What Is a Furnace and How Is It Different From Other Heating Systems?

You can always count on a furnace to bring the heat

Woman on sofa in yellow sweater
Photo: simona pilolla 2 / Shutterstock
Woman on sofa in yellow sweater
Photo: simona pilolla 2 / Shutterstock
Highlights
  • A furnace is an appliance that heats a home.

  • There are gas, propane, oil, electric, and wood furnaces.

  • A furnace costs $2,815 to $6,810 on average.

  • You’ll need to hire a furnace installer for installation.

  • Furnaces are different from heaters, boilers, and heat pumps.

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You’ve probably heard of a furnace, and maybe you remember growing up with one in the house. But have you actually ever stopped to consider what a furnace is and how it works? If you’re moving somewhere with cold winters or you’re just looking for an effective heating system for your home, you may be considering whether a furnace is your best choice. As it turns out, it all comes down to your home, climate, and budget.

What Is a Furnace?

A furnace is an appliance that generates heat. It includes several different parts to create heat and then distribute it through your air ducts to make each room warm and cozy. The furnace is typically located in a utility closet, although you may have an attic furnace or a furnace tucked away in the basement.

How Does a Furnace Work?

Illustration of a furnace depicting the different parts

A furnace works through combustion. It starts by using a fuel source—typically natural gas, or it could use propane, oil, wood, or electricity—in the burner to heat incoming cool air from the home, which it then puts through the heat exchanger to make the air hot.

How does it know to start creating heat? The thermostat sensors will notify the furnace system when the indoor air temperature has dropped below whatever warmer temperature you have set the thermostat to, and an igniter will start up the burner.

Combustion exhaust will leave the system through an exhaust pipe that redirects the fumes outdoors. Meanwhile, a blower fan redirects the hot air from the heat exchanger to the home’s ductwork that it can travel through to heat up the rooms.

Types of Furnaces

There are many different types of furnaces that differ based on their fuel source. They work in similar ways, but different furnace types come with varying costs, maintenance needs, and benefits when it comes to warming your home.

Natural Gas

Natural gas is among the most popular furnace fuels in the U.S. According to the U.S. Energy Information Administration, over 47% of households use natural gas as their main source of heat. If you’re someone who is always bundling up in sweaters and blankets, you’ll appreciate that a natural gas furnace quickly produces very warm air. Natural gas furnaces are ideal for cold climates.

Upfront costs of natural gas furnaces may be a little higher than other furnace types, but long-term operating costs tend to be less expensive. One drawback to natural gas is that it requires inspections at least once per year to check for any leaks. When damaged, natural gas furnaces have the potential to leak carbon monoxide and other combustion gasses, which can be fatal with prolonged exposure.

Propane

Propane furnaces operate just like a gas furnace, but they use propane instead of natural gas as the fuel source. The difference, though, is that propane heaters tend to work less efficiently than natural gas and oil furnaces but typically provide more warmth than an electric furnace. This may mean higher operating costs in the long term, even though upfront costs are usually less compared to a natural gas or oil furnace. 

Propane furnaces are pretty safe to operate because they have a high ignition temperature, reducing fire risks. For a higher installation fee, you can also have a pro install the propane tanks underground. The downside to propane is that it isn’t available through a utility line the way natural gas and electricity are. That means you need to buy or rent propane tanks and pay for propane deliveries.

Oil

Oil furnaces are one of the more expensive furnace types to install and operate, as you’ll need to pay to refill your oil tanks. But there are many benefits to this system. For one, it’s very safe because it doesn’t produce carbon monoxide, and it has a low risk of exploding. Oil furnaces have higher BTU ratings, meaning they can produce more heat, even with a smaller furnace. They are also one of the longest-lasting furnace types; a well-cared-for oil furnace can last for about 30 years.

In addition to the higher upfront costs, another con to an oil furnace is that it requires more maintenance than other furnace types, including frequent cleanings, inspections, and repairs. An oil furnace also operates on its own, meaning it won’t be integrated with a cooling system. Instead, you’ll need to work with different companies to service your heating and cooling systems.

Wood

Dreaming of turning your home into a cozy cabin? A wood furnace can deliver, but it’ll take some hard work (or more money) to make these dreams come true. Because this furnace takes wood as fuel, you won’t need to rely on public utilities or pay for oil or propane deliveries. However, you will need to either commit to chopping your own wood or pay someone to supply you with wood.

When storing wood for a wood furnace, you’ll need to be sure to keep it off the ground and about 20 feet from the house to avoid attracting pests. But these extra efforts could save you money on upfront installation fees and operating costs over time.

Electricity

If you’re looking to stick to a tight budget for your new furnace, consider electric. An electric furnace typically costs less upfront compared to other furnace types, although you can expect higher operating costs in the long run. On the plus side, with electricity, you don’t have to stress about ordering more fuel deliveries. This “fuel” will come from a utility line.

