The Cost of a Gas Furnace with Installation in Denver, CO

Homeowners often ask about the cost of installing a new gas furnace in Colorado. There isn't a one-size-fits-all answer, but the cost can vary depending on several factors:

• Furnace size
• Furnace efficiency level
• Warranty

Let’s explore those cost factors in more detail.

Cost factor #1: Furnace size

Furnace size is measured in BTUs. BTU stands for British Thermal Unit, which is the amount of energy it takes to heat one pound of water by one degree Fahrenheit.

Smaller furnaces are cheaper; larger, more expensive. BTUs provide only a rough indication of furnace size and should not be used to size a home heating system alone.

How do you figure out what furnace size you need?

Well, it’s quite simple: Just call a professional HVAC Design Specialist. They’ll perform a load calculation as part of a free price estimate.

The load calculation takes into account multiple factors that impact size, including:

• Local climate
• The home’s square footage
• How many people live in the home
• The insulation values of walls, attics and windows
• Window size and type
• Home design (Is it an open floor plan? How many rooms, etc.)
• Appliances in the home and their heat efficiencies
• The condition and layout of ductwork

Related article: Choosing the Right Furnace Size for Your Home

Cost factor #2: Furnace efficiency level

A more efficient furnace is more expensive to install. But it also saves you more money in the long run.

Furnace efficiency is measured in AFUE (annual fuel utilization efficiency) and is represented as percentage. The higher the percentage, the more efficient the furnace. You can think of the AFUE as the percentage of fuel that’s actually used to heat your home.

For example, let’s say you have a gas furnace with an AFUE rating of 90%. That means 90% of the energy used actually heats the home, while 10% is lost as exhaust. Said another way, that means for every $1 you spend on heating, 90 cents actually heat the home and $.10 is lost up the flue pipe.

Note: Since 2013, all new furnaces in the United States must have an AFUE of at least 80%. Mid-efficiency furnaces operate at 80%-83%; high-efficiency furnaces are 90% and up.

Cost factor #3: Warranty

Most furnace manufacturers offer some type of warranty with their product. A longer warranty costs more but gives you peace of mind in case something goes wrong with your furnace.

A furnace warranty will typically cover a heat exchanger, which is often the most expensive part of the furnace to replace. Most warranties that cover a heat exchanger will have either a 20-year limited warranty or a lifetime limited warranty.

Warranties can also cover furnace parts like blower motors, electronic controls, igniters and other key components of the furnace. These range from as a little as a 1-year limited warranty to a 10-year warranty.

Be sure to ask what limited warranties are included or if there are any additional warranties you can add to your furnace purchase.

Other cost factors

Besides those 3 main cost factors, be aware of these others:

• Pulling permits: We are required to pull permits, which is an additional fee that varies depending on the municipality you live in.
• Installation requirements and code upgrades: All furnace installations require compliance with all local codes and regulations, which can increase costs depending on your current furnace and where you live.
• Ductwork modifications: If your new furnace is significantly smaller or larger than your existing unit, we may need to modify the ductwork in your home.
• Accessibility: If your furnace is in a hard-to-access part of the home (like a crawl space, attic or small closet), the installation cost could be more expensive.