How Much Does Furnace Replacement Cost in 2026?
Your furnace picks the worst possible moment to die. It is January, the house is getting colder by the hour, and the technician in your basement says the heat exchanger is cracked and the unit is not worth fixing. Then comes the question nobody wants to ask in an emergency: how much does a new furnace cost?
Most homeowners pay between $2,500 and $7,500 installed, with the national average around $4,700. Where you land in it depends on the furnace type, its efficiency, your home's size, and whether ductwork and venting need work too. This guide breaks down every part of the bill, so you can tell a fair quote from an inflated one.
All prices below were checked on Nov 3, 2026, from HomeAdvisor, Angi, This Old House, and HVAC cost guides. Prices are US national averages; your local quote will vary with labour rates and the heating season.
The Quick Answer
A standard gas furnace replacement costs $2,500 to $7,500 installed, including the unit, labour, removal of the old furnace, and a basic permit. The average homeowner pays about $4,700 for a mid-efficiency gas furnace in a typical two- or three-bedroom home.
The cheapest jobs — a small electric furnace in a mild climate — can come in under $2,500; the most expensive, a large high-efficiency gas furnace with new ductwork, can pass $10,000. Efficiency rating is the single biggest factor.
Furnace Replacement Cost by Type
The type of furnace matters more than the brand. Gas is the most common choice in the US, electric is cheapest to buy but most expensive to run, and oil is mostly a Northeast option.
| Furnace type | Unit cost | Installed total | Best for |
|---|---|---|---|
| Gas, 80% AFUE (standard efficiency) | $1,500–$3,000 | $2,500–$5,000 | Mild climates, tight budgets |
| Gas, 95%+ AFUE (high efficiency) | $2,500–$5,000 | $4,000–$7,500 | Cold climates, long-term savings |
| Electric | $1,000–$2,500 | $2,000–$4,000 | Small homes, warm climates |
| Oil | $2,500–$5,000 | $4,000–$7,000 | Homes without a gas line |
| Propane | $2,000–$4,500 | $3,000–$6,000 | Rural homes, off the gas grid |
AFUE is the percentage of fuel that becomes heat: an 80% AFUE furnace wastes 20 cents of every fuel dollar up the flue, while a 96% AFUE furnace wastes only 4 cents. The high-efficiency unit costs $1,500 to $2,500 more upfront, but in a cold climate it saves $300 to $500 a year on heating bills, paying for itself in five to eight years.
What Size Furnace Do You Need?
A furnace that is too small runs constantly and never warms the house; one that is too big short-cycles — turning on and off every few minutes — which wears it out faster and leaves cold spots. Size is measured in BTUs, and the right size depends on square footage, insulation, and climate zone.
| Home size | Mild climate (South) | Moderate climate | Cold climate (North) |
|---|---|---|---|
| 1,000–1,500 sq ft | 40,000–60,000 BTU | 60,000–70,000 BTU | 70,000–90,000 BTU |
| 1,500–2,000 sq ft | 60,000–70,000 BTU | 70,000–80,000 BTU | 80,000–100,000 BTU |
| 2,000–2,500 sq ft | 70,000–80,000 BTU | 80,000–100,000 BTU | 100,000–125,000 BTU |
| 2,500–3,000 sq ft | 80,000–90,000 BTU | 100,000–120,000 BTU | 125,000–150,000 BTU |
These are rules of thumb. A reputable installer runs a Manual J calculation — a room-by-room heat-loss assessment — before recommending a size, and a contractor who quotes on square footage alone deserves a second opinion. Oversizing is the most common and most expensive mistake in furnace replacement.
What Drives the Price Up or Down
The furnace itself is usually about 60% of the total bill. The rest is labour and extras — and the extras are where quotes differ most.
- Labour: $500 to $2,000 depending on difficulty and local rates. A straightforward swap in an open basement is cheap; a cramped attic or crawlspace install is not.
- Ductwork: leaking, undersized or damaged ducts add $2,000 to $5,000 to repair or replace. A new furnace cannot fix bad ducts.
- Venting: high-efficiency furnaces need PVC venting and a condensate drain ($300–$800 extra); standard furnaces use the existing chimney or metal flue.
- Permit and inspection: $100 to $500 in most cities. A contractor who skips the permit is cutting a corner you will pay for later.
- Old furnace removal and disposal: usually $100 to $300, often bundled into the quote.
- Thermostat: a basic programmable thermostat runs $100 to $250 installed; a smart thermostat adds $200 to $400.
