Although a furnace typically lasts quite a long time, the day will eventually come when you’ll need to replace it. As an essential part of your home, you’ll likely need to act fast to install a new one. But before you jump in blindly, it’s important to inform yourself on how much the price will vary based on the type of furnace you pick and a few other factors.

The current national average for a full furnace installation is about $6,000. But factoring in details such as where you want the furnace installed, what brand you select, and the cost of labor, you may end up paying anywhere from $2,000 to $8,000. This is why each resource you find online says something different about the average installation price. It’s all over the place!

In fact, a huge factor playing in the total price of your furnace’s installation is the installation cost from the HVAC contractor you hire. This is the major fluctuation point and headache for homeowners. You can’t set a price on furnace installation in general, but you can estimate the cost as we do here in this article.

Let’s look at some of the different options when it comes to installing a new furnace and determine what you might pay based on your current situation. 


There are several types of furnaces you can choose from when it comes time to replace or install a new unit. There isn’t a straightforward answer on the overall price of a furnace. A unit price may be cheaper but that doesn’t mean the installation costs will be. 

Since there isn’t a clear cut price point, let’s rank your options based on the lowest possible unit price to the highest. (Remember that pricing will land somewhere between a price range.)


The oil furnace, also known as a pressure burner, functions by passing oil into a combustion chamber at high pressure in order to ignite an electric spark. Oil does burn hotter than gas but it can be quite expensive to run overtime.

Unit Price: $500 - $2,500

Average Installation Fee: $3,000


  • They produce more heat per BTU (British thermal unit) than gas, electric, and propane 
  • The unit itself can be cheaper 


  • Can cost more to run over time 
  • Frequent dirt and soot buildup can drive up the maintenance price 


The gas furnace is the most common type of furnace found in residential homes. It functions by igniting methanol in the burner to warm up a heat exchanger. It then transfers that heat to the air cycling through and distributes it throughout your home. This type of furnace is often found in regions with harsh winters. Colorado homeowners would be more familiar with gas furnaces.

Unit Price: $650 - $3,000

Average Installation Fee: $5,500


  • Lowest yearly costs than any other type of furnace on this list
  • Overall less harmful to the environment than oil or propane


  • There must be a gas line near your home
  • Could include additional cost to convert to gas from electric furnace
  • They have a shorter lifespan than electric furnaces


This type of furnace runs solely on electricity. It’s noted as the most efficient method of heating your home but beware – they can result in a higher electricity bill. That’s why this type of furnace is more popular in milder climates. Keep in mind you will need the proper size or your unit will either run all day or turn off and on too often. 

Unit Price: $700 - $1,100

Average Installation Fee: $3,000


  • No need to use natural gas
  • They require less maintenance
  • Lower upfront costs


  • Can be more expensive to run 
  • Can dry out the air in your home 


If you don’t have access to a gas line, a propane furnace might be a good option for you. Similar to its gas counterpart, propane ignites to warm up a heat exchanger. Pricing for propane can vary depending on the brand you choose and where it’s installed in your home. This could be a good option for rural areas without access to utility lines. 

Unit Price: $800 - $2,000

Average Installation Fee: $3,750


  • Propane is non-toxic
  • They last longer and require less maintenance
  • At 1,000 gallons a tank, they last longer between refills than an oil furnace 


  • Propane doesn’t produce as much heat as oil or gas
  • You may have to rent your tank from your energy company for a monthly fee 
  • It’s expensive to switch to from any other type of furnace 


The price of the unit you select is only one facet of the total price when installing a new furnace. Let’s take a look at some of the other factors that will build into the entire price. 


We’ve already touched on this but the installation price itself will vary depending on a few different constituents. Each type of unit will be associated with a different installation price. The cost of labor could also depend on where the unit will be installed. If the space is more difficult to work in, that could drive up the price. All of this will factor into an hourly labor rate around roughly $50 to $100 per hour. However, some HVAC contractors work for a flat-rate fee.


There isn’t a straightforward answer on unit pricing even for the type of furnace you select; just like you saw above. Depending on the quality, you may end up paying more or less. If you opt for a bigger or more energy-efficient unit, that could end up tacking you with a higher price tag. 


Every home will require a different furnace size based on the BTUs necessary to heat their home. The more square footage you have, the higher the required BTUs, and the more expensive the furnace will likely be. 


Pricing can be different from region to region too. This is due to different regulations and required permits. As we mentioned before, access to gas lines can also factor in for those in rural areas. If you’re not close to utility lines, you’ll likely have to opt for an oil or propane furnace. 


Your entire HVAC system might be built around the type of furnace you currently have. If you decide to switch to a different type, that could mean new ductwork, gas lines, and more. 


In some cases, you may have to handle furnace removal before getting a new one installed. Some recyclers will come out for free or for a small price to pick it up. But a professional removal can cost you anywhere from $60 - $500. Some factors that could play into that fee include the distance to a dumpsite, how easy the removal process is, and any associated environmental and dumping fees.


We know that a lot goes into the process of choosing a reliable furnace that fits your needs and doesn’t make too large of a detrimental impact to the environment. That being said, we’re here to help.

If you’re in the Thornton or broader Northern Denver area, To the T Plumbing & Heating is happy to be your go-to HVAC professional. If you’re ready to install a new furnace, give us a call. Whether you are replacing an old unit or need one installed for the first time, you can count on our team of experts to execute the job efficiently. Don’t hesitate to reach out with any questions.

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