Whether you’re building a new home, replacing an aging system, or upgrading to a more efficient unit, installing a furnace is one of the most significant investments you’ll make as a Texas homeowner.
But how much should you expect to spend?
This guide covers everything you need to know about furnace installation costs in Texas, including system types, size considerations, regional pricing, and when a replacement might actually save you money in the long run.
What Are The Common Factors That Impact Furnace Installation Cost
The price of a new furnace install can vary widely. Here’s what affects the bottom line:
Type of Furnace
- Gas Furnaces: Most common in Texas, usually cheaper to operate but can cost more upfront.
- Electric Furnaces: Lower initial cost, but often less energy-efficient.
- Heat Pumps: More expensive to install, but offer both heating and cooling.
Unit Size (BTUs)
Your home’s square footage determines the size of the furnace you need. A unit that’s too small will underperform. One that’s too large may short-cycle and wear out faster.
| Home Size | Furnace Size | Avg Install Cost |
| <1,500 sq ft | 40,000–60,000 BTUs | $3,000–$4,200 |
| 1,500–2,500 sq ft | 60,000–80,000 BTUs | $4,200–$5,800 |
| 2,500+ sq ft | 80,000–100,000+ BTUs | $5,800–$7,500+ |
Installation Complexity and Labor Costs
Labor typically accounts for 30–50% of the total cost. Factors that increase labor costs include:
- Crawl space or attic installations
- Old unit removal and disposal
- Permit requirements in your Texas county
- Upgrading ductwork or thermostats
If you’re replacing a furnace that’s over 20 years old, additional electrical or venting work may be required.
Need help estimating the total install time and labor? Visit our Furnace Repair in Temple, TX page — we explain the full process for replacing outdated systems.
Regional Price Ranges in Central Texas
In areas like Temple, Belton, and Copperas Cove, furnace installation costs tend to fall within these regional ranges:
| Region | Avg Total Cost |
| Temple | $3,800–$5,500 |
| Belton | $4,000–$6,000 |
| Copperas Cove | $4,000–$6,500 |
Prices may vary based on seasonal demand and fuel availability (especially natural gas).
Pros and Cons of Replacing vs Repairing
Sometimes, you may be considering whether to replace or just repair your existing furnace.
Replacement Pros
- Higher efficiency = lower energy bills
- More consistent heating
- Fewer unexpected breakdowns
- Modern safety features and smart controls
- Boosts resale value
Replacement Cons
- Higher upfront cost
- Installation downtime (1–2 days)
- May require ductwork adjustments
Repair Pros
- Lower short-term cost
- Fast turnaround time
- Good for newer systems with isolated issues
Repair Cons
- May not fix root issues in aging systems
- Frequent breakdowns add up
- Delays full energy savings
Cost-Saving Tips for Furnace Installation
- Schedule offseason installations: Fall and spring often bring better pricing
- Consider mid-tier models: High-end systems may not offer much more efficiency
- Ask about rebates: Texas utility providers may offer incentives
- Bundle installation with duct upgrades: Saves on long-term heating loss
You can use our Furnace Installation Cost calculator to estimate installation-related costs like panel capacity or circuit upgrades if you’re switching from electric to gas.
What to Expect During a Furnace Installation
- In-home inspection and load calculation
- Old unit removal (if applicable)
- New system placement and connection
- Ductwork check
- Thermostat calibration
- Post-install inspection
Final Thoughts: Is It Time to Install a New Furnace?
If your system is over 15 years old, breaks down frequently, or struggles to heat your home evenly, investing in a new furnace may pay off in both safety and comfort.
Consider both the total installation cost and the long-term energy savings when making your decision.