If you have a 30-year (or older) furnace, I recommend you replace it as soon as you can. With the average life span for furnaces of just 15–20 years, you’re risking a catastrophic breakdown. If this happens during a cold winter day, you can be without heat for multiple days while you arrange the installation of a new system. You’ve likely experienced several expensive breakdowns in the last few years, which will continue to add up. Instead, you should invest in a new furnace.
Newer furnaces are 50–60% more efficient than they were 30+ years ago, so you will immediately start to see lower energy bills after installation. They are also quieter, take up less space, and are more environmentally friendly.
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Average Cost To Replace a Furnace?
Your 30+-year-old furnace just cannot compete with today’s high-efficiency furnaces. The average lifespan of a furnace is 15-20 years, so at 30, you are already beating the odds. Replacing it before it completely gives up the ghost is ideal, rather than waiting until your furnace will not turn on or for it to just die on some cold, winter night. But short of total breakdown, how do you know when to say goodbye to the old unit?
There’s a lot to consider when replacing your furnace. You need to think about annual fuel utilization efficiency, or AFUE ratings, energy-star ratings, seers, BTUs, and many other factors to find the most cost-effective heating system and high-efficiency models of a furnace.
Maybe the old system used home heating oil as the fuel, but you’d like to switch to cleaner, cheaper natural gas. A new unit should focus on greater energy efficiency. A more efficient model may cost more upfront but can save money on heating costs in the long run.
But what will it cost to replace that furnace? It depends on what type of energy source you are using. Here is a breakdown of the average costs of replacing a furnace.
Prices will vary from region to region, so when the time comes be sure to get a few quotes for the most accurate numbers where you live.
If you are replacing an electric furnace or moving up from a heat pump to an electric furnace, you are lucky to be on the less expensive end of the furnace replacement spectrum. For just replacing the furnace itself, costs can run from $900 to $3,500. If you are installing a whole new system, it can run between $1,700 and $3,400.
The cost to replace a gas furnace can range anywhere from $2,000 to $7,500, depending on your home size and the manufacturer of the furnace. But for savings on your gas bill, it can be well worth the expense in the long run. If you are installing a whole new system including new ductwork, etc. you can expect to pay between $3,000 and $8,000.
An oil furnace is one of the more expensive options. A simple replacement of the furnace unit itself will run between $1,800 – $5,500. If you are replacing ductwork and doing a completely new install (say moving from radiant heat to forced air heating) the cost can run from $5,000 to $10,000.
Repair vs Replacement of a 30-Year-Old Furnace?
In most cases, replacing your 30-year-old furnace is the better choice. It will cost you less money overall, lower your energy bills, heat your home better, and eliminate the worry of it breaking down during the cold winter. Before you decide, it is important to note that there are budget-friendly HVAC home warranty offers available to cover your AC repairs and maintenance or replacement needs when they arise. Do your due diligence to check them out so that you can make the right decision.
Here is a handy tutorial on the most common furnace problems and how to fix them.
Also, if money is tight, consider this: for qualified homeowners, federal programs like LIHEAP can offer assistance with costs related to the repair and replacement of your old furnace. You can get assistance with repairs or even the installation of a new system.
Repair costs can range from $100s to $1,000 or more. The older the unit, the more likely the cost will be higher.
Here are a few examples of average costs for repairing specific problems with a furnace:
- Thermocouple cost – $100-$250
- Thermostat cost – $100-$600
- Blower Motor Capacitor cost – $150-$500
- Ignitor cost – $150-$350
- Heat Exchanger cost – $100-$250 for repair, or up to $1,500 for replacing the exchanger.
- Gas Valve cost – $250-$1,200
You can see that most individual repairs cost much less than replacement. But when you factor in age, lack of efficiency, and overall aggravation, deciding between repair and replacement isn’t always easy.
What’s The Cost To Repair an Older Furnace If You Have A Warranty?
Manufacturer’s Warranty
For a newer furnace, this would be a great option. But at 30 years old, your manufacturer’s warranty is out of the picture.
Home Warranty
Most home warranty plans cost $500–$600 per year and will cover the repair costs of your HVAC system, furnace, and air conditioner, along with many other home systems and appliances. So you get some bang for your buck if you have an older system that is working but showing signs of wear and tear.
However, with home warranty that covers your furnace, most providers won’t cover older units or preexisting conditions (besides American Home Shield). So, if it’s already broken down and you don’t have a home warranty, getting a home warranty now isn’t going to help you.
Be aware of the coverage limits on a home warranty, which may cover some repairs or partial replacement but are unlikely to cover the entire cost of replacement, especially for oil and gas systems. For instance, American Home Shield will pay up to $5,000 for covered breakages on HVAC systems. For whatever home warranty plan you might choose, be sure to read the service contract carefully.
What a home warranty will do is provide peace of mind.
What Are The Signs You Need to Replace Your Furnace?
If you have an older furnace, you might be wondering what to look for to determine if you should replace it or wait. Besides it not turning on at all, you can look for these common signs of needing a replacement furnace:
- Frequent breakdowns
- Sudden increase in energy bills
- Runs constantly or turns on and off frequently
- Sudden spike in energy bills
- Abnormal noises
- Blowing cool air
- Little to no airflow
DIY vs Hiring A Professional To Replace a 30-Year-Old Furnace?
For replacing a whole furnace, you need to know what you are doing or have someone that does help you. If you have a relative or buddy who is in the HVAC industry, by all means, enlist their help in the replacement of your furnace. But if you are a home repair novice, this is not something you’ll want to tackle on your own.
But if you and your uncle or friend decide to tackle this on a weekend, you can save some money for sure. You might want to consult a furnace replacement guide or similar resource before tackling the job. The unit itself can cost anywhere from a few thousand up to $8,000+ for a Trane gas furnace.
An electric furnace will be significantly cheaper, from around $700 to around $2,000.
Labor costs will, of course, add to the overall cost of furnace replacement. But for an efficient furnace to replace your old current furnace, calling in the pros might be the way to go. In terms of home improvement spending, having a professionally installed furnace is a good move.
When it comes to finding that professional, be sure to check references, ask about licenses and professional credentials they hold, and get everything in writing.
Final Thoughts on Replacing a 30-Year-Old Furnace
In my opinion, you should replace your 30-year-old furnace before it fails and leaves you in the cold for multiple days. If it breaks down again and is unrepairable, you’ll need a new furnace anyway. In most cases, an HVAC company may need a few days to source parts and start the installation process. During that time, your home may be uninhabitable due to extreme cold, which can freeze your pipes and lead to additional damage and repair costs.
So, replacing your old furnace before it dies is your safest choice. A new furnace will provide you with better temperature control, lower energy bills, a lower carbon footprint, and more peace of mind your home will stay warm all winter long.
Frequently Asked Questions
How much does it cost to replace a furnace?
New furnaces costs between $900 to $8,000, depending on brand, size, and type (gas, electric, or oil).
What are the benefits of replacing an old furnace?
The benefits of getting a new furnace are better efficiency (lower energy costs), smaller carbon footprint, better heating performance, and less breakdowns.
What type of furnace should I get as a replacement?
You should get a replacement furnace that matches the utilities in your home. For example, get a new gas furnace if your old furnace is gas. You can upgrade from an electric furnace to a gas one, but you will have to install a gas line, which adds costs.
