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How Much Does It Cost To Replace a Furnace in Salem?

Winters are around the corner. It’s time you have your furnace situation sorted. If your heating system is too old or broken, maybe it’s time to get a new one. Replacing a furnace is a big decision, both financially and practically. And knowing the costs beforehand can help you budget better.

Wondering “How much does it cost to replace my furnace?” Here’s your guide to all furnace installations and replacement-related costs in Salem, OR.

NoveMber 30th, 2025 (DATE Published)

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How much does a furnace replacement cost in Salem, OR?

A simple furnace replacement usually costs between $1,300 and $1,600. And it includes the unit and some labor. This estimate covers basic systems and straightforward installations. Moreover, the actual cost depends on the model you choose and the installers you hire.

This kind of furnace installation is a good starting point if your home already has compatible ductwork and minimal additional work is needed.

How much does it cost to replace an electric furnace in Salem, OR?

Replacing an electric furnace in Salem typically costs $1,300 to $2,400. These prices depend on the furnace size, efficiency rating, and complexity of the installation. Homes with existing ductwork and minimal modifications will be at the lower end.

Keep in mind that any extra work, like vent or electrical updates, can increase the cost.

What is the cost for replacing an oil furnace in Salem, OR?

Generally, an oil furnace replacement ranges from $4,600 to $7,000. The actual cost will depend on the furnace’s size, efficiency, and brand. Other impacting factors include ductwork adjustments, venting, or system conversions. Oil furnace replacements are usually more expensive than electric.

This is because of the fuel handling and equipment complexity.

How much does a gas furnace replacement cost in Salem?

On average, replacing a gas furnace can cost between $4,000 and $8,000. The actual price usually depends on furnace efficiency, size, and installation complexity. If you need ductwork modifications, venting updates, or high-efficiency units, you may reach the higher end of the range.

Ensure proper installation to avoid more furnace expenses in the long run.

What is the labor cost of furnace replacement?

Hiring labor for furnace replacement in Salem can cost you from $1,000 to $2,500. The actual charges would depend on the complexity of the installation. Factors like ductwork modifications, venting adjustments, and local labor rates affect pricing.

Make sure you hire licensed professionals to avail of the full value for your money.

Furnace Type

Estimated Cost Range

Notes

Electric Furnace

 

Gas Furnace

 

Oil Furnace

 

Basic Furnace Installation

 

Full Furnace Replacement (Average)

 

$1,300 – $2,400

 

$4,000 – $8,000

 

$4,600 – $7,000

 

$1,300 – $1,600

 

$3,000 – $7,500

 

Lower upfront cost; ideal for homes with existing electrical infrastructure; efficiency varies.

 

Popular choice; higher efficiency models cost more; installation may require duct/vent updates.

 

More expensive due to fuel handling; suitable for homes without natural gas lines.

 

Minimal installation with existing compatible ductwork; does not include major modifications.

 

Covers unit, labor, permits, and standard installation; final cost depends on home and system complexity.

 

Note: The above-mentioned prices are estimates. Please check with professional furnace companies for actual price quotes.

What Drives the Furnace Replacement Cost?

Understanding the components of cost will help you make better choices. It helps spot where you could save or where investing more makes sense. Factors such as installation, equipment efficiency, and long-term furnace maintenance requirements all contribute to the total investment you need for furnace replacement.

Type of Furnace & Fuel Source

These two heavily influence the replacement cost. Electric furnaces are generally cheaper upfront. But gas and oil systems cost more. This is due to their installation complexity and fuel requirements. Switching fuel types may also require additional modifications, including venting, piping, or electrical updates. These increase both labor and material expenses.

Efficiency Rating & Equipment Quality

You should know that fuel efficiency is measured by AFUE (Annual Fuel Utilization Efficiency). And it impacts both upfront cost and long-term energy bills. Higher-efficiency furnaces cost more initially but they also save money in the long run.

Apart from this, equipment quality matters too. For example, latest models with advanced features provide better performance.

Size of Home & Load Requirements

A furnace must match the heating needs of your home. For instance, larger homes or poorly insulated spaces require higher-capacity units. On the other hand, complex layouts or multiple zones may need specialized systems.

The right size also keeps energy bills reasonable. Keep in mind that an undersized furnace will struggle, while an oversized one wastes energy.

Installation Labor, Ductwork & Additional Work

Sometimes ductwork, venting, gas, or electrical connections need modification. These can increase the expenses. Another thing that can make the cost shift is installation. Plus, permits or disposal of the old furnace may also add to the cost.

Important!Choose a skilled installer to avoid future repairs and performance issues.

When should you replace a furnace rather than repair it?

You should consider replacing your furnace if it’s 15-20 years old. If a furnace requires frequent repairs, or shows declining efficiency, replacing it may be a good option. Other reasons to replace include component failures, rising energy bills, inconsistent heating, or outdated systems.

How to Plan & Budget for Your Salem Furnace Replacement?

If you know for sure that you need furnace replacement this season, plan ahead. Here are some steps to follow, and you will be sorted for a smooth job, practically and financially.

Get a Home Heating Load Calculation

Get Multiple Quotes

Check for Rebates & Incentives

Plan for Additional Costs

Consider Long-Term Value of Unit

Conclusion

Undoubtedly, furnace replacement is a big investment. And you cannot make this decision just like that. Therefore, proper research is important. At HVAC Ministries, we have you covered for all your heating and cooling needs.

From air conditioners to furnaces, our team always helps with proper installation. Reach out to us today, and we will take care of all things HVAC.

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