Searching “how much is a new furnace” usually means a replacement is on the horizon. This guide explains what a new furnace costs in the U.S., why prices vary, and how to lower the bill with rebates and smart choices. It covers gas, electric, and oil systems; installation factors; operating costs; and tips for getting accurate quotes. Use it to compare options and budget confidently before hiring a contractor.
Average New Furnace Cost In The U.S.
Most homeowners spend $3,500 to $11,000 installed for a new furnace, depending on fuel type, efficiency, size, and home modifications. Simple like-for-like replacements in accessible spaces land on the low end. High-efficiency upgrades, new venting, or duct changes push costs higher.
When asking “how much does a new furnace cost,” consider the total project, not just the box. Equipment is often 40%–60% of the bill; labor, permits, and upgrades make up the rest.
Price Ranges By Fuel Type
| Fuel Type | Typical AFUE | Equipment Cost | Installed Cost | Notes |
|---|---|---|---|---|
| Natural Gas (80%–90%) | 80%–90% | $1,200–$3,000 | $3,500–$7,500 | Non-condensing; uses metal flue; common in milder regions. |
| High-Efficiency Gas | 95%–98% | $2,400–$5,500 | $5,500–$11,000 | Condensing; PVC vent and condensate drain required. |
| Propane | 95%–98% typical | $2,400–$5,500 | $6,000–$12,000 | Similar to gas; tank and line can add $500–$2,500. |
| Electric Furnace | ~100% | $700–$2,500 | $2,500–$6,000 | Lower install cost; higher operating cost in most areas. |
| Oil Furnace | 82%–90% | $2,500–$5,500 | $5,000–$10,000 | Oil tank replacement adds $1,000–$3,000. |
Regional labor rates, access (attic vs. basement), and code requirements can move you outside these bands. Dense urban areas and the Northeast often price higher.
What Drives The Price Of A New Furnace
Several technical and project-specific choices determine “how much is a new furnace” for your home. Understanding them helps control cost without sacrificing comfort or safety.
- Heating Capacity (BTU/h): Larger homes and colder climates require higher BTU furnaces. Oversizing can cause short cycling; correct sizing is crucial.
- Efficiency (AFUE): High-efficiency gas furnaces (95%–98%) cost more to install but reduce fuel use and emissions.
- Staging And Blower Type: Single-stage is least expensive. Two-stage and modulating models improve comfort and noise. ECM blower motors save electricity.
- Venting And Condensate: Condensing units need PVC venting and a condensate drain or pump. Retrofits can add materials and labor.
- Ductwork Condition: Leaky or undersized ducts reduce efficiency and comfort. Repairs or redesigns add cost but can pay off.
- Electrical And Gas Line Work: New circuits, receptacles, or gas line adjustments increase the bill.
- Thermostat And Controls: Upgrading to smart or communicating controls adds $150–$500 but can improve comfort and savings.
- Brand And Warranty: Premium brands and extended labor warranties raise upfront cost but may reduce risk and hassle.
Installation Cost Breakdown
Here is how a typical installed price breaks down. Your quote should itemize these so you can compare apples to apples.
| Line Item | Typical Cost Range | What It Covers |
|---|---|---|
| Furnace Equipment | $1,000–$6,000 | Based on fuel, capacity, staging, and AFUE. |
| Labor | $1,500–$3,500 | Removal, placement, connections, setup, testing. |
| Venting/Flue Materials | $300–$1,500 | PVC pipe and fittings for condensing units, or metal flue. |
| Condensate Management | $100–$600 | Drain line, neutralizer, or pump for high-efficiency gas. |
| Gas Line Or Propane Piping | $150–$600 | Valves, sediment traps, rerouting, leak test. |
| Electrical Work | $100–$800 | New circuit, disconnect, or receptacle; thermostat wiring. |
| Duct Repairs/Modifications | $500–$3,500 | Transitions, sealing, returns, balancing dampers. |
| New Or Smart Thermostat | $100–$400 | Standard programmable to advanced smart models. |
| Permits And Inspection | $100–$500 | Local permits and final inspection fees. |
| Old Equipment Disposal | $50–$200 | Removal and recycling of old furnace and materials. |
Add-ons like whole-home humidifiers ($400–$1,200 installed), media air cleaners ($400–$1,000), or UV/ionization purifiers ($300–$1,000) are optional.
