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How Much Does A New Electric Furnace Cost To Install?

Typical Range: $1,568 - $6,574

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New Electric Furnace Costs

Installing a new electric furnace averages $4,060, or between $1,568 and $6,574. Of that, labor runs $400 to $2,000 or more depending on the complexity of the installation and local pricing. Brand, accessibility and availability play the largest roles on your invoice.

Electric furnaces are not common and work a lo like popular gas models. Think of it just like a hairdryer on a larger scale. An electric furnace moves air around a series of heated coils. Then, it distributes the heated air throughout your home via a system of ducts and vents. Units are sized according to how many kilowatts they consume.

Average Electric Furnace Costs

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National Average $4,060
Typical Range $1,568 - $6,574
Low End - High End $149 - $9,906

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Cost data is based on actual project costs as reported by 231 HomeAdvisor members in .

Costs for Replacing vs. Installing a New Electric Furnace

Installing a new furnace costs three times as much as replacing one. You’ll pay about $1,000 to $3,500 for a replacement furnace while a completely new furnace runs $3,100 to $10,300. Installing a new system takes two to three times as long as a repair or 4 to 10 hours of labor, which contributes to the difference in price.

New InstallationReplacing an Existing Unit
Labor*$800 - $1,800
8-12 hours
$300 - $800
3-4 hours
Unit$500 - $1,500$500 - $1,500
Materials $200 - $400$200 - $400
Electrical circuit costs$500 - $2,000$0 - $200
Drywall repair prices$250 - $800$0
Permits and fees$350 - $1,800$0 - $500
Duct installation costs$500 - $2,000$0 - $500
TOTAL$3,100 - $10,300$1,000-$3,900

*Labor averages $50-$150/hour

Framing costs $1,000 to $2,800. It’s not necessary with a new installation, but it may add to the above price if you decide to frame in a utility closet to house your furnace.

Electric Furnace Labor Cost

the cost of a new electric furnace is $3,100 to $10,300, including labor

HVAC professionals charge between $50 and $150 per hour. Extra team members may cost up to $50 per hour. The more pros you have, the faster the job gets done, but you’ll still pay for total labor hours.

  • Given a 4 to 10 hour install time, you’re looking at $400 to $2,000 in labor, regardless of how many professionals actually work on the project.
  • Most repairs only need one pro, while replacements usually require two. You’ll typically spend $75-$125 for the lead professional plus $30-$50 per hour for each less skilled helper.
  • For example, if you have one pro, it might take 10 hours, with two, it might take 5 hours, but you’ll be paying two professionals each for 5 hours of labor or 10 total hours of labor.

Furnace Ductwork Cost

Replacement ductwork costs $35 to $55 per linear foot, bringing the total cost of ductwork for a typical single-family house to $500 to $2,000. Existing installs should still get a thorough inspection and cleaning. Cleaning ductwork costs $250 to $500 and improves both the efficiency of your system and the quality of the air you breathe.

If you are replacing an existing furnace, it is important to carefully inspect your existing ductwork. Leaks make it hard for even the most efficient electric furnace to adequately heat your home. For an inspection and any repairs, find an HVAC repair company near you.

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Electric Furnace Prices

Prices for electric furnaces run between $1,700 and $6,000 or higher with labor and material prices. The units alone tend to run $500 to $1,100, regardless of application or type.

Mobile Home Electric Furnace Prices

Mobile home furnaces cost anywhere from $600 to $1,000. They include a blower and typically a downflow installation since most mobile home duct work runs under the floor.

Mobile homes are one of the most common applications of electric furnaces because they don’t need gas lines and create no carbon monoxide, eliminating the need for venting.

High-Efficiency Electric Furnace Prices

All electric furnaces are high-efficiency since electric heat uses almost 100% of the fuel source. The only time you’ll lose any energy in an electric setup is through outdoor installations or poorly sealed or insulated ducts or homes. For those looking for environmentally sound or cheaper options, a couple notes to consider:

  • The most energy efficient type of electric heating comes from a heat pump. These units typically use about 50% of the energy that a furnace does. Installing a new heat pump costs $4,000 to $7,000.
  • Most electricity comes from burning coal, gas or oil which only converts about 30% of the energy to electricity.

Maximize efficiency with sealed ducts, good insulation and a leak-free home. Consider these projects to make your entire home high-efficiency:

Price of Used Electric Furnaces

You can get a used electric furnace for around $100 to $300 less than a new one. However, getting a pro to install it is tough since they don’t come with a warranty and can’t guarantee the work. Most professionals don’t offer and won’t install used furnaces to avoid liability for a broken unit.

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Factors That Impact the Cost of a Residential Electric Furnace

The cost of electric furnaces varies based on installation rate, insulation, duct and vent quality, BTUs and output. Installation costs depend on:

  • Removal and disposal fees: $100-$300. These vary from place to place so check with your pro or call the recycling or scrap yard for pricing. Most contractors include removal of the old furnace as part of the quote, but some contractors charge an added fee.
  • Permitting and inspection fees: $200-$500 but vary by city and state. Building codes and requirements may have changed since your last furnace installation, so prices may increase.
  • Other parts: $100-$1,000. Additional parts may be needed to complete installation. For instance, you may need a new thermostat or new electrical breakers or disconnects. These extra parts will add to the overall cost of your electric furnace installation as well.

Average Cost to Operate an Electric Furnace Per Month or Year

The average cost of residential electricity is 13 cents per kilowatt hour in 2019. Considering the average home uses about 20,000 watts per hour of heating (with 2 total hours) for 40 kWh per day for heating, the figures come out to:

  • Per hour: $2.60
  • Per day: $5.20
  • Per month: $158
  • Per year: $1,898

These figures vary based on a few things:

  • Electricity prices fluctuate. Contact your local electric company or look at your utility bill for current prices.
  • Home size. The larger the house, the more you’re going to need to heat it.

Insulation & windows. Insulation and leak proof windows and doors go a long way to keeping the heating bill down. Of the three main types of electric heat: baseboard, wall heater, furnace and heat pump, an electric furnace is the most expensive to run due energy losses in ducts and the extra energy used to run the blower.

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DIY vs. Hiring an HVAC Professional

Choosing the correct electric furnace for your needs takes attention to cost, location and efficiency ratings. Let a pro handle permits, and make sure you’re meeting all building codes. In some locations, you’re required to have a licensed professional do the installation. Even if local code allows the homeowner to do the install, you’re dealing with electrical circuits. So, unless you’re a licensed or qualified electrician, let a local HVAC service do the installation.


How much does it cost to convert an oil furnace to electric?

You cannot convert an oil furnace to an electric. You can reuse the duct system, but you’ll need to fully remove the oil system and install an electric furnace for $1,300 to $6,200.

How efficient are electric furnaces?

Electric furnaces are almost 100% efficient in their use of energy, minus a small amount used for indicator lights and the thermostat. However, you might lose a little heat through leaky ductwork. However, creating electricity from coal, gas or oil is highly inefficient. Only about 30% of the energy from coal, oil or gas converts to electricity.

How long does an electric furnace last?

An electric furnace lasts for 20 to 30 years. With some slight repairs, you may be able to make it last 50 years or more.

How big of an electric furnace do I need?

Choose an electric furnace that covers a range of 20 to 60 BTUs per square foot of floor space. Take your climate zone into account. Older maps have 4 climate zones, however, recent changes to the ASHRAE climate zone map might make a difference to how your HVAC pro determines your specific needs.

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