Atlas AC Repair, LLC

What is the cost of a new furnace in 2021

A new furnace cost the average homeowner from $2,940 to $5,430 in 2021.

Your complete new furnace cost guide 2021

Complete furnace replacement cost guide in 2021
  • New AC Unit Cost – $3,300 to $4,000
  • New Furnace Cost – $2,940 to $5,430
  • Complete HVAC System Cost – $5,200 to $7,750

About Your Central Furnace?

There are 3 main components that make up your central heating and cooling system, which can be found in the acronym HVAC. HVAC stands for heating, ventilation, and air conditioning.

The furnace/air handler is the equipment used to warm your home and push air through your vents.

The ventilation, also known as ductwork, is responsible for evenly distributing the air through your home to maintain a consistent temperature.

The outdoor AC unit/condenser is responsible for creating cool air for your home.

Breakout of a New Furnace replacement Cost

A fair price for a homeowner to replace a basic furnace will cost around $2,940 to $5,430. But what all goes into a furnace replacement price? There is the equipment, miscellaneous materials, and labor that dictates the cost of a furnace install.

What is included in a new Furnace and Evap Coil installation

    • Furnace Removal and Install
      • Removal & disposal of the current indoor furnace. 
      • Installation of furnace to city code. 
    • Evaporator Coil Removal and Install
      • Removal & disposal of the current evap coil. 
      • Install new evap coil to code. 
    • Misc Parts
      • Installs heating elements, new drain pan, use proper max circuit protection fuses, install safety float switches, and locking caps.
      • Reconnection drain line & properly attach and seal plenum transitions.
  • Refrigerant and Calibrate 
    • Flush line set to accommodate new refrigerant. 
    • Calibrate AC system
  • Inspection
    • Permitting and city inspection
  • Warranty
    • 10-year parts warranty & 1-year labor warranty
PERFORMANCE 90 carrier
Item Equipment & Misc CostLabor Cost At $120 Per Hr.
Furnace Removal and Install$1,400 - $2,300$480 - 840
Evaporator Coil Removal and Install$500 - $700$120 - $240
Misc Parts$150 - $250-
Refrigerant and Calibrate$150 - $860$90
Inspection$50 - $150-
Total$2,250 - $4,260$690 - $1,170

furnace cost by Tonnage/BTUs

When asking, how much does a new furnace cost? One of the biggest factors that is going to determine how much is a new furnace is the size. By the way, a quick conversion between tonnage to BTUs is (1 Ton = 12,000 BTU). A 2 ton 24,000 BTU furnace is going to cost around $2,940 to $4,100. When it comes to a 5 ton 60,000 BTU furnace you’re going to spend in the neighborhood of $3,600 – $5,430.

Indoor Furnace by Ton/BTUFurnace Replacement Cost
24,000 BTU / 2 Ton$2,940 - $4,100
30,000 BTU / 2.5 Ton$3,050 - $4,400
36,000 BTU / 3 Ton$3,100 - $4,550
42,000 BTU / 3.5 Ton$3,300 - $4,700
48,000 BTU / 4 Ton$3,500 - $5,000
60,000 BTU / 5 Ton$3,600 - $5,430

Before you buy a new furnace

When a large developer builds a neighborhood of homes they look for ways to keep their expenses as low as possible. One common practice we see all the time is builders under-sizing the HVAC system for 0.5 -1.5 tons. Sure they were able to save a few bucks but now the furnace is going to struggle to keep up on cold days. This leads to high stress being put on the furnace reducing its useful life. We see this for about 25% of homes we do replacements for. I recommend having a local furnace company do a load calculation on your home to verify correct sizing. By getting it right you will reduce repairs and increase the useful life of your furnace.

2.5 ton gas furnace

Most Cost Effective Furnace Brand?

It is most ideal to match the indoor furnace to the outdoor unit to help ensure a smooth install. Sometimes people will opt for a mismatched system due to availability or to start moving away from the brand they have now. If you are brand agnostic and are looking for the best deal on a new furnace. You are probably going to land on a brand like a Goodman or Payne for the cheapest furnace replacement. While Carrier and Trane are going to be your best upper-end options.

