A furnace install is one of the highest-ticket quotes you'll ever write — typically $5,000 to $8,000 — which means every line item matters twice as much. Miss one and you're not just losing a few bucks; you're donating a day's labor. This guide breaks down exactly what belongs in the quote, gives you a free line-item table to copy, and walks through two complete worked examples: an 80% AFUE single-stage install and a 96% AFUE two-stage install.
What Line Items Belong in a Furnace Installation Quote?
Homeowners can only compare what they can see. An itemized quote with these eight line items beats a one-line "$6,200 installed" bid nearly every time — because "installed" is doing an awful lot of heavy lifting in that sentence:
- Furnace equipment — full model number, BTU input, AFUE rating, and stage type. Specificity kills the "but the other guy was cheaper" objection, because the other guy's quote rarely names the actual equipment.
- Installation labor — hours and rate, or a flat labor figure. Ten to twelve hours is typical for a straightforward swap; note it.
- Venting and flue work — metal flue liner or new PVC venting for high-efficiency units, plus fittings. This is the line most often forgotten, and it routinely runs $400-$700.
- Thermostat — basic digital or smart thermostat, with wiring. Never assume the old thermostat is reusable without saying so.
- Permit and inspection fees — $125 to $200 in most jurisdictions. Itemizing it shows you're pulling permits when competitors might not be.
- Old equipment removal and disposal — hauling, recycling, and any hazardous-material handling.
- Warranty terms — manufacturer parts warranty (usually 10 years registered) plus *your* labor warranty in writing. One year is standard; two years is a differentiator.
- Extras and options — media air cleaner, humidifier, surge protector, duct modifications. Options belong on the quote as separate lines, not buried.
Free Starter Furnace Quote Line-Item Table
Copy this into your spreadsheet and fill in your own numbers:
| # | Description | Qty | Unit Price | Amount |
|---|---|---|---|---|
| 1 | Gas furnace, 80,000 BTU, 80% AFUE, single-stage (model #) | 1 | $1,900.00 | $1,900.00 |
| 2 | Installation labor | 10 hrs | $95.00 | $950.00 |
| 3 | Venting/materials: flue pipe, fittings, gas flex, misc | 1 lot | $513.00 | $513.00 |
| 4 | Thermostat, digital programmable + wiring | 1 | $220.00 | $220.00 |
| 5 | Municipal permit + inspection | 1 | $175.00 | $175.00 |
| 6 | Old furnace removal and disposal | 1 | $125.00 | $125.00 |
| Job cost subtotal | $4,883.00 | |||
| Quoted price (20% margin) | $6,104.00 |
This matches the full worked example below — every number ties out, so you can check my math (please do).
80% vs 96% AFUE: How Efficiency Changes the Quote
AFUE — Annual Fuel Utilization Efficiency — is just the percentage of fuel the furnace actually turns into heat. The rating changes your quote in three ways:
Equipment cost. A 96% AFUE two-stage furnace wholesales roughly $1,000-$1,400 more than a comparable 80% single-stage unit. That gap flows straight into the quote.
Venting. This is the structural difference. An 80% furnace vents through a metal flue using the home's existing chimney or B-vent — often reusable. A 96% condensing furnace vents through new PVC pipe out a sidewall and needs a condensate drain with freeze protection. Budget $500-$700 in venting and condensate work for high-efficiency installs versus $300-$450 for standard.
Labor. High-efficiency installs run 2-4 hours longer: PVC venting runs, condensate routing, and more complex commissioning and airflow setup.
The sales angle. The 96% unit saves the homeowner roughly 16% on gas versus the 80% unit. On an $1,800/year heating bill, that's ~$290/year — a real payback story you can put right on the quote. Always quote both tiers: the "good" 80% option and the "better" 96% option. Two options close more jobs than one. One option just invites them to go get a second bid.
Worked Example 1: 80% AFUE 80,000 BTU Install — $6,104
Straightforward swap, existing metal flue reusable:
- Furnace: 80k BTU, 80% AFUE, single-stage — $1,900.
