How much does a new furnace cost?
How much does a new furnace cost?
$3,500 – $7,500+ average cost installed
Furnace replacement cost
A new furnace costs $3,500 to $7,500+ installed on average for a standard-efficiency model, or up to $11,500 for a high-efficiency unit with professional installation. The total cost to replace a furnace depends on the home size, location, climate, furnace type, brand, model, features, and the complexity of the installation.
| Home size (square feet) | Average cost installed* |
|---|---|
| 1,000 – 1,500 | $2,000 – $4,500 |
| 1,500 – 2,500 | $3,000 – $6,500 |
| 2,500 – 3,500 | $4,000 – $9,500 |
| 3,500+ | $5,500 – $10,000+ |
*For standard installations
Average cost of a new furnace by fuel type
The fuel type you choose significantly impacts both initial furnace installation costs and long-term operating expenses. Your local climate, fuel availability, and existing home setup will help determine which option makes the most sense for your situation.
| Furnace type | Average unit price | Average cost installed |
|---|---|---|
| Electric furnace | $1,000 – $3,500 | $2,500 – $7,000+ |
| Gas furnace | $1,500 – $6,500 | $3,000 – $10,000+ |
| Oil furnace | $1,500 – $6,500 | $4,000 – $10,000+ |
| Propane furnace | $1,500 – $6,500 | $3,000 – $12,000+ |
| Pellet furnace | $2,500 – $12,000 | $4,000 – $17,000 |
Gas
Gas furnaces cost $3,000 to $10,000+ installed and remain the most popular heating system in the United States. These systems offer an excellent balance of upfront cost and operational efficiency. Operating costs are generally lower than electric options in most regions, though this depends on local natural gas prices.
If your home already has gas lines, installation costs stay reasonable. If you're converting from a different fuel type, gas line installation costs often add $500 to $2,000 or more to your total cost.
Oil
Oil furnaces cost more than gas units in most cases, typically ranging from $4,000 to $10,000+ with installation. Though less common than in previous decades, these systems remain popular in northeastern states where natural gas access may be limited.
These furnaces are effective in very cold climates, but they require regular maintenance and an on-site storage tank that needs periodic refilling.
Electric
Electric furnaces cost the least up front, ranging from $2,500 to $7,000+ installed. These systems are simple to install and maintain, with fewer moving parts than combustion-based systems. However, while the unit price is attractive, operating costs can be significantly higher in cold climates. Electric is best for milder climates or smaller spaces where heating demands aren't extreme.
Many homeowners in colder regions pair electric furnaces with heat pumps for improved efficiency.
Propane
Propane furnaces cost $3,000 to $12,000+ installed. These systems function similarly to natural gas furnaces but use propane stored in tanks on your property. The furnaces themselves are comparable in price to natural gas models, but installation may include setting up a propane tank and supply lines.
Propane is a good alternative for homes without access to natural gas lines. Operating costs typically exceed natural gas but remain lower than electric heating. However, you'll need to arrange regular propane deliveries to keep your tank filled during winter months.
Pellet
Pellet furnaces cost $4,000 to $17,000 installed. These systems burn compressed wood pellets or similar biomass fuels to provide heat. As an environmentally friendly option, pellet furnaces appeal to homeowners looking for renewable heating solutions. Modern systems offer automation features that feed pellets into a combustion chamber as needed.
You'll need space to store pellet bags and perform more frequent maintenance than with other systems. Operating costs vary based on local pellet prices, which can be competitive with other fuels in regions with strong biomass industries.
Furnace installation cost factors
The table below shows a typical breakdown of labor and material costs to replace a furnace.
| Factor | Average cost* |
|---|---|
| Furnace equipment & materials | $2,000 – $4,000+ |
| Installation labor | $1,500 – $3,500+ |
| Average total replacement cost | $3,500 – $7,500+ |
*For standard installations
Your exact price breakdown may vary, as several factors influence the cost:
New vs. replacement: First-time furnace installations generally cost more than replacements due to additional work establishing connections, ductwork, and proper ventilation. Replacement projects benefit from existing infrastructure.
Manufacturer: Brand reputation significantly impacts furnace pricing. Premium furnace brands like Carrier, Trane, and Lennox typically cost more than budget options but may offer better reliability, efficiency, and warranty coverage.
Previous furnace type: For replacements, switching between fuel types typically adds $500 to $2,000+ to your project cost. New fuel lines, electrical modifications, or ventilation changes increase complexity and materials requirements.
