A furnace is a device used for heating. The name derives from Latin fornax, oven.

In American English, the term furnace on its own is generally used to describe household heating systems based on a central furnace (known either as a boiler or a heater in British English), and sometimes as a synonym for kiln, a device used in the production of ceramics. In British English the term furnace is used exclusively to mean industrial furnaces which are used for many things, such as the extraction of metal from ore (smelting) or in oil refineries and other chemical plants, for example as the heat source for fractional distillation columns.

The term furnace can also refer to a direct fired heater, used in boiler applications in chemical industries or for providing heat to chemical reactions for processes like cracking, and is part of the standard English names for many metallurgical furnaces worldwide.

The heat energy to fuel a furnace may be supplied directly by fuel combustion, by electricity such as the electric arc furnace, or through induction heating in induction furnaces.

Household Furnaces

A household furnace is a major appliance that is permanently installed to provide heat to an interior space through intermediary fluid movement, which may be air, steam, or hot water. The most common fuel source for modern furnaces in the United States is natural gas; other common fuel sources include LPG (liquefied petroleum gas), fuel oil, coal or wood. In some cases electrical resistance heating is used as the source of heat, especially where the cost of electricity is low.

Combustion furnaces always need to be vented to the outside. Traditionally, this was through a chimney, which tends to expel heat along with the exhaust. Modern high-efficiency furnaces can be 98% efficient and operate without a chimney. The small amount of waste gas and heat are mechanically ventillated through a small tube through the side or roof of the house.

• "High-efficiency" in this sense may be misleading, because furnace efficiency is typically expressed as a "first-law" efficiency, whereas the energy efficiency of a typical furnace is much lower than the first-law thermal efficiency. By comparison, cogeneration has a higher energy efficiency than is realizable from burning fuel to generate heat directly at a moderate temperature. However, as the vast majority of consumers (as well as many government regulators) are unfamiliar with exergy efficiency, Carnot efficiency, and the Second Law of Thermodynamics, the use of first-law efficiencies to rate furnaces is well-entrenched.

Modern household furnaces are classified as condensing or non-condensing based on their efficiency in extracting heat from the exhaust gases. Furnaces with efficiencies greater than approximately 89% extract so much heat from the exhaust that water vapor in the exhaust condenses; they are referred to as condensing furnaces. Such furnaces must be designed to avoid the corrosion that this highly acidic condensate might cause and may need to include a condensate pump to remove the accumulated water. Condensing furnaces can typically deliver heating savings of 20%-35% assuming the old furnace was in the 60% Annual Fuel Utilization Efficiency (AFUE) range.