96% vs 98% AFUE Furnace: Is the Upgrade Worth It in Minnesota?
What AFUE measures, the gas math from 80% to 96% to 98% using your own bill, and what a 98% furnace really buys you in a cold Minnesota house.
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Furnace Replacement in Loretto, MN
A new furnace in Loretto runs $4,500–$9,500 installed with us. Most houses in town are small one-story or story-and-a-half homes, so a Manual J load calculation often calls for a smaller furnace than the one coming out. Your quote is written, flat-rate and itemized.
Furnace replacement calls in Loretto homes
Replacement in Loretto usually means a small house on its second or third furnace, and the first question is venting. In the early-1900s homes, the old furnace often shares a masonry chimney with the gas water heater. A 96–98% condensing furnace vents through PVC out a side wall instead, which can strand the water heater in a chimney now too big for it, and that needs a liner or another venting plan written into the price. Postwar ramblers with a metal flue may make an 80% swap simple.
Sizing matters more than people expect in small houses. An oversized furnace short-cycles and swings the temperature. We run a Manual J and look hard at the duct system, which in Loretto is often the weakest link. CenterPoint Energy supplies gas in town and offers heating system rebates on qualifying high-efficiency furnaces. The job includes the mechanical permit and inspection.
Updated September 23, 2026
How much does a new furnace cost in Loretto?
An installed furnace from us runs about $4,500–$9,500 in Loretto: 80% AFUE roughly $4,500–$6,000, 96–98% AFUE roughly $6,500–$9,500. Same prices in Loretto as in every town we serve. See the furnace replacement cost guide.
Are there rebates for a new furnace in Loretto?
Loretto homes are on CenterPoint Energy gas and Xcel Energy electricity, which puts two sets of rebates in play. CenterPoint's heating rebates cover high-efficiency furnaces, boilers and thermostats, with any dealer. Xcel covers central AC, heat pumps and mini-splits, and many of those need an Xcel-registered contractor, so ask before choosing equipment. If you're looking at acreage just outside town in Medina, expect propane instead of gas, and the electric provider may change too. Rebate programs change every year, so check the utility's current terms before you buy.
Our guides: Xcel and CenterPoint rebates, heat pump rebates.
Signs it's time to replace your furnace
- A cracked heat exchanger on a furnace that's out of warranty
- The furnace is 20-plus years old and needs another major repair
- Rooms far from the furnace never warm up on sub-zero nights
- Gas bills climbing while your thermostat settings haven't changed
- Repair calls two or more winters in a row
- A burner roar or blower noise you can hear across the house
- Replacement parts for your model are getting hard to find
More detail on our furnace installation page.
Furnace replacement in Loretto: questions
Can a new furnace in Loretto use our old ductwork?
Usually, after some repair. Original trunk lines in Loretto often have open joints and a crushed branch or two, and those leaks waste the efficiency you're paying for. We measure static pressure before quoting, seal the joints we can reach, and replace damaged branches. If the return is too small for the new blower, we say so in the quote, since that decides whether the new furnace runs quietly.
Does a small Loretto house cost less to put a furnace in?
Not by much. A smaller furnace is a slightly cheaper box, but the price mostly follows efficiency and the work around it. An 80% furnace runs roughly $4,500–$6,000 installed with us, and a 96–98% model roughly $6,500–$9,500. What moves a Loretto quote within those ranges is a chimney liner for the water heater, duct repairs, and a single-stage versus two-stage burner.
More in Loretto
Furnace replacement near Loretto
- Medina, MN 3 mi
- Maple Plain, MN 3 mi
- Independence, MN 4 mi
- Corcoran, MN 5 mi
- Rockford, MN 5 mi
- Long Lake, MN 6 mi
Brands we install and service
Guides on furnace replacement
What Does It Mean When a Furnace Is Red-Tagged?
A red tag means a technician or the gas utility found your furnace unsafe and shut it off. Common reasons, what not to do, and how to get a second opinion.
Read the guideFurnace Repair Cost in Minnesota (2026)
Furnace repair pricing in Minnesota for 2026: a $79 trip charge waived with the repair, written flat-rate prices, national part costs and when to replace.
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Furnace replacement in Loretto? Call or send a request.