September 8, 2021

How Much Does it Cost To Install a New Furnace?

It’s a bit of a complex question, but we are going to break it down for you. Depending on the cost, the quality and the capacity, a new furnace can cost anywhere from $1800 to $6300, with most averaging out to about $3800 prior to installation. If you’re in Southeastern Michigan--whether it’s Sterling Heights, Livonia, Ferndale, Pontiac, or Grosse Pointe--Air Master is here for you.

First of All . . .

Do give your house an energy audit. You can pay to have one performed (it might cost as much as $800, but might be worth it), but you can also do a basic audit yourself. Make sure that you’re informed about how well insulated the house is, and check all siding. Good windows will make a big difference in the Upper Midwest, so consider whether those are up to snuff. Make sure that you’re not leaking heat through gaps around doors or other frames, and make sure that your window frames are well caulked.

Review your energy bills. Check out Energy Star’s Home Energy Yardstick. This simple to use, useful tool will give you a baseline of comparison with similar homes in your area. If your home costs more to heat than comparable homes in your area, or if the cost is creeping up noticeably, you may have a problem.

Consider Your Fuel Source

In colder climes, electric heat is pretty much out of the equation. It’s simple to use, and quick to adjust, but it is less efficient overall and far more costly than gas or oil. Natural gas is the best choice for many people in climes such as ours. It’s relatively inexpensive, and it is efficient and runs clean. Oil furnaces are still available, but oil prices can be pretty volatile, and oil heaters are on average more expensive than natural gas.

AFUE stands for Annual Fuel Utilization Efficiency. If you’ve got an old, inefficient heater, you might be spending significantly more than you need to on fuel costs. The minimum permissible standard is now 80% efficiency, and gas models now go well above 90% efficiency, though as you rise past 95%, diminishing returns to additional investment begin to increase. That is not to say that an extra outlay won’t pay for itself eventually, but that appears to be where there’s presently a significant inflection point. Here’s a chart of rough approximate costs, including installation:

Whether you’re in Macomb or Novi, Utica or Troy, Michigan, Air Master is the one to call.

Installation Costs and Maintenance

The average home furnace installation cost is about $4200, but the median is somewhere closer to $3000. It’s often a good idea to enroll in a maintenance plan, too, to make sure your furnace is running well and to extend its useful lifetime. It really pays to work with someone who stands behind their products and their service, too, and to purchase brands with good reputations and warranties, and who will continue to supply replacement parts for their units, should they be necessary.

Consider Well the Size of Your Furnace

Yes, it’s important that your furnace be able to put out enough peak power to get you comfortably through the coldest times of the year, but it is also possible to install more furnace than you will ever need in a house your size--unless of course expansion is a possibility down the line. You should consider having someone (your contractor, for example) perform a Manual J HVAC load test to determine what capacity furnace best suits your needs. If you’ve got too large a furnace, it’s going to cost you more up front and may actually increase your fuel bills down the road.

A bump up in the thermal output of a furnace increases the cost more in gas furnaces than in oil ones, but oil furnaces cost more to begin with. A 20,000 British Thermal Unit increase in heating capacity on a natural gas furnace will cost anywhere from $400 additional on a small furnace to $1200 additional on a large one, but for oil it will be $300 to $600 additional regardless of the size.

Whether you’re in Oak Park or Clawson, Birmingham or Warren, or anywhere else in Southeast Michigan, call Air Master.

To Sum Up...

A new oil furnace will cost you anywhere from $5500 to $6300, depending on the efficiency, for a 1500 to 2000 square foot home, installation included. A new gas furnace will set you back anywhere from $1500 to $4400 for the same sized home, again depending on efficiency and other factors, including ease of installation.

If you want to research your options, give the folks at Air Master a call. They’re in Ferndale, and serve most of Southeastern Michigan, from Royal Oak to Shelby Township to Huntington Park to Chesterfield, Berkley or Beverly Hills, our helpful, experienced staff will help you sort through your options and get you your best solution.