How Much Does an Electric Furnace Cost to Install? [2025 Data]
Installing an electric furnace typically costs $5,002, with most people paying between $2,116 and $7,888, depending on labor, unit size, and more.
Electric furnaces cost between $2,116 and $7,888 on average, with the most common price people pay for electric furnaces being somewhere around $5,002. This includes approximately $800 to $2,600 for the units themselves (although some larger units can cost as much as $4,500 in some cases) and $800 to $2,500 for the labor.
Electric Furnace Unit Cost by Size
The square footage of your home plays a key role in determining the size of your electric furnace unit. The larger the house, the bigger the furnace you’ll need—and the higher the price tag. You’ll find that the size of an electric furnace is measured in British thermal units (BTUs), which tells you the amount of heat the unit can produce.
Refer to the following chart to help you estimate your electric furnace cost by size:
| Square Footage | BTUs | Average Cost |
|---|---|---|
| Less than 1,000 | 40,000 | $800–$2,600 |
| 1,000–1,500 | 40,000–55,000 | $900–$2,700 |
| 1,500–2,000 | 50,000–70,000 | $1,100–$2,800 |
| 2,000–2,500 | 70,000–90,000 | $1,200–$3,400 |
| 2,500–3,500 | 90,000–100,000 | $1,400–$4,500 |
What Size Electric Furnace Do I Need?
The chart above is a good jumping-off point for determining what size electric furnace your house will need, but you should also take your climate into consideration.
Homeowners in the warmest climates in the U.S. can calculate a rough estimate of BTUs needed by multiplying the number of square feet in the home by 30 to 35 BTUs, while people in the coldest regions will need to multiply their home’s square footage by 50 to 60 BTU.
Cost of Labor for Electric Furnaces
Installing a new electric heater is labor-intensive, so count on paying out for three to four hours of labor for a replacement unit and eight to 12 hours for a brand-new unit.
| Labor for an Electric Furnace | Average Costs |
|---|---|
| HVAC professional | $50–$150 per hour |
| Total labor cost to replace a unit | $300–$800 |
| Total labor cost to install a new unit | $800–$2,500 |
Additional Costs to Consider
Here are a few additional factors to consider when trying to calculate the cost of your electric furnace installation.
| Added Cost | Average Cost |
|---|---|
| Electrical circuit and wiring | $500–$2,000 |
| Ductwork | $35–$55 per linear foot |
| New electric furnace installation | $4,700–$19,100 |
| Electric furnace replacement | $1,300–$8,400 |
| Permits | $200–$500 |
| Framing | $1,000–$3,000 |
| Disposal | $100–$300 |
| Thermostat replacement | $100–$250 |
| Electrical panel upgrades | $500–$1,800 |
| Maintenance | $150–$500 |
| Energy bill | $160–$315 per month |
Electrical Circuit and Wiring
If this is your first electric furnace, you’ll need to hire an electrician in addition to your local furnace installer to build a dedicated electrical circuit. A brand-new electrical circuit costs $500 to $2,000. If you are replacing an electric furnace, you don’t need to budget for this.
Ductwork
You may need to run some ductwork for heat distribution. Ductwork costs $35 to $55 per linear foot, with a total cost of $500 to $2,000 for an average single-family home. If your ductwork is up to date, you should have it thoroughly cleaned by a professional for $250 to $500.
New Electric Furnace Installation vs. Replacement
A new furnace is around three times as costly as a replacement furnace. Someone replacing their existing electric furnace already has the ductwork and wiring. Plus, it takes two to three times longer to install a brand-new furnace. Since labor costs between $50 and $150 per hour, installation time heavily impacts the price.
| Electric Furnace Type | Average Cost |
|---|---|
| New installation | $1,300–$8,400 |
| Replacement | $4,700–$19,100 |
Building Permits and Inspection Fees
Obtaining a building permit costs $200 to $500 but will depend on where you live. Generally speaking, permits and licenses are cheaper in small towns compared to large metropolitan areas.
Framing
You may want to build a dedicated furnace room located in the basement, attic, or near a crawlspace. This is an entirely optional step, though it will increase the aesthetics of your home. A reputable contractor will frame out a furnace room for $1,000 to $3,000, making sure the furnace has proper ventilation and plenty of room to do its thing.
