The price of a new furnace in the Denver metro area is not a single number — it is a range shaped by the size of the unit, its efficiency rating, the technology it uses, and the complexity of the installation. Done does not post a flat price online because an accurate quote requires evaluating your home: its square footage, existing ductwork, current venting setup, and the altitude-specific sizing factors that apply at 5,280 feet. What Done does commit to is a clear, itemized quote before any work starts, with no hidden fees added after.

Efficiency Tier Is the Biggest Equipment Cost Driver

Furnaces are sold across a wide efficiency spectrum, and the tier you choose has the largest single impact on equipment cost. At the entry level, single-stage furnaces with 80% AFUE ratings carry the lowest sticker price. Mid-tier two-stage units with 90–95% AFUE cost more but deliver meaningfully better efficiency and comfort. At the top, modulating furnaces with 96–98% AFUE and variable-speed ECM blower motors command the highest equipment price — but also deliver the lowest operating costs and the most even, comfortable heat distribution. In Colorado, where furnaces run for six or more months of meaningful heating, the efficiency difference shows up on your Xcel Energy bill every month.

Sizing: Why Bigger Is Not Better

A common misconception is that a larger furnace will heat your home better. In practice, an oversized furnace short-cycles — it heats the space to setpoint too quickly, shuts off, and cycles on again shortly after. That pattern wastes energy, creates uncomfortable temperature swings, and puts mechanical stress on the system every time it starts. Done performs a Manual J load calculation before recommending equipment size, accounting for your home’s actual heating load — including the altitude de-rating that applies at Denver elevations, where gas appliances deliver slightly less output than at sea level. Proper sizing is not just a technical nicety; it directly affects how well the furnace performs and how long it lasts.

Installation Costs: What Adds to the Total

The equipment price is one part of the total. Installation labor, venting modifications, and any ductwork changes make up the rest. The most common installation variable is venting: a standard-efficiency furnace uses a metal flue that runs vertically through the home, while a high-efficiency condensing furnace vents horizontally through PVC pipe to an exterior wall. If you are switching efficiency tiers, new venting must be run — and the cost depends on the distance to an exterior wall and what is in between. Older Denver-area homes, which often have tighter utility spaces or non-standard configurations, can add labor time. Done identifies these factors during the pre-installation assessment so the quote reflects your actual job.

Rebates, Tax Credits, and Financing

The net cost of a new furnace is often lower than the sticker price once available incentives are applied. Xcel Energy offers rebates for qualifying high-efficiency equipment installations — the amount varies by efficiency tier and program availability, so it is worth confirming current offers when you get your quote. Federal energy-efficiency tax credits may also apply to qualifying equipment in a given tax year; verify with your tax advisor. Done can walk you through applicable incentives as part of the quoting process. For the balance, flexible financing options are available so that the investment is manageable without delaying a system that needs replacing.

  • Equipment cost is primarily driven by AFUE rating and blower motor technology
  • Proper sizing via Manual J load calculation is required — not optional
  • Altitude de-rating at 5,280 ft affects how furnaces are sized and specified
  • Venting type change (standard to high-efficiency) adds to installation cost
  • Utility rebates and tax credits reduce net cost — ask Done about current programs

The only way to get an accurate number for your home is a site assessment and written quote. Done provides that with no pressure and no obligation. Visit the furnace installation page to learn more about the process, review financing options, or contact Done to schedule your free estimate.