A Trane furnace installed in a home.

Is a Furnace Right for You?

When cooler weather arrives, many homeowners use a furnace to keep their homes warm and cozy. However, if your furnace breaks down, you must decide whether to repair it or install a new furnace. How much does a new furnace cost? Furnace unit installation costs vary depending on the type of furnace and the fuel it uses.

Modern furnaces usually run on natural gas, propane, or electricity. There are several types of furnaces to choose from, each with its own features and costs. All of these factors together determine the total cost of a new furnace. 

Magnolia has a team of certified technicians for furnace installation in Washington, DC, and the surrounding areas. If you’re looking for a new heating system, let’s discuss some factors that determine the cost of a new furnace.

Is a Furnace Right for Your Home?

Before making the big purchase, it’s important to ensure that you’re making the right decision for your home. Consider these five factors to know if a furnace is a good match for your needs:


Factors in Calculating the Cost of a New Furnace

If you plan to purchase a new heating system, knowing how much the installation will cost will help you understand if a furnace is right for you. You should schedule a consultation with an experienced HVAC company to get an accurate estimate.

So, how much does a new furnace cost? The new furnace and AC cost depends on the home’s size, age, and configuration. An HVAC professional can determine the most economical way to heat or cool your home to provide you with the optimal energy bill.

It’s no secret that costs can influence the installation choice you make. However, there are many other factors you should consider when investing in your home’s comfort — such as heating system fuel type, efficiency, and size.

Type of Furnace

Although most furnaces operate similarly, they vary by fuel type. Here is a description of each type of furnace, including the main benefits and drawbacks.

Gas Furnace

The gas furnace is the most common type of furnace. Gas furnaces are more expensive than electric furnaces, but new gas furnace models are also more efficient. Higher fuel efficiency will help you save money on your monthly energy bill. As a result, natural gas furnaces are an increasingly popular choice for homeowners who want lower energy bills.

Electric Furnace

Instead of burning fuel, electric furnaces use electrical currents to heat the air in the exchanger before sending it through your ducts. As a result, they are less energy efficient and more expensive to run than gas furnaces. However, electric furnaces are better for the environment and have a longer average lifespan of 20-30 years.

Energy Efficiency

The Department of Energy mandates that all new furnaces must have a minimum Annual Fuel Utilization Efficiency (AFUE) of 80%. Most new furnaces score between 83% and 95%. The higher the annual energy rating, the lower the average energy costs. 

Furnaces with a higher AFUE typically cost more upfront but save money over the long run by reducing monthly energy bills.

Furnace Size

The size of a furnace gets measured using British Thermal Units (BTU) to determine the amount of space it can keep warm. The size of a furnace usually ranges from 40,000 to 120,000 BTU. 

To calculate the BTU for your home, multiply the total square footage by 40, with colder areas requiring slightly more BTU per square foot. The price of a furnace and its installation increases according to the BTU of the unit.


The installation and labor costs vary depending on your location, so getting free estimates from your local HVAC specialists is a wise decision. Here at Magnolia, you can schedule a consultation for an accurate estimate on a furnace installation. 

We can also help you determine which furnace is best for your home. Keep this in mind when calculating the cost of a new furnace and air conditioner, as installation fees may vary.

Tax Credits

Purchasing a furnace with an Energy Star certification may qualify you for a tax credit. Energy Star is an organization that receives backing from the DOE and EPA to encourage the production and purchase of energy-efficient products, including heating and cooling systems. High-efficiency furnaces can fall into this category.

So, How Much Does a New Furnace Cost?

Homeowners expect to pay for the furnace unit and installation costs, but other expenses are associated with the installation process. For example, there may be additional charges for parts and labor the HVAC technician may need to complete the job. So, how much does a new furnace cost?

When it comes down to it, furnaces can have a huge price range. Various factors can influence how much you end up paying for an installation. The only way to know the upfront cost of a new heating system — and whether or not a furnace is right for you — is to contact a reputable company for a quote.

Magnolia Can Install Your New Furnace

If you’ve been looking for a gas furnace service company, Magnolia has a team of experts ready to help. We are your friends in the comfort business, with skilled professionals experienced in top-tier furnace installations. We service gas and electric furnaces to meet your specific needs.

Do you think a furnace is right for you? We can help you calculate your Washington, DC, home’s new furnace cost to keep you comfortable throughout the year. Contact us today!