The Cost of Replacing Your Furnace

Person counting American bills to deal with HVAC issues

It's that time of year again! The leaves are changing color, the days are getting shorter, and it is starting to get really cold outside. This means winter is coming; which also means you might need to replace your furnace soon. If you do, how much is it going to cost you for a furnace replacement?

The Cost of the Furnace Itself

How much does a furnace cost? You need to start with the machine itself. The first thing you need to know about this cost is that it depends on the type of furnace. The average price for a new high-efficiency gas or oil furnace with 90% AFUE (annual fuel utilization efficiency) costs between $1100 and $1500, while a standard 80% AFUE model runs around $1600-$1800. If you have an electric furnace, the average price is around $2000.

The Cost of Labor for Removing Your Old Furnace

Another aspect of what a new furnace costs is the labor to remove the old one. Labor for removing your old furnace typically costs between $500 and $600. If you need to remove your ductwork as part of the replacement, that will add another $200-$400 to the cost.

The Cost of Labor for Installing Your New Furnace

Next part of how much a furnace costs: installation labor. Labor to install a new furnace average about $700-$900. If you need to upgrade your ductwork or electricity as part of the replacement, that will add another $400-$800 or more to this cost depending on how big your home is and whether you want to upgrade the wiring.

Can You Finance a Furnace Upgrade?

There are several HVAC financing options available for homeowners. You can finance a furnace replacement either with an HVAC company or through a third-party financing service. Typically, you'll be able to get financing with an APR of about 11% through your local bank or credit union for 12-60 months, depending on the type of furnace and how much it costs. This may seem high—but remember that there are no interest rate charges if you pay off the loan early!

Read: Benefits of Financing a Heating System

So, what's the bottom line? If you need to replace your furnace, it will cost you between $2000 and $6000 depending on the type of furnace, the cost of labor, and any upgrades that are necessary. However, financing is available so you don't have to pay for this all at once!

Are you needing to replace your furnace? All Moncrief Air to help! We offer full-service heating and air repair in Atlanta, Roswell, Sandy Springs, Dunwoody, and Virginia Highlands.