Accessibility: Installations in cramped crawlspaces, attics with poor access, or other difficult locations require more time and specialized techniques, potentially increasing costs by 25% to 50%.
Location & climate: Regional factors affect pricing through varying labor rates, shipping costs, fuel type availability, and climate-appropriate equipment recommendations. Colder climates often require higher-capacity systems, increasing costs.
Furnace type
The furnace type you select significantly impacts both purchase price and long-term operating costs. More advanced models offer better comfort and efficiency but at higher initial prices.
| Furnace type | Price range | Details |
|---|---|---|
| Single stage | $ |
|
| Two stage | $$ |
|
| Modulating | $$$ |
|
Efficiency
Furnace efficiency, measured by Annual Fuel Utilization Efficiency (AFUE), directly impacts both the purchase price and operating costs. High-efficiency furnaces cost more up front—ranging from $3,800 to $11,500+ with installation—but deliver lower utility bills throughout their lifespan.
Standard-efficiency furnaces have an 80% to 89% AFUE rating and represent the minimum efficiency for new installations in many regions.
High-efficiency models have a 90% to 98% AFUE rating and can reduce heating costs by 15% or more compared to standard models.
Homes in colder climates with high fuel prices benefit the most from premium high-efficiency furnaces.
Labor
The labor cost to install a furnace ranges from $75 to $150+ per hour, and most installations can be completed within a day. However, complex installations or those requiring multiple technicians will incur higher labor costs. Other factors that often add to the total labor cost include:
Removal / disposal fee: Expect to pay $50 to $200+ for proper removal and disposal of your old furnace. This fee covers labor, transportation, and disposal facility charges for handling potentially hazardous materials.
Permits & regulations: Local permits typically cost $50 to $300 depending on your location. This ensures your installation meets safety codes and environmental regulations.
Accessories and add-ons
Various add-ons can enhance your heating system's performance, comfort, and air quality. While these increase your initial investment, many provide valuable benefits.
Air filtration / cleaning: A whole-house air purifier costs $400 to $4,000 installed, depending on the filtration type and efficiency rating. These systems capture allergens, bacteria, and other contaminants, improving indoor air quality beyond what standard furnace filters provide.
Ductwork updates: Many professionals recommend duct inspection during furnace replacement, as leaky ducts can reduce system efficiency by up to 30%. Repairing minor leaks costs $200 to $700 on average.
Improving airflow through duct modifications costs $25 to $55 per linear foot. Better duct design can eliminate hot or cold spots and improve overall system efficiency.
Professional duct cleaning costs $450 to $1,000 and removes accumulated dust and allergens. This service is a common recommendation for older systems.
Humidifier: Adding a whole-home humidifier costs $400 to $1,200 installed. These maintain healthy moisture levels, preventing dry skin, static electricity, and wood furniture damage during heating season.
Thermostat: Smart thermostat installation costs $200 to $500 plus installation. Smart thermostats can reduce heating costs by 8% to 15% through intelligent scheduling and remote-control capabilities.
Rebates and incentives
Rebates, tax credits, and other incentives can significantly offset your furnace replacement costs. Taking advantage of these opportunities requires some research but can substantially reduce your net investment.
Federal home energy efficiency tax credits currently offer up to 30% of costs (up to $600) for high-efficiency gas, propane, or oil furnaces, with larger incentives for qualifying heat pump systems. These incentives are effective for furnaces installed through 2032.
Utility companies frequently provide rebates for energy-efficient furnace installations. These often require specific efficiency ratings and professional installation with proper documentation.
Manufacturers often offer rebates during promotional periods. These offers change seasonally, with the best deals often available between peak heating and cooling months.
Maintenance
Proper maintenance extends a furnace's lifespan, maintains efficiency, and keeps your home comfortable year-round. An annual furnace tune-up costs $70 to $200+ and helps prevent breakdowns while keeping your system operating at peak efficiency. Many manufacturers require this maintenance to maintain warranty coverage.
A comprehensive annual service plan costs $150 to $500 but typically includes furnace tune-ups, priority service, and discounted repairs. These plans provide peace of mind and predictable heating system expenses.
When to replace your furnace
Replace your furnace when the current unit is more than 15 years old and requires frequent fixing, or when repairs cost more than half the replacement cost.
Signs you may need to replace your furnace include:
Energy bills are increasing.
Rooms heat unevenly.
Fuel lines rust or system chamber cracks.
The thermostat malfunctions.
The furnace cycles on and off frequently or makes loud noises.
Dust or soot buildup appears.
Interior air smells like a gas leak.
The gas-furnace flame is yellow instead of blue.
