How Much Does It Cost to Replace a Furnace?
A new furnace costs about $4,800 installed in 2026, with most between $2,800 and $6,900. Electric $2,000–$7,000; gas $3,800–$10,000. What moves the number.
What a gas furnace costs at each tier
Representative types, not specific listings. Installed prices; the unit alone is cheaper.
A new furnace costs about $4,800 installed in 2026, and most homeowners pay between $2,800 and $6,900 (NerdWallet; Bob Vila puts the average at $4,743). An electric furnace runs $2,000 to $7,000; a gas furnace $3,800 to $10,000. Efficiency, the fuel, and whether the ductwork is reusable are what move the number.
This is for a homeowner replacing a furnace that is failing or near the end of its life. If yours has just stopped and you are deciding whether to fix it, start with repair or replace a furnace.
How much does it cost to replace a furnace?
$3,800 to $10,000 for gas, $2,000 to $7,000 for electric, installed. The fuel and the efficiency set the range:
| Type | Installed cost (2026) | Notes |
|---|---|---|
| Electric furnace | $2,000–$7,000 | Cheapest to buy and install; expensive to run outside the mildest climates |
| Gas, 80% AFUE single-stage | $3,000–$5,500 | The budget option; wastes ~20% of the fuel as exhaust |
| Gas, 90–96% AFUE two-stage | $4,500–$7,500 | The value pick in a cold climate; needs a PVC vent and a drain |
| Gas, 96–98% modulating | $6,500–$10,000 | Quietest, most even heat; for larger or zoned homes |
| Oil furnace | $6,750–$10,000 | Fewer installers, pricier units |
What does the furnace itself cost?
$700 to $6,200 for the unit alone, before installation, depending on fuel and efficiency. By home size, NerdWallet puts the unit at:
| Home | Furnace unit only |
|---|---|
| 1,000 sq ft | $1,200–$2,000 |
| 2,000 sq ft | $2,400–$4,000 |
| 3,000 sq ft | $3,600–$6,000 |
An 80% AFUE unit is roughly $700 to $1,800; a 96%+ condensing unit is $2,800 to $6,200. The rest of the installed price is labor plus a permit and, on a fuel change, new venting.
What does installation cost?
Labor runs $75 to $100 an hour and a furnace install takes 4 to 8 hours (Bob Vila) — so figure $1,500 to $3,000 in labor and materials beyond the unit for a straightforward swap. What pushes it higher:
| Add-on | Cost | When you need it |
|---|---|---|
| New or repaired ductwork | $2,000–$5,000 | Leaky, undersized, or asbestos-wrapped ducts |
| Permit and inspection | $400–$1,500 | Required almost everywhere for a furnace |
| Old furnace removal | $60–$330 | Some installers include it — ask |
| Gas line addition or upsize | $500–$2,000 | Converting from electric or oil, or an undersized line |
| New PVC venting + condensate drain | $500–$1,500 | Going from an 80% to a 90%+ condensing furnace |
| Chimney liner | $600–$2,500 | Keeping an 80% furnace on a shared masonry chimney |
Add it up and a "$4,000 furnace" can land near $7,000 once a permit, some duct repair, and condensing venting are in.
Gas or electric: which costs less?
Electric costs less to install — $2,000 to $7,000 versus $3,800 to $10,000 for gas — because there is no gas line, no flue, and no combustion safety work. But an electric furnace costs two to three times as much to run in most of the country, because it converts electricity to heat one-for-one while a gas furnace delivers 80–98 cents of heat per fuel dollar. Electric makes sense where winters are mild, gas is not available, or the home has solar. Everywhere with a real winter, gas is cheaper over the furnace's life even though it costs more to fit.
High-efficiency (96%+ AFUE): is it worth it?
In a cold climate, usually. A condensing furnace pulls a second round of heat out of the exhaust, so 96 cents of every fuel dollar reaches the house instead of 80. It costs about 30% more up front — roughly $1,500 on a mid-size unit — and the U.S. Department of Energy puts the fuel saving at $200 to $400 a year where the furnace runs five or six months. That is a four-to-seven-year payback in the north, and rarely a payback at all in the south before the furnace wears out. One thing forcing the decision: the DOE minimum AFUE for new gas furnaces rises to 95% for models built from late 2028, so 80% units are on the way out regardless.
