Replacing your home’s heating system is a big decision that affects both your comfort and your wallet. Understanding furnace replacement costs helps you plan your budget and make smart choices for your property. Most homeowners spend between $2,800 and $7,500 for a complete installation, though prices can vary based on several factors.
Whether you’re dealing with a broken furnace in the middle of winter or planning ahead for an aging system, knowing what to expect financially can help you avoid surprises. The total investment depends on the type of fuel your furnace uses, its efficiency rating, the size of your home, and the complexity of the installation work required.
This comprehensive guide breaks down all the costs involved in furnace replacement, from equipment and labor to permits and additional upgrades. You’ll learn about different furnace types, efficiency ratings, and smart strategies to save money while ensuring your home stays warm and comfortable.
Average Furnace Replacement Cost in Missouri
The typical cost to replace a furnace averages around $4,800 for a complete furnace installation. This price includes the heating unit itself, professional labor, and standard installation work. However, your actual expenses might fall anywhere between $2,800 on the lower end and $9,500 or higher, depending on the type of system you choose.
High-efficiency models with advanced features can push costs up to $11,500 or more. These premium systems deliver better performance and lower energy bills over time, which helps offset the higher upfront investment.
What’s Included in Replacement Costs
When you get quotes from HVAC contractors, the total price typically covers several components:
Equipment costs make up the largest portion of your bill. The furnace unit itself ranges from $1,000 for basic electric models to $5,400 or more for high-end gas systems.
Labor and installation account for roughly 10% to 40% of your total expenses. Professional technicians typically charge between $75 and $150 per hour, with most replacements taking 4 to 10 hours to complete.
Permits and inspections add another $400 to $1,500 in many areas. Your contractor usually handles obtaining the necessary permits, and this fee may be included in your quote.
Additional materials like new ductwork connections, thermostats, or ventilation components can increase costs.
Furnace Replacement Cost by Type
Your choice of heating fuel dramatically impacts both installation expenses and ongoing operating costs. The fuel source you select depends on availability in your region, existing infrastructure, and energy prices in your area.
Natural Gas Furnaces
Gas furnaces remain the most popular choice for American homes. Installation costs range from $3,800 to $10,000, with some high-efficiency models reaching $12,000.
These heating systems offer excellent performance in cold climates. They provide powerful heating capacity and generally cost less to operate than electric alternatives in most regions. Natural gas furnaces work by burning fuel to create heat, which gets distributed through your home’s ductwork system.
Electric Furnaces
Electric heating systems are the most affordable option upfront, costing between $1,800 and $7,300 to install. These units work well in milder climates where heating demands are lower.
While cheaper to purchase, electric furnaces typically cost more to run because electricity rates are higher than natural gas prices in most areas. However, they require less maintenance and don’t produce combustion gases, making them cleaner and safer in some ways.
Oil Furnaces
Oil-fired heating systems cost between $6,700 and $10,000 to install. These furnaces are most common in the Northeast and rural areas where natural gas lines aren’t available.
Oil furnaces deliver reliable heat but require more maintenance than gas or electric models. You’ll need space for fuel storage tanks, and oil prices can fluctuate significantly.
Propane Furnaces
Propane systems fall in the higher price range, typically costing $3,700 to $14,200 for complete installation. Like oil furnaces, these work well in areas without natural gas service.
Propane burns cleanly and efficiently, but you’ll need to arrange for fuel deliveries and maintain a storage tank on your property.
Factors That Affect Furnace Replacement Costs
Several variables influence how much you’ll pay for a new heating system. Understanding these factors helps you get accurate estimates and avoid surprise expenses.
Size and Heating Capacity
Your furnace must match your home’s heating needs. HVAC professionals measure heating capacity in British Thermal Units (BTUs) per hour.
Larger homes require more powerful systems. A 2,000-square-foot house in a cold climate might need a furnace rated for 100,000 BTUs, while the same home in a warmer region could use a 60,000 BTU unit.
Proper sizing is critical. An undersized furnace won’t keep your home comfortable, while an oversized system wastes energy and creates temperature fluctuations.
Energy Efficiency Rating (AFUE)
The Annual Fuel Utilization Efficiency rating measures how well your furnace converts fuel into usable heat. This percentage tells you what portion of energy becomes warmth for your home versus being lost through exhaust.
Standard efficiency furnaces have AFUE ratings of 80% to 83%. These mid-range models cost less upfront but use more fuel to heat your home.
High-efficiency furnaces achieve 90% to 98.5% AFUE. They cost more initially but deliver significant energy savings over their lifespan. These systems use condensing technology to capture heat from exhaust gases that standard furnaces waste.
