How Much Does Boiler Installation And Replacement Cost?

February 13, 2024

Written by: Terry Stevens


As the backbone of your home's heating system, a reliable boiler is not just a convenience - it's a necessity, especially during the chill of winter. The warmth and comfort of your living spaces hinge on this critical component, making the decision to install a new boiler or replace an old one both important and, at times, urgent. With the myriad of options available in today's market, understanding the costs involved is the first step in making an informed decision that aligns with your needs and budget.

Whether you're embarking on the journey of homeownership for the first time or facing the reality of replacing an aging system, the investment in a new boiler comes with its share of questions. How much will it cost? What type of boiler is best suited for my home? How can I ensure that I'm making a cost-effective choice? This article aims to demystify the process, offering a detailed look into the costs associated with boiler installation and replacement, factors that influence pricing, and tips for navigating the purchase with confidence.

By equipping yourself with the right information, you can select a boiler that not only fits your budget but also enhances your home's energy efficiency and comfort for years to come. Let's delve into what you need to know about boiler costs, helping you warm up your home without burning through your wallet.

In this article, we will discuss how much you may need to pay for boiler installation and replacement if you decide to go through with it.

Keeping your home warm

Average Cost for Boiler Installation

The average cost of boiler replacement is $8300. However, based on the fuel and system type, the size and complexity of your home, the price may vary from $3,100 to $13,500.

While the standard boilers are the most affordable, high-efficiency boilers and combination boilers can offer great savings over time.

For example, high-efficiency boilers can help reduce your energy bills. And if you opt for a combination boiler, you can use it to run hot water in your dishwasher and washing machines as well.

Boilers are a type of HVAC system for your home. You must consider budget, climate, and other infrastructure before purchasing one.

How to Calculate New Boiler Prices

Boiler price depends on different factors such as fuel and system type. Also, the size of your home and the climate of where you live play a huge role. Based on these factors, you need to determine the size of the boiler. The larger the size, the greater the price will be.

Boiler size is measured in BTUs (British thermal units). Here’s how you can determine BTU rating:

  • Calculate the home’s square footage
  • Multiply it by the regional factor (25 to 70). The factors coordinate with your region’s climate.

Here are the regional factors:

  • 25 to 40: Hot and warm climates, including the Northern regions
  • 40 to 50: Moderate climates, including NSW and lower Queensland.
  • 50 to 60: Colder climates, like the Victoria and mountainous regions
  • 60 to 70: Frigid climates, like Tasmania or New Zeeland

If your home is relatively new, you need to use the lower number. The older the home, the higher the number will be to determine how large of a boiler you need.

climate regional factors

New Boiler Costs by House Size

If the house is 1500 square feet, the average cost of a new boiler will be $5700, for 2000 square feet, it’s $6500, and for 2500 square feet, the average cost will be $7100.

Based on the square footage of your home, the lowest and highest prices will be something between $4500 and $8600.

Boiler Replacement Cost

By System Type:

The boiler replacement cost depends on the type you’re planning to purchase. The standard one will be the most affordable while the combination or high-efficiency will cost more.

Standard or conventional boilers: the prices of standard boilers range from $2,000 to $6,500.

System boilers: these boilers can cost from $3,000 to $6,000. System boilers can heat your home, as well as your potable water supply.

Combination boilers: They are similar to system boilers but are tankless. Combination boilers can cost between $2,600 and $7,000.

High-efficiency boilers: as the name suggests, they can be used as a high-efficiency heating system and can cost between $6,000 and $11,000.

Boiler Costs by Fuel Type

Boiler Costs by Fuel Type

Oil: These boilers can cost from $4,700 to $7,900. Once popular, oil boilers are not very common these days since the price hike of Oil.

Electric: Electric boilers are efficient and can cost as low as $2,000. Since they heat slowly, they are not good options for large homes.

Propane or Natural Gas: The propane or gas boiler installation may cost you between $3,400 and $10,300. The price may look high but they are cheaper to run if the natural gas is available in your area.

