A masonry fireplace is build from brick or stone, or from synthetic masonry materials. The cost of the fireplace varies depending on the cost of the stone, the installation fee, the size of the fireplace and the type of fireplace installed. In general, the cost for a masonry fireplace is between $2,000 and $5,000 as of 2010.

1. Evaluate the benefits of installing the fireplace yourself versus hiring someone else to build it for you.

2. Calculate the cost for labor. In many cases, about 25 percent of the installation cost is for labor. A masonry fireplace costing around $5,000 would cost about $1250 less if you install the fireplace yourself. However, if you install the fireplace yourself you must have the fireplace inspected for safety, which is an additional expense.

3. Choose between a real masonry stone fireplace or an imitation stone fireplace. Imitation stones are typically synthetically manufactured stones that are glued to a veneer. This makes them cheaper and lighter than real stones pulled from a quarry. The real fireplace will take longer to install, and is more expensive; but the insulation properties are usually better. An imitation stone fireplace is less expensive, installs much faster, but does not provide any additional insulation or warmth.

4. Calculate the cost of using natural stone. Many masonry fireplaces use brick, natural stone, soapstone, sand stone and cement bricks.

5. Calculate the cost of manufactured stone. Manufactured masonry can cost up to 25 percent less than traditional masonry. Many manufactured masonry fireplaces cost between $1,000 and $2,000 as of 2010.

6. Add in how much you will use the fireplace and what you want it to do. If you will rarely use the fireplace then manufactured stone is probably the way to go. Manufactured stone does not provide insulation or preserve heat like natural stone.

7. Use a masonry heater if you intend to use the fireplace as an additional heat source. Masonry heaters are composed of a specialized masonry stone that conducts and preserves heat for up to 24 hours after the initial fire goes out. These heaters cost nearly $25,000 to install as of 2010, but they add enough heat back into the home to pay themselves off in about 10 years.

8. Add in the cost of fuel for the fireplace. Burning wood is expensive and that will drive up the cost of the fireplace. Wood costs vary by location and how much you use. However, you can generally expect to pay at least $100 each winter for wood. Other fireplaces use gas heat, which has a considerably lower cost.