Chicago Heating & CoolingChicago Heating & CoolingA new furnace installation in Chicago generally costs $3,800–$8,500 installed. Ketter Mechanical handles unit selection, permitting, and old-system removal across Logan Square, Lincoln Park, and the wider North Side. Final pricing depends on BTU size, efficiency, and existing venting.
| Furnace type / efficiency | Typical installed cost |
|---|---|
| 80% AFUE standard gas | $3,800 – $5,500 |
| 90–95% AFUE mid-efficiency | $5,000 – $6,800 |
| 96%+ AFUE high-efficiency condensing | $5,500 – $8,500 |
| Two-stage / variable-speed upgrade | add $600 – $1,500 |
| Chicago mechanical permit | typically $100 – $250 |
Chicago furnace installation cost by efficiency and type (installed, 2026)
Furnace size is measured in BTUs and matched to the home's square footage and heat loss. A typical Chicago bungalow or two-flat unit needs 60,000–100,000 BTUs. Undersizing leaves rooms cold on sub-zero nights; oversizing short-cycles and wastes gas. A proper load calculation, not a rule of thumb, determines the correct size. Correct sizing keeps installed cost accurate and prevents premature wear.
A 96%+ AFUE condensing furnace converts 96 cents of every gas dollar into heat, versus 80 cents for a standard unit. High-efficiency models cost $1,500–$3,000 more installed because they require PVC sidewall venting and a condensate drain. Over a long Chicago heating season, the fuel savings often offset the difference within several years. Efficiency choice is the single largest driver of installed price.
A complete furnace installation quote covers labor, removal and disposal of the old unit, new gas and electrical connections, venting, and startup testing. Labor typically accounts for $1,000–$2,500 of the total. Homes with rusted ductwork, tight basement clearances, or a switch from 80% to 96% efficiency add labor hours. A full-service contractor does the lifting, sealing, and cleanup as part of the job.
Existing ductwork is inspected before installation. Leaky, undersized, or disconnected ducts reduce airflow and can strain a new furnace. Minor sealing and transitions are often folded into the install; major duct modifications are quoted separately. In older Chicago housing stock, gravity-to-forced-air conversions or asbestos-wrapped ducts raise the total. The on-site visit confirms whether ductwork affects the quote.
Chicago requires a mechanical permit for furnace replacement, and gas furnace work must meet the Chicago Building Code, which is stricter than the statewide Illinois code. Permit fees typically run $100–$250, and inspection is required after install. High-efficiency condensing furnaces need approved PVC sidewall venting, which matters in dense areas like Wicker Park, Pilsen, and Bridgeport where lot-line clearances are tight. Older two-flats and greystones in Logan Square, Lincoln Park, and Hyde Park often have gravity or octopus ductwork that adds labor. Peoples Gas rebates and Illinois efficiency incentives can reduce net cost on qualifying 95%+ units. Chicago's long, sub-zero heating season makes correct sizing and sealed venting especially important in Rogers Park, Albany Park, Beverly, and Portage Park homes.
A standard furnace replacement takes 4–8 hours; efficiency conversions or ductwork changes can extend it to a full day.
Most Chicago homes need 60,000–100,000 BTUs, confirmed by a Manual J load calculation rather than square footage alone.
Given Chicago's long heating season, a 96%+ AFUE furnace often recovers its higher cost through lower gas bills over several years.
Yes. Chicago requires a mechanical permit and post-install inspection for furnace replacement; fees typically run $100–$250.