How much does a new furnace cost in Colorado?

A new gas furnace in Colorado costs $4,800 to $9,500 installed in 2026. A matched furnace and air conditioner runs $8,800 to $18,000, and a cold-climate heat pump system $12,000 to $22,000. Price depends on home size, efficiency tier, altitude sizing and ductwork. EMS gives an upfront price at a free in-home visit, and next-day installs are available.

Furnace cost by home size and efficiency

Installed prices for a furnace only, replacing an existing gas furnace with usable ductwork, including permit, haul-away and standard venting. Add $4,000 to $8,500 for a matched air conditioner installed at the same time.

Colorado prices run above the national average for two reasons: equipment must be sized and adjusted for altitude (a furnace at 6,000 feet delivers about 76% of its rated output), and Front Range furnaces run six to seven months a year, which pushes most homeowners to 96% AFUE two-stage systems.

How much does a new furnace cost for a 2,000 square foot house in Colorado?

For a 2,000 square foot Colorado home, a new 80,000 to 100,000 BTU furnace costs $5,500 to $8,500 installed. A 96% two-stage model, the most common choice along the Front Range, runs $6,800 to $8,000. Adding a matched 3-ton AC brings the system to $11,300 to $14,000.

Two-story homes with long duct runs or finished basements sometimes need a return-air fix or a second zone at the same time, which adds $800 to $2,500 and is included in the written quote rather than billed later.

Should I repair or replace my furnace?

Replace when the furnace is 15 or more years old and the repair costs more than a third of a new system, or when the heat exchanger is cracked. Repair when the furnace is under 12 years old and the fix is a common part such as an ignitor, flame sensor or capacitor ($180 to $650).

The 5,000 rule is a quick check: multiply the furnace's age by the repair cost. Over $5,000 (for example, a $400 repair on a 15-year-old furnace) usually favors replacement. Colorado furnaces run longer seasons than the national average, so a 20-year-old unit here has more hours on it than the same unit in most states.

Does altitude change the price of a furnace in Colorado?

Altitude changes the sizing more than the price. Gas furnaces lose about 4% of output per 1,000 feet, so a Castle Rock or Castle Pines home at 6,200 to 6,400 feet needs a larger or properly derated furnace than the same house in Houston. Skipping the altitude adjustment is the most common cause of undersized furnaces we see on service calls.

Some manufacturers require a high-altitude conversion kit or pressure-switch change above 4,000 feet; that is $100 to $250 and should be on every Colorado quote.

What rebates apply to a new furnace in Colorado?

Xcel Energy, Black Hills Energy and CORE Electric each run their own furnace, AC and heat pump rebates that change seasonally. EMS checks what your utility offers and files the paperwork. The federal 25C tax credit ended for equipment installed after December 31, 2025.

Your utility depends on your town, not your county: Aurora, Centennial, Englewood, Highlands Ranch and Lone Tree are on Xcel; Castle Rock is on Black Hills gas and CORE electric; Parker and Castle Pines split between providers by neighborhood.

Is a heat pump cheaper than a furnace in Colorado?

A cold-climate heat pump system costs $12,000 to $22,000 installed, more than a furnace alone but similar to a furnace-plus-AC system once utility rebates are applied. Operating costs are lower than propane or electric resistance heat and roughly even with natural gas at current Xcel rates.

Modern cold-climate models hold full heating output to about -15°F. For the coldest nights we usually pair them with a gas furnace (dual fuel) or electric backup.

How long does a furnace replacement take?

Most furnace replacements are finished in four to eight hours, in one visit. EMS can usually install the day after you approve the estimate. Heat pump conversions, ductwork changes and venting upgrades on older homes can add a day.

The visit includes removing and recycling the old furnace, pulling the mechanical permit, and scheduling the city or county inspection.

Get your exact price in 45 minutes.

Free in-home estimate, three written options, good for 30 days.