Home Furnace Replacement Cost Calculator
Furnace Replacement Cost Calculator
Estimate what a new furnace really costs installed — equipment, labor, venting and materials, and permits — based on fuel type, size, efficiency tier, and how complex your installation is.
2026 national average pricing. Planning-grade estimate — actual quotes vary by market.
Quick reference — installed gas furnace replacement cost
1,000 sq ft: ~$3,600–$7,000 · 1,500 sq ft: ~$3,700–$7,200 · 2,000 sq ft: ~$3,800–$7,450 · 2,500 sq ft: ~$3,950–$7,750
Assumes an 80% AFUE gas furnace, average labor market, and a moderate-complexity replacement — the same defaults as the calculator. High-efficiency (95%+) adds roughly $1,000–$2,500. Use the calculator below for a range matched to your home and your install.
Ready for real numbers?
On this page: Calculator · What drives the price · Cost tables · Repair or replace? · Ways to save · Related calculators · FAQ
Not sure what size furnace you need? Size it first with the furnace size calculator, then come back to price it.
Estimate your installed furnace cost
Fuel type sets the equipment price baseline.
Printed on the old furnace’s rating plate. For proper sizing, use the furnace size calculator.
For electric furnaces, tiers mainly reflect blower and staging features.
New venting, duct changes, or fuel conversions raise labor costs.
Labor rates in big metros run 20–30% above the national average.
Optional add-ons (priced installed)
Prices are 2026 U.S. national-average ranges for professional installation. The only way to know your real number is to compare quotes from local contractors — three quotes is the sweet spot.
What actually drives furnace replacement cost
Two homeowners with the same house can get quotes thousands of dollars apart. Almost all of that spread comes from four factors:
- Install complexity. A like-for-like swap — same fuel, same location, existing venting reused — is the cheapest job a contractor can quote. Adding new PVC venting for a first-time high-efficiency install, modifying the plenum or ductwork, or converting fuels can add $1,000–$3,500 in labor and materials.
- Efficiency tier. An 80% AFUE furnace is the budget baseline. Condensing models (90–96% AFUE) cost more upfront and need sealed combustion venting and a condensate drain. Premium modulating furnaces with variable-speed blowers sit at the top of the price range but deliver the best comfort and the quietest operation.
- Local labor rates. The same installation is priced very differently in a major metro versus a rural market. Labor is typically the largest single line on the quote, so a 25% labor premium moves the total more than any equipment upgrade.
- Furnace size. Bigger furnaces cost more, but size is the factor homeowners most often get wrong in the other direction — paying for capacity they don’t need. Confirm the right size with the furnace size calculator before accepting a quote for a larger unit.
Fuel type matters too: oil furnaces are the most expensive to buy and install, electric furnaces the least — though electric models usually cost more to run. Compare operating costs with the energy cost calculator.
Furnace replacement cost by home size
Installed price ranges for a gas furnace replacement, assuming an average labor market and a moderate-complexity job (no fuel conversion or relocation) — the same defaults as the calculator above.
| Home size | Typical furnace | 80% AFUE installed | 95%+ AFUE installed |
|---|---|---|---|
| 1,000 sq ft | 40–60k BTU | $3,600–$7,000 | $4,600–$9,050 |
| 1,500 sq ft | 60–80k BTU | $3,700–$7,200 | $4,750–$9,400 |
| 2,000 sq ft | 80–100k BTU | $3,800–$7,450 | $4,950–$9,800 |
| 2,500 sq ft | 100–120k BTU | $3,950–$7,750 | $5,200–$10,300 |
| 3,000 sq ft | 120–140k BTU | $4,100–$8,050 | $5,450–$10,750 |
Furnace replacement cost by fuel type
| Fuel type | Typical installed cost | Notes |
|---|---|---|
| Natural gas | $4,000–$8,000 | Most common; widest equipment selection |
| Propane | $4,200–$8,400 | Similar equipment to gas plus conversion parts |
| Oil | $5,500–$10,000 | Highest equipment cost; fewer installers |
| Electric | $2,500–$5,000 | Cheapest to install; highest operating cost |
Ranges assume professional installation, permit, and disposal of the old unit. Use the calculator above to adjust for your efficiency tier, install complexity, and labor market.
