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How Much Does an Electric Furnace Cost? (2023)

Average National Cost
? All cost data throughout this article are collected using the RSMeans construction materials database.
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$1,800 - $7,100

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Updated On

May 9, 2023

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An electric furnace can be an energy-efficient option for homeowners in warmer climates with mild winters. These electricity-powered heating systems warm your home with heating coils instead of gas lines, making them safer for your home.

The experts at Today’s Homeowner are committed to providing you with the most transparent information possible about the best HVAC companies and brands. That’s why we dive deep into cost databases and gather quotes to present the most accurate data on electric furnace costs.

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  • Electric furnaces usually cost somewhere between $1,800 and $7,100
  • Efficiency is one of the biggest factors impacting how much an electric furnace costs
  • Electric furnaces can save money in the long-run since they don’t burn natural gas

Electric Furnace Cost

On average, an electric furnace costs between $1,800 and $7,100 for the unit and installation. However, this cost most accurately reflects replacing an electric furnace. If you install a new electric furnace heating system, your electric furnace cost can double to $15,000 or more.

Low endAverage cost rangeHigh end
All cost data throughout this article are collected using the RS Means construction materials database.

Electric Furnace Cost by Type

Replacing your existing furnace with the same type is much less expensive than installing a completely new type of furnace. Typically, you need only pay to remove and replace the old one.

Table showing the cost of new and replacement electric furnaces by the type of installation.

Cost to Replace an Existing Electric Furnace

You can expect to pay between $4,400 and $7,000 to replace an existing furnace with the same type as your old one. 

You may need to update your ductwork or other ventilation system components, but this will still be less expensive than a new furnace installation. However, you must do considerably more if you install a new electric furnace. 

Cost to Install a New Electric Furnace

If you are installing a brand new furnace or replacing a gas-heating furnace with electric heating, you can expect to pay between $4,600 to $11,000. This type of project will be more expensive if you need to install completely new ductwork and can approach $20,000 if you have a large home that needs a brand-new ventilation system.

Cost of Ductwork

Installation costs can also increase if you install new ductwork or remove an old furnace. These additional costs are between $1,500 and $5,000 for new ducts.

Cost to Remove Old Furnace

The price range for removing an existing furnace is often between $250 and $335. This cost includes the labor required to remove and dispose of your furnace safely.

Electric Furnace Cost by Size (BTU)

A key factor affecting electric furnace prices is furnace size, often expressed as British Thermal Units (BTUs). The more BTUs a furnace is rated for, the larger — and more expensive — the unit will be.

Your electric furnace size depends on the square footage of your home and climate zone. You can purchase a smaller furnace if you live in a warmer region, such as in Texas, California, or Arizona. But if you live in colder climates, such as Minnesota, Wisconsin, New York, or Michigan, you will need a larger heating system to keep your home warmer. 

Table showing low cost and high cost for electric furnaces by BTU.
Furnace price reflects the furnace unit; it does not include labor costs.

Electric Furnace Energy Cost per Month

The cost of using your electric furnace depends on the price of electricity in your area and how often you run your furnace. Although it depends on the state, the national average cost of electricity is about 12 cents per kilowatt-hour (kWh). 

One kWh is about 3,412 BTU. Let’s say a 1,500-square-foot house needs 60,000 BTU to heat, about 17.5 kWh per hour. If you run your furnace for seven hours a day for 30 days, your energy bills will cost about $306 monthly.

Home Square FootageBTUskWh per HourEstimated Monthly Electricity Cost
1,000 square feet50,000 BTU14.7 kWh$257
1,500 square feet60,000 BTU17.5 kWh$306
2,000 square feet75,000 BTU22 kWh$385
2,500 square feet90,000 BTU26.4 kWh$462
3,000 square feet100,000 BTU29.3 kWh$513

If you live in colder climates, such as Minnesota, New York, or Washington, it will cost more to run your furnace simply because you use it more often and require a larger system to keep up with the cold temperatures. 

