What’s the Average Cost of Gas Furnace Replacement?

Furnaces are necessary for homes in locations that experience cold winters. Without it, your home can get uncomfortably cold quickly during the harsh winter months. It’s not an exaggeration to say that surviving winter in a home without a proper furnace is challenging. Portable heating devices can only do so much to keep your household warm, so it’s always a better idea to install a reliable furnace in your home.

Like any household appliance, however, furnaces deteriorate and need maintenance and repairs over the years. Suppose you call a professional to check and diagnose what’s wrong with your furnace. Then they hand you a quote for the repairs, and you get the surprise of your life because the estimate is more than what you originally paid for your furnace.

In some cases, replacing a furnace might be more cost-effective instead of repairing it.

It’s not ideal to be caught in a situation wherein you’re forced to pay beyond what you can spend. To help you prepare for such situations involving your furnace, here is the lowdown on the cost of replacing furnace parts and units.

Cost of New Furnace Installations

According to Forbes, the average cost of a brand-new gas furnace is around $4,700. The price can go as low as $2,000 or over $10,000, depending on factors such as type, size, brand, efficiency, estimated maintenance costs, labor costs for installation and more.

Check out the breakdown of furnace costs based on some of these factors:

Furnace Type

  • Electric furnaces use electricity to heat the air surrounding its conductor coils, then disperse the warm air throughout the house via ducts and vents. It’s efficient and cheap at $2,000 to $7,000, but the monthly electricity costs during winter will cost you more.
  • Natural gas furnaces are more expensive at $3,800 to $10,000. The purchase and installation costs are higher than for electric furnaces, but the operational costs are cheaper for houses already connected to a gas line.
  • Oil furnaces are also on the higher end of the pricing scale at $6,750 to $10,000 for a new unit plus installation. Oil is also more expensive than natural gas. However, oil furnaces are much safer because they aren’t as flammable or prone to poisonous gas leaks. Oil doesn’t catch fire or vaporize unless the temperature soars to 140 degrees, and it doesn’t produce carbon monoxide.
  • Hybrid furnaces, which combine the functions of heat pumps and gas furnaces, are even more expensive at $13,000 to $20,000. The advantage of a hybrid furnace is it consumes less fossil fuel and adjusts the heat it generates according to outside temperatures. It fires up the gas furnace during the coldest winter days, and once the temperature starts climbing, it shuts off the gas line and lets the heat pump generate the necessary heat.

Gas furnaces also have different types, and each one has a different price range:

  • Single-stage gas furnaces, which are easily available in the market and have simple on and off functions, cost only $700 to $3,000.
  • Two-stage gas furnaces offer two levels of heat output: a low setting for mild days and a high setting for cold winters. These furnaces are estimated to be at $1,000 to $3,500.
  • Modulating gas furnaces adjust the amount of fuel they burn and the heat they generate depending on the room’s temperature. It works double time in the peak of winter, then slows down as the climate gradually warms come spring. These fuel-efficient furnaces cost $1,300 to $6,500.

Efficiency Rating

  • Standard-efficiency furnaces with an AFUE (Annual Fuel Utilization Efficiency) rating of at least 80% can cost between $500 and $1,500.
  • Moderate-efficiency furnaces with an AFUE rating of 90% to 95% usually cost $1,000 to $3,000.
  • High-efficiency furnaces with an AFUE rating of 96% or higher typically cost $2,000 to $6,000 or higher.

Automation, smart-home compatibility, complex ventilation style, and other special features can also raise or lower the prices of furnaces.

Cost of Replacing Furnace Parts

If you were timely in noticing an issue with your furnace, then it might only require minor repairs. In that case, you can expect to see the following prices for the labor costs and replacement parts:

  • Blower Motor: $2,000 for replacement parts, $150-450 for simple repairs.
  • Motor Fan: This costs $1,500 to replace and around $200 to $500 to repair. A motor fan is different from a blower motor, but it helps the former push heated air through the vents all over the house.
  • Heat Exchanger: This part costs up to $200 to repair and about $1,500 to replace. It must be repaired or replaced immediately once damaged. Failure to do so will sharply increase the risk of carbon monoxide production and distribution in your home.
  • Circuit Board: Older versions can cost around $600 to replace and up to $200 to repair. Newer furnace units use modern circuit boards, and their replacement parts can be lower or higher depending on the manufacturing brand.
  • Ignitor: Expect up to $250 for repair and replacement.
  • Gas Valve: Replacement parts are affordable at $200 to $600, and simple repairs will cost only $75.

When Should You Repair Your Furnace?

The decision between repair and replacement is usually financially motivated. Timely repairs in which the problematic parts are still functional and only need minor tweaks will only cost a couple of hundred dollars and are, therefore, more cost-effective than a unit replacement.

Besides the cost of replacing furnace parts, consider the payoffs, too. What’s the expected service life of the replacement part plus repairs? Is it reasonable considering the price? Do you think you can get better and longer performance if you replace your furnace with a brand-new unit? Weigh the long and short-term benefits versus the cost to make the best decision based on your needs and financial capability.

Call a Professional for a Brand-New Furnace Installation

Should you decide to replace your old, broken unit and install a brand-new furnace, trust only experienced and reliable technicians to do the job. Furnace installation is crucial because errors can lead to costly repairs too soon. Worse, it can lead to dangerous and potentially fatal consequences.

Call Mitchell Heating, a trusted HVAC installation, repair and maintenance company in Colorado Springs, Denver Metro and Northern Colorado. We are a licensed contractor with trained technicians who expertly service heating, cooling, and ventilation equipment. We also serve customers in the Denver Metro area and Northern Colorado. If you have an issue with your furnace and are considering replacing it, we’re only a phone call away.

Contact us for furnace repairs and replacement. You may also request an estimate or inquire about our services on our website.