- Brand: premium brands run 10–20% more than value brands, mostly for the warranty and dealer network rather than the hardware.
- Timing: heating season is the worst time to buy: contractors are busiest, and emergency replacements cost 10–20% more than the same job in spring or autumn.
Worked Example: A 2,000 sq ft Home in Ohio
The Miller family lives in a 2,000 sq ft two-storey home in Columbus, Ohio. Their 18-year-old furnace died in late November, and they chose a 96% AFUE gas furnace, 80,000 BTU, from a mid-range brand. Here is their itemised bill:
| Item | Cost |
|---|---|
| 96% AFUE gas furnace, 80,000 BTU | $3,400 |
| Installation labour (two technicians, one day) | $1,200 |
| PVC venting + condensate drain | $450 |
| Old furnace removal and disposal | $150 |
| Permit and inspection | $200 |
| Smart thermostat | $250 |
| Total | $5,650 |
Their old furnace was 80% efficient, so the new unit should cut heating gas use by roughly 17%, about $240 a year on their $1,400 winter bill. They also claimed the federal energy-efficient home improvement tax credit, which covers 30% of the cost up to $600 for qualifying furnaces. Their net cost after the credit was about $5,050.
Repair or Replace? The 15-Year Rule
There is a simple test: multiply the repair cost by the age of the furnace. If the result is more than $5,000, replacement is usually the better investment.
- Under 10 years old: repair it, unless the repair costs more than half the price of a new unit.
- 10–15 years old: repair small problems (igniter, flame sensor, blower motor), but think hard before spending $1,000 or more.
- Over 15 years old: replace it when a major part fails. A cracked heat exchanger is an automatic replacement — a safety issue, not a repair.
- Rising energy bills: if your heating bill has climbed 20% or more with no change in usage, the furnace is losing efficiency and replacement starts to pay for itself.
A typical furnace lasts 15 to 20 years. If yours is in that range and the repair quote is four figures, get a replacement quote first.
How to Keep the Cost Down
- Get three written quotes. Prices for the same furnace can differ by $1,000 or more between installers in the same city — and each quote should list the furnace model, AFUE rating, BTU size, and every extra.
- Buy off-season. If your furnace still limps along, schedule the replacement in spring or early autumn, when contractors offer discounts and start within days.
- Claim the tax credit. The federal energy-efficient home improvement credit covers 30% of a qualifying high-efficiency furnace, up to $600 — the credit applies to the unit, not the labour, so check the current rules before you buy.
- Check for utility rebates. Many gas and electric utilities offer $200 to $500 rebates for high-efficiency furnaces, and some offer free energy audits that find cheaper fixes first.
- Fix the ducts before the furnace. Sealing leaky ducts can cut heating costs by 10–20% and sometimes lets you buy a smaller, cheaper furnace.
- Do not pay in full upfront. A reasonable deposit is 10–30%; pay the balance only after the installation passes inspection and the system runs through a full heating cycle.
Frequently Asked Questions
How much does it cost to replace a furnace in 2026?
Most homeowners pay $2,500 to $7,500 installed, averaging around $4,700. A standard 80% AFUE gas furnace costs $2,500–$5,000 installed; a high-efficiency 95%+ AFUE model costs $4,000–$7,500.
How long does a furnace replacement take?
A straightforward swap takes one day — 4 to 8 hours with a two-person crew. Ductwork, venting, or electrical work adds another day.
Is a high-efficiency furnace worth the extra cost?
In a cold climate, yes: it costs $1,500–$2,500 more but saves $300–$500 a year on fuel, paying for itself in five to eight years. In a mild climate, the standard model is usually the better deal.
Can I replace a furnace myself?
No. Installation involves gas lines, electrical work, venting, and permits, and a bad install can cause carbon monoxide leaks or a fire. Most manufacturers void the warranty without a licensed professional install.
What is the cheapest month to replace a furnace?
Spring and early autumn, when demand is lowest. Emergency winter replacements typically cost 10–20% more, and you may wait days for a crew.
Prices checked Nov 3, 2026. Sources: HomeAdvisor and Angi furnace replacement cost guides; This Old House; HVAC manufacturer pricing (Carrier, Trane, Lennox); US Department of Energy energy-efficient home improvement credit. Difficulty assessment is based on a fresh Nov 3, 2026 SERP check only (top results: two small cost-calculator sites and a local HVAC firm; NerdWallet only at #4) and is not backlink-verified.