A furnace is arguably one of the most important appliances in your home, especially if you live in a cold area. The level of comfort and warmth it provides is a valuable resource for any home. Unfortunately, furnaces don’t last forever. In fact, they last a meager 15 to 20 years, and that’s if you have a high-quality model that you’ve maintained throughout your lifetime.

Inevitably, you will have to replace it. Then the real problem arises: what is the cost of a furnace replacement? Furnace replacement can cost between $4,900 and $9,600, but this cost varies greatly according to several factors, including type, size, efficiency, and much more.

Read on as we explore the true cost of furnace replacement, reviewing everything from the factors that affect replacement costs and any additional expenses you might incur.

How Much Do Furnaces Cost?

The cost of a new furnace ultimately comes down to where you live, the model you want, and how big it is. However, the cost might also be much higher and, in some cases, due to varying factors mentioned below.

What Factors Affect the Cost of a Furnace Replacement?

A lot of factors come into play when determining the cost of a new furnace. As such, it’s quite difficult to narrow down to a specific cost. That said, you could come up with an average by considering the crucial factors affecting its cost. They are as follows:

Type

Furnaces generally work the same, but they’re powered differently. The type of fuel your furnace runs on greatly affects the cost. Here’s a brief rundown of the three common types of furnaces.

  • Electric

Electric furnaces are the cheapest type of furnace you can find on the market. This makes them a cost-effective option for anyone living in areas where energy is affordable. Electric furnaces come equipped with heating coils that warm up air and distribute it throughout the home through the ventilation system.

On the downside, electric furnaces consume a lot of energy, making them quite costly for anyone living in areas that experience extreme winters, especially if the cost of energy is high.

  • Natural Gas

Natural gas furnaces are slightly more expensive than electric furnaces, but the cost greatly depends on the model’s efficiency and installation. High-efficiency models are typically more expensive, but you get a chance to recoup some of your money through reduced energy bills.

  • Oil

Oil furnaces are common in the Northeast, where there are harsh winters. These furnaces are very good at generating a tremendous amount of heat, making them suitable for areas that experience extreme cold weather.

On the downside, you may incur significantly higher energy costs compared to electric and natural gas furnaces. These types of furnaces also require additional maintenance services and may cost you more when installing the system.

Additional Costs When Acquiring a New Furnace

There comes a time when your old furnace has to go and you would need a new one. When replacing your furnace, ensure you consider some things. First and foremost, you’ll definitely incur additional costs on top of the furnace’s buying price. Here are some of the most common additional costs you might incur.

Removal of the Old Furnace

In most cases, hiring a furnace installer doesn’t just involve installing a new furnace; they must also remove the existing one. The entire project may include the cost of removing the existing, damaged furnace.

Therefore, it helps to negotiate the removal and installation costs with your contractor prior to the job. In some cases, the cost of removing an existing furnace may run up to $250 on top of installing the new furnace.

Permits

According to U.S. lawyou need a permit to install any furnace, boiler, or any other machine that burns hazardous waste. That said, the cost of permits is usually included in your contractor’s overall quote, which means that the contractor will include all costs associated with installing the system.

Therefore, it helps to find a reliable, affordable contractor. You also have to ensure that the contract terms with the contractor include licensing costs. If not, the contractor should charge you lower, excluding licensing costs.

Relocating the Furnace

Installing a new furnace doesn’t just entail fixing it into position and making sure it’s working. You may also incur additional costs if you’re moving your furnace to a new house or need your new furnace transported to your current location.

Have Your Furnace Replaced by the Right People

When your furnace inevitably needs replacement, you won’t have to break the bank to make it happen. With a little knowledge and the right partners, you can replace or get a new furnace at an affordable price.