How Much is a New Furnace for a 1500 Square Foot Home?

How Much is a New Furnace for a 1500 Square Foot Home

When it comes to maintaining a comfortable living space, your home’s heating system plays a critical role. If you’re considering purchasing a new furnace for your 1500 square foot home, there are important factors to consider.

The size of your home is a crucial factor when selecting a furnace, as it impacts the heating capacity required. Additionally, there are various furnace models and brands available, and the cost can vary widely based on the options you choose. In this guide, we’ll provide valuable information to help you make an informed decision about your new furnace purchase.

Key Takeaways:

  • Choosing the right furnace for your 1500 square foot home is essential for optimal comfort and energy efficiency.
  • The cost of a new furnace can vary based on factors like furnace efficiency and installation costs.
  • When selecting a new furnace, it’s important to consider factors like energy efficiency, heating capacity, and financing options.

Factors Affecting the Cost of a New Furnace

When shopping for a new furnace for your 1500 square foot home, there are several factors that can impact the overall cost of your purchase. Understanding these factors can help you make an informed decision and ensure that you are getting the best value for your budget.

Furnace Efficiency

Furnace efficiency is a critical factor to consider when selecting a new furnace. Higher efficiency furnaces may have a higher initial cost, but they can save you money in the long term by reducing your energy bills. Look for furnaces with high energy efficiency ratings to ensure maximum savings over time.

HVAC Contractor

The HVAC contractor you choose for furnace installation can also affect the cost of a new furnace. While it may be tempting to go with the contractor who offers the lowest price, keep in mind that quality installation is crucial to ensure optimal furnace performance. Choose a licensed and experienced HVAC contractor to ensure that your furnace is installed correctly and safely.

Energy Efficiency Ratings

Furnaces come with different energy efficiency ratings, which can affect the overall cost. The higher the rating, the more energy-efficient the furnace will be, but it may also come with a higher price tag. Consider your long-term energy savings when selecting a furnace with an energy efficiency rating that suits your budget.

By considering these furnace cost factors, you can select a furnace that meets your needs and budget. Keep in mind that a higher initial cost for a more efficient furnace can pay off in the long run with energy savings, and choosing a reputable HVAC contractor can ensure proper installation and optimal performance.

Average Cost of a New Furnace for a 1500 Square Foot Home

The cost of a new furnace for a 1500 square foot home can vary depending on several factors. On average, the cost range for a new furnace is between $2,500 and $7,500. This includes the price of the furnace and installation costs.

The cost of the furnace itself can range from $1,500 to $5,000 depending on the type of furnace you choose and its energy efficiency rating. Gas furnaces tend to be the most common and cost-effective option, with prices ranging from $2,500 to $4,000. Electric furnaces are usually more expensive, with prices starting at $1,500 and going up to $6,000. Oil furnaces tend to have the highest price tag, ranging from $4,000 to $7,500.

Keep in mind that installation costs can vary depending on the complexity of the installation, as well as the location and accessibility of your home. Some HVAC contractors include installation costs in the price of the furnace, while others charge separately for installation. It’s crucial to get multiple quotes from licensed contractors to ensure a fair price.

Types of Furnaces for a 1500 Square Foot Home

If you are looking to purchase a new furnace for your 1500 square foot home, you have several options to consider. The three main types of furnaces available are gas, electric, and oil. Each type has its own advantages and disadvantages, so it’s important to understand the differences before making a decision.

Gas Furnaces

Gas furnaces are a popular choice for many homeowners due to their energy efficiency and the fact that natural gas tends to be less expensive than electricity or oil. Gas furnaces typically use a pilot light and a heat exchanger to warm the air, which is then circulated through your home via ductwork. Gas furnaces are also known for their quick and reliable heating, making them ideal for colder climates.

Gas furnaces are available in a range of efficiencies, with higher efficiency models offering greater energy savings over time. However, they do require a gas line and proper venting to ensure safety and efficiency.

Electric Furnaces

Electric furnaces are another option for homeowners looking to heat their 1500 square foot home. Electric furnaces work by heating coils that warm the air, which is then circulated through your home using ductwork. Electric furnaces tend to be less expensive to purchase and install than gas furnaces, as they don’t require a gas line or venting.

However, electric furnaces tend to be less energy efficient than gas furnaces and can result in higher energy bills over time. They may also take longer to heat your home, making them less ideal for colder climates.

Oil Furnaces

Oil furnaces are less common than gas or electric furnaces, but they can be a good option for homeowners in areas where natural gas is not available. Oil furnaces work by igniting oil in a burner and using a heat exchanger to warm the air, which is then circulated through your home using ductwork.

Oil furnaces tend to be more expensive to purchase and install than gas or electric furnaces, and they require access to a steady supply of oil. However, they can be more energy efficient than electric furnaces and provide reliable heating in colder climates.

Energy-Efficient Furnaces

No matter which type of furnace you choose, it’s important to select an energy-efficient model to save on long-term energy costs. Look for furnaces with high Annual Fuel Utilization Efficiency (AFUE) ratings, which indicate how much energy the furnace converts into heat. A higher AFUE rating means greater energy efficiency and lower energy bills over time.