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Factors That Impact Electric Furnace Cost

The two factors that impact your electric furnace cost most are the furnace itself and the labor required to install it, but you’ll find that the price of your electric furnace is also impacted by the following:

  • Brand
  • Efficiency
  • Labor costs


Once you have determined the size of your electric furnace, the brand is likely one of the next decisions you’ll need to make. The brand is an important cost factor, as cost differences between furnace brands can be as much as $1,000 or more. For example, you can get an Amana electric furnace for $2,200 but spend more than $3,500 for a high-end Lennox electric furnace.


All electric furnaces have nearly 100% energy conversion rates because there are no vents or chimneys for energy to escape. Energy-efficient furnaces cost between $1,800 and $7,200, depending on your chosen size and brand.

Electric furnaces are more energy-efficient than gas furnaces — which commonly have 80% to 96% annual fuel utilization efficiency (AFUE) — even though they cost less. 

Labor Costs

The cost of labor to install a new electric furnace or replace an old one can cost between $42 to $150 per hour, depending on the types of technicians, their certifications, and where you live. When you get a new furnace, you can expect at least one HVAC technician, an HVAC technician apprentice, and an electrician. In total, labor costs will be about $800 to $2,500.

What Is an Electric Furnace?

An electric furnace warms your home using forced air. Essentially, an electric furnace works like a hair dryer. Air is drawn into the heat exchanger inside the furnace, and the electric oils in the heating chamber heat the air. The air is then forced from the furnace into the ventilation system to heat your home.

Today’s Homeowner Tips

Unlike gas furnaces, your electric furnace will not have a heat pump or gas line. Instead, electric furnaces use heating coils to warm your home. Understanding how each component works will help you know how your furnace functions.

  • Blower: This motorized fan blows cool air over the heating chamber inside your furnace and forces the hot air to escape into your ducts.
  • Ductwork: Your ducts have one system that pushes air into your home and a separate system of return air ducts that bring cool air back into your furnace.
  • Filters: The filter prevents dust and debris from entering your furnace and circulating your home.
  • Heating coils: The heating coils are the main part of your furnace. Often made from nickel-chromium, these coils heat up when provided with electricity.
  • Plenum: The air chamber in your furnace that distributes air throughout your home.
  • Sequencer: The sequencer controls different heating elements in your furnace. You only need a sequencer if your furnace has more than one heating element.
  • Thermostat: The thermostat regulates the heating of your furnace.
  • Transformer: The transformer supplies your furnace with power.

Benefits of Electric Furnaces

If you live in a region with warm or mild weather, choosing an electric furnace over a gas or oil furnace may be in your best interest. To help you decide, here are some of the benefits of an electric furnace:

  • Availability of electricity: Every residential home in the United States uses electricity to power appliances and home systems, so electricity is readily available for your electric furnace.
  • Efficiency: Electric furnaces are highly efficient because they do not lose as much heat as gas or oil. This is because electric furnaces do not have flues or chimneys, which are often the culprits of heat loss.
  • Lower up-front costs: Whereas gas and oil furnaces can easily exceed $6,000 or more, electric furnaces are often less expensive at just $2,000 to $7,000 per unit.
  • Safe heating: Unlike natural gas furnaces that use gas to heat your home, you do not have to worry about gas leaks or carbon monoxide if you use an electric furnace.

Professional vs. DIY Electric Furnace Installation

Some home projects can be done without professional help. However, installing an electric furnace is not one of those projects. If you do not connect your furnace properly, you may experience air leaks that can drastically increase your energy costs, even if you save money on the installation.

Graphic of a meter showing our recommendation for do-it-yourself vs hiring a professional.

Doing Electric Furnace Installation Yourself

We do not necessarily recommend installing an electric furnace yourself, as this is not the easiest task. If you want to install it yourself, you must first remove your old furnace, connect the electric furnace to a special wiring system, and ensure your furnace is securely connected to your ventilation system.

