Category Archives: Furnaces

2020 New Furnace Cost – Gas Furnace Replacement vs. Repair

Furnaces remain the most common way for homeowners in North America to heat their homes. This furnace buying guide has all the research needed to understand your furnace purchase and make a buying decision you’ll be happy with in the next 15-20 years.

The focus is on gas furnaces, since most furnaces are fueled by natural gas (NG) or, with a simple gas valve change, liquid propane (LP). However, for comparison, we also briefly discuss oil furnaces.

New Furnace Cost

On average, you can expect to pay between $3,000 and $4,500 to install a mid-range gas furnace in a typical house.

When efficiency, size and performance are factored into the equation, expect the following unit pricing tears:

  • Basic: $750 to $1,550
  • Better: $1,100 to $2,350
  • Best: $1,850 to $2,900

Furnace installation costs are based on the complexity of the furnace, sheet metal work required to connect it to the ductwork and how difficult it is to access the installation location such as a crawlspace or attic. Expect estimates for the installation work in these ranges:

  • Basic installation: $1,400 to $2,400
  • Mid-range installation: $1,750 to $2,900
  • High-end installation: $2,000 to $3,500

Reasons to Get a New Furnace

New Gas furnace and Duct Work

via Holliday Heating

If you are in an exploratory mode and wondering if a new furnace is the right move, here are the top seven reasons to buy a new furnace:

  • Repair costs on an existing furnace are 50% or more of the cost of a new furnace (33% for a furnace 12-15 years old; 25% of a furnace that is 15+)
  • You’re staying put – the longer you plan to live in your current home, the more it makes sense to put the money into new equipment (and conversely, if moving soon, repairing the furnace might make more sense)
  • It’s a preemptive move – your furnace is running, but you don’t know for how long due to age and/or past repair issues (worth considering where winters are harsh!)
  • Your gas bills are rising because the furnace is losing efficiency due to age (though you might want to have it cleaned and maintained to see if it significantly improves efficiency before deciding whether to replace it)
  • You want to improve efficiency
  • You want to upgrade climate control
  • You’ve built a home or addition that needs heating

Furnace repair vs. replacement:

Some of you may have heard from an HVAC contractor that it is time for a new furnace, and perhaps you think the contractor is trying to sell you something you might not need.

Skepticism is healthy in the repair vs. replace discussion when it is informed skepticism. Here’s a secret: HVAC contractors often make more money with a both/and approach. Repair it now; replace it later.

Charlie Greer is a seasoned HVAC contractor who owns a website called HVAC Profit Boosters with the motto, “Helping plumbing, HVAC, and electrical contractors become millionaires every day.” That tells you whose side he’s on. Speaking to HVAC contractors, Greer says:

Repair vs. Replace scenarios are tricky, because, once you bring up the topic of replacing the customer’s equipment, you stand the risk of the customer deciding to get bids, meaning that you could wind up getting neither the repair nor the replacement sale. In the long run, you make more money when they (homeowners) opt for the repair anyway. You get one repair now, possibly a few more down the road, then a higher price (due to inflation) when they ultimately replace it in the future.

Greer’s advice might be great for HVAC contractors, but not for homeowners. The bottom line is that if an HVAC contractor recommends replacing your furnace rather than repairing it, the person might be giving you sound advice, especially if the rationale involves some of the reasons from the above list.

Pro Tip: Make sure your HVAC contractor pulls a permit to install the new furnace, and that the job is properly inspected following the installation.

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2020 Central Heating and Cooling Installation Prices for Homes

The cost of a new heating and air conditioning system varies widely. This guide covers all the details including Low, High, and Average costs, plus important details about installation and accessories.

For an installed central heating and cooling system, you can expect to pay about $3,900 on the low end and more than $14,000 for premium equipment and installation.

That said, most homeowners spend between $6,500 and $9,700 for a standard system that includes either a central air conditioner and furnace combination or a heat pump and air handler, not including the installation of new ductwork.

Let’s dig into the numbers. The first table covers complete systems. Tables below provide more cost detail and comparison to other heating and air conditioning options.

Standard Split Heating and Air Conditioning System Installation Costs:
Low end Average
High end
$3,900 to $6,300 $6,500 to $9,700 $10,300 to $14,900
The above costs include system components, refrigerant line set and refrigerant, plenum, if needed, new thermostat and miscellaneous installation supplies.

The cost of equipment, liability insurance, workman’s compensation insurance and travel, contractor’s overhead expenses, plus fair profit are included.

Central heating and cooling cost table

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