Electric furnace cost to install is typically $1,900 to $5,600, with a national average of about $3,750, according to HomeGuide, and Fixr reports $1,800 to $7,300. The catch is the running cost: at the August 2026 U.S. average power price, every million BTU of heat costs about $53 with an electric furnace, compared with roughly $24 with a basic heat pump and $14 to $16 with natural gas.
Below, we break down the installed price, the electrical work you may need and the real cost to run an electric furnace, and we compare it with a heat pump and gas. Information checked on November 4, 2026.
Electric furnace cost to install
| Source | Installed cost | Notes |
|---|---|---|
| HomeGuide | $1,900–$5,600 | $3,750 average; unit $1,000–$3,500 plus $800–$2,500 labor |
| Fixr (Jan. 28, 2026) | $1,800–$7,300 | Cheapest furnace type to install |
| Angi (2025 data) | $2,261–$8,011 | $5,078 average |
| This Old House (Sept. 2, 2026) | $6,892 average | From its 2026 homeowner survey |
Electric furnace cost by home size
| Home size | Total replacement cost |
|---|---|
| 1,300–1,600 sq ft | $1,700–$5,100 |
| 1,600–1,900 sq ft | $1,800–$5,300 |
| 1,900–2,200 sq ft | $2,000–$5,500 |
| 2,200–2,600 sq ft | $2,200–$6,200 |
| 2,600–3,200 sq ft | $2,300–$7,200 |
Electrical work can add to the bill
Because an electric furnace draws a lot of power, older homes may need electrical upgrades. For example, HomeGuide puts a new circuit breaker at $150 to $300 and an upgrade to a 200-amp panel at $1,400 to $2,500 on average. Angi, meanwhile, lists a brand-new electrical circuit at $500 to $2,000. As a result, ask your contractor to check your panel before you compare quotes.
Electric furnace cost to run
An electric furnace turns every kilowatt-hour into heat, so it is 100% efficient at the point of use, HomeGuide and Angi note. However, electricity is an expensive way to make heat. Therefore, to compare fuels fairly, we calculated the cost to deliver one million BTU of heat using EIA conversion factors and current EIA prices.
| Heating system | Fuel price used | Cost per million BTU of heat |
|---|---|---|
| Electric furnace (100%) | 18.16¢ per kWh | $53.22 |
| Heat pump, 7.5 HSPF2 (federal minimum) | 18.16¢ per kWh | $24.21 |
| Heat pump, 9.5 HSPF2 | 18.16¢ per kWh | $19.12 |
| Gas furnace, 80% AFUE | $13.44 per thousand cubic feet | $16.22 |
| Gas furnace, 95% AFUE | $13.44 per thousand cubic feet | $13.66 |
| Propane furnace, 95% AFUE | $2.73 per gallon | $31.42 |
In other words, an electric furnace costs about twice as much to run as a basic heat pump, and roughly three to four times as much as a gas furnace at these prices. This also lines up with HomeGuide, which says electric furnaces cost 2 to 4 times as much to run and that heat pumps use about half the electricity.
Example: a typical winter
For example, suppose your home needs 40 million BTU of heat over a winter. At these prices, an electric furnace would cost about $2,130, a 7.5 HSPF2 heat pump about $970 and a 95% gas furnace about $550. Of course, your own number depends on your climate, insulation and local rates, so check your past bills.
Pros and cons of an electric furnace
- Pro: first of all, the lowest upfront cost of any furnace type, according to Fixr and HomeGuide.
- Pro: no combustion, so it doesn’t create carbon monoxide or need a flue, HomeGuide says.
- Pro: long life, since both HomeGuide and Angi put it at 20 to 30 years.
- Con: however, high running costs, especially in cold climates.
- Con: also, it may need panel or circuit upgrades in older homes.
Is an electric furnace worth it?
In general, an electric furnace makes the most sense in a mild climate, in a small home or where natural gas isn’t available and heating needs are low. Otherwise, a heat pump usually wins on operating cost, and many homeowners in colder regions pair an electric furnace with a heat pump, HomeGuide notes. Before you decide, compare prices in our heat pump cost guide and our furnace replacement cost guide.
Also, make sure the unit is sized correctly; see what size furnace you need.
Related guides: See also our guide on replacing an oil furnace.
Electric furnace cost FAQ
How much does it cost to run an electric furnace per month?
To begin with, HomeGuide estimates $130 to $180 a month, based on electricity at 11 to 15 cents per kWh. Since the August 2026 U.S. average was 18.16 cents, many homes will therefore pay more.
Is an electric furnace cheaper than gas?
Cheaper to install, yes. Cheaper to run, however, usually not: at current prices, our calculation shows gas heat costing roughly a third or less as much per million BTU.
How long does an electric furnace last?
Overall, HomeGuide and Angi both say 20 to 30 years, longer than a typical gas furnace.
Sources and review
Sources: HomeGuide, electric furnace cost; Fixr, furnace replacement cost (January 28, 2026); Angi, electric furnace cost (2025 data); This Old House, HVAC replacement cost (September 2, 2026); EIA, Electric Power Monthly, Table 5.6.A (August 2026 data, preliminary); EIA, Winter Fuels Outlook 2026–27 (October 6, 2026); EIA, Heating Oil and Propane Update (October 28, 2026); EIA, British thermal units. All checked on November 4, 2026.
Written by: HVAC Switch. Last updated: November 4, 2026. Read our editorial policy to learn how we research prices, or contact us if you spot an error.