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About furnace replacement costs
The ranges below are typical across the US. Your actual cost depends on the options you choose, where you live, and the contractor you hire. Enter your details in the calculator above for a closer estimate, then get written quotes from at least two licensed HVAC contractors before committing.
Average furnace replacement cost
| Scenario | Typical range (US) |
| Gas furnace (installed) | $3,000 - $6,000 |
| High-efficiency gas | $4,500 - $8,000 |
| Electric furnace | $2,000 - $4,500 |
| Oil furnace | $4,000 - $7,500 |
| With ductwork changes | $5,000 - $10,000 |
What affects furnace replacement cost
- Fuel type. Gas is the most common choice; oil and electric vary significantly in operating cost.
- Efficiency rating. Higher AFUE furnaces cost more upfront and save on energy bills over time.
- Furnace size. Larger homes need higher-BTU units, which cost more.
- Ductwork. New or modified ducts add meaningful labor and material cost.
- Labor and permits. Licensed HVAC installation and required permits are part of every total.
- Location. Regional contractor rates and climate zone both affect the final number.
Frequently asked questions
How much does a new furnace cost?
Installed, a mid-range gas furnace typically runs $3,000 to $6,000. High-efficiency models or jobs that include ductwork changes cost more.
Is a high-efficiency furnace worth it?
In cold climates, the annual gas savings and available rebates typically recover the higher upfront cost within four to eight years.
How long does a furnace last?
Most gas furnaces reach 15 to 20 years with regular maintenance. Electric furnaces often last longer.
What size furnace do I need?
Sizing depends on square footage, climate zone, and insulation level. A licensed HVAC contractor runs a Manual J load calculation to get it right.
Should I replace the AC at the same time?
If your AC is also aging, replacing both at once saves $1,000 to $2,500 in combined labor and lets the contractor properly size and match the systems.
How much does a new furnace cost for a 2000 square-foot house?
For a 2,000-square-foot home, a new furnace typically costs $2,500 to $5,500 installed, covering equipment and labor. The price varies by efficiency rating, brand, fuel type, local labor rates, and whether ductwork modifications are required. A 96% AFUE model costs more upfront but cuts monthly gas bills by 15 to 25 percent compared to an 80% unit. Two or three quotes from licensed HVAC contractors will give you a reliable price range for your specific home.
Is it worth replacing a 30 year old furnace?
Yes. A 30-year-old furnace is 10 to 15 years past its expected lifespan and almost certainly running at 60 to 70% AFUE or worse. Upgrading to a modern high-efficiency model cuts gas consumption by 30 to 40 percent, removes the reliability risk of a system overdue for failure, and eliminates the carbon monoxide exposure risk from an aging heat exchanger. The energy savings alone recover a meaningful share of the replacement cost within 8 to 10 years.
How much should labor cost to install a furnace?
Labor to install a furnace typically runs $800 to $2,000 in 2026, depending on your region, installation complexity, and whether ductwork or venting modifications are required. A straight swap of an existing forced-air system sits at the lower end; new gas lines, venting upgrades, or electrical work push it higher. Always ask for an itemized quote with parts and labor broken out separately. Comparing bids from licensed HVAC contractors is the most reliable way to confirm you are paying a fair rate.
What is the life expectancy of a furnace?
Most gas furnaces last 15 to 20 years with regular maintenance; well-maintained premium units sometimes reach 25. Annual tune-ups and filter changes make the biggest difference. Once a furnace passes 18 to 20 years, the risk of costly breakdowns and efficiency decline increases noticeably. If yours is approaching that range, start budgeting for replacement and get an assessment from a licensed HVAC technician before the furnace makes the decision for you.
In-depth furnace replacement guides
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Furnace pricing varies more than most people expect. A couple of local HVAC quotes will tell you exactly where yours lands.
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