Wood: Wood boilers are really expensive and may cost you  $10,000 or more. But if woods are available they can ensure cheap running costs.

Don’t be scared after looking into the price. If you’re 60 years old and above, you may get some benefits from the government based on where you live. Some countries offer free boiler for those over 60s to ensure that senior citizens can stay comfortably at their homes. 

Residential Boiler Costs by Brand

Below are some of the boiler brands and their price.




$1,300 - $5,400


$2,000 - $4,500


$1,700 - $4,600


$1,800 - $4,500


$1,700 - $6,600


$1,600 - $5,600


$1,700 - $5,800

Factors That Affect Boiler Installation and Replacement Costs

Home Size: larger homes are difficult to heat. They will require larger boilers, which eventually cost you more. Though combination boilers and electric boilers are among the most affordable options, they are not suitable for big houses.

Boiler Type: this is one of the largest factors that can affect the cost. If you go for a high-efficiency boiler, it will cost you five times more than the standard one.

Water vs. Steam: Conventional boilers offer two options as heat sources, hot water or steam. Steam boilers can work faster and can reach up to  212 degrees Fahrenheit or more. They are also more expensive than their hot water counterparts.

New vs. Existing Installation: Replacing a boiler is cheaper than installing a new one, though there is a small cost associated with removing the existing one. The contractor may install ductwork and lay new pipes throughout your home while installing a new boiler.

Fuel Source Conversion: If you get a boiler that uses a different fuel type (for example, changing from electric to gas or the other way around), you might have to plan for extra tasks, such as putting in new pipes, electrical outlets, or valves.

Additional Costs and Considerations for Installing or Replacing a Boiler

Permits: Boiler installation usually requires getting a permit, which may cost you from $50 to $300. Besides, you have to pay for the inspection, which may cost you an additional $50 to $75.

Ductwork and Gas Lines: The kind of boiler you pick might mean changing your current ductwork (or putting in new ductwork). For a gas boiler, you might have to bring in a plumber to set up a new gas line.

Asbestos Removal: If your contractor discovers asbestos while checking your current ductwork, your project expenses might go up a lot. You'll have to hire a professional to take out the asbestos, and this can cost between $1,200 and $3,000.

Time of The Year: Boiler installation costs often go up in winter since more people want to heat their homes. While boiler prices might be lower in the summer, you'll have to pay the regular price in winter. Also, heating contractors might ask for a higher hourly rate during their busy winter months.

All these prices mentioned can be changed based on where you live.

Boiler Repair vs. Replacement Costs

You may have to pay between $200 and $600 for boiler repair based on the issue. You can hire an HVAC technician to save some money if your boiler needs repair work but has otherwise been reliable.

But if your boiler gets old and inefficient, and requires regular repair work, then it’s wise to opt for a new boiler. If the repair work requires more than a typical boiler price, you may want to skip the repair and buy a new one instead.


Understanding the costs associated with boiler installation and replacement is crucial for homeowners, especially during the winter when heating needs are paramount. The type of boiler, fuel source, and home size all play vital roles in determining the overall expenses. 

While standard boilers are more budget-friendly, high-efficiency and combination boilers offer long-term savings. Consideration of factors like ductwork, gas lines, and potential asbestos removal further influences costs. 

Timing is key, with winter installations often incurring higher expenses. Additionally, obtaining permits and factoring in inspection fees adds to the overall expenditure. 

For those contemplating boiler repair versus replacement, evaluating the long-term efficiency and potential savings is essential. Stay informed, assess your needs, and make well-informed decisions for a warm and cost-effective home.


Boiler, Energy Efficiency, heating, Heating Systems, Home Maintenance, HVAC, Maintenance

About the author 

Terry Stevens

The owner and founder of Sparkle and Shine. He is a seasoned professional in the home services industry with a decade of experience. He is dedicated to providing top-notch services for residential and commercial properties and has a wealth of knowledge to share on topics such as tips, tricks, industry trends, and the importance of loving your space.