The electrical work is the most complicated part of installing an electric furnace. If switching from a gas furnace to an electric furnace, you’ll likely need to install new electrical wiring. Otherwise, your fuses will blow every time you turn on your furnace.

Hiring a Professional for Electric Furnace Installation

The best action is to hire a professional HVAC contractor to install your electric furnace. This process is easy to do, and if you are ready to move forward with electric furnace installation, follow these steps:

  1. Find local experts near you: Use the button below to get connected with professional HVAC companies in your area. They will reach out to you to set up an appointment.
  2. Get a quote from a few options: Each professional HVAC contractor will come to your home and provide a free estimate. Collect a few quotes to make sure you get the best price.
  3. Consult them about their recommendations: When the HVAC technicians come to your home, ask them which type of furnace they recommend, what size they recommend, and the brands they offer. These factors often influence the total cost of your furnace and can help you choose the best furnace for your home.
  4. Choose your furnace. Review your quotes and choose the furnace that fits your needs and budget.
  5. Install your furnace. Your HVAC professional will set up a time to install your new furnace. The installation process often takes four to eight hours, depending on the project’s scope.

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Final Thoughts on Electric Furnace Costs

Electric furnaces can be the perfect heating system for your home if you live in a warm climate that experiences mild winters. These furnaces are cheaper to install than gas or oil and typically cost between $1,800 and $7,100 to install. 

The system size, brand, and geographic location can all impact your total installation cost, so talk to an HVAC professional for the most accurate electric furnace cost information in your area.

Frequently Asked Questions About Electric Furnaces

Are electric furnaces worth it?

If you live in a warmer climate, such as Texas, California, or Florida, an electric furnace may be worth it because these furnaces cost less to install. Electric furnaces can also be worth it if you live in a state with low electricity costs, such as Utah or Arkansas. Electric furnaces can be expensive to run, so it is not worth having an electric furnace if you live in a state that gets extremely cold weather.

Are electric furnaces expensive to run?

If you live in a colder region and must use your furnace daily for several months out of the year, electric furnaces can have high heating costs. Instead of gas, electric furnaces are powered by electricity, which can be as expensive as 23 cents per kWh if you live in states like New York. In this example, operating costs will be more than $800 monthly for a 1,500-square-foot home in New York.

When does my furnace need to be replaced?

The average lifespan of an electric furnace is between 20 and 30 years. If you regularly maintain your furnace, your electric furnace can operate at high efficiency for several decades. However, most furnace parts under warranty are covered for 10 years.

Is there any advantage of an electric furnace over a gas furnace?

Gas furnaces use natural gas to heat your home, so carbon monoxide and gas leaks are always a risk. You do not have to worry about such hazardous fumes with an electric furnace. Additionally, the up-front cost of an electric furnace is less than a gas furnace, and electric furnaces run more efficiently.

Editorial Contributors
Alora Bopray

Alora Bopray

Staff Writer

Alora Bopray is a digital content producer for the home warranty, HVAC, and plumbing categories at Today's Homeowner. She earned her bachelor's degree in psychology from the University of St. Scholastica and her master's degree from the University of Denver. Before becoming a writer for Today's Homeowner, Alora wrote as a freelance writer for dozens of home improvement clients and informed homeowners about the solar industry as a writer for EcoWatch. When she's not writing, Alora can be found planning her next DIY home improvement project or plotting her next novel.

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Roxanne Downer


Roxanne Downer is a commerce editor at Today’s Homeowner, where she tackles everything from foundation repair to solar panel installation. She brings more than 15 years of writing and editing experience to bear in her meticulous approach to ensuring accurate, up-to-date, and engaging content. She’s previously edited for outlets including MSN, Architectural Digest, and Better Homes & Gardens. An alumna of the University of Pennsylvania, Roxanne is now an Oklahoma homeowner, DIY enthusiast, and the proud parent of a playful pug.

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