New Furnace Replacement Cost and Installation Cost 2024

How much does a new gas furnace cost?

About $5,800 installed, but there are many cost factors such as size and efficiency that affect the price, so the potential range is much broader. Full details are given below that will allow you to narrow your furnace price estimate before you get professional estimates.

Gas Furnace Cost

This Furnace Price and Replacement Cost Guide includes prices, cost factors to assist you in narrowing your potential cost and furnace prices by furnace efficiency, performance, brand and more. There’s a Buying Guide that will assist you in choosing the right furnace for your climate, home, energy-cost goals and indoor comfort preferences.

The cost of a furnace is $3,000 to $10,800 with most homeowners paying between $4,400 and $8,500 for an installed furnace.

Our furnace prices are sourced from homeowners who share what they paid for an installed furnace, furnace contractors, manufacturer data and the retail cost of furnaces advertised across the internet. In other words, they are accurate and reliable.

Two Truths: Prices are significantly higher in the last few years for various reasons we’re all familiar with – inflation and supply chain issues are among the biggest factors. Increased furnace efficiency and performance have also impacted cost.

Secondly, most estimates of gas furnace prices online are way low.

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Furnace Costs

The next sections are all about cost based on a specific cost factor. Below them, the cost factors are explained – along with your options for each and how they can affect your buying decision. Informed homeowners make customized decisions about their home’s heating and AC equipment!

Down the page, we give tips for using the Furnace Cost Tables below to narrow in on a price for your next furnace. From our experience, we can get you to within a few hundred dollars of the estimates you’re likely to receive.

Furnace Cost by Efficiency and Size

These are the two most significant factors in cost, and they’re easy to combine in a table.

Size: Residential gas furnaces range in size from about 40,000 to 120,000 BTUs – that’s how much heat they have the ability to create in an hour. There are a few smaller and a few larger furnace models, but 95% fall into this range.

Efficiency: Today’s gas furnaces range in efficiency from 80% to 99% – the latter being an amazing number! They are measured in AFUE, or annualized fuel utilization efficiency, which is a composite range of how efficient the furnace uses natural gas or propane for heating over the course of a heating season.

And it tells you how much of the heat the furnace creates is actually usable in your home.

An 80% AFUE furnace transfers 80% of the heat it creates into the ductwork of your home. The other 20% is vented out of the house along with gases like carbon monoxide and moisture vapor – combustion byproducts. That’s not very efficient. You can see that there is much less wasted heat with furnaces in the 90% to 99% AFUE range.

OK, you get the point. Here is the furnace cost by size and efficiency table. These costs are for installed furnaces because 95% of homeowners purchase a package of the furnace with installation rather than tackling DIY installation. Besides, you can’t buy most furnace brands – Trane, Carrier, Bryant, Rheem, Heil, etc. by themselves. Only a few cheaper brands like Goodman are sold separately for DIY installation. A few mid-quality Rheem furnaces can be found online too.

Furnace Size80% AFUE90%-94% AFUE95% & 96% AFUE97%-99% AFUE
40,000$3,000 - $4,900$3,550 - $5,800$4,150 - $6,900$5,150 - $8,200
60,000$3,300 - $5,250$4,290 - $6,375$4,700 - $7,485$5,600 - $8,775
80,000$3,650 - $5,600$4,650 - $7,050$5,100 - $8,075$6,150 - $9,250
100,000$4,100 - $6,400$5,075 - $7,600$5,650 - $8,400$6,525 - $9,900
120,000$4,400 - $7,500$5,300 - $8,425$6,025 - $9,200$7,950 - $10,800

As you can see, there are still broad price ranges in each column. The remaining cost factors will help you narrow your gas furnace price estimate based on performance and brand.

While the Table uses size increments of 20,000 BTUs, there are in-between sizes too such as 70,000 and 105,000 BTU furnaces.

Quick question: Why are there no furnaces between 81% and 89% efficient? The simple answer is that once you get above 80%, the exhaust of the furnace cools enough, since so much heat is transferred out of it, to allow the moisture vapor in it to condense into a liquid. That moisture contains carbonic acid, a very corrosive acid that would destroy the steel heat exchanger and flue of any furnace. Furnaces might last five years.

As a result, manufacturers “skip” that range of efficiency. Instead, they build gas furnaces with two heat exchangers, both made from corrosion-resistant stainless steel. These high-efficiency furnaces are called condensing furnaces because the two heat exchangers allow for the transfer of so much heat – up to 99% – that the vapor condenses into liquid. But the acidic moisture doesn’t harm the stainless steel heat exchangers. Instead, it is drained out of the furnace.

