New furnace installation in the Denver Metro typically costs $2,500 – $8,000 depending on efficiency rating, system type, and home size. Includes equipment, labor, and permits.
AFUE (Annual Fuel Utilization Efficiency) measures how much of your gas dollar goes to heating. An 80% furnace wastes 20 cents per dollar. A 96% furnace wastes only 4 cents. Here's how costs break down by efficiency for Denver Metro homes:
| Efficiency (AFUE) | Type | Small Home (1,000-1,500 sf) | Average Home (1,500-2,500 sf) | Large Home (2,500-3,500 sf) |
|---|---|---|---|---|
| 80% AFUE | Single-stage (basic) | $2,500 – $3,200 | $3,000 – $3,800 | $3,500 – $4,500 |
| 92-93% AFUE | Single-stage (standard) | $3,000 – $3,800 | $3,500 – $4,500 | $4,000 – $5,200 |
| 96% AFUE ★ | Two-stage (recommended) | $3,800 – $4,800 | $4,500 – $5,500 | $5,200 – $6,500 |
| 97-98% AFUE | Modulating (premium) | $4,500 – $5,800 | $5,500 – $7,000 | $6,500 – $8,000 |
★ 96% AFUE two-stage is what we recommend and install most often for Denver Metro homes. Best balance of efficiency, comfort, and cost.
Furnaces come in three compressor types. Each handles Colorado's cold differently:
Colorado's altitude affects furnace performance. At 5,000+ feet, thinner air changes combustion efficiency. Gas pressure, burner orifice sizing, and draft all need altitude adjustment. A furnace installed without Colorado-specific calibration will waste gas and may trip safety limits.
Our winters are also more demanding than most of the country. A furnace in Brighton or Aurora runs 5-6 months per year, often for 12+ hours a day during cold snaps. That's why we recommend 96% AFUE two-stage — it handles the long run times efficiently without the premium price of a modulating unit.
Every furnace we install is calibrated for Front Range altitude. We verify gas pressure, combustion air supply, and temperature rise before we leave your home.
Common questions about furnace installation costs in Denver.
Furnace installation in the Denver Metro costs $2,500 to $8,000 depending on efficiency rating and home size. A standard 96% AFUE two-stage furnace for an average home runs $4,500-$5,500 installed with equipment, labor, and permits.
For most Denver homes, 96% AFUE two-stage is the best value. It captures 96 cents of every gas dollar. The upgrade from 80% to 96% pays for itself in 4-6 years through lower Xcel Energy gas bills. Modulating (97-98%) offers maximum comfort but at a premium price.
Most furnace installations are completed in one day — typically 4 to 8 hours. Straightforward replacements take 4-5 hours. If ductwork modifications, gas line work, or electrical changes are needed, it may take a full 8-hour day.
If both systems are over 12 years old, replacing together saves on labor and ensures matched efficiency ratings. Our combo packages start at $5,500 for a 3-ton AC + furnace bundle. See our AC installation cost guide for details.
Yes. At 5,000+ feet, thinner air changes combustion. Gas pressure, burner orifice sizing, and draft all require altitude-specific calibration. A furnace installed without these adjustments wastes gas and may trigger safety lockouts. We calibrate every installation for Front Range elevation.