A 1500 square foot house is pretty common in United States. If you are going for a replacement or installing a furnace for the first time, the first question that comes to your mind is “How much is a furnace for a 1,500-square-foot house?”
The cost of a furnace for a 1,500-square-foot house can vary depending on various factors like location, the type of furnace, efficiency level, unit location, and of course, the size of your house. However, for a 1,500 square foot house, the cost of installing a furnace can go around $2000 to $4000, plus the installation cost.
As mentioned in the beginning, there are factors that play a major role in influencing the cost of a furnace in your home. And, in order to properly calculate the final price of furnace installation for 1500 square foot house, you need to consider every factor.
In this guide, we will break down everything for you, from the cost of a furnace for a 1,500-foot house to the factors that can influence that cost.
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How Much Is a Furnace For A 1,500 Square Foot House?

The cost of a furnace for a 1,500-square-foot house can vary depending on several factors, such as the type of furnace you choose, labor cost in your area, and the cost of installation. Moreover, it also depends on the the size of the house, BTU rating, and efficiency level.
To help you understand, the size of house influence the cost of furnace.
For a 1,500-square-foot house, you will need a furnace with a heating capacity of about 40,000 to 60,000 BTUs (British Thermal Units). Keep in mind that the cost of a furnace is determined by its size. And to measure the furnace size, you need to multiply your home’s square footage by a factor such as 40, this way you estimate the required BTUs.
Apart from BTU, there are also other factors such as insulation quality, ceiling height, and local climate, that all plays part in deciding how much does a furnace cost for 1500 square foot house.
For example, if you live in extremely cold regions or large spaces, you will need a furnace with a higher capacity, and the higher the capacity is, the costlier the furnace will be.
Now how much is the cost of a furnace for a 1,500-square-foot house?
On average, installing a furnace in a 1,500-square-foot house can cost you anywhere between $4,000 and $8,000, including installation. But the final pricing depends on the type of furnace you choose (gas, electric, or oil), plus any expenses such as labor or duct installation.
While the cost may vary a lot, however knowing average cost gives a rough idea of what you can expect to pay for furnace in 1500 sq ft house.
Factors Affecting Furnace Cost In a House
When you are going to install a furnace in your home, it is important that you know more than just the price of a furnace. There are several factors that are responsible for affecting costing of furnaces such as type of furnace, size, efficiency, and any additional expenses.
Let’s go over these factors and see how they can influence the cost of your new furnace:
Type of the furnace
There are three different types of furnaces – gas, electric, and oil. Gas furnaces are popular for their energy efficiency and lower operation costs, making them most appealing option for many budget-conscious people. People in colder climates mostly use gas furnaces.
If you are looking for an affordable option, electric furnaces can be good choice, however, they are have quite high operation expenses, especially if electricity rates are higher in your area.
Next, oil furnaces, which are most commonly found in older homes. They are great options too but need fuel to run which can be quite expensive in the long run.
Brand and quality
There are some of the best and most reliable brands in furnace industry. Few popular ones are, Lennox, Trane, Rheem, Goodman, and Bosch.
They come with advanced features, longer warranties, better durability, amazing performance, and higher efficiency, but these brands are quite expensive and you need prepare for extra costs.
But if you are going for budget-friendly brands then don’t expect any advanced features, they might be effective enough to heat your home but you might have to go through costly repairs.
Efficiency Ratings (AFUE)
The Annual Fuel Utilization Efficiency (AFUE) helps you calculate how effectively a furnace converts fuel into heat. Many new models of furnaces these days are designed to be more energy efficient in comparison to old ones. Make sure to pay close attention to the AFUE rating when you are buying a furnace for 1500 square foot house.
The higher the AFUE rating is, the greater the energy efficiency is. A furnace with standard efficiency (80-85% AFUE) is more affordable upfront but wastes 20% of the fuel, while a furnace with higher efficiency (90-98% AFUE) will cost more upfront but helps you save on energy bills.
If you live in extremely cold climate areas, furnaces with higher efficiency would be the best choice.
Location
After you have selected your furnace, there are still labor and installation costs. For example, if you live in colder regions, you will need a larger and high-efficiency furnace to withstand the extreme weather.
For this, you will need to buy a costlier furnace. Plus, in some areas, you need permit for the installation of a furnace, which also add to your expenses.
The final price depends on the labor and installation costs based on the location where you live. So, location plays a crucial role in affecting the furnace installation costs. Make sure to consider this when you are setting a budget.
Installation
Now for the installation costs. Since the installation process of the furnace system is so complex, you will need a professional to get the job done properly.
It’s always best to hire a licensed and experienced HVAC professional. A professional can charge between $50 to $250 per hour for labor, so you can expect to spend around $1,000 to $3,000 for the installation process.
However, it can vary depending on the complexity of the project, season, and location. If you have a furnace before, then there’s a chance you might need to upgrade the existing duct system.
Also if you haven’t disposed of the old furnace, then consider adding that to your expenses too.
What size furnace do you need for a 1500 square foot house?

