How Much Does a New Electric Furnace Cost to Install?

Typical Range:

$1,682 - $6,928

Find out how much your project will cost.

Cost data is based on actual project costs as reported by 262 HomeAdvisor members. Embed this data

How We Get This Data

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  • Homeowners use HomeAdvisor to find pros for home projects.
  • When their projects are done, they fill out a short cost survey.
  • We compile the data and report costs back to you.

Updated July 25, 2022

Written by HomeAdvisor.

Electric furnaces are relatively uncommon, but they work similarly to a gas furnace by passing air over coils heated by electricity. These aren't heat pumps or mini-split systems but are often sold in kits with an air conditioning unit. On average, installing a new electric furnace costs $4,265, or between $1,682 and $6,928. Units tend to run around $800 to $2,600, but large ones can go up to $4,500. You may spend up to $19,000 if you include ductwork in complex or large homes. Main cost factors include the furnace size (BTU), site accessibility, and unit availability.

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National Average $4,265
Typical Range $1,682 - $6,928
Low End - High End $150 - $10,000

Cost data is based on actual project costs as reported by 262 HomeAdvisor members.

Electric Furnace Cost by Size (BTU)

Electric furnaces cost anywhere from $800 to $4,500, depending on how many BTUs they put out. This price range doesn't include labor, installation materials, or ductwork. You'll need more BTUs for larger homes or homes in colder climates.

A BTU, or British thermal unit, measures the furnace's heat output. It's how much energy it takes to heat 1 pound of water to 1 degree Fahrenheit and a standard U.S. measurement.

Home Size (Square Feet) Electric Furnace Size Needed (BTU) Average Price Range
Up to 1000 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 – 110,000 $1,400 – $4,500
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Cost to Replace vs. Install a New Electric Furnace

New electric furnace installation ranges from $4,650 to $19,100, with seven costs factors in a pie chart
Electric furnace replacement ranges $4,650 to $19,100, with 6 costs factors in a pie chart

Installing a new furnace costs about three times as much as replacing one. You’ll pay about $1,300 to $8,400 for a replacement furnace, while a completely new furnace can cost around $4,650 to $19,100. Installing a new system also takes two to three times as long as a repair, ranging from four to 10 hours of labor, contributing to the price difference. You'll also need to install ductwork if it's not already present. Ductwork installation costs up to $5,000.

Labor-Related Task Installing a New Electric Furnace Replacing an Existing Electric Furnace
Labor $800 – $2,500+ $300 – $2,000
Unit $800 – $4,500 $800 – $4,500
Materials $200 – $1,400 $200 – $600
Drywall repair $300 – $1,000 $0
Permits $450 – $2,400 $0 – $500
Duct installation $1,500 – $5,000 $0 – $500

Labor Costs of Installing an Electric Furnace

Expect to pay around $300 to $2,500 in labor, depending on a new install or replacement and how accessible the unit is. Most repairs only need one pro, while replacements usually require two. 

  • New install or replacement: $50–$150 per hour; extra team members may cost up to $50 per hour

  • Repairs (first lead pro): $75–$125 per hour plus $30–$50 per hour for each less-skilled helper

The more pros you have, the faster the job gets done, but you'll still pay for total labor hours. For example, it might take 10 hours with one pro and five hours with two pros. In the second case, you'll be paying two pros each for five hours of labor, totaling 10 hours of work.

Furnace Ductwork Cost

Replacement ductwork costs around $10 to $25 per linear foot, bringing the total cost of ductwork for a typical single-family house to around $1,500 to $5,000. Existing installs should still get a thorough inspection and cleaning. Cleaning ductwork costs approximately $300 to $500 and improves both the efficiency of your system and the quality of the air you breathe.

Inspect the existing ductwork during electric furnace replacements. Leaks make your electric furnace work overtime, costing you money in lost energy and shortened furnace life span. For an inspection and any repairs, find a local HVAC repair company.

Electric Furnace Prices 

Electric furnace costs run between $800 and $2,600 or higher, not including any labor or extra materials.

