Atlas AC Repair, LLC

What is the cost of a new furnace in 2021

The cost of a new furnace can range from $2,900 to $5,100.

What Exactly is a Furnace?

HVAC system

It’s critical is designed for homeowners to properly budget for furnace replacements. 

There are 3 main parts that make up a complete AC and heating system in your home. You have your indoor furnace, your outdoor AC unit, and ventilation throughout your home. In some cases your furnace can fail before your AC unit does. If your AC unit is in good working condition, it doesn’t make a lot of since to do a full AC and furnace replacement. In this scenario you can save a lot of money by only replacing your indoor furnace.

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How Much Does A New Furnace Cost?

A fair price for a homeowner to replace a basic furnace will cost around $2,900 to $5,100.

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What should be included in new Indoor Furnace installation?

Remove and install a new outdoor furnace / air hander
  • Removal & disposal of current indoor furnace. 
  • Installation of furnace to city code. 
  • Installs heat kit elements, proper max circuit protection fuses, safety float switches, locking caps.
  • Reconnection drain line & properly attach and seal plenum transitions.
  • Flush line set to accommodate new refrigerant. 
  • 10 year parts warranty & 1 year labor warranty
AC installation San Antonio

What is the deference between a Gas, Heat pump, and Electric Indoor Furnace?

Gas Furnace

  • A gas furnace works very differently from both a heat pump and electric furnace. The short answer of what makes a gas furnace different for the other two is it uses combustion to heat them while the others do not. The reason a gas furnace cost more than a heat pump or electric furnace is because all the safety measure that must be meet for a proper installation. The combustion of the gas has a carbon monoxide by-product. This could lead to carbon monoxide poisoning if proper ventilation and safety measures are not followed. The extra safety requirement increases the labor cost make it more expensive than the other two furnace types. 

Heat Pump Furnace

  • A heat pump furnace is set apart from the other two furnace because it is the only one that uses the outdoor unit to heat the home. A gas and electric furnace are both are independent form the outdoor unit when it comes to heating your home. A heat pump furnace uses the out unit to exchange the outdoor ambient temperature to heat. It then pushes the warm freon to the indoor furnace. From there, the freon warms the furnaces coil and blows the air in your home through the coils, circulating the warmer air through your home. Since a heat pump does not use electricity or gas but the outdoor ambient temperature that makes it the most energy efficient way to heat your home.

Electric Furnace

  • An electric furnace is the simplest but most energy inefficient furnaces available. There are heat strip located inside the furnace the get very hot when using your heater. It then blow the air inside your home over these heat strip, warming the air. From there, it is circulated throughout your home. These are cost effective and reliable furnaces but the big issues is how inefficient it is.

Cost Of A furnace Per Region In America?

There can be a price difference around $1000 for a new furnace installation depending on where you live. 

System size and BTUs need can vary.

The temperature differences between regions changes the size of furnace you need for your home. If you live in the southern part of the US it’s not very often we use our heater. However, up north, in some parts, you might need to run your heater for half of a calendar year. A new furnace cost is going to vary throughout America because there is more or less heating demand per region. 

There can be a difference in what type of system you use depending on where you live.

  • The Southern and South/Central is normally going to use a heat pump, electric, or gas furnace. This region of the United State has a low of flexibility on how homes can be heated. We see a lot of people wanting to use a heat pump furnace over the other type due to its competitive cost and energy efficiency. An electric furnace has become the least desirable system because how inefficient it is. A gas furnace is still widely used because many people believe that it provides superior quality. Everyone has a little deference’s in what they prefer but, at the end of the day, down south we don’t use our heaters that much and we are mostly concerned about our air conditioner.
  • The Northern  and North/Central region of the US will typically use a gas or oil furnace. A heat pump doesn’t work well up north because it struggles to convert the outdoor ambient temperature into heat once temperature drop below negative 10-degrees. An electric furnace is just to inefficient to run it for the long winter up north experiences. The only leave a gas or oil furnace. The further north you go the more you have to start relying on a oil furnace over gas.