New Furnace Replacement BrandAverage 3 Ton Furnace Installation Cost
Lennox Furnace Price$4,700
American Standard Furnace Price$4,600
Carrier Furnace Price$4,550
Trane Furnace Price$4,550
Ruud Furnace Price$4,500
Rheem Furnace Price$4,400
Bryant Furnace Price$4,300
Amana Furnace Price$4,200
HEIL Furnace Price$4,150
York Furnace Price$4,100
Coleman Furnace Price$4,050
Payne Furnace Price$4,000
Goodman Furnace Price$3,950

Is the brand or installation company more important?

Choosing the best furnace brand available can help with the longevity of the system. But, what is going to impact the finance lifespan the most is the installation. I recommend putting the most emphasis on the local replacement company over the brand type.


Some furnace brands last longer and are more reliable than others. It’s also not always true that you get what you pay for when it comes to a replacement. For example, there is a class-action lawsuit against Lennox, the most expensive brand, due to its faulty equipment. It is normal for us, in Texas, to do major repairs and replacements on Lennox systems that are only 5 years old. This can happen to any manufacture that makes any changes or improvements to their equipment. The problem is issues usually don’t start popping up for a few years. My personal top picks are Carrier and Trane because we have such good experience with these furnaces. However, your best bet for getting the right brand is to ask around locally. Some brands support certain areas of the US better than other regions. Talk with friends, family, and other replacement companies to find out which brands are most prevalent in your area and work from that list. When it comes to pricing, Lennox and American Standard are going to be the most expensive while Payne and Goodmen are going to be the cheapest furnace available.

furnace replacement company

In my opinion, during the process of getting a new furnace for your home, you should spend the majority of time and effort in finding the right local furnace replacement company. There is a lot that goes into a replacement, from sourcing the correct equipment, doing a perfect installation, to the follow-up support needed if any bugs need to be worked out. You need a company that is going to take this very seriously because many contractors will look at you as a way to make a quick buck. I recommend looking through their Google and BBB reviews of local furnace companies to get an idea of their reputation. After creating a list of companies you like, the next step is to give them a call to get a price of a new furnace. This will help to weed through all our local options.

furnace cost by Type

The type of system you have now can be a big indicator of how much a replacement is going to cost. A 3-ton electric system costs $3,100 for a new installation while a gas system costs $4,700. 

Indoor Furnace by Ton/BTUElectric Furnace CostHeat Pump Furnace CostGas Furnace CostOil Furnace Cost
2 Ton Furnace Cost$2,940$3,150$4,100$5,000
2.5 Ton Furnace Cost$3,050$3,200$4,400$5,200
3 Ton Furnace Cost$3,100$3,200$4,550$5,500
3.5 Ton Furnace Cost$3,300$3,300$4,700$5,800
4 Ton Furnace Cost$3,500$3,700$5,000$6,100
5 Ton Furnace Cost$3,600$3,800$5,430$6,300

When a furnace replacement is needed, it is most common to use the same system type. Using the same system type as before is by far the cheapest furnace replacement option.  In order to go from one system type to another, you’ll most like need to replace the outdoor unit too. Along with, getting an electrition to upgrade electrical and a plumber to handle gas. Needless to say, most homeowners don’t want to go down that road.

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 an electric furnace. The short answer for how this system is different from the other two is it uses combustion to heat them while the others do not. The reason a gas furnace cost more than the other two furnaces is due to all the safety measure that must be met for a proper installation. The combustion of the gas creates carbon monoxide as a 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. This system is most suitable for northern states because it handles the extreme cold far better than the other two options. If you are asking, how much does a new furnace cost? It’s going to range from $4,050 to $5,100 depending on the size of the system you are needing.

Heat Pump Furnace

A heat pump furnace is set apart from the other two system types because it is the only one that uses the outdoor unit to warm the home. The other two furnace types are both are independent from the outdoor unit when it comes to warming your home. A heat pump uses the outdoor unit to exchange the outside ambient temperature to create warmth. It then pushes the warm freon to the indoor furnace. From there, the freon warms the furnaces coil and blows the warmer air through your home. Since a heat pump does not use electricity or gas but the outdoor ambient temperature makes it the most energy-efficient way to heat your home. This system does not work well for northern states because it can’t exchange the outdoor air into heat around 10 degrees outside. A heat pump furnace cost a homeowner around $3,150 to $3,800.

