Why is Furnace Installation So Expensive?

So, you need a new furnace. Maybe your old furnace has been repaired one too many times or maybe it’s just plainly becoming dangerous to have in your home. Now comes the process of picking a new furnace and having it installed. As you’re budgeting for your new furnace, you might initially think you simply have to think of the cost of the unit. However, a great deal of the total cost of getting a new furnace comes from the installation.

As you look around and collect quotes from local HVAC experts, you may wonder why the cost to install your new furnace is so high. Here are the main reasons the installation cost can rise:


First and foremost, you are paying for someone’s time. Because one HVAC professional can’t be in two places at once, you are paying to have them in your home versus someone else’s. Because of that, the total amount of time that it takes to install your new furnace will play a big factor – an estimated 25% of your total installation budget.

Where It’s Installed

You might not often think about the location of your heater. In fact, many of us don’t think about our heaters at all until we need them. Something you may not have considered as part of the price of your install is the location where your new furnace is being installed. If it’s a tighter space or a more difficult installation because of the location, you will likely end up paying more.

Difficulty of Installation

Speaking of the difficulty of your furnace installation, that definitely plays a huge factor. If something is easy, we don’t value it as high as something that we know will be more challenging. The same rule is followed by HVAC professionals. The more difficult the installation, the more the price will go up.


A big factor in your installation cost will be determined by whether or not you need new ductwork. If the ductwork needs to be replaced along with your furnace, that can have a small to sizeable impact on the cost. That means your cost can vary dramatically, depending on the state of your ductwork. Before scheduling a furnace installation, take some time to really discuss your ductwork so you have a better idea of what price to expect on the quotes.

Fuel Type

Different types of fuel will require different hookups. Because these are different, there will be a different price for each. Talk with your HVAC professional about the difference in fuel types and what your options are.

Cost of Unit

Not only does the cost of the unit you purchase affect the overall cost of replacing your furnace, but it can also actually affect the installation cost, too. Discuss the installation costs and understand what factors may be impacting the cost to get the new unit installed. Be mindful of how much furnace your home actually needs and do your research ahead of time to know which furnace is best for you and your family.


If your friend asks you to move a lamp, you’re willing to invest a few minutes to do that. If they ask you to move their house, you may take a pause before agreeing. Size matters, especially with furnaces. The bigger the furnace, the more labor-intensive the installation will be, and therefore the higher the installation cost could be. Be mindful of the cost of the furnace compared to the size and know that a bigger furnace with more bells and whistles may be tempting, but it can raise the price of installation slightly.


There are some extra costs associated with a furnace replacement, including old furnace removal, extra equipment needed, and obtaining local permits. Because these are all extras that are outside of the straight installation of your new furnace, they will end up costing you extra. Experts estimate that these extra costs make up about 15% of your total installation cost.


There’s nothing better than cuddling up in your warm house on a cold night. That’s why you need a new furnace. As you are planning for your furnace replacement, don’t forget to factor in the cost to install your new furnace. Things like the size, price, and type of furnace you choose will affect the size, as will the time to installation and the difficulty.

Do your research when starting a furnace replacement project. And be sure to give us a call at American Air Conditioning & Heating. You can learn more about our furnace replacement services here. Visit us online or give us a call at 1-800-321-9494

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