Calculating The Cost Of Replacing A Furnace

Marvin Simmons

When you have to pay a high cost for heating bills, it can make surviving the winter a real challenge. If you have an older furnace in your home, chances are that it was not designed to maximize efficiency. Thus, even though a new furnace represents an added cost, you can typically decrease your costs by buying a highly efficient furnace for your home. 

A Tale of Inefficiency: How an Older Furnace Contributes to High Heating Costs

An older furnace can be as little as 56% efficient. This means that 44% of the heat that your furnace generates escapes your home through the vent pipe attached to the furnace. In other words, for every dollar you spend on heating your home, you are throwing away 44 cents. Thus, if you have an older, highly inefficient furnace, you might be paying close to double what you should pay. 

A Newer Furnace Yields Lower Heating Bills

When you buy a new furnace, you should look for the most efficient furnace you can afford because the higher the efficiency, the more you stand to save on your heating costs. A modulating-condensing furnace can be as much as 98% efficient. Running such a furnace in your home can help you save 42 cents on every dollar you spend to heat your home. If you used to spend around two-thousand dollars over the course of a heating season, you can drop the price by $840 just by installing a new furnace. 

Do You Really Save Money by Installing a New Furnace?

Even though your heating bills go down with a new furnace, you have to consider the cost of installation. A new furnace can cost between $2,500 and $14,000 dollars. This is a lot of money to pay for a new furnace. Likely you will not be able to cover the cost with a one-time payment, which means you will have to finance the furnace. As longs as your monthly financing costs do not exceed the amount of money you save on your heating bills, you will still save money with a new furnace. 

You might loathe to add costs to your monthly budget. This is understandable. After all, successful homeowners are those who bring in more money than they spend. However, if you finance a new furnace to replace an older inefficient furnace, you will most likely end up saving money thanks to the greater efficiency of your new furnace. Find a local provider, such as Canuck Mechanical Ltd, to purchase your new furnace.