Choosing the Right Size Furnace for a 1500 Square Foot Home

When selecting a new furnace for your 1500 square foot home, it’s crucial to choose the right size to ensure optimal comfort and energy efficiency. This involves calculating the required BTU (British Thermal Unit) capacity based on factors such as insulation, climate, and number of occupants.

Undersized furnaces will struggle to keep up with heating demands, leading to increased energy consumption and discomfort. Overpowered furnaces, on the other hand, waste energy and can cause inconsistent heating.

The first step in determining the proper furnace size is to measure the square footage of your home. From there, you can use BTU calculations to determine the heating capacity required.

Climate Zone BTU per Square Foot
Zones 1-2 (Warmest) 30-35 BTU
Zone 3 35-40 BTU
Zone 4 40-45 BTU
Zone 5 (Coldest) 45-60 BTU

In general, a 1500 square foot home located in climate zone 3 will require a furnace with a capacity of around 52,500 BTU. However, it’s essential to consider additional factors, such as the number of windows, insulation, and ceiling height, which can impact the heating load.

Consult with a licensed HVAC technician to ensure accurate BTU calculations and proper furnace sizing. Choosing the right-sized furnace can lead to optimal comfort, energy efficiency, and reduced heating costs in the long run.

Financing Options for a New Furnace

Investing in a new furnace for your 1500 square foot home can be a significant expense, but there are financing options available to help make it more affordable. Here are some options to consider:

Monthly Payment Plans

Many HVAC contractors offer monthly payment plans, allowing you to spread the cost of your new furnace over several months or years. This can make the upfront cost more manageable, and you’ll have the added benefit of having a new, energy-efficient furnace without the stress of a big one-time expense.


Government rebates are often available for homeowners who upgrade to energy-efficient furnaces. These rebates can significantly reduce the total cost of your new furnace, making it an even more attractive investment.

Tax Credits

Homeowners may also be eligible for tax credits when they invest in an energy-efficient furnace. These credits can help offset the cost of your new furnace and make it an even more sound investment in the long run.

Don’t let the upfront cost of a new furnace deter you from making a worthwhile investment in your home. Consider the financing options available to you and take advantage of rebates and tax credits where possible. With these options, you can enjoy the comfort and energy efficiency of a new furnace without breaking the bank.

Hiring a Professional for Furnace Installation

Installing a new furnace can be a complex process that requires professional expertise. Choosing to work with a licensed and experienced HVAC contractor can ensure proper installation and optimal performance.

When searching for a professional, look for someone who is licensed and insured, with a proven track record of successful installations. A skilled HVAC technician can assist with selecting the right furnace, ensuring proper sizing, and handling any necessary modifications to your existing HVAC system.

During the installation process, expect your contractor to perform a load calculation to determine the proper size of furnace for your home’s heating needs. The technician will also carefully assess your existing ductwork and make any necessary repairs or upgrades to ensure optimal performance.

Working with a professional not only ensures proper installation but can also save you time and money in the long run. A reliable contractor will stand behind their work, offering warranties and ongoing maintenance services to keep your furnace running smoothly for years to come.

Overall, it’s always best to leave furnace installation to the professionals to ensure safety, comfort, and energy efficiency in your home.

Maintenance Tips to Extend Furnace Lifespan

Proper maintenance is crucial for extending the lifespan of your new furnace and ensuring it operates safely and efficiently. Here are some essential furnace maintenance tips:

  • Schedule Regular Servicing: It’s important to schedule regular servicing with a licensed HVAC technician to ensure your furnace is functioning at its best. A professional can identify any potential issues and make necessary repairs to prevent future problems.
  • Replace Air Filters: A clogged air filter can restrict airflow and cause your furnace to work harder than necessary. Be sure to replace your air filters regularly to keep your furnace running efficiently.
  • Keep the Furnace Area Clean: Regularly clean the area around your furnace, removing any dirt, dust, or debris that may have accumulated. This helps prevent any potential fire hazards and ensures proper airflow to the furnace.
  • Check the Thermostat: Occasionally check your thermostat to ensure it’s functioning properly and calibrated correctly. A faulty thermostat can cause your furnace to run inefficiently or not at all.

By following these maintenance tips, you can extend the lifespan of your furnace and keep your home comfortable and safe. Don’t hesitate to contact a professional if you have any concerns about your furnace’s performance.


Congratulations, now you have a better understanding of what to consider when purchasing a new furnace for your 1500 square foot home! Remember to take into account factors such as energy efficiency, furnace size, and financing options when making your decision. By doing so, you can ensure optimal comfort and efficiency in your home, while also saving money in the long run.

If you’re feeling overwhelmed, don’t worry – there are plenty of resources available to help you. From HVAC contractors to government rebate programs, there are many options to make the process easier and more affordable.

Always remember to prioritize safety and quality when choosing a professional for installation or maintenance. With regular servicing and proper care, your furnace can last for many years and keep your home warm and comfortable.

Thank you for reading, and we hope this guide has been helpful to you!

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