- Labor: 10 hours × $95/hr — $950.
- Venting/materials: flue connector, gas flex line, fittings, misc — cost $380, marked up 35% → $513.
- Thermostat: digital programmable + wiring — $220.
- Permit: $175. Disposal: $125.
- Job cost: $1,900 + $950 + $513 + $220 + $175 + $125 = $4,883.
- 20% margin: $4,883 ÷ 0.80 = $6,103.75 → quote $6,104.
- Your profit: $1,221.
Worked Example 2: 96% AFUE Two-Stage 80,000 BTU Install — $7,828
Same house, high-efficiency option:
- Furnace: 80k BTU, 96% AFUE, two-stage with ECM blower — $3,200.
- Labor: 12 hours × $95/hr — $1,140 (extra time for PVC venting and condensate).
- Venting/materials: PVC vent pipe, fittings, condensate drain, freeze protection — cost $520, marked up 35% → $702.
- Thermostat: smart thermostat + wiring — $320.
- Permit: $175. Disposal: $125.
- Job cost: $3,200 + $1,140 + $702 + $320 + $175 + $125 = $5,662.
- 20% margin: $5,662 ÷ 0.80 = $7,077.50 → quote $7,078.
Lay both quotes side by side with the annual fuel-savings math: the $974 price gap pays back in about 3-4 years on typical gas bills, then keeps saving for the 15-20 year life of the equipment. That's how premium options sell themselves.
4 Line Items Contractors Forget to Charge For
I've forgotten every one of these at least once — consider this list my donations to your education:
Permit fees. The $125-$200 permit is real money, and pulling it is a selling point — it tells the homeowner you're legit. Contractors who "forget" it either eat the cost or look shady when the inspector shows up. Neither is a business plan.
Thermostat and wiring. A $220-$320 line that vanishes into "labor" on too many quotes. Name it.
Condensate management. On 90%+ furnaces: condensate pump, drain routing, and freeze protection. It's $150-$300 of real work that doesn't exist on 80% quotes — make sure it doesn't get carried over by habit.
Duct modifications. Plenum transitions, return-air enlargements, and sealing are routinely needed on changeouts and routinely given away. If you're cutting sheet metal, it's a line item.
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Download the Free PackFrequently Asked Questions
What should a furnace installation quote include?
A complete furnace quote lists the exact equipment (model number, BTU, AFUE, stage type), installation labor with hours and rate, venting and flue work, thermostat, permit fees, old-equipment disposal, manufacturer and labor warranty terms, payment terms, and a valid-until date. Itemizing each element lets homeowners compare bids on value instead of just the bottom line.
How much does furnace installation typically cost?
In the US market, a standard 80% AFUE furnace installation typically quotes between $5,500 and $6,500, while a high-efficiency 96% AFUE two-stage install typically runs $6,800 to $8,000+. Final price depends on BTU sizing, venting complexity, duct modifications, local permit fees, and your market's labor rates.
What's the difference between 80% and 96% AFUE furnaces?
AFUE measures how much fuel becomes heat versus going up the flue. A 96% furnace wastes only 4% of its fuel compared to 20% for an 80% unit — roughly 16% lower gas bills. The 96% unit costs more upfront and needs PVC venting plus a condensate drain, but the fuel savings typically pay back the difference in 3-5 years.
Should I quote both 80% and 96% options?
Yes. Always present good/better options — it raises close rates because the customer ends up choosing between *your* two options instead of between you and some other guy. Include the estimated annual fuel savings for the 96% unit so the price gap reads as an investment, not just a bigger number.
How long should a furnace installation take?
A straightforward like-for-like swap takes a two-person crew about 8-10 hours (one full day). High-efficiency installs with new PVC venting and condensate routing typically add 2-4 hours. Add time for duct modifications, difficult attic or crawlspace access, or bringing venting up to current code.