A furnace with 95% AFUE converts 95 cents of every dollar spent on fuel into heat, while only 5 cents escapes through the vent. Compare this to an 80% AFUE model, where 20 cents of each dollar is wasted.
High-efficiency models can reduce your heating bills by $200 to $400 annually for typical households. Over a furnace’s 15 to 20-year lifespan, these savings can offset the higher purchase price.
Brand and Model
Manufacturer reputation impacts pricing significantly. Premium brands like Carrier, Trane, and Lennox typically cost more than budget options such as Goodman or Payne.
Higher-priced brands often provide better reliability, longer warranties, and superior customer support. However, budget brands can still deliver good performance if properly maintained.
Installation Complexity
Several factors make some installations more expensive:
Fuel source conversion adds $500 to $2,000 or more if you’re switching from one fuel type to another. Converting from oil to natural gas, for example, requires new gas line installation.
Accessibility issues increase labor time. Furnaces located in cramped crawl spaces or attics with limited access can boost costs by 25% to 50%.
Ductwork modifications add expenses if your existing ducts need repairs or replacement. New duct runs cost $300 to $600 each.
Existing infrastructure affects pricing. First-time furnace installations cost more than replacements because contractors must establish all connections and ventilation from scratch.
Location and Climate
Regional factors influence your total investment in several ways:
Cold climate regions require larger capacity systems, pushing prices higher. A furnace for a home in Minnesota costs more than the same-sized house in Texas because it needs greater heating power.
Labor rates vary by location. HVAC contractors in major metropolitan areas typically charge more than those in rural communities.
Local building codes and permit requirements differ by municipality, affecting your final bill.
Labor Costs for Furnace Installation
Professional installation typically costs between $500 and $2,000, though complex jobs can run higher. Licensed HVAC technicians charge $75 to $150 per hour, with additional team members adding $50 per hour.
Most furnace replacements take 4 to 10 hours. Simple swap-outs using existing connections complete faster, while installations requiring new ductwork or fuel line changes take longer.
You should never attempt furnace installation yourself. These systems involve gas or electrical connections, ventilation requirements, and safety considerations that require professional expertise. Improper installation can lead to carbon monoxide leaks, fire hazards, and voided warranties.
Repair vs. Replace: Making the Right Decision
Sometimes repairing your existing furnace makes more financial sense than replacing it. Understanding when to choose each option saves you money.
Signs You Should Repair Your Furnace
Consider repair over replacement if:
Your furnace is less than 15 years old. Most heating systems last 15 to 20 years with proper maintenance, so newer units have plenty of life remaining.
Furnace repair costs are less than half the price of a new furnace. Simple fixes like replacing a blower motor or thermostat are usually affordable.
Your energy bills remain consistent. Stable heating costs suggest your furnace still operates efficiently.
The system needs only minor fixes. Issues with thermostats, air filters, or small components don’t warrant full replacement.
Signs You Should Replace Your Furnace
Replacement becomes the better choice when:
Your furnace is 15 to 20 years old or older. Units approaching the end of their expected lifespan will likely need frequent repairs.
Repair costs exceed one-third of replacement costs. Spending $1,800 to fix an 18-year-old furnace that costs $5,000 to replace doesn’t make financial sense.
Energy bills keep increasing. Rising heating costs indicate your furnace is losing efficiency and working harder to maintain comfortable temperatures.
You need frequent repairs. Constant service calls suggest your system is failing and will continue having problems.
The furnace makes unusual noises. Banging, grinding, or buzzing sounds often signal serious internal issues.
You notice strange odors. Unusual smells can indicate dangerous problems, particularly if you smell rotten eggs, which may signal carbon monoxide production.
Heating is uneven throughout your home. Some rooms staying cold while others overheat suggests your furnace can’t properly distribute warmth.
Ways to Save Money on Furnace Replacement
Strategic planning can significantly reduce your heating system investment.
Get Multiple Quotes
Contact at least three reputable HVAC contractors in your area. Compare their estimates to ensure you’re getting fair pricing. Don’t automatically choose the lowest bid, consider the contractor’s experience, warranty offerings, and customer reviews.
Choose the Right Efficiency Level
Match your furnace efficiency to your climate and usage. Homeowners in mild regions don’t need the most expensive high-efficiency models. Standard 80% AFUE furnaces work fine where heating demands are moderate.
Conversely, residents in cold climates benefit from investing in high-efficiency systems because greater usage means faster payback on energy savings.
Take Advantage of Rebates and Tax Credits
Many high-efficiency furnaces qualify for financial incentives. Federal tax credits offer up to 60% of your project cost, capped at $600, for qualifying furnaces installed between January 1, 2023, and December 31, 2032.