The size of the furnace is measured in BTUs (British Thermal Units), and to calculate the furnace size, you need to multiply your home’s footage and multiply it by 40, this way you can estimate the furnace size for your house.
To heat a 1,500-square-foot house, it is recommended to use a furnace with a heating capacity of 40,000 to 60,000 BTUs. It is important that you use the right furnace for your home that provides efficient heating, doesn’t waste any fuel, and also goes easy on your energy bills.
Additionally, there are other factors like insulation, ceiling height, climate, and the home layout, which you have to consider to choose the right size for your furnace.
Well-insulated homes retain heat better, so you will need to check if the house is well-insulated or not. If it’s well-insulated then you just need a smaller furnace will work great.
Should you buy a new furnace?
Most furnaces can easily lasts for 15 to 20 years or even more, with proper care and maintenance. You can consider buying a new furnace if your current furnace is having issues like making unusual noise, leaking gas, giving off odor, or providing insufficient heat.
Older furnaces tend to become less efficient over time and this can lead to more power consumption and higher energy bills. To help you decide whether you need a new furnace or not, you should look out for these signs:
Noises or smells: if you notice strange smells like something burning or hear a strange noise like rattling, or humming. These signs indicate that your furnace system is failing.
Higher energy costs: Old furnaces can lose efficiency over time so they end up using more energy to produce heat which then leads to higher energy bills.
Frequent repairs: Old furnaces need to be repaired frequently. If you have to call a repair technician every winter then it’s time to get a new furnace.
Uneven heating: If you find cold spots or inconsistent temperatures in your home then it’s a clear indication that your old furnace is not distributing heating properly in the house.
If you notice any of these signs then it’s time to upgrade to a new furnace system as it can save you money in the long run. Plus the new furnace has additional and advanced features, making them quite better in comparison to old furnaces.
If you are unsure then you can consult a HVAC professional to look into your old furnace’s condition. They will tell you whether you should go for a repair or have a new one installed.
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Tips on buying new furnace for your 1500 square foot house?
When you think it is indeed time to change your old furnace and get a new one, it’s best to keep a few things in mind, just to have peace of mind.
Things like getting the right furnace size for your house by determining the correct BTU size based on the area’s weather, energy efficiency ratings, ductwork, and a lot more.
To help you buy a new furnace for your 1,500-square-foot house, here are some useful tips to ensure you make the right choice:
- For a 1500-square-foot house, it is recommended to use a furnace with 40,000 to 60,000 BTUs. But it can vary depending on your climate zone, in this scenario, it’s best to have a professional confirm the right size for your home.
- Go for furnaces with high AFUE ratings (90% or higher) as they can help you with energy savings. While the furnaces with high AFUE ratings may cost more upfront but they can help save money on energy bills.
- Consider your climate zone and if you live in colder regions then go for a higher-capacity, energy-efficient furnace.
- Have the furnace installation done by a professional and licensed HVAC technician. With proper installation, you can ensure longevity and best performance.
- Do some research on different brands and how their furnace performs, like checking their reliability and quality.
If you are not sure then consult at least 2 to 3 HVAC Professionals. Contact several qualified HVAC experts to get an idea of the prices and services.
Then compare them and choose the one that best fits your requirements and budget. But think of the long-term, a good furnace cost might be expensive upfront but it can save you the headache and money on frequent repairs.
Conclusion
It’s understandable that buying a furnace can be quite overwhelming but with proper guidance and knowledge, you can make the right choice for your 1500 square foot house. By having a good understanding of what factors can affect the cost of a furnace, you can get closer to a rough estimate.
As for the query, “How much is a furnace for a 1,500-square-foot house?” On average, for a 1,500-square-foot house, you can expect to spend around $4,000 to $8,000. However, the final cost can vary depending on factors like furnace type, energy efficiency, climate, labor cost, location, and installation costs.
And if you are unsure of what size is good for your house, you can consult a professional HVAC contractor. They will check your house’s layout, ceiling height, and everything that needs to be put into consideration, then they let you know what type of furnace you should go for and how much it can cost you. Keep the factors and tips in mind and you will be set to stay warm and cozy this winter.
Frequently Asked Questions(FAQs)
How much is a new furnace for a 1500-square-foot house?
On average, a new furnace for a 1500-square-foot house, you can expect to spend around $2,000 to $8,000 but the final cost can vary depending on factors like type of furnace, installation process, labor costs, etc.
How much is a new furnace for a 3000-square-foot house?
A new furnace for a 3000-square-foot house, you can expect to spend around $3,600 and $6,000. But this is the average price, so you can expect to spend more if you consider other factors.
Is replacing a new furnace worth it?
If you notice signs like noises, weird smells, uneven heating in your home, or your furnace keeps asking for frequent repairs, then yes. If these signs are there then you should replace it and get a new furnace. Upgrading to your new one can help reduce energy bills and they also come with advanced features that can make heating for effective.
How much does a new furnace cost?
The cost of a furnace can vary depending on several factors like size of your house, furnace type, energy efficiency, plus the installation cost.