Gas AC unit replacement price per region

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The way calculations are done for home air conditioners is by designing for the outdoor to indoor temperature splits. For example, Texas needs a 20 to 25 degree temperature split. What this means is, if it is 95 degrees outside the air conditioner will keep your home around 75 degrees inside. In a state like Minnesota when the summer highs are only around 85 degrees, the home only needs a 10 degree split. A 20 degree split is going to require a bigger AC unit than a 10 degree split. This is why northern states pay less for AC systems. In a state like Texas when the average low is 36 degrees you only need a 24 degree split to keep your indoor temperature at 60 degrees. What this means is the further north you go the bigger the furnace you need. This is why northern states pay more for a new furnace installation. 

Gas Vs. Electric Vs. Heat Pump Furnace

Gas Furnace

  • A gas furnace is the most divers heater that is available. It uses combustion to heat your home. It works well up north and down south unlike the other two furnace types. Many people believe that gas deliver a superior quality of heating over a heat pump and electric. I only see a few issues with a gas furnace. The first problem mostly applies to the southern states, gas availability and cost. There are many places where gas is difficult to get and can cost a arm and a leg to use it. The other problem is you need to routinely service your furnace to make sure there are now safety issues. It is very common for us to find poor circulation and exhaust issues that can lead to carbon monoxide poisoning. I would recommend having your HVAC company check it before winter starts each year to stay on the safe side. A new gas furnace cost is going to be higher than your options but many believe the extra cost is worth it.


  • An Electric furnace the most cost effective but inefficient furnace available. It heats your home by blowing air over electric heat strip in side your furnace. This process require a lot of energy to do that, which can intact your electric bill. This is not very practical for northern state that use a heater 4 to 5 months out of the year with big temperature splits your furnace has to handle in order to keep your home warm.  However, when it comes to southern states it’s a little more practical. The heater is only used a few month out of the year with a small indoor to outdoor temperature split in the winter. This makes it a good budget friendly option for southern states.

Heat Pump

  • A heat pump furnace is really designed for the southeaster part of the United State. The best way to understand a heat pump is you can’t separate the indoor furnace and outdoor unit. The heat source comes from converting the outdoor ambient air into heat for the furnace. The other two furnace type do not use the outdoor unit to heat, only the indoor furnace. Heat pumps start struggling to convert the outdoor air into heat when temperature drop below -10 degrees. This is not what you want if your live in a northern state. The southwester states have a dry clime so many people use specialized air handlers / furnaces to add moister back into the air. Since you can’t separate the indoor furnace from the outdoor AC unit on a heat pump, it’s hard to pair a specialized air hander with a heat pump. In dryer climate an electric furnace is probably going to work the best.

To recap, a gas furnace is going to be your best option for the northern part the US. An electric furnace is probably be your best option in southwester states. A heat pump is going to your most cost effective solution for the southeastern states. At the end of the day, it’s still best to talk with a few HVAC companies to see all your options for your local area.

Here at Atlas AC Repair we mostly focus on Carrier furnace.

Most Cost Effective Furnace Brand?

If you are brand agnostic and are looking for the best deal for a new furnace. You are probably going to land on a brand like a Goodman or Payne for the lowest AC unit installation cost.

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Each HVAC company has different rates.

  • Pricing is going to vary per region of the US and the going local in your local area. It is possible to get competitive pricing in your area but it might take a little shopping. Some HVAC companies have to charge more than others based on the type of business model they run their company by. The more expensive company spend lots of money on marketing and salesmen driving up their cost. These HVAC companies have to charge 30% more than others that don’t spend money in these areas. A AC company that spending money on advertising like Home Advisor, Google ads, or radio cost them 20% of the entire repair or replacement price. When you add a salesman to the equation, now you are pay an extra 10% in commissions. That 30% increase in your cost to replace a furnace. Since they spend so much money on marketing, there is a good chance you are going to find this type of company first. I would look for an HVAC company that openly post their pricing and will give you a rough estimate over the phone.

The purchasing power of a HVAC company matters.

