my return duct when installing my new Goodman. It added $600 to the job but eliminated drafts I’d been fighting for years.” — Mark

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🏡 Goodman vs. Other Brands: Cost & Value

Goodman has built a reputation for offering premium performance at mid-market prices. Here’s how it stacks up against competitors:

Goodman’s combination of high AFUE efficiency, durable construction, and warranty coverage makes it one of the best values in the 96% furnace category.

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⚙️ Cost-Saving Tips from Mark

You can save hundreds — even thousands — on your installation with a few strategic moves.

✅ Mark’s Proven Tips:

1. Get at least 3 quotes. Compare details — not just the bottom line.

2. Schedule off-season installs. Spring and fall mean lower demand and better deals.

3. Check for rebates and credits. Energy efficiency programs can save $300–$900.

4. Bundle upgrades. Installing a new AC at the same time reduces labor overlap.

5. Register warranties immediately. Goodman requires registration within 60 days.

💬 “I saved $400 by scheduling in October. Contractors had time to focus on quality instead of juggling emergency calls.” — Mark

Rebate Source: DSIRE – Energy Rebates & Incentives

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🧾 Financing Options and Incentives

Many HVAC dealers and utility providers now offer low-interest or 0% APR financing for high-efficiency systems.

Typical Programs:

• 6–18 months interest-free through Goodman dealers.

• On-bill utility financing through local energy companies.

• Federal tax credits for qualifying ENERGY STAR furnaces.

2025 Incentives Snapshot:

• Federal Tax Credit: Up to $600 (for ≥95% AFUE systems)

• Utility Rebates: $150–$400 depending on location

• Manufacturer Rebates: Seasonal promotions on bundled installs

For details, visit:

• Energy.gov – Federal Rebates & Credits

• Goodman – Rebate Center

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🧩 The Hidden Value of Professional Installation

The quality of your installation has a bigger impact on efficiency than the equipment itself.

Why Proper Setup Matters:

• Ensures safe venting and gas pressure calibration.

• Maximizes AFUE performance.

• Prevents condensate leaks or corrosion.

• Protects your manufacturer warranty.

Poor installations can cause long-term issues like heat exchanger damage or carbon monoxide backflow.

💬 “I’ve seen homeowners save $800 on labor but lose double that in gas bills because their furnace was never tuned properly.” — Mark

Reference: AHRI – Certified HVAC System Installation Standards

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🧠 How Long Before It Pays for Itself?

One of the best reasons to upgrade to a 96% AFUE furnace is its ability to pay for itself through energy savings.

Assuming 15 years of use, that’s thousands in reduced fuel costs — plus added comfort and quieter performance.

You can estimate your savings with the ENERGY STAR Furnace Savings Calculator.

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🔍 How to Find the Right Contractor

Choosing the right installer is as important as choosing the right furnace.

Mark’s Hiring Checklist:

• ✅ NATE-certified or licensed HVAC contractor.

• ✅ Written estimate detailing materials and labor.

• ✅ AHRI-matched system (for warranty and rebates).

• ✅ References or verified online reviews.

Ask if your installer performs Manual J load calculations to ensure proper furnace sizing — not just a “like-for-like” replacement.

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💬 Mark’s Final Takeaway

“After going through the install process myself, I realized something important — a high-efficiency furnace isn’t just about heat. It’s about quiet comfort, even temperatures, and long-term savings. Paying a little more for professional installation and a quality model like Goodman pays off every single winter.”

The Goodman 96% AFUE 120,000 BTU furnace is powerful enough for large homes, efficient enough for cold climates, and reliable enough to last decades when installed right.

If you plan ahead, get multiple quotes, and take advantage of rebates, you can enjoy premium comfort and serious efficiency without overspending.

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✅ Final Word

For most homeowners, the total installed cost of a Goodman 96% AFUE furnace lands between $3,800 and $5,500, depending on your region, ductwork, and contractor.

But the value goes far beyond the invoice — you’re investing in quieter operation, cleaner air, and lower heating bills year after year.

It’s not just a furnace upgrade — it’s a comfort upgrade.

In the next topic we will know more about: Goodman Reliability in Winter: How the GRVT961205DN Performs in Harsh Cold Climates