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I Need to Buy a New Furnace. What Do I Need to Know?

Reviewed by AC Direct Technical Team Updated June 6, 20263 min read
The short answerStart by deciding between gas and electric. In northern climates where gas is available, gas is usually the better choice. To find your needed capacity, remove the service panel on your existing furnace and read the BTU input or output rating. Furnaces are sold in 20,000 to 25,000 BTU increments, so round up to the nearest size.
I Need to Buy a New Furnace. What Do I Need to Know?AC Direct HVAC guide
A few basics make choosing the right furnace straightforward.

Step 1: Decide Between Gas and Electric

Your first decision is fuel type. If you are in a northern climate and natural gas is available at your home, a gas furnace is usually the best choice because gas heat is efficient and well suited to cold winters. In milder climates, or where gas service is not available, an electric furnace or a heat pump may make more sense. Your existing heating equipment is a good starting clue, since most homes are set up for one fuel type already.

Step 2: Find Your Furnace Capacity

Furnace heating capacity is measured in BTU. To determine the capacity you need, remove the service panel from your existing furnace and look for the BTU rating on the nomenclature plate. You will usually see two numbers, an input rating and an output rating. The input is the amount of fuel energy the furnace consumes, and the output is the actual heat delivered to your home. Older gas furnaces are often around 80 percent efficient, so a furnace with a 100,000 BTU input produces roughly 80,000 BTU of output.

Step 3: Choose the Nearest Size and Round Up

Gas furnaces are sold in 20,000 to 25,000 BTU increments. You do not have to pin your heating requirement down to the last BTU. Get as close as you can to the capacity you need, then select the furnace with the nearest available capacity, rounding up when you are between two sizes. Replacing a furnace that has kept your home comfortable for a season or two with one of the same capacity is generally a safe, reliable approach.

RatingWhat it means
BTU inputFuel energy the furnace consumes
BTU outputHeat actually delivered to your home

Get Sizing Help Before You Order

If you are unsure about fuel type or capacity, AC Direct support can help you confirm your selection before you buy. AC Direct sells heating and cooling equipment online and ships it to you, so you can order the right furnace with confidence and have a local licensed contractor complete the installation. Every order is backed by the AC Direct Price Promise.

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Common questions

Should I choose a gas or electric furnace?
In northern climates where natural gas is available, a gas furnace is usually the better choice for efficient winter heat. In milder climates or where gas is unavailable, an electric furnace or a heat pump may be a better fit.
Where do I find my furnace BTU rating?
Remove the service panel from your existing furnace and look at the nomenclature plate. You will see a BTU input rating and a BTU output rating. The output is the heat actually delivered to your home.
Do I need to match the exact BTU of my old furnace?
No. Furnaces are sold in 20,000 to 25,000 BTU increments, so get as close as you can to the capacity you need and select the nearest size, rounding up when in doubt.
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Reviewed by the AC Direct Technical Team

25 years sizing and shipping HVAC systems to homeowners and contractors.

Last updated June 6, 2026  •  Facts verified against current EPA and AHRI standards