  • If you have a specific brand in mind or need have a like brand to pair the existing outdoor AC unit to the new furnace, not every company can be cost effective with every brand. For example, here at Atlas AC Repair, our primacy brand we use is Carrier and our secondary brand is Goodman. We do so much volume with Carrier, they give us better pricing that what we get from Goodman. We can install a higher quality Carrier cheaper that we can install a low quality Goodman. One way you can get the best deal is by looking for a brand specific HVAC company. If you need a Trane furnace, look for a HVAC company that is a Trane dealer. You can do this for any brand to help you get the best deal for the same product and service. 

How much does a 95% Efficient Gas Furnace Cost?

A standard gas furnace operates at 80% efficiency. It is possible to bring the efficiency up to 95%

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What is the Difference between 80% efficiency and 95% efficiency?

Increasing your gas furnace efficiency serves 2 purposes. The first is it will save your 15% on your gas bill. The other purposes, it is required for tight sealed energy efficient homes. You are going to end up spending an extra $2,000 for a 95% efficient furnace.

80% Efficiency 

  • An 80% gas furnace is great for the average home in America. This furnace is going to deliver the same quality of heating for your home at the 95%. However, you are using an additional 15% of gas to keep your home warm. This is not a big deal for homeowners in the south because we simply don’t use our heaters that often. For homeowner up north, that is a different story. 
  • This furnace works well for homes that breath a little because they do not a bring in fresh air from the outside like the 95% does. Overall, if your not concerned about saving gas because you don’t use your heater that often or you have a dated home that breaths an 80% furnace might be a good option for you.
new carrier furnace

95% Efficiency

PERFORMANCE 90 carrier
  • There is a pretty big jump in price for a 95% gas furnace. Is paying additional $2,000 worth it? It just simply depends on the application. If you live up north and your using your furnace 4 to 5 months out of the year, I would definitely consider upgrading to a 95% system. The increase in efficiency will most like ROI in a reasonable amount of time.
  • For some folks in live in the country, gas prices can be extremely high. There is nothing worse than running your heater a little and get stuck with a huge bill. A 95% furnace is going to help keep your gas bill as low as possible.
  • Another application that requires you the have a 95% heater is for homes that have a tightly sealed envelop. These are your extremely energy efficient homes that use spray foam insulation. A 95% furnace brings in fresh outside air while the 80% does not. A combustions heaters burn gas and oxygen and the oxygen has to come somewhere. If your are the type of homeowner that has an energy efficient home you are most like going to want the 95% anyways.

How long should i wait before replacing my furnace

Most of the time we have a feel if our furnace is on its last leg. We had a HVAC company repair it a few time and now the repair are getting expensive. The furnace is starting to get up there in age so does it make since to keep limping it along or should I just buy a new furnace? There are few things to consider before making that decision. Are you looking for the best deal or is winter right around the corner? 

  • There are times when limping your furnace along make since. There are other time when it’s not worth playing that game. The times that it is practical if your not planning to live in this house much longer. Buying a new furnace is not going to increase your property value. In this scenario it makes since to try to get a few more years out of it, that is unless it is in extremity poor condition. If it is in bad shape I would get a new furnace because the home inspector or 3rd party HVAC inspection will probably point out it’s condition. This could hold up the sell and since you have to rush to get a new furnace, you are not going to be able to shop to get the best price. It can be a hard decision, should I keep repairing it or should I bit the bullet and buy a new furnace? I would talk with your local HVAC specialist and see what they think.
  • If your planning to live in your home for many more years, sometime waiting can cost you. Every year HVAC manufactures increase their price around 5% to 7%. For us, Atlas AC Repair, our manufactures go up in cost for new equipment around mid February every year. In some cases the more you lip it along, the more service calls end up having, and the new furnace cost continues to go up. At some point you end up with diminishing return by waiting. 
  • Did you know the time of the year can impact the amount you pay for a new furnace? A new furnace cost is going to vary depending if your are buying in peak season. At Atlas AC Repair, we keep our pricing the same all year around but this is not the case for most HVAC companies. When they see demand going up they increase their prices. The best way to solve this is to not buy in peak demand. For up north peak demand is the winter and down south it’s the summer. If you buy out of season a lot of time you can ask for discount that wouldn’t be available to you in season. This could keep your new furnace cost as low as possible.


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