How Much Does a New Electric Furnace Cost to Install in 2025?

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 $5,007, with most homeowners spending between $2,231 and $7,968, 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.

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.

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.