If you’re replacing major HVAC equipment — perhaps your AC condenser + air handler (the 3-Ton 14.5 SEER2 R-32 bundle) — you should absolutely consider the heating side too. Whether you currently have a gas furnace, propane, or an electric furnace, the decision to upgrade or replace the furnace will affect your total cost, your sequence of upgrades, and overall comfort. That’s why we’re drilling into “electric furnace cost,” “cost of electric furnace replacement,” and “new electric furnace cost.”
Electric furnaces often get overlooked because homeowners focus on cooling (especially in summer). But come cold weather, you’ll be glad you chose wisely. Also: the equipment cost can look modest relative to large AC systems, but the installation, wiring, ductwork and long-term operating costs matter. One guide states the average cost to install an electric furnace is $5,007 (range ~$2,231-$7,968) based on unit size and labor. (Home Advisor)
So let’s walk through what you should expect when budgeting, how the numbers stack up, and how the furnace decision fits into your larger upgrade with the Goodman bundle.
What’s the current market for electric furnace pricing?
Let’s gather recent data so you have realistic benchmarks.
Unit / equipment cost
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According to HomeGuide, “electric furnace prices for a home are $650 to $5,600 for the unit alone” depending on brand, size and features. (HomeGuide)
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A buying-guide notes that “electric furnaces typically cost $1,000 to $3,000 upfront.” (Enercare)
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Some data suggest for just the heating portion (electric furnace + AC) combo the range is $4,940–$12,850 for a 2-ton home with AC + electric furnace. (This Old House)
Installed cost / replacement cost
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One Angi article lists average cost of electric furnace installation between ~$1,700 and ~$7,000 depending on scale. (Forbes)
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HomeAdvisor data: average cost to install electric furnace ~$4,998 (range ~$2,101-$7,912) including unit & labor.
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Carrier lists average installed cost for electric furnace at $2,000-$7,000. (Carrier)
So to sum up: for a typical home, you might budget in the $2,000-$7,000 range for replacing an electric furnace (unit + install) depending on home size, ductwork condition, wiring changes and labor in your region.
Why these numbers vary — drivers of electric furnace cost
Understanding the cost drivers helps you decode quotes and avoid surprises. Some major factors:
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Home size and heating load: Larger homes or homes in colder climates need larger heating capacity, which increases cost. The same article shows that new installs (when ductwork or wiring is new or needing change) can run up to $15,000+ in some cases. (Today's Homeowner)
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Existing ductwork and wiring: If your home already has properly sized ducts and wiring for electric furnace, cost is lower. If you need new wiring, higher amp breaker, new ducts, access issues, the cost goes up. For example, one chart shows electrical circuit & wiring additions $500-$2,000 for electric furnace installs. (Angi)
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Labor and access: Houses with difficult access (attic, crawl spaces, mixed levels) cost more.
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Brand, features & efficiency: Though electric furnaces don’t have fuel combustion efficiency the way gas does (they’re 100 % efficient at converting electricity to heat), you’ll still pay more for premium blower motors, multi-stage heating, variable speed, better insulation, etc.
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Regional labor/material costs: Your location (Midwest, Northeast, South) affects labor rates, permit costs, material cost.
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If you are doing a full HVAC upgrade vs just furnace: If you pair with new AC, air-handler, ducts, you’ll see “install cost overlap” or “bundle savings,” but also higher scope. One HVAC replacement cost guide says full system (AC + furnace) averages $11,590-$14,100 in 2025. (Modernize)
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Operating cost: Though not an immediate install cost, one must consider long-term cost of running an electric furnace (electricity cost). Some guides note that while electric furnaces may cost less to install, they may cost more to run than gas in many regions.
How the electric furnace cost ties into your bundled system decision
Since you’re looking at the Goodman 3-Ton 14.5 SEER2 R-32 bundle for your cooling side (outdoor condenser + indoor air handler) it makes sense to evaluate how an electric furnace fits in the full picture: cooling + heating + ductwork + system replacement timeline.
Scenario: Your home uses electric heating (furnace)
If your home currently uses an electric furnace and you’re thinking: “Should I replace now? Should I upgrade cooling now? Should I do both?” — here’s how I’d frame it.
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If your electric furnace is aging (10-15 years+) and you’re doing major cooling equipment now, it may make sense to bundle the furnace replacement with the cooling upgrade — you’ll pay some extra now, but save later in labor/installation overlap and get matched or optimized equipment.
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Conversely, if your furnace is relatively young and in good shape (wiring, ductwork functional), you might postpone furnace replacement, upgrade cooling with the Goodman bundle now, and budget furnace replacement in 2-5 years.