Because electric furnaces don’t produce combustion gasses, they are considered a safe heating option. However, they may not be as reliable in colder climates as a gas furnace.

Cost of a Furnace

Installing a new furnace costs about $2,815 to $6,810 on average, although the total cost of this project depends on several different factors, including the size of your home and the type of furnace you purchase.

Furnace TypeAverage Cost
Natural gas$3,800–$10,000
Propane$3,700–$14,200
Oil$6,750–$10,000
Wood$2,600–$12,500
Electricity$2,000–$7,000

Furnace vs. Heater vs. Boiler vs. Heat Pump

No, a furnace and a heater aren’t the same thing! Even more confusing, neither of these devices is the same as a boiler, nor a heat pump. Once you learn what a furnace is, it’s time to find out how this appliance differs from other products like heaters, boilers, and heat pumps.

Type of Heating UnitDescription
FurnaceTakes in cool air, heats it, and sends it through a home
HeaterDistributes warm air through a home (central heat) or space (space heaters
BoilerHeats water to send through the house, including in radiators
Heat pumpCan heat and cool air

Furnace

A furnace is responsible for heating the air. It is an important aspect of any heating system — although it isn’t necessary for homes with heat pumps. The furnace takes in cooler air, heats it through the burner and heat exchanger, and then the air is ready to move through the home. 

Heater

A heater can distribute the warm air through the home or in a certain space. A central heater will move warm air from the furnace throughout the home. However, you can also use portable or space heaters to produce and distribute heat in a smaller area.

Boiler

A boiler may work together with a furnace and/or a heater. This vessel is airtight and pressurized and produces hot water or steam. The point of a boiler is to provide heat or hot water to the home.

Heat Pump

Unlike furnaces, heaters, and boilers, a heat pump operates as both a heating and cooling system. Heat pumps may be air- or ground-source, and they heat or cool ambient air to maintain comfortable indoor temperatures. Heat pumps tend to cost more than furnaces to install, but they are extremely energy-efficient.

Installing a Furnace

Furnace installation involves handling wiring and fuel sources, so this is a task best left to professionals. Once you decide on whether a furnace is right for you, hire a local furnace installer to get your new heating system up and running in no time.

Furnace Maintenance Tips

No matter what type of furnace you decide to install to heat your home, giving this appliance plenty of TLC throughout the year is essential to optimize its performance. From scheduling regular inspections to changing the air filters, don’t skimp on these furnace maintenance tasks.

Angi Tip

Get your HVAC system serviced and inspected at least once per year. For extra peace of mind, call in a pro twice annually: once before the hottest months of the year and again before the coldest time of year.

Kassidy Barber
Content Editor, Angi

Schedule Inspections

You should hire a furnace company to inspect your heating system at least once per year. Ideally, you want a pro to check for any minor damage and make repairs in the fall so that your system will run in the winter when you need it most.

Change the Filters

Now that you’ve learned what a furnace is in your home, it’s time to learn how to change the furnace filters. Furnace filters, which cost about $1 to $35, help filter out dust, dander, and other debris from the air before it is dispersed throughout your home. 

But when the filters are clogged, they can make your furnace run less efficiently, leading to more wear and tear and higher energy bills. Make sure to change the furnace filters at least every 90 days.

Keep Up With Cleanings

Aside from changing the filters every few months, you’ll also need to hire a pro to clean the furnace at least once per year. Dirt, debris, and soot can build up around the furnace, and this needs to be cleared away to minimize fire risks and maximize furnace efficiency. 

Because furnace systems are so complex, you shouldn’t attempt to clean the furnace yourself. Plan to schedule inspection and cleaning services at the same time to knock out two maintenance tasks at once.

Hire a Pro for Repairs

Furnaces do a lot of work to keep our homes snuggly and warm, even on the coldest days of the year. As such, the various parts can wear down over time. Fortunately, by scheduling those annual inspections, a furnace repair pro will be able to catch small issues before they become major, and expensive, problems. 

But if you ever suspect something’s wrong with your furnace, like when the air blowing from your vents isn’t warm or the furnace is making loud noises, be sure to hire an expert to handle the repairs.

Frequently Asked Questions

No, a furnace is not the same thing as an AC, or air conditioner, but these are both parts of an HVAC system. They both use air ducts to transport cool or hot air around your home to achieve a comfortable temperature set by your thermostat. An AC runs on electricity, while a furnace can use different fuel sources.

Gas furnaces tend to be cheaper to run in the long term, but they cost more upfront—about $1,700 to $9,700. Electric furnaces cost about $1,600 to $6,200 on average to install but cost more to run over time. The type of furnace you choose should depend on the size of your home, the efficiency rating, and other features, in addition to the fuel source.

A furnace lasts about 15 to 20 years, but this can depend on the size of the unit, the brand, and how well you maintain it. Electric furnaces tend to last longest, up to 30 years, while other fuel sources like wood and gas may only last 10 to 20 years.

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