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How much does a new engine cost for a Subaru Outback?

In most cases, replacing the engine in a Subaru Outback is a multi-thousand-dollar job. Expect a broad range, typically around $5,000 to $12,000 in total, depending on the engine type (naturally aspirated 2.5L vs. 2.4L turbo), whether you buy a brand-new OEM unit or a remanufactured/rebuilt engine, and how much labor you’re charged. This article breaks down the main cost drivers, options, and what to expect in today’s market.


What determines the price


Several factors drive the total cost of an engine replacement for an Outback. The list below highlights the biggest price levers you’ll likely encounter:



  • Engine type and parts: the price gap between a 2.5L naturally aspirated engine and a 2.4L turbo engine is significant because turbo components and higher-powered variants generally cost more.

  • Labor time and rate: more complex engines and high-mileage jobs can take longer, and shop hourly rates vary by region.

  • OEM vs remanufactured vs used: new OEM engines are typically the most expensive option, while remanufactured units can save money with warranty coverage; used engines are cheaper but carry more risk.

  • Warranty and included components: some quotes include gaskets, timing components, water pump, and fluids, while others price those separately.

  • Geographic pricing and vendor source: dealer networks often price higher than independent shops or remanufacturers; availability can also affect price.


Bottom line: The final price depends heavily on your engine choice, where you buy it, and the labor charges at the shop you select.


Engine options for the Subaru Outback


Outback engines vary by generation and trim, but the two main options for replacement are the naturally aspirated 2.5-liter boxer and the turbocharged 2.4-liter boxer. Availability can differ by model year and region, and you may also consider remanufactured or rebuilt units as alternatives to a brand-new engine.



  • 2.5-liter horizontally opposed (boxer) four-cylinder, naturally aspirated (FB25)

  • 2.4-liter turbocharged boxer four-cylinder (FA24)

  • Remanufactured or rebuilt OEM-equivalent engines

  • Used take-out engines with a documented service history (lower cost, higher risk)


In practice, many owners weigh a fresh OEM engine against a high-quality remanufactured unit. The turbo-faithful 2.4L option is common in higher trims or specific model years, but availability depends on year and location.


Estimated cost ranges for engine replacement


The following ranges cover engine price, installation, and typical shop charges. They assume standard labor rates and do not include taxes, disposal, or additional parts beyond what’s required for the job.



  • New OEM engine price (engine alone)

    • 2.5L FB25: about $3,800–$5,500

    • 2.4L FA24 turbo: about $5,000–$9,000



  • Labor and installation: typically $1,800–$4,000, depending on local rates and job complexity

  • Total installed price (engine + labor)

    • 2.5L FB25: roughly $5,600–$9,500

    • 2.4L FA24 turbo: roughly $7,300–$13,000




Note that these figures are approximate and can vary by region, shop, and whether you purchase the engine from a dealer, independent supplier, or remanufacturer. Market conditions in recent years have influenced pricing, particularly for turbo engines and OEM parts.


What might affect the final cost


Several practical considerations can push the price higher or lower. Here are the major ones to watch for:


Warranty, parts quality, and labor rates


Choosing a brand-new OEM engine usually comes with a longer warranty but a higher upfront price, while remanufactured units can offer a balance of reliability and cost. Labor rates vary by region and shop type, with dealer service centers generally charging more per hour than independent mechanics. Always verify warranty terms and what exactly is included in the price (gaskets, fluids, timing components, and any required hardware).


Additional components and fluids


Engine replacement often requires new gaskets, fluids, and timing components. Some quotes include these items, while others bill separately. It’s wise to request an itemized estimate to avoid surprises.


Ways to potentially save money


To reduce costs while maintaining reliability, consider comparing quotes from multiple shops, asking about remanufactured options with warranty, and confirming exactly what is included in each quote. If a brand-new engine is outside your budget, a well-vetted remanufactured unit can be a viable middle ground, provided it comes with a solid warranty and documented history.


Summary


Replacing a Subaru Outback engine is a major investment with cost drivers centered on engine type (2.5L NA vs 2.4L turbo), supplier choice (OEM vs remanufactured), and local labor rates. Typical total installed costs range from about $5,600 to $13,000, with naturally aspirated engines at the lower end and turbo engines at the higher end. To maximize value, obtain multiple quotes, compare inclusions, and weigh warranty coverage when deciding between a brand-new OEM engine and a high-quality remanufactured option.


In short, plan for a multi-thousand-dollar expenditure, but informed shopping and clear quotes can help you choose the path that best fits your budget and reliability goals.

Kevin's Auto

Kevin Bennett

Company Owner

Kevin Bennet is the founder and owner of Kevin's Autos, a leading automotive service provider in Australia. With a deep commitment to customer satisfaction and years of industry expertise, Kevin uses his blog to answer the most common questions posed by his customers. From maintenance tips to troubleshooting advice, Kevin's articles are designed to empower drivers with the knowledge they need to keep their vehicles running smoothly and safely.