It’s no secret that furnace replacement can be costly. The prices of parts and equipment continue to rise and there are many other expenses to consider. But knowing what’s involved can help you plan for your next upgrade. As a leading heating contractor in the San Jose area, we like to share our market knowledge. Hence, you can be more informed and empowered to make decisions as you compare different products or quotes.
The average cost to replace a furnace (in 2024 dollars) is $4,700. But this is just average; more typically, the price can range from $2,800 to $6,800.1 However, an average price doesn’t tell you much about factors that can determine the ultimate cost of a project. One of the most significant of these is the type of furnace you install. Here are some examples:
An appliance’s price tag doesn’t determine the full furnace replacement cost. Although the furnace price is a big part of the expense, you must factor in the unit’s size. It’s measured in British Thermal Units (BTUs); a BTU is a unit of measurement that helps determine how much energy a furnace uses.
To determine how many BTUs your furnace should have, multiply the square footage of your home by 40. For a 2,000-square-foot home, this means you need an 80,000 BTU furnace (or higher if winters where you live tend to be very cold).1 You may also need to increase the BTU count if your home is drafty or has high ceilings.
On average, an 80,000 BTU furnace costs about $4,000. A 100,000 BTU furnace, suited for a 2,500-square-foot home, averages $5,000, while a 120,000 BTU furnace (best for a 3,000-square-foot home), is about $6,000.1
A furnace's size isn’t the only thing that affects the replacement cost. Other variables to consider are:
A furnace’s efficiency affects how much you save over time. While high-efficiency models are more expensive to install, they can lower your energy bill so you spend less each month. Some of the most efficient and advanced models can cost $10,000 or more, but if you have a furnace that’s 25% more efficient than your old one, multiply that percentage by your current monthly heating bill to see what you can save.
The scope of the project impacts costs. For example, if you’re installing the same type of furnace, you probably have everything needed to set it up. However, if you’re converting from one type of furnace to another, or moving the unit’s location, the cost of replacement will increase because of additional work, such as installing a gas line, upgrading your electrical panel, or adding ducts (depending on the furnace and your home’s requirements).
An HVAC contractor typically charges between $75 and $150 per hour for labor.1 When you consider that replacing a furnace can take four to eight hours, labor can take up a significant percentage of your bill.
There’s still more to think about when you calculate the cost of furnace replacement. Some other variables that are in play include:
We install the highest-quality heating products for customers in San Jose, CA. Familiar with all makes and models, we help make informed decisions and offer transparent pricing so costs are less of a concern. Our highly-trained professionals aim to make the furnace replacement process as easy as possible. If your system needs frequent repairs, is reaching the end of its lifespan, or temperatures at home are inconsistent, contact us today to speak with our heating installation and replacement specialists.