Check with your utility company for additional rebates on energy-efficient equipment. Local and state programs may offer further incentives.
Manufacturers sometimes provide rebates directly. Ask your contractor about available promotions.
Schedule Installation During Off-Season
Furnace replacement costs tend to drop during spring and summer when demand for heating systems is lower. HVAC contractors often offer discounts during slower seasons.
Planning ahead lets you avoid emergency replacement during winter when you need immediate service and have less negotiating power.
Improve Your Home’s Energy Efficiency
Before installing a new furnace, address other energy issues. Proper insulation can reduce heating and cooling costs by 15%, according to the Environmental Protection Agency.
Seal air leaks around windows, doors, and ductwork. Fix gaps in insulation in attics, basements, and crawl spaces.
These improvements help any furnace work more efficiently, potentially allowing you to install a smaller, less expensive unit.
Understanding AFUE Ratings
The Annual Fuel Utilization Efficiency rating appears on every new furnace’s yellow Energy Guide label. This standardized measurement helps you compare different models objectively.
How AFUE Works
AFUE calculates the ratio of annual heat output to total annual fuel input. The formula uses 100 million BTUs as the standard annual fuel input.
A furnace with 95% AFUE produces 95 million BTUs of heat from 100 million BTUs of fuel. The remaining 5% escapes through the exhaust system.
AFUE Rating Categories
Low efficiency (below 80% AFUE): These older systems waste significant energy. Units this inefficient are no longer manufactured.
Mid efficiency (80% to 83% AFUE): Standard modern furnaces fall into this range. They include electronic ignition instead of pilot lights and fans that control combustion airflow.
High efficiency (90% to 98.5% AFUE): Premium models use condensing technology with two heat exchangers, sealed combustion systems, and variable-speed blowers. They extract maximum heat from fuel.
Long-Term Savings Potential
High-efficiency furnaces reduce operating costs substantially. The difference between 80% and 95% AFUE can save hundreds of dollars annually on heating bills.
Your actual savings depend on:
Climate: Colder regions with longer heating seasons benefit more from efficient systems.
Home size: Larger homes see greater total savings because they use more energy.
Fuel prices: Areas with expensive heating fuel benefit more from efficiency improvements.
Usage patterns: Families who keep thermostats high save more with efficient models.
Additional Costs to Consider
Budget for expenses beyond the furnace itself.
Ductwork Replacement
If your existing ducts are damaged or incompatible with your new furnace, replacement costs $2,000 to $5,000. Ductwork in good condition usually works with new furnaces.
Old Furnace Removal
Some contractors include removal and disposal of your old unit in their quote. Others charge separately, typically $100 to $300.
Thermostat Upgrades
Programmable and smart thermostats enhance comfort and efficiency but add $100 to $500 to your project. These devices let you control heating schedules and monitor energy usage remotely.
Air Quality Accessories
Many homeowners add humidifiers, air purifiers, or advanced filtration systems during furnace replacement. These accessories range from $200 to $2,000 depending on the type.
How to Choose the Right HVAC Contractor
Finding a qualified professional ensures proper installation and reliable service.
Check Credentials
Verify that contractors hold proper licensing for your state. Look for certifications from industry organizations like NATE (North American Technician Excellence).
Read Reviews
Check online reviews on multiple platforms. Look for patterns in feedback about quality, reliability, and customer service.
Ask for References
Request contact information for recent customers. Speaking with previous clients gives you insight into the contractor’s work quality.
Compare Warranties
Review what warranties cover the equipment and installation work. Better contractors offer comprehensive guarantees on their labor.
Get Detailed Estimates
Written quotes should itemize all costs, including equipment, labor, materials, permits, and any additional services.
Final Thoughts
Replacing your furnace represents a significant investment in your home’s comfort and efficiency. Most homeowners spend between $2,800 and $7,500, with the average around $4,800 for a complete installation.
Your actual costs depend on the fuel type, system size, efficiency rating, and installation complexity. Natural gas furnaces remain the most popular choice, balancing performance and operating costs effectively.
High-efficiency models cost more upfront but deliver substantial long-term savings through reduced energy bills. Calculate your potential savings based on your climate, home size, and fuel prices to determine if premium efficiency makes financial sense.
Work with licensed HVAC professionals to ensure proper installation. Get multiple quotes, check for available rebates, and consider scheduling installation during off-season months to save money.
Regular maintenance extends your furnace’s lifespan and maintains efficiency. Budget for annual service, filter replacements, and eventual repairs to keep your heating system running smoothly for 15 to 20 years or more.