What size furnace do I need?
Furnace sizes are measured in British Thermal Units (BTUs). Most homes require 30 to 60 BTUs per square foot, depending on the climate, insulation, and home design. A professional load calculation considers these factors plus the ceiling height, window efficiency, and other home-specific variables to determine the appropriate furnace size.
A professional HVAC evaluation costs $150 to $500 but some contractors may apply the cost as a credit toward installation. This investment helps avoid thousands in potential excess costs from improperly sized equipment.
| Home size (square feet) | BTU output needed* |
|---|---|
| 1,000 – 1,500 | 30,000 – 90,000 |
| 1,500 – 2,000 | 45,000 – 120,000 |
| 2,000 – 2,500 | 60,000 – 150,000 |
| 2,500 – 3,000 | 75,000 – 180,000 |
| 3,000 – 3,500 | 90,000 – 210,000 |
| 3,500 – 4,000 | 105,000 – 240,000 |
*Based on 30 to 60 BTUs of heating per square foot.
Furnace replacement FAQs
How long does a furnace last?
A furnace lasts 15 to 30 years with proper maintenance, depending on the fuel type, brand, model, and usage. Premium brands and higher-efficiency models often reach the upper end of this range due to better components and construction quality.
| Type | Lifespan (years) |
|---|---|
| Gas furnace | 15 – 25 |
| Oil furnace | 15 – 25 |
| Electric furnace | 20 – 30 |
| Propane furnace | 15 – 20 |
How long does it take to replace a furnace?
Standard furnace replacement takes 4 to 8 hours with a professional installation team. Complex installations that involve fuel type changes, significant ductwork modifications, or difficult access locations might require 1 to 2 full days.
Most reputable companies complete furnace installations within a single day to minimize your home's downtime. Planning replacement during spring or early fall typically provides quicker service and potentially better pricing than during peak winter season.
Does a heat pump replace a furnace?
Heat pumps can replace furnaces in many homes, particularly in moderate climates. These systems provide both heating and cooling, potentially eliminating the need for separate furnace and air conditioning units. In colder regions below 30°F, traditional heat pumps lose efficiency, though modern cold-climate models work in temperatures as low as -13°F.
Many homeowners in colder areas choose dual-fuel or hybrid systems combining a heat pump with a furnace backup.
Does home insurance cover furnace replacement?
Standard homeowners insurance typically covers furnace replacement only when damage results from covered perils like fire or natural disasters. Normal wear and tear or mechanical failure rarely qualify. Some premium policies offer equipment breakdown coverage as an optional add-on for mechanical or electrical failures.
Home warranty plans cost $420 to $720+ per year and often cover furnace repair or replacement but typically include service fees of $75 to $125 per call and may limit coverage to depreciated value. Review your specific policy details before assuming coverage exists.
Getting estimates from furnace installation companies
Reputable companies provide free, no-obligation estimates for replacement projects. Be wary of companies charging for basic quotations or pressuring you toward immediate decisions.
When researching furnace installation companies near you, be sure to:
Compare at least three estimates with similar details from experienced installers.
Choose HVAC professionals with certifications from:
American Society of Heating, Refrigeration, and Air-Conditioning Engineers (ASHRAE)
State-certified natural gas journeyman training programs in gas fittings
Select only licensed, insured, and bonded HVAC contractors.
Look for positive reviews on HomeGuide and Google.
Inquire about warranty coverage for both equipment and installation labor.
Ask for copies of plan diagrams, heating-load calculations, equipment orders, permits, warranties, and contracts.
Confirm the estimates include all aspects of installation, including equipment, labor, permits, and disposal.
Avoid extremely low bids, as this may indicate lack of experience or poor-quality work.
Don't make the final payment until the installation is complete and the system has been tested.
Questions to ask a furnace installer
Before signing a contract for your furnace installation, ask these important questions to ensure you choose a qualified, trustworthy professional:
Are you licensed, insured, and certified to install this specific brand and type of furnace?
What size furnace do you recommend for my home, and how did you determine this?
What efficiency rating do you recommend for my climate and usage patterns?
Will you obtain all the necessary permits for this installation?
How will you protect my home during installation?
What maintenance will this system require, and do you offer service plans?
What rebates or incentives apply to this installation, and will you help with documentation?
How long will the installation take, and when can you schedule the work?
What financing options do you offer?
Can you provide references from similar installations?
Using our proprietary cost database, in-depth research, and collaboration with industry experts, we deliver accurate, up-to-date pricing and insights you can trust, every time.