Electric Furnace Type Average Price Range
Mobile home $800 – $1,200
High-efficiency $800 – $4,500
Used $700 – $3,700
Kits (with AC) $3,600 – $13,000
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Mobile Home Electric Furnaces 

Mobile home furnaces cost anywhere from $800 to $1,200. They include a blower and typically a downflow installation since most mobile home ductwork 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 Furnaces

High-efficiency electric furnaces cost $800 to $4,500. All electric furnaces are high-efficiency since they convert almost 100% of the electricity into heat. 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 less costly options, consider these tips for other types of electric heat:

  • Heat pumps cost $4,200–$7,500. The most efficient type, you can choose from whole-house or mini-splits.

  • Currently, about 70% of electricity comes from burning fossil fuels, like coal, gas, and oil, which only converts about 30% of the burn into electricity. 

  • Consider where your electricity comes from, such as renewable wind or solar. Other types include nuclear and hydroelectric. 

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

Used Electric Furnaces

For the unit alone, used electric furnaces cost around $700 to $3,700. This means you'll typically pay $100 to $800 less for most used electric furnaces compared to new units, depending on their age, brand, and BTU capacity. 

However, getting a pro to install one can be tricky because used furnaces don’t come with a warranty and aren't guaranteed to work. Most pros won’t install used furnaces to avoid liability for a broken unit.

Kits (With AC)

Electric furnace kits cost around $3,600 to $13,000 and come complete with a furnace, air conditioner, and any parts needed to install it, not including ducts. Kits are excellent for new builds or when switching to central heating and air conditioning. 

Factors Affecting the Cost of a Residential Electric Furnace

Multiple factors affect the cost of installing an electric furnace in your home. Your home size, its age, and geographic location are only the start. A complete list of factors includes:

  • Home size 

  • Heating needs

  • Drywall repair costs: $290–$880 for duct installation and storage space modifications

  • Electrical circuit upgrades cost: $600–$2,300

  • Removal and disposal fees: $100–$300; typically included in the labor cost but prices vary from place to place

  • Building permit fees: $200–$500; fees vary by city and state

  • Other parts: $100–$1,000 such as a thermostat or breaker to complete installation

Average Cost to Run an Electric Furnace per Month

The average residential electricity cost is around $0.18 per kilowatt hour in 2022. Considering the average home uses about 20,000 watts per hour of heating (with two total hours) for 40 kWh per day for heating, the figures come out to:

  • Per hour: $3.60 

  • Per day: $7.20

  • Per month: $216

  • Per year: $1,296 (assuming six months of heating)

These figures vary based on a few things:

  • Electricity cost: In 2022, fuel prices surged, meaning heating costs have dramatically increased. Check with your local electric company for up-to-date pricing.

  • Home size: The larger the house, the more you need to heat it.

  • Insulation and windows: Insulation and leak-proof windows and doors go a long way to keeping the heating bill down.

Cost to DIY vs. Hiring an HVAC Professional

Choosing the correct electric furnace for your needs takes attention to prices, location, and efficiency ratings. Unless you’re a licensed or qualified electrician, let a local HVAC service handle your electric furnace installation. They can handle permits and make sure you’re meeting all building codes. And in some locations, you’re required to have a licensed pro do the installation to work safely on installing or repairing electrical circuits.

FAQs

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

You can’t convert an oil furnace to an electric furnace. You can reuse the duct system, but you’ll need to remove the oil system and install an electric furnace for $1,800 to $6,200.

How efficient are electric furnaces?

Electric furnaces are almost 100% efficient in their energy use, minus a small amount used for indicator lights and the thermostat. About 70% of electricity comes from burning fossil fuels; the other 30% comes from renewable sources and nuclear energy. Burning coal or gas for electricity is only about 30% efficient.

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.

What size of 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 and how old the home is (some insulation loses effectiveness over time). Recent changes to the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) climate zone map might make a difference in how your HVAC pro determines your specific needs.

How does an electric furnace work?

An electric furnace works just like a gas furnace, but instead of gas, it uses electricity to heat an element. Once hot, the blower fan forces hot air over the heating element and through the ductwork. 

What is the average cost of a new electric furnace?

The average cost of a new electric furnace is $1,600, with another $2,600 in labor, materials, permits, and other fees. 

How many kilowatts does an electric furnace use?

Electric furnaces use a range of kilowatts to heat your home. On average, you’ll need 40 kW to heat your home per day. Your pro can find an appropriate size for your home. 

Are electric furnaces expensive to run?

Electric furnaces have historically been more expensive to run than gas furnaces. But there are times when gas prices have exceeded electricity rates for the same amount of heating. Read our gas versus electric furnace comparison guide for more information.

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