How Much Does a New Electric Furnace Cost to Install in 2025?
The average electric furnace costs $5,002 to install
The cost to install an electric furnace ranges from $150 to $13,100, with most homeowners spending $5,002.
The cost of installation depends on factors including the unit size, ductwork, labor, electrical upgrades, disposal fees, and permits.
The cost to buy an electric furnace ranges from $800 to $4,500, depending on the unit size and features.
Hiring a professional HVAC company to complete the installation ensures proper sizing, function, and long-term efficiency.
This article was updated using automation technology and thoroughly reviewed for accuracy by HomeAdvisor Editor Ryan Noonan.
The average cost to install an electric furnace is $5,002, with most homeowners spending between $2,116 and $7,888, depending on factors like labor, unit size, and additional components. The units themselves range from $800 to $2,600, but larger models can cost up to $4,500. If you need ductwork for complex or large homes, you might spend up to an extra $2,000. Hiring an HVAC professional ensures the furnace is properly sized to your home and installed for optimal efficiency and performance.
Electric Furnace Cost Factors
There are several factors that influence the cost of installing an electric furnace, including ductwork, labor, and energy bills. Here's what to consider when planning your purchase or installation.
Ductwork
The cost to replace ductwork runs from $35 to $55 per linear foot, totaling around $500 to $2,000 for the average single-family home. If your existing ductwork is in good condition, consider having it professionally cleaned for $300 to $500 to improve your system's efficiency and your home's air quality.
Always make sure to inspect your existing ductwork when replacing your electric furnace. Leaks can cause your furnace to work overtime, leading to higher energy costs and a shorter lifespan for your furnace. To schedule an inspection or repairs, find a local HVAC repair company near you.
Labor
Labor costs for installing an electric furnace range from $300 to $2,500, depending on whether it's a new installation or a replacement and how accessible your unit is. New installations or replacements range from $50 to $150 per hour. If the installation requires additional team members, expect to pay an additional $50 per hour each.
Keep in mind that hiring more pros can speed up the job, but you'll still pay for the total labor hours. For example, two pros working five hours each equal 10 total labor hours, the same as one pro working 10 hours.
Energy Bill
Electric furnaces produce heat using electricity, meaning they’ll have a direct impact on your monthly energy bills. On average, electricity costs around $0.13 per kilowatt-hour, so running your furnace costs an average of $160 to $315 per month or $1,900 to $3,800 per year. Your actual costs depend on factors like your home's size, insulation quality, and local electricity rates. Larger homes and poorly insulated spaces require more energy to heat. To keep your heating bills lower, ensure your home is well-insulated and sealed.
Additional Electric Furnace Cost Factors
Beyond the cost of ductwork, labor, and energy, there are additional expenses to consider when installing an electric furnace, such as electrical upgrades, disposal fees, and permits. Here's a breakdown of other factors that might affect your budget.
| Additional Expense | Average Cost Range |
|---|---|
| Dedicated electrical circuit | $500–$2,000 |
| Electrical panel upgrades | $500–$1,800 |
| Disposal | $100–$300 |
| Building permit | $200–$500 |
| Thermostat replacement | $100–$250 |
Electric Furnace Cost by Size (BTU)
The cost of an electric furnace ranges from $800 to $4,500, depending on the unit size, which is measured in BTUs (British Thermal Units). Larger homes or those in colder climates need furnaces with higher BTUs to provide sufficient heating. A BTU measures the furnace's heat output—the amount of energy required to heat one pound of water by one degree Fahrenheit. Below is a look at the BTUs necessary for various home sizes and their average price range.
| Home Size (Sq. Ft.) | Size Needed (BTU) | Average Cost Range |
|---|---|---|
| Up to 1000 | 40,000 | $800–$2,600 |
| 1,000–1,500 | 40,000–55,000 | $900–$2,700 |
| 1,500–2,000 | 50,000–70,000 | $1,100–$2,800 |
| 2,000–2,500 | 70,000–90,000 | $1,200–$3,400 |
| 2,500–3,500 | 90,000–110,000 | $1,400–$4,500 |
Cost to Replace vs. Install a New Electric Furnace
If you already have an electric furnace, replacement will be less expensive than installing a new one from scratch. You'll pay an average of $1,300 to $8,400 for a replacement, while a new installation can cost between $4,700 and $19,100. New installations take longer—about four to 10 hours of labor—adding to the cost of labor. If you don't have existing ductwork, you’ll also have to install it, which costs an additional $35 to $55 per linear foot.
DIY vs. Hiring an HVAC Professional
Installing an electric furnace isn't a DIY project. Unless you're a licensed electrician or HVAC professional, it's best to hire a local furnace installer to handle the installation. They'll obtain the necessary permits and ensure the work meets all building codes—important for safety and compliance. In some areas, it's mandatory to have a licensed HVAC professional install or repair electrical circuits. By hiring an experienced HVAC technician, you can be confident your electric furnace is installed safely and efficiently.
How HomeAdvisor Gets Its Cost Data
No place is more important than your home, which is why HomeAdvisor connects homeowners with local pros to transform their houses into homes they love. To help homeowners prepare for their next project, HomeAdvisor provides readers with accurate cost data and follows strict editorial guidelines. After a project is complete, we survey real customers about the costs to develop the pricing data you see, so you can make the best decisions for you and your home. We pair this data with research from reputable sources, including the U.S. Bureau of Labor Statistics, academic journals, market studies, and interviews with industry experts—all to ensure our prices reflect real-world projects.
Frequently Asked Questions
Converting from an oil furnace to an electric furnace isn't a simple swap—the oil system needs to be completely removed before installing the electric furnace. You'll need a full electric system installation, but you might be able to reuse existing ductwork if it's up to current safety standards. You’ll need to budget for a new electric furnace installation, which costs between $1,800 and $6,200, including professional removal, proper disposal, and safe installation of the new system.
Electric furnaces are 100% efficient at converting electricity into heat. However, some of that heat can be lost as it travels through your home's ductwork or escapes through poorly insulated areas. That's why regular duct maintenance and proper home insulation are important to maximize your furnace's efficiency and reduce heat loss, ensuring consistent warmth and lower energy costs.
With proper maintenance, an electric furnace can last anywhere from 20 to 30 years, outlasting the average gas furnace's lifespan of 15 to 20 years. To keep your electric furnace running efficiently, schedule regular cleanings, tighten connections, and have inspections done before winter arrives. With routine maintenance, you’ll ensure consistent, safe heating for years to come.
The size of the electric furnace you need depends on factors like your home's square footage, climate, and insulation quality. As a general guideline, those who live in warmer climates should multiply their square footage by 30 to 35 BTUs, while those in cooler areas should multiply it by 50 to 60 BTUs.
Consulting with an HVAC professional can help you determine the exact size that's right for your home.
An electric furnace works by converting electricity into heat using high-resistance heating elements. A blower then pushes the warm air through your home's ductwork, distributing heat evenly throughout your space. Since there's no combustion involved, electric furnaces eliminate the risks associated with gas furnaces and provide consistent, reliable heating when properly installed.
An electric furnace uses between 40 and 80 kilowatts per day to heat your home. The exact amount it uses depends on factors like your home's size, insulation, and overall energy requirements. Larger homes or those with poor insulation use more energy than smaller, well-insulated spaces. A professional furnace assessment can help confirm the ideal unit size for your needs.
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