Repair or replace? The $5,000 rule
Before pricing a new furnace, sanity-check whether you need one. A widely used rule of thumb: multiply the repair quote by the furnace’s age in years. If the result is over $5,000, replacement is usually the better investment. A $600 repair on a 12-year-old furnace scores $7,200 — replace. The same repair on a 6-year-old unit scores $3,600 — repair.
Lean toward replacement regardless of the math when the furnace is over 15 years old, has a cracked heat exchanger (a safety issue, not a repair candidate), or has needed multiple repairs in the last two years. Lean toward repair when the furnace is under 10 years old and the fix is a common wear item like an igniter, flame sensor, or blower capacitor.
5 ways to pay less for the same furnace
1. Get at least three quotes
This is the highest-leverage move available. Spreads of 30–50% between quotes for the same job are routine, and contractors sharpen their pencils when they know you’re comparing. Request free quotes from local pros and compare line by line.
2. Replace in the off-season
Installers are slammed during the first cold snap and price accordingly. Late spring through early fall usually brings better availability, more negotiating room, and occasional off-season promotions.
3. Don’t pay for capacity you don’t need
Oversized furnaces cost more upfront, short-cycle, and wear out faster. Verify the size with the furnace size calculator before agreeing to a bigger unit — especially if you’ve air-sealed or insulated since the old furnace went in.
4. Claim rebates and tax credits
High-efficiency models may qualify for federal tax credits and utility rebates that meaningfully narrow the price gap versus an 80% AFUE unit. Ask each bidder to itemize the rebates they’ll handle for you.
5. Protect the investment from day one
A furnace running with a clogged filter works harder and fails sooner. Stock up on replacement air filters (size yours with the air filter calculator), and pair the new furnace with a smart thermostat — scheduled setbacks typically trim heating bills 10–15%. If you add a whole-house humidifier, humidifier filters/pads need replacing 1–2 times per heating season.
Frequently asked questions
How much does it cost to replace a furnace?
Most homeowners pay between $4,000 and $8,000 to replace a gas furnace, installed. High-efficiency (95%+ AFUE) models typically run $5,500 to $10,500 installed, oil furnaces cost more, and electric furnaces usually cost less. Your final price depends on furnace size, efficiency tier, install complexity, and local labor rates — use the calculator above for a range matched to your home.
Why do furnace installation quotes vary so much?
Quotes for the same job can differ by thousands of dollars because contractors price labor, overhead, and equipment brands differently. Install complexity matters too: a like-for-like swap is far cheaper than a job that needs new venting, duct modifications, or a fuel conversion. Getting three or more quotes is the single most reliable way to avoid overpaying.
Is a high-efficiency furnace worth the extra cost?
A 95%+ AFUE condensing furnace costs roughly $1,000–$2,500 more installed than an 80% AFUE model but wastes far less fuel. In cold climates with long heating seasons, the fuel savings often repay the difference well within the furnace’s lifespan, and high-efficiency models may also qualify for federal tax credits and utility rebates. In mild climates with short heating seasons, the payback takes longer.
How much of the replacement cost is labor versus equipment?
For a typical gas furnace replacement, the equipment itself is usually 30–45% of the total, with the rest going to labor, venting and materials, old-unit disposal, and permits. That is why install complexity and local labor rates move your final price more than the brand of furnace you choose.
Does the price include removing the old furnace?
Usually, yes — most professional quotes include disconnecting, removing, and disposing of the old unit, and this calculator’s materials line accounts for it. Always confirm it in writing, along with the permit fee, so nothing shows up as a surprise line item later.
Should I repair my furnace or replace it?
A common rule of thumb: multiply the repair quote by the furnace’s age in years — if the result is over $5,000, replacement is usually the better investment. Furnaces older than 15 years, units with cracked heat exchangers, and systems needing repeated repairs are strong candidates for replacement rather than another fix.