Example budget overlay
Let’s walk through some rough numbers for you as an example:
Cooling bundle cost (approx): If the Goodman 3-Ton 14.5 SEER2 R-32 bundle equipment cost is say ~$3,500-$4,500 (just gear) plus labor etc maybe ~$2,000-$4,000 depending on region/ductwork, your cooling upgrade might land in the $5,500-$8,500 range (just an estimate).
Electric furnace replacement cost (based on benchmarks): If you replace electric furnace now, you might budget ~$2,000-$7,000 (unit + install) based on your home size etc.
Total possible cost if doing both now: You might budget $7,500-$15,000+ depending on size/complexity.
This aligns with full system HVAC replacement cost ranges ($11K-$14K) from broad guides.
If you separate them (cooling now, furnace later), you might do cooling now and push furnace replacement out, but you risk paying higher labor later (since every install has cost overhead) and maybe lose efficiency.
Why you might opt for electric furnace now
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If your electric furnace is using outdated blower motor or wiring, you gain by replacing now.
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If you plan to stay long term, upgrading sooner gives more service years.
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If your electric rates are reasonable or you are in a region where gas is not available, then electric is practical.
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If your ducts are in good condition, wiring is appropriate, and you want simpler installation (no gas piping, venting) then electric can have appeal.
Why you might wait or choose differently
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If your electric furnace is fine for now and you want to spread cost.
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If your electricity cost is high and you’re worried about operating cost — you might instead consider switching to a heat pump or other system.
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If the install access is difficult and you want to optimize scheduling.
What to ask your contractor and what to look for
Here’s my checklist of questions — as Mike Sanders: You should ask these before you commit to electric furnace replacement.
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What is the capacity (BTU) of the proposed furnace and how was that sizing determined? Make sure a load calculation was done.
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What brand/model is being installed? What is the equipment cost?
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Does the quote include removal of old unit, disposal, wiring upgrade, breaker/panel work if needed?
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Will any ductwork need to be modified, sealed or replaced? If so, ask for cost breakdown.
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Is the existing electrical service (breaker, wiring) sufficient for the new furnace? If not, ask for cost of upgrades ($500-$2,000 typical depending on complexity).
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What is the labor cost and installation time?
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What warranty is provided on the furnace and the installation?
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What is the estimated operating cost/year of the new electric furnace? (Given your local electricity rate, size of home, usage).
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If I’m upgrading cooling (bundle) now, how will this furnace integrate with that upgrade? Are controls/thermostat wiring compatible?
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Are there rebates or incentives available for electric furnace install in my region?
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What timeframe is installation and how will disruption be managed?
With these questions you apply the pricing guide knowledge and can evaluate whether the quote makes sense.
My recommendation: how you should proceed
Given everything we just covered, here’s what I’d advise you:
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If your home currently uses an electric furnace and it’s nearing end of life (say 10-15 years old) and you’re also upgrading cooling with the Goodman bundle — I’d recommend replacing both heating and cooling at the same time if budget allows. You’ll realize installation savings, matched components, fewer disruptions and longer overall system life.
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If your electric furnace is still in good shape and you’re keen to stay on budget now, you could upgrade cooling first (with the bundle) and plan the furnace replacement in the next 2-5 years. Just make sure to budget accordingly so you’re not caught off guard.
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In either case: make sure you have a detailed quote, review the cost breakdown, and compare to the benchmark ranges for electric furnace replacement ($2,000-$7,000 typical) plus your cooling upgrade cost.
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Keep the long-term operating cost in view: electric furnace costs may be higher to run than other fuel types in many regions. If electricity is pricey or you have a large home, you might consider alternatives (heat pump etc) though that may cost more upfront.
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Since the Goodman bundle gives you a solid cooling system base (and likely many years of life ahead) pairing it with a well-sized, efficient electric furnace makes sense if you’ve got the budget and home conditions right.
Summing it up
In plain talk: Replacing your furnace is a major investment. Electric furnace installs tend to cost less upfront than some gas or propane systems, but the range is still broad (~$2,000-$7,000) and your actual cost can be more if wiring/ductwork/upgrades are needed. When you’re already upgrading your AC side (with the 3-Ton Goodman bundle) then you should treat the furnace decision as part of the whole-house HVAC project — not as a separate afterthought.
For a homeowner wanting smart value, the path I’d walk you through is:
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Get quotes for both cooling bundle and furnace (electric) side.
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Compare those to benchmark cost ranges (you have them above).
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Decide whether to do both now or stagger the investments based on condition, budget, and future plans.
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Make sure your ducts, wiring, controls are all in good shape — because even the best furnace or AC won’t perform well if the infrastructure is weak.
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Choose a contractor you trust, verify brand/model, warranty, install quality, and schedule.