Furnace Cost by Performance

What is furnace performance? It’s a term that refers to heating stages: Single-stage, two-stage or variable capacity. A price chart follows, but here’s a brief explanation of furnace heating stages.

Single-stage: Also called 1-stage heating, these furnaces have a gas valve that opens fully whenever the furnace is running. In other words, it heats at 100% capacity when on. Single-stage gas furnaces are produced at 80% efficiency and 90% to about 96% or 97% depending on the brand. The advantage of a single-stage furnace is lower cost. The disadvantage is that these furnaces “blast” a little cool air at the start of the cycle pushing cool air out of the ducts. And some homeowners feel slight temperature swings with a furnace that runs 100% on, then off, 100% on, then off, and so forth.

Two-stage: Also called 2-stage heating, their gas valves open at low heat or high heat. Low heat is 65% to 70% of capacity, depending on the brand. High heat is 100%. They run on low heat when that’s enough heat to keep your thermostat satisfied, using high heat on really cold days or when you boost the thermostat by more than a couple degrees. Efficiencies are 80% and 90% to 97%. The advantage of two-stage heating is gentler, quieter heating and temperature in your home that is more balanced. Most have variable-speed blowers for added indoor comfort. The downside is that they cost $400 to $1,000 more than comparable single-stage furnaces from the same brand.

Variable capacity: Also called modulating furnaces, they have a gas valve that adjusts in increments of about 1% between 40% and 100% capacity. They run at the lowest capacity needed to meet the thermostat setting. As a result, efficiencies range from 96% to 99%. All have variable-speed fans. Advantages in addition to high efficiency are improved indoor climate control and very quiet operation. The downside is significantly higher cost.

AC Info Tip: If you have or plan to have air conditioning as part of your HVAC system and your climate is humid, it is worth considering staged heating and cooling with a variable-speed blower. Why? When the system runs on a lower capacity, cycles are longer and do a better job removing humidity from the air. You’ll feel more comfortable indoors. And here’s another benefit – when the air is drier, you can set the thermostat a few degrees higher and feel just as comfortable.

Performance80%90%-94%95% & 96%97% and Higher
Single-stage$3,000 - $5,900$4,150 - $6, 875$4,850 - $7,450N/A
Two-stage$3,850 - $7,500$4,900 - $8,475$5,765 - $9,750$6,650 - $9,600
Variable CapacityN/AN/AN/A$7,285 - $10,800

Keep in mind that these furnaces range in size from 40,000 BTUs to 120,000 BTUs and cover single-stage, two-stage and variable capacity furnaces. Again, tips below give you tools to specifically and accurately narrow your cost estimate.

Also, all variable capacity gas furnaces are at least 97% efficient.

Furnace Cost by Brand

Often one manufacturer makes several identical brands with identical pricing. When that is the case, the best-known brand is given and a note is made of it in the Table, starting with Armstrong Air, which is identical to other Allied Air brands Ducane, AirEase, Concord and Allied.

Other times, brands are identical, but pricing is different. Carrier and Bryant are a great example. We list those brands separately in the table, but a list of manufacturers and identical brands is included below.

There are other notes below that you might find interesting – and might save you a significant amount of money on your new furnace.

Here is the table.

Brand80% AFUE90%-94% AFUE95% & 96% AFUE97%-99% AFUE
Amana$3,400 - $5,500$4,275 - $6,895$5,225 - $8,150$6,835 - $9,150
American Standard$4,125 - $7,000$4,750 - $7,335$6,100 - $9,875$7,150 - $10,695
Armstrong Air,
Allied Air (1)
$3,775 - $6,825$4,500 - $7,215$5,750 - $8,900$6,925 - $9,950
Bryant$4,000 - $6,815$4,695 - $7,400$6,000 - $9,250$6,965 - $10,600
Carrier$4,085 - $6,995$4,650 - $7,800$6,095 - $9,940$7,050 - $10,995
Daikin$3,850 - $5,975$4,495 - $7,235$5,495 - $8,300$7,145 - $9,360
Goodman$3,000 - $4,965$3,945 - $5,750$4,850 - $6,675$6,650 - $8,250
ICP Brands (2)
$3,450 - $5,385$3,990 - $6,825$5,290 - $7,895$6,985 - $9,250
Lennox$4,115 - $7,225$4,480 - $8,075$6,150 - $9,675$7,085 - $10,700
Maytag / Broan
/ Frigidaire
$3,800 - $5,885$4,015 - $6,800$5,280 - $8,135$6,990 - $9,145
Payne$3,275 - $4,995$3,950 - $6,775$4,935 - $7,680N/A
Rheem / Ruud$3,465 - $5,025$3,995 - $6,425$4,950 - $6,745$6,200 - $8,450
Trane$4,200 - $7,100$5,175 - $8,395$6,235 - $9,950$7,175 - $10,800
Johnson Controls (3)
$3,685 - $5,300$4,050 - $6,295$5,100 - $6,650$6,235 - $8,785

