How Much Does Furnace Replacement Cost?
Last updated: March 18, 2026 by the How Much Does That Cost? editorial team. Estimates are informational - see our methodology.
A new furnace typically costs between $2,500 and $7,100 installed, with most homeowners paying around $4,600 for a mid-efficiency gas furnace sized for an average home. Fuel type, efficiency rating, and the size of furnace your home needs are the biggest drivers of price.
Standard 80% AFUE gas furnaces sit at the lower end, while high-efficiency 95%+ AFUE models and larger-capacity units for big homes push the total higher. Electric furnaces cost less to install but more to run in most climates.
Quick Answer
Typical range: $2,500 – $7,100
Low end
$2,000
High end
$10,000+
Actual pricing varies by location, project size, materials, labor rates, and job complexity. Use the calculator below for an estimate tailored to your project.
Furnace Replacement Cost Calculator
Adjust the inputs below for an estimate tailored to your project.
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Estimated Project Cost
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Typical estimate: —
This is an estimate, not a quote. Actual pricing depends on your specific project details and local contractor pricing.
Cost Breakdown
How a typical project budget breaks down by category.
| Category | Estimated Cost |
|---|---|
| Furnace unit | $1,200 – $4,000 |
| Labor & installation | $1,000 – $2,200 |
| Ductwork adjustments & venting | $200 – $600 |
| Permit & inspection | $100 – $300 |
What Affects the Cost
Fuel type
Gas furnaces cost more to install than electric furnaces but generally cost less to operate in most parts of the country. Propane furnaces are similar in price to gas but fuel costs vary more.
AFUE efficiency rating
Standard 80% AFUE furnaces are the most affordable to install. High-efficiency 95%+ AFUE models cost more upfront due to additional venting requirements but can lower heating bills by 15% or more.
Home size and BTU output needed
Larger homes need a higher-capacity furnace, which costs more both in equipment and in labor to size ductwork correctly. An undersized or oversized furnace wastes money either way.
Ductwork condition
Leaky, undersized, or poorly laid-out ductwork often needs modification during a furnace swap, which adds labor and material cost beyond the unit itself.
Existing system removal and venting changes
Switching between fuel types or efficiency tiers can require new venting (PVC intake/exhaust for high-efficiency units) or a new gas line, adding to the installation cost.
Local labor rates and permits
HVAC labor costs and permit fees vary significantly by region, and some municipalities require a mechanical permit and inspection for any furnace swap.
Cost by Home Size / Furnace Capacity
| Home Size / Furnace Capacity | Typical Cost |
|---|---|
| Small home, under 1,500 sq ft (40,000-60,000 BTU) | $2,200 – $5,000 |
| Medium home, 1,500-2,500 sq ft (80,000-100,000 BTU) | $2,800 – $6,500 |
| Large home, 2,500-3,500 sq ft (100,000-120,000 BTU) | $3,500 – $8,000 |
| Extra-large home, 3,500+ sq ft (120,000+ BTU) | $4,500 – $9,500 |
| High-efficiency upgrade (95%+ AFUE, any size) | $5,500 – $11,000 |
DIY vs. Hiring a Professional
Doing it yourself
Replacing a furnace involves gas line connections, flue venting, and 240V electrical work, so it is not a legal or safe DIY project in almost any jurisdiction without a licensed HVAC technician pulling a permit.
Hiring a professional
A licensed HVAC contractor sizes the furnace correctly using a load calculation, handles gas/electrical hookups to code, and typically completes installation in a single day, often with a labor warranty on top of the manufacturer parts warranty.
Bottom line: Always hire a licensed HVAC contractor for furnace replacement — the combination of combustion gases, gas lines, and electrical work makes this one of the riskiest systems in a home to DIY.
Ways to Save
- Check for the federal Energy Efficient Home Improvement Credit, which can cover up to $600 of a qualifying high-efficiency furnace.
- Ask your gas or electric utility about rebates for high-AFUE furnace upgrades — many offer $150-$500 rebates.
- Schedule replacement in the shoulder seasons (late spring or early fall) when HVAC companies have more availability and lower demand pricing.
- Get at least 3 quotes from licensed HVAC contractors, since equipment markup and labor rates vary widely between companies.
- Keep your existing ductwork if it is in good condition and correctly sized rather than paying to reconfigure it.
- Choose a mid-tier efficiency furnace (90-93% AFUE) if you do not need the maximum efficiency tier — it captures most of the savings at a lower equipment cost.
How We Estimated This Cost
We model each calculator from public price ranges, labor data, material pricing, industry surveys, and the regional adjustment method explained in our methodology. Estimates are reviewed for consumer usefulness, then shown as ranges because local quotes, site conditions, materials, and timing can change the final price.
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Frequently Asked Questions
How much does furnace replacement cost on average?
The average furnace replacement costs about $4,600, with most homeowners paying between $2,500 and $7,100 depending on fuel type, efficiency rating, and home size.
How long does it take to replace a furnace?
Most furnace replacements take 4-8 hours and are completed in a single day, though jobs that require ductwork changes or new venting can take longer.
Is a high-efficiency furnace worth the extra cost?
For homes in colder climates with high heating usage, a 95%+ AFUE furnace often pays back its higher upfront cost through lower gas bills within 5-10 years, and may qualify for tax credits or rebates.
How often does a furnace need to be replaced?
Most furnaces last 15-20 years. If your furnace is over 15 years old and needs a major repair, replacement is usually the more cost-effective choice.
Do I need a permit to replace a furnace?
Most municipalities require a mechanical permit and inspection for furnace replacement, especially when fuel type or venting changes. Your HVAC contractor typically handles this for you.