A furnaces efficiency rating, or AFUE (Annual Fuel Utilization Efficiency), tells you how efficiently the furnace uses fuel (gas or oil). In general, higher efficiency furnaces mean lower monthly operating costs for heating.
The government mandated minimum AFUE rating for furnaces installed in new homes is 78%. In contrast, many furnaces manufactured before 1992 had AFUE ratings as low as 60%.
Higher efficiency furnaces offering AFUE ratings of 80%, 90%, or up to 96% are also available to help reduce monthly heating costs.
Payback
Usually, the higher the efficiency, the more expensive the inital cost of the furnace. If you live in a cold climate, you will probably see the higher cost of a high-efficiency furnace paid back through lower utility bills in a few short years. Your dealer can use heating data from your area to help you determine about how long it would take you to recover the additional cost in energy savings. Of course, after the payback, you continue to save on your energy bills for the life of the system.