Furnace Prices

If you are reading this, it is probably because:

1. Your furnace is broken and it makes more sense to replace it than to repair it
2. Your furnace is very old and you want a more energy efficient model

What factors influence the price the most?

Prices vary drastically from one home to the next, but these 3 factors make the biggest difference:

1. The square footage of the home that needs to be heated
2. The efficiency of the furnace unit you buy
3. If the house needs only a new furnace, or if it needs entirely new ductwork

Square Footage

The total area you need heated will determine what size unit you go with.

Some people also think that going with a larger unit is a smart move. In reality, you want to size the unit exactly to your house. An oversized unit will run too often, and end up being less energy efficient than a smaller unit!

Overall though, one could probably expect parts and labor to cost around $3000 - $4000 for a typical 2000 sq ft house, assuming only the unit needs to be replaced.

Efficiency of the Unit

Pricing on furnaces usually falls into 2 tiers:

1. Average efficiency units
2. High efficiency units

On average, a high efficiency unit costs around 25-50% more than a typical one. Compared to old models (10years+ ago), both of these are a huge improvement.

In cooler areas where thefurnace will be running year round, the high efficiency models make the most sense. If you live in a more seasonal area, like say Chicago or Washington, DC, then a normal unit would make more sense.

You may also want to investigate current tax breaks. In some areas, the high efficiency units are subsidized by the government, and can end up actually costing almost the same as a non-high efficiency unit.

Ductwork

Lastly, and probably most importantly, is knowing if your home has suitable ductwork for the new AC unit. In newer homes this is usually not an issue.

The problem usually occurs on older homes that never had central air, and must be retrofitted to make a new system compatible.

The additional ductwork can easily double the cost of an installation, taking that $3000-$4000 install up to $8000 or more.