Creating a list of reputable contractors is the first thing you, a homeowner who's planning for a new furnace installation, should do to avoid overpaying for your project. Just as crucial is to ensure that you choose contractors known for their transparent pricing.
You should then get quotes from each and ask about their affordable HVAC services, rebates, incentives, and financing options. You should always be careful not to overpay for home heating solutions, given that installing a new furnace is already a significant expense.
The price varies from place to place, but expect it to be in the thousands. Homewyse, for instance, estimates that as of October 2025, the cost to install a furnace starts at around $3,208 to $3,811 per unit.
Understanding your home heating solutions and options and taking the time to compare them will help you stay on top of your budget.
What Goes Into the Cost of Furnace Installation?
Knowing what goes into the price of installing new home heating equipment can help you choose energy-efficient furnaces while ensuring they fit your budget. It's also key to avoiding overpaying, as you'll be able to spot quotes suspiciously higher than the rest.
Some key variables that make up a furnace cost estimation are:
- The equipment itself, including its manufacturer, capacity, and efficiency
- Labor, which depends on your location and the complexity of your installation project
- The need to remove and dispose of the old furnace
- Ductwork requirements, such as whether you need new ducts or must have existing ones modified or repaired
- Gas or electrical work
- Permits and inspection fees
Can I Install a Furnace Myself?
Many jurisdictions don't prohibit homeowners from performing work on their own homes, provided they obtain the necessary permits and pass all mandatory inspections. What this means is that in some places, you can technically install a furnace in your home by yourself.
However, just because you "legally" can doesn't mean you should, considering that furnace work is a specialized job that requires specialized skills and knowledge.
Mistakes in furnace installation won't just void your warranty, make the unit malfunction, and shorten its lifespan. It can also lead to safety hazards, such as gas and carbon monoxide (CO) leaks, even explosions.
Such incidents can be deadly. According to the U.S. CDC, for instance, every year, CO poisoning lands 100,000 Americans in emergency departments and 14,000 in the hospital. It also claims the lives of 400 people in the country each year.
What Is the Average Lifespan of a Furnace?
Given the high costs associated with new furnaces, it makes sense for them to last for many years. The good news is that they do, provided they've undergone proper installation and see regular maintenance and upkeep.
According to InterNACHI, furnaces can last 15 to 25 years.
How Can You Avoid Overpaying for Furnace Installation?
Since furnace installation already costs thousands of dollars, the last thing you want is to pay more than necessary, which is why you must do your due diligence and research at least three HVAC contractors. They should also offer accurate quotes and incentives and, if available, help with rebates and low-cost financing.
Searching for Reputable Contractors
Because the proper functioning, longevity, and safety of your new heating equipment will hinge on correct placement, you'd want to partner only with a furnace installation expert. Start by asking family members and friends if they're happy with their HVAC company. Get at least three recommendations from these trusted sources.
You must also ensure your chosen HVAC contractor has:
- All appropriate and required licenses, certificates, and permits
- Insurance and bond
- Exceptional reviews online
- Upfront, transparent pricing
Obtaining Multiple Quotes
Request installation quotes from each of your prospective HVAC contractors. They should give you the estimates in writing, complete with the project cost breakdown. Review the costs and don't be shy about asking for clarification if there's any fee you don't understand.
Checking for Rebates and Incentives
The furnace installation expert you choose should be ready to help you search and apply for all rebates and incentives offered by federal, state, and local governments and utilities. They can be upfront rebates or tax credits, such as the Energy Efficient Home Improvement Tax Credit.
Considering Low-Cost or No-Interest Financing
If paying for the entire price of a new furnace in one go is beyond your budget, you can still get a new system installed by applying for financing. Reputable HVAC contractors work with financing institutions to make the cost of new equipment more manageable for customers.
Be sure to check the terms and conditions of each financing program, though. As much as possible, get the one with the lowest interest rate or even 0% interest.
Frequently Asked Questions
Is There a Best Time to Get a New Furnace Installed?
If your goal is to get the best (financial) deal on a new furnace, consider buying the equipment in late spring and then having it installed in early fall. Since these two aren't part of the peak heating season, equipment prices and installation (labor) demand are typically lower. Doing it this way also allows you to take advantage of more flexible contractor schedules.
If you wait until late fall or winter to schedule a new furnace installation project, expect to pay more, since these are already peak heating seasons.
Should You Negotiate the Price of Your Furnace Installation Project?
You're free to do so, but note that most contractors won't budge much on fees (especially the equipment's price). It may be better to negotiate add-ons instead, such as an upgraded thermostat or a better filter, which a reliable contractor may give you for free or at a discounted rate.
How Long Does a Furnace Installation Take?
It usually takes about half a day (around four hours). However, it can extend to a full working day (about eight hours), depending on the system size and the complexity of the project.
Prepare for Your Furnace Installation Project
Obtaining estimates from reputable HVAC contractors, comparing bids, and applying for all available incentives and rebates are all key steps you should take when preparing for a new furnace installation project. They can help ensure you get the best bang for your buck and avoid overpaying for your new system.
Find more related reads and the latest on local news by checking out the rest of our website!
This article was prepared by an independent contributor and helps us continue to deliver quality news and information.