Electric Furnace

An electric furnace is the simplest but most energy inefficient system available. An electric furnace cost less than the others largely due to its simplicity. It uses a heat strip located inside the furnace the gets very hot when using your heater. It then blows the air over these strips, warming the air. From there, it is circulated throughout your home. These are cost-effective and reliable furnaces but the big issues are how inefficient it is. This type of furnace works best in the southern states and rental properties. When homeowners are looking for, how much does an electric furnace cost? I would expect electric furnace prices to range from $2,900 to $3,600.

Cost Of A furnace Per Region In America?

There can be a difference of around $1000 for a new furnace replacement cost depending on where you live. The northern states need large furnaces to handle the long cold winters, unlike the southern states who only deal with a sort mild winter.

System size and BTUs needs can vary.

The temperature differences between regions change is what determines 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. The cost of a new furnace is going to vary around one thousand dollars throughout America because there is more or less heating demand per region.  

Gas AC unit replacement price per region

Size of HomeNorthern New Furnace CostSouthern New Furnace Cost
800-1000 Sq Ft House$4,000$3,300
1000-1200 Sq Ft House$4,100$3,300
1200-1400 Sq Ft House$4,200$3,400
1400-1700 Sq Ft House$4,400$3,500
1700-2000 Sq Ft House$4,600$3,700
2000-2500 Sq Ft House$4,800$3,800

Up North

The Northern and North/Central regions 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 the temperature drops below negative 10-degrees. An electric furnace is just too inefficient to run it for the long winter up north experiences. That only leaves a gas or oil furnace. The further north you go the more you have to start relying on an oil furnace. The average cost to replace a furnace up north is going to run around $4,000 to $4,800.

Down South

The Southern and South/Central are normally going to use a heat pump, electric, or gas furnace. This region of the United State has low 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 of 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. A new furnace installation cost down south is going to run around between $3,300 to $3,800. 

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%. A 95% furnace cost about $2,000 more than a standard 80% furnace.

Gas Furnace Tonnage80% Efficiency95% Efficiency
2 Ton Furnace$4,050$5,900
3 Ton Furnace$4,550$6,400
4 Ton Furnace$4,700$6,800
5 Ton Furnace$5,100$7,200

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

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 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 homeowners up north, that is a different story. 

This furnace works well for homes that breathe a little because they do not bring in fresh air from the outside as the 95% does. Overall, if you are 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 an additional $2,000 worth it? It just simply depends on the application. If you live up north and you’re 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 that 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 80% does not. A combustions heaters burn gas and oxygen and the oxygen has to come somewhere. If you are the type of homeowner that has an energy-efficient home you are most like going to want the 95% anyways.

12 Things Every Homeowner Should Know Before Buying New A New Furnace

Download the Atlas AC Buyers Guide before you buy a new AC

The HVAC industry still operates as the wild west, and many homeowners are left to fend for themselves. Atlas created the Buyers Guide to prevent homeowners from being exploited by untrustworthy replacement companies.

Use this guide to help you select the best company for your next furnace replacement.

Focus on finding the best local company 

Many homeowners will get caught up on brands, warranties, and furnace types thinking that is the key to a long-term solution. When in reality, the biggest factor that will determine future service calls and the longevity of the system is who installed it. If a furnace installation is not done correctly you’ll need routine maintenance to keep it going and the life expectancy of the new furnace is greatly reduced. The biggest factor in a furnace install is the company installing it. So, take your time and find the right person.

Like for like typically have the best results

Using the same brand and system type typically leads to the smoothest outcome. Once you start mismatching systems it requires a higher level of expertise. It is completely possible but the average install team is going to struggle to get everything correct. A good rule of thumb is the most reliable and cheapest furnace replacement solution is a like for like system.

Make sure your furnace is sized right

It is a common practice for an HVAC company to bid and install a furnace based on the data tags without doing a load calculation on your home. As your going through the process of getting quotes for a furnace install price, I recommend having a local furnace company do a load calculation to make sure you get the right size system.

If you happen to live in Texas and need a good company to take care of your heating and cooling need. Let us know, we are a full-service heating and cooling company doing air conditioner repair and installation. For more useful information check out our new AC unitHVAC replacement, best air conditioner, AC freon, and AC compressor cost pages.


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