(1): Armstrong Air is the best-known brand from manufacturer Allied Air, the parent company. Allied also makes Ducane, Aire-Flo, Air-Ease and Concord. Those brands are identical in all but name to Armstrong Air HVAC equipment. And the brands are not listed in the table because pricing is exactly the same, and space is limited. Lennox Corp. owns Allied Air, but the furnaces are slightly different in some components, so they are listed separately.

(2): Heil is the best-known brand from International Comfort Product, or ICP. Identical brands with the same pricing, which are not listed due to space, are Arcoaire, Day & Night, Comfortmaker, Keeprite and Tempstar. Not all brands are sold everywhere. Carrier Corporation owns ICP, but the ICP products are different, so they are listed separately.

(3): York is the best-known brand from Johnson Controls, the parent company of identical brands Coleman, Champion and Luxaire. All the Johnson Control brands are identical and have the same pricing.

Brand Knowledge: Did you know that there are other identical brands? We list them separately because pricing is slightly different. These include American Standard and Trane, Carrier and Bryant and Amana/Daikin/Goodman. Rheem and Ruud are identical with the same pricing.

Furnace Cost Factors Explained and Weighted

There are four major factors in gas furnace prices. Here’s a quick primer on their importance.

Size: All else being equal, larger furnaces cost more. No surprise here.

Efficiency: Same idea – the more efficient it is, the more it will cost. In a warm climate, you should weigh the higher cost of a 90% or higher furnace with an 80% ff and determine how much it might save you each month. If the more efficient furnace costs $1,000 more and might save you $75 over the course of the winter, then it probably isn’t worth it. The higher cost of a 90% or higher furnace is mainly the result of it having two heat exchangers, not one. The second heat exchanger, where additional heat is transferred out of exhaust gases, is what raises efficiency to those levels. The highest efficiency furnaces also have modulating gas valves, and they raise cost over single-stage and 2-stage valves.

Performance: Furnaces with 2-stage and variable-capacity heating cost more because of the gas valves, variable-speed blowers and, in some cases, the need for a costly thermostat replacement.

Brand: Brand quality certainly affects price, but in reality, most brands today offer quality in the good to very good range. Even Goodman, since it was bought by Daikin in 2012, has been upgraded in quality. However, that’s not the total story.

As noted, Carrier Corp. owns ICP. The brands are almost identical – some installers claim they are completely identical. There are some variations, but in short, Heil and other ICP furnaces are similar enough to Carrier and Bryant furnaces that the difference doesn’t merit distinction.

ICP brands cost less! When you get gas furnace price estimates for a Carrier and a Day & Night, for example, you’ll see that the Carrier furnace is 25% to 50% more. Why? Because Carrier Corp. is marketing ICP furnaces to all homeowners, but especially to those who say, “I’ll never buy a Carrier (or Bryant) because they’re too expensive.” So, the dealer can offer an ICP brand at a lower cost and still make a profit. So, there’s a buying tip – get estimates on more than one brand or series of brands. We definitely recommend getting estimates for ICP brands available where you live. While we don’t have any relationship with any brand, it’s obvious to observers that ICP brands offer some of the best value of any.

Furnace Installation Cost and Extras

Furnace installation cost for labor, parts and supplies runs from about $1,500 to $3,000. An average cost is around $2,400. This includes removing the old furnace, if necessary, setting the new furnace, hooking up gas and electrical, making modifications to the ductwork to fit the new furnace, venting it and finally testing the furnace.

Note: All pricing in the tables above includes installation labor charges.

Tips for Using the Furnace Cost Tables Above for an Accurate Estimate

There are wide price ranges in the Furnace Price Tables above. So, here are tips for narrowing down your cost estimate.

1 – Size: If you are replacing a furnace, it’s OK to start with the size of that furnace to determine the size of the new furnace. However, it is highly recommended that the furnace contractor does a load calculation to properly size the new furnace. The old one might be too big – many furnaces 20+ years old are too large. That’s just how it was done – bigger was better – but that’s not the best practice. You need to know what size you need to use the Tables.