Removal and Disposal
If you are replacing a pre-existing electric furnace, your pro will have to properly dispose of the old unit. This disposal costs $100 to $300, but be sure to talk to the installation expert to see if they’ll do it as part of your installation fee. You can also contact a local recycling center or scrap yard if you want to handle disposal by yourself.
Thermostat Replacement
The typical range for thermostat replacement costs is anywhere from $100 to $250. High-tech thermostats like smart thermostats usually come with a higher price tag. If you’re installing a new thermostat in a new location, keep in mind that there will likely be additional costs for wiring it. This can add up to $300 to the price.
Electrical Panel Upgrades
If your home needs a new circuit breaker box, higher amperage, or a complete rewire, you’ll see a noticeable increase in the cost of your electric furnace. The cost to replace the average 150-amp circuit breaker box ranges anywhere from $500 to $1,800. Meanwhile, the basic cost of rewiring a house could run you up to $1,500.
Maintenance
You’ll need to service and clean your furnace at least every fall with a licensed furnace tuneup technician near you to keep your system running efficiently.
This inspection can cost anywhere from $150 to $500 on average. During the inspection, your technician will check the ductwork, air handler, heating elements, and the electrical system as a whole. The technician might adjust or tighten the system to protect your home from electrical shut-downs.
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.
Energy Bill
The average cost of residential electricity is 13 cents per kilowatt-hour. A furnace runs through a heating cycle once to three times per hour, depending on the weather, with each cycle clocking in at 10 to 15 minutes. That adds up to an average of two to four hours of active heating per day.
Considering the average home uses about 20,000 watts per hour of heating, the figures come out to $2.60 per hour, $5.20 to $10.40 per day, roughly $160 to $315 per month, and about $1,900 to $3,800 per year. These figures are subject to differ because electricity prices fluctuate according to the weather, and so do home sizes. Depending on the age of your furnace, you may want to upgrade to a more energy-efficient model to save on your energy bill.
| BTUs | kWh per Hour | Average Monthly Electric Bill |
|---|---|---|
| 50,000 | 14.7 | $250 |
| 75,000 | 22 | $390 |
| 90,000 | 26.4 | $460 |
| 100,000 | 29.3 | $500 |
DIY vs. Hiring a Pro
Installing an electric furnace is not a DIY project. In some areas, it could even be illegal to DIY your installation without licensing. An improper installation is a fire hazard and could cause other costly damages to your furnace, your home, or yourself. Always work with a professional local electrician.
The cost of hiring an electrician ranges from $150 to $500. Local professionals will obtain the correct permits and inspections. They will install your new electric furnace correctly so that you can make the most out of your investment.
How Angi Gets Its Cost Data
Home is the most important place on earth, which is why Angi has helped more than 150 million homeowners transform their houses into homes they adore. To help homeowners with their next project, Angi provides readers with the most accurate cost data and upholds strict editorial standards. We survey real Angi customers about their project 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.
Want to help us improve our cost data? Send us a recent project quote to costquotes@angi.com. Quotes and personal information will not be shared publicly.
Frequently Asked Questions
The lower upfront cost of electric furnaces leads to a direct downside: they’re not as energy-efficient as other heating options, like heat pumps. Installing an electric furnace may increase your month-to-month utility costs. Additionally, some people note that the air in their home is dryer with an electric furnace running.
Electric furnaces are 100% efficient, though there are some caveats. While these furnaces do not lose any energy, as it converts to heat, some heat will reduce as it travels through your ductwork and dissipates through your home’s exterior. This is why regularly maintaining your ductwork and installing appropriate insulation are both so important when it comes to making the most out of your electric furnace.
If you maintain your electric furnace, it can last anywhere from 20 to 30 years. This is longer than the average lifespan of a gas furnace, which is 15 to 20 years. Common maintenance tasks include cleaning the external parts and tightening connections within the furnace. It’s also a good idea to have a pro inspect your furnace just before the cold season.
Although gas furnaces cost more than electric furnaces upfront, they’re cheaper to run than electric furnaces because you’ll pay less for natural gas than for electricity. The cost to run an electric furnace is much more expensive over time than a gas furnace, and you’ll likely notice that difference when you get your utility bill.
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