Feeling the chill? If you’re considering a new furnace, you’re not alone. Let’s look at what a new furnace can cost, and how to choose the best one for your Minnesota home.

Whether your furnace has kicked the bucket and needs to be replaced, or you’re just starting to think about purchasing a new furnace, you’re likely wondering what exactly a new furnace costs these days. Truth be told: new furnace price tags can be high, so having a price in mind will help you work this substantial investment into your budget.

Below we shed some light on the subject, discussing the average cost of furnace replacement and installation, as well as how those costs vary based on the type of furnace you choose.

The Average Cost of a New Furnace

For Minnesota homeowners, furnace replacement and installation costs anywhere from $6,000 and $9,000, making the average price roughly $7,700, depending on the furnace type. The type of furnace you select will have a big impact on the new furnace cost, so we’ve broken down costs by the type of furnace below.

Gas Furnaces

Natural gas furnaces cost more to buy and install than electric furnaces. However, gas furnaces are the most popular type of furnace in the United States due to the relatively low cost of natural gas fuel.

How much does a natural gas furnace typically cost?

The cost is between $2,500 and $10,000 dollars to purchase and install a new furnace. However, be aware that the cost of installation could be higher if you need to add a gas line to your home due to additional labor costs. Always check to see if natural gas is available at your home before purchasing a gas furnace, especially if you live in a rural Minnesota area.

Electric Furnaces

Electric furnaces are the most inexpensive type of furnace to purchase and install. This is because they are relatively small, yet highly efficient furnaces and don’t require special venting, fuel pipes, or storage cells. Since most Americans have electricity in their homes, getting the furnace hooked up to the power grid is a snap.

How much do electric furnaces typically cost?

Between $1,000 and $2,500 to purchase and install an electric furnace. However, the cost of electricity tends to be higher than natural gas, so make sure that you consider the total cost of ownership before you buy. This is an especially important consideration for Minnesotans and others in colder climates.

How energy efficient is an electric furnace?

As energy efficient as gas furnaces are, electric furnaces have them beat. Electric furnaces convert almost 100% of their energy into heat, so they’re extremely efficient. 

How long does an electric furnace last?

In general, electric furnaces last longer than gas furnaces. Most won’t need to be replaced for 20-30 years with regular maintenance. Plus, they have fewer mechanical parts, which lowers the possibility of breakdowns.

Oil Furnaces

Oil furnaces are still available for purchase today, but not widely used as a heating system. They were most popular in mid-century America when oil was cheap.They need more fuel than other furnaces to produce the same amount of heat per square foot, so they often cost more to operate.

How much do oil furnaces typically cost?

For oil furnaces, homeowners can expect to pay between $4,000 and $8,000 for the equipment and installation. However, keep in mind that there can be additional costs if duct work needs to be adapted.

How energy efficient are oil furnaces?

Compared to gas and electric furnaces, oil furnaces tend to have lower efficiency. AFUE ratings usually range between 80% to 90%.

How long does an oil furnace last?

Oil furnaces require more maintenance, but that maintenance doesn’t mean a longer lifespan. In fact, thanks to the high maintenance requirements and the corrosive nature of oil, oil furnaces generally last around 15 – 20 years.

Propane Furnaces

Propane furnaces are common in rural areas that aren’t connected to natural gas lines. Propane furnaces can be very expensive with fuel prices up to three times higher than the price of natural gas.

How much do propane furnaces typically cost?

Propane furnaces typically cost $3,000 to $6,000 to purchase and install. However, the cost will be higher if you don’t already have a propane holding tank installed on your property.

How energy efficient are propane furnaces?

Propane furnaces are similar to natural gas, with AFUE ratings between 90% and 98%.

How long do propane furnaces last?

The typical propane furnace lasts about the same as oil and natural gas, about 15-20 years. However, proper maintenance can extend the life of the furnace. 

Each type of furnace has its own set of characteristics in terms of efficiency, maintenance, longevity, and the hit to your energy bills. The choice often depends on the availability of fuel, initial installation costs, and personal preferences regarding maintenance and environmental impact.

Before You Buy a New Furnace Consult an Expert

In order to heat your home efficiently and get the best bang for your buck in energy costs, it’s important to have a furnace specialist conduct a home visit. A home visit will allow the professional to see what kind of infrastructure and ductwork you’re working with. They can help you select the right furnace size to fit the infrastructure of your home.

Purchasing a furnace that’s the wrong size for your home’s footage, or that’s not compatible with your existing ductwork, could end up adding thousands of dollars to the total cost of your new furnace.

The Ray N. Welter Heating Company includes a home analysis in every furnace installation in order to have a clear understanding of every customer’s furnace needs, as well as make recommendations on the type of furnace that will be the best fit.

To learn more about the types of furnaces that are out there, as well as their respective drawbacks and benefits, check out our post that breaks down the different types of furnace options.

If you want to know more about our furnace installation services in the Twin Cities area, contact us online or call 612-825-6867 today to discuss the right furnace for you and for prompt, professional installation and repair services.