Should you replace the AC at the same time?
If the AC is also past about 12 years, yes. The furnace blower and the AC's indoor coil share one cabinet, and a modern variable-speed blower is designed to pair with a modern coil. Doing both in one visit saves $1,000 or more in labor versus two trips, and you avoid a mismatched system that runs neither piece at its rated efficiency. Adding the AC is $4,000 to $8,000 on top of the furnace (Bob Vila).
How to keep the cost down
- Replace before it dies. A furnace that fails in a January cold snap is an emergency call at a premium, with no time to compare quotes. If yours is 15+, check its age and plan the job for the shoulder season.
- Get three quotes. Furnace install pricing varies more between contractors than almost any other home job — the spread on the same equipment can be $2,000.
- Match the efficiency to the climate, not the sales pitch. A 96% furnace in a mild climate is money you will not get back.
- Ask what the quote includes — permit, old-unit haul-away, a new thermostat, and a duct inspection are line items some installers leave out to look cheaper.
- Check for rebates. Gas utilities and some states still offer $200 to $1,000 toward a high-efficiency furnace even though the federal 25C tax credit ended for 2026 installs.
Frequently Asked Questions
How much does it cost to replace a furnace?
About $4,800 on average in 2026, with most homeowners paying between $2,800 and $6,900 (NerdWallet). An electric furnace runs $2,000 to $7,000 installed; a gas furnace $3,800 to $10,000. Efficiency and whether the ductwork needs work are the biggest swings.
How much does a new furnace cost for a 2,000-square-foot house?
The furnace unit for a 2,000 sq ft home runs $2,400 to $4,000 (NerdWallet), and installed you are looking at roughly $4,000 to $7,000 for a mid-efficiency gas unit — more for a high-efficiency model, less for a straightforward electric one.
Is it worth replacing a 30-year-old furnace?
Yes. A furnace lasts 15 to 20 years, so a 30-year-old unit is well past its life, running at maybe 60–70% efficiency, and one cracked-heat-exchanger diagnosis away from a mandatory replacement anyway. Replacing it on your schedule — before it fails in January — is cheaper and safer than waiting.
How much does Lowe’s or Home Depot charge to install a furnace?
Both use local subcontractors and price the job after an in-home estimate, so the number lands in the same $3,800 to $8,000 range as an independent HVAC contractor. Get two or three quotes regardless of who you call — furnace install pricing varies more between installers than almost any other home job.
Does a high-efficiency furnace pay for itself?
In a cold climate, usually. A 96%+ AFUE furnace costs about 30% more up front — roughly $1,500 on a mid-size unit — and the DOE estimates it saves $200 to $400 a year on fuel, so the payback is four to seven years where the furnace runs five or six months. In a mild climate it rarely pays back before the furnace wears out.
Should I replace the air conditioner at the same time?
If the AC is also 12+ years old, yes — the two share the blower and the coil cabinet, so doing them together saves $1,000 or more in labor versus two separate visits, and a modern furnace blower is matched to a modern AC coil. Adding the AC runs $4,000 to $8,000 on top of the furnace (Bob Vila).
Sources
- NerdWallet — Cost to Replace a Furnace: Is It Worth It? — national average $4,800 (range $2,823–$6,888); by fuel installed — electric $2,000–$7,000, natural gas $3,800–$10,000, oil $6,750–$10,000, propane $3,700–$14,200; unit by home size (2,000 sq ft $2,400–$4,000); ductwork $2,000–$5,000; removal $60–$330; permits $400–$1,500
- Bob Vila — New Furnace Cost — national average $4,743 (range $2,818–$6,822); labor $75–$100/hr; gas line addition $500–$2,000; AC installed at the same time $4,000–$8,000
- U.S. Department of Energy — Furnaces and Boilers / furnace efficiency standards — condensing (90%+ AFUE) furnaces capture flue heat via a second heat exchanger; new gas furnace AFUE minimum rises to 95% for models made from late 2028; ENERGY STAR furnaces are all condensing