2 – Efficiency: Find where your furnace size overlaps with the AFUE range you want. Now you’ve narrowed your cost. For example, if you know you need an 80,000 BTU furnace, the range for installed furnace cost is $3,000 to $7,500 – hardly helpful, it is so broad. But if you need an 80% efficient 80K BTU furnace, then the range narrows to $3,650 to $5,600.

3 – Performance and Brand: As you review those Tables, it’s clear that single-stage furnaces cost less than 2-stage models (there are no variable-capacity furnaces in the 80% niche). So, single-stage models are priced in the lower end of the range; 2-stage models have a cost in the upper part of the range.

And when you know the general cost of the brands you’re considering, factor that as well. A furnace from a cheaper brand like Goodman or Rheem that is single stage will be at the lowest part of the range. A 2-stage furnace from a costly brand like Lennox or Trane will be at the high end. In the middle of the range, you’ll find single-stage models from costly brands and 2-stage units from cheaper brands.

Furnace Pricing Examples: Goodman vs Carrier

Let’s choose 90%-94% furnaces and see how this plays out.

All 90% to 94% furnaces: $3,550 to $8,425

Goodman 1-stage 90% furnace: $3,550 – $3,900

Goodman 1-stage 94% furnace: $4,075 – $4,650

Goodman 2-stage 90% furnace: $4,450 – $4,800

Goodman 2-stage 94% furnace: $4,695 – $5,425

Carrier 1-stage 90% furnace: $5,285 – $5,880

Carrier 1-stage 94% furnace: $5,735 – $6,350

Carrier 2-stage 90% furnace: $6,925 – $7,850

Carrier 2-stage 94% furnace: $7,750 – $8,300

Buying Guide: Choosing a Great Furnace for Your Home

Informed buyers make decisions they are happy with immediately – but also 10 to 15 years later when the furnace has performed as they expected in terms of indoor comfort, heating bills and durability.

Climate and Furnace Efficiency

This is simple. The colder it is where you live, the more it makes sense to buy an efficient furnace. The higher cost will be returned in 3-10 years, depending on the actual furnaces you compare, through lower energy bills. The exception might be choosing a super-efficient variable-capacity (modulating) furnace. They are very expensive, and you might never recoup the extra cost.

In a warm climate, buying a 90% or higher furnace also might not pay you back in a reasonable number of years.

That’s why it makes sense to request free written estimates from several contractors in your area. Get their advice and compare their costs for furnaces at various efficiency levels. Ask the furnace contractor about “payback time” for the more efficient furnaces.

Efficiency Affects the Furnace Size You Need

Let’s say a contractor does a Manual J load calculation and determines your home needs 90,000 BTUs of heat output to remain comfortable.

So, you need a 90,000 BTU furnace, right? That’s what we would think, but “output” and “input” are different.

Input: As you browse furnaces online at manufacturer sites, the furnaces are listed by BTU input – how many BTUs of heat they create per hour.

Output: Input x Efficiency. It’s the amount of heat that is usable – the heat transferred through the heat exchangers into the ductwork.

And then do the math.

110,000 BTU x 80% = 88,000 BTUs, which would likely be fine if 90,000 were “ideal.”

100,000 BTU x 90% = 90,000 BTUs, a “perfect” fit.

90,000 BTUs x 98% = 88,200 BTUs, also “good enough.”

100,000 BTUs x 80% = 80,000 BTUs, and that wouldn’t be sufficient for a 90,000 BTU load calculation.

90,000 BTUs x 90% = 81,000 BTUs, also not enough.

Indoor Comfort – What’s your Preference?

Here’s a quick overview of the comfort differences created by the three levels of furnace performance. There are more details above under Furnace Cost by Performance.

Single-stage furnaces: Run at 100% all the time and usually have fixed-speed blowers. They cost less, but you might feel cool air coming from the vents at the start and end of the cycle. The furnace might produce temperature swings of a few degrees. Also, if you have AC as part of the system, it won’t dehumidify the air as well.

Two-stage furnaces: Most have multi-speed or variable speed blowers that cut down on cool blasts. Running on low (low fire) most of the time produces quieter operation, less temperature fluctuation and better dehumidification with air conditioning than a single-stage unit.

Variable-capacity / Modulating: The higher cost brings with it the best efficiency, quietest operation and most precise temperatures. These units also maximize dehumidification when supporting central air conditioning.

Written by

Rene has worked 10 years in the HVAC field and now is the Senior Comfort Specialist for PICKHVAC. He holds an HVAC associate degree and EPA & R-410A Certifications.

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