How Much Does an Outdoor Wood Furnace Cost to Install in 2025?
Installing an outdoor wood furnace costs $12,000 on average
Most homeowners spend between $8,000 and $20,000 to install an outdoor wood furnace, with an average cost of $12,000.
Costs vary based on furnace type, size, and installation labor.
Outdoor wood furnaces offer a cost-effective heating solution, especially in areas with abundant wood supply.
Choosing between standard and gasification furnaces affects upfront costs and long-term efficiency.
Hiring a professional ensures a safe and correct installation that safeguards your family from potential hazards and property damage.
This article was updated using automation technology and thoroughly reviewed for accuracy by HomeAdvisor Editor Ryan Noonan.
Installing an outdoor wood furnace costs most homeowners $12,000, with average prices ranging from $8,000 to $20,000. You might pay as little as $4,000 for a small standard unit, while high-capacity gasification units can reach up to $25,000. Factors like the type of furnace, its size, and installation labor will affect your total cost.
Outdoor Wood Furnace Cost Factors
Your outdoor wood furnace cost varies based on the size, capacity, and features you choose.
Type
Outdoor wood furnaces come in two main types: standard and gasification. Standard wood-burning furnaces produce smoke that contains particles, leading to some heat and energy loss. Gasification furnaces burn these particles in the smoke, increasing efficiency. They also emit less smoke and have a milder smell.
Standard
Standard outdoor wood furnaces cost between $6,000 and $12,000, depending on size. While they cost less to install and operate, they require more wood to produce the same amount of heat as gasification models. They also produce more smoke, which can be a nuisance.
Gasification
Gasification furnaces cost between $7,000 and $20,000, with high-capacity models reaching up to $25,000. While they have a higher upfront cost, they use less wood, saving you money over time. They emit less smoke and operate at higher temperatures than standard furnaces, making them suitable for outdoor or indoor use.
Size
Firebox capacities range from 10 to 24 cubic feet or more. Larger capacities allow the furnace to generate more BTUs (British Thermal Units). Most residential units produce between 150,000 and 240,000 BTUs, but units exceeding 400,000 BTUs are available if you need more heating power.
You can regulate the furnace's heat output using dampers, which adjust oxygen flow to control how quickly the wood burns. Larger fireboxes let you enjoy longer burn times; for example, a 24-cubic-foot furnace burns 2.4 times longer than a 10-cubic-foot unit at the same BTU output.
How to Determine Wood Furnace Size
To find the right wood furnace size for your home, calculate the BTUs you need based on your home's square footage and climate.
| Home Size in Square Feet | Average BTUs Needed |
|---|---|
| 2,000 | 100,000–120,000 |
| 2,500 | 125,000–150,000 |
| 2,750 | 137,000–165,000 |
| 3,000 | 150,000–180,000 |
| 3,500 | 175,000–210,000 |
Installation Labor
Installing an outdoor wood furnace costs between $1,500 and $4,500 for labor alone. HVAC professionals charge $75 to $125 per hour, though rates can go up to $200 per hour with larger companies. Usually, two technicians can complete the installation in a few hours, resulting in fixed labor costs.
Additionally, you'll need $300 to $1,000 in tools and materials to run the furnace to your home and connect it to your heating system. Other factors include the type of connection system required and how far away from your property you build the furnace.
Operating Costs
Expect to spend between $450 and $3,200 per year on firewood, depending on how much you use your furnace. Buying firewood costs $130 to $200 per cord. If you plan to cut your own wood, you'll need a permit, which costs $20 to $40 per cord.
Outdoor Wood Furnace vs. Outdoor Wood Boiler
The main difference between an outdoor wood furnace and a wood boiler is how they transfer heat. A wood furnace uses air to surround the firebox and circulates warm air with a fan, so you don't need a pump. However, it can't heat your home's hot water.
On the other hand, a wood boiler heats water that can warm multiple structures and supply more than one water heater. If you're considering a furnace, keep in mind it needs to be close to your home due to line expense and airflow losses. Adding a furnace to your system adds an extra $2,000 to $3,000 to your boiler and installation costs.
DIY Wood Furnace Installation vs. Hiring a Pro
Installing a wood furnace isn't a DIY project. Incorrect connections can damage the furnace, harm your property, or put your family at risk. A qualified HVAC professional can install it promptly and correctly. Plus, they carry insurance, so you're protected if anything goes wrong.
Purchasing the furnace through your installer can also save you money. Some installers only install units they supply, and buying from them can streamline the process. Keep in mind that installers may mark up prices about 30% to cover overhead costs like insurance and travel expenses.
To ensure your outdoor wood furnace is installed safely and correctly, hire a professional HVAC installer near you.
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
The way an outdoor wood furnace works is that it burns wood inside a firebox to generate heat. This heat is transferred to the air around it, which is then distributed throughout your home using a dedicated system. If the furnace is properly sized, you can also integrate it with your hot water supply for efficient heating.
Standard outdoor wood furnaces are 75% efficient on average, meaning that they convert 75% of the wood's energy into heat and waste the rest as smoke. Gasification wood furnaces are over 90% efficient because they burn the wood and the smoke particles, using less wood to produce the same amount of heat as standard models.
With proper care, an outdoor wood furnace can last between 15 and 20 years. Regular weekly cleaning, annual professional inspections, and prompt repairs can extend its lifespan up to 30 years. Proactively addressing issues early can prevent costly repairs and premature replacement. Consistent maintenance ensures efficient heating and protects your investment over the long term.
You should install your outdoor wood furnace between 30 and 500 feet from your house to meet safety and regulatory standards. This distance minimizes fire risks and ensures you comply with local building codes and insurance requirements. The ideal placement of an outdoor wood furnace or boiler balances convenience with safety, allowing for efficient heat transfer while reducing smoke exposure. Also consider wind patterns, property boundaries, and accessibility for wood delivery when choosing the optimal location for your installation.
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