Sizing A Furnace: BTUs, Climate, And Ducts
Proper sizing prevents noise, hot-cold swings, and wasted energy. Contractors should perform a Manual J load calculation that accounts for insulation, windows, air leakage, and local climate, not just square footage.
Rules of thumb can mislead, but they provide context. Warmer climates need fewer BTUs per square foot than colder regions. High-performance homes can cut these values dramatically.
| Climate | Very Efficient Home | Typical Home | Older/Leaky Home |
|---|---|---|---|
| Hot/Mild (South) | 15–25 BTU/ft² | 20–30 BTU/ft² | 30–40 BTU/ft² |
| Moderate (Mid-Atlantic/West Coast) | 20–30 BTU/ft² | 30–40 BTU/ft² | 40–50 BTU/ft² |
| Cold (Midwest/Northeast) | 25–35 BTU/ft² | 40–50 BTU/ft² | 50–60+ BTU/ft² |
Ducts matter. Undersized or leaky ducts cause low airflow and noise. Ask the contractor to measure static pressure and seal ducts as needed. Good airflow is essential for comfort and furnace longevity.
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Efficiency, Operating Costs, And Payback
AFUE (Annual Fuel Utilization Efficiency) measures how much of the fuel becomes heat. Higher AFUE reduces utility bills but may increase installation cost.
Here is a simple comparison of delivered heat cost using national average energy prices. Your rates may vary significantly, so adjust the math with your utility bills.
| Fuel/Assumption | Price | Efficiency | Cost Per 100,000 BTU Delivered |
|---|---|---|---|
| Natural Gas | $1.20 per therm | 95% AFUE | ~$1.26 |
| Natural Gas | $1.20 per therm | 80% AFUE | ~$1.50 |
| Electric Furnace | $0.16 per kWh | ~100% | ~$4.70 |
| Heating Oil | $4.00 per gallon | 85% AFUE | ~$3.40 |
Takeaway: In most U.S. regions, natural gas is the lowest-cost furnace fuel to run. Electric furnaces are cheaper to install but cost more to operate unless electricity rates are unusually low.
To estimate payback, compare bill savings from 95% AFUE vs. 80% AFUE. If gas costs $1.20/therm, the savings are roughly 16%–20% on the heating portion of your bill. In cold climates or high gas-price areas, high-efficiency units often pay back within several winters.
Rebates, Tax Credits, And Ways To Save
When people search “how much is a new furnace,” incentives are a big part of the answer. Combined utility rebates and federal credits can shave hundreds off the price.
- Federal Tax Credit (25C): The Energy Efficient Home Improvement Credit offers 30% of project cost up to $600 for qualifying natural gas, propane, or oil furnaces that meet the CEE high-efficiency tier. Annual caps and rules apply.
- Home Energy Audit Credit: Claim 30% up to $150 for a qualifying energy audit that identifies savings opportunities.
- Utility Rebates: Many gas utilities pay $100–$800 for high-efficiency furnaces. Some also fund duct sealing or smart thermostats.
- State/Local Programs: Check the DSIRE database for state incentives. Programs vary widely.
- Manufacturer Promotions: Seasonal rebates or bundled discounts can add $200–$1,000 in value.
- Financing: 0% or low-APR promotions spread costs over 12–60 months. Compare total interest and fees before committing.
Note: The Inflation Reduction Act’s forthcoming electrification rebates primarily support heat pumps and electrical upgrades, not fossil-fuel furnaces. Still, pairing weatherization with a right-sized furnace can provide substantial long-term savings.
Repair Or Replace? Making The Call
Not every breakdown means a new unit. Use these guidelines to decide whether a repair makes sense or if replacement is wiser.
- Age: Gas furnaces typically last 15–20 years; oil 15–20; electric 20–30. Frequent repairs after year 12–15 are a red flag.
- Repair Cost Rule: If a repair exceeds 40%–50% of replacement cost, replacement often wins.
- Safety: Cracked heat exchangers or persistent CO issues demand immediate action; replacement is usually advised.
- Comfort And Efficiency: Upgrading from 80% to 95%+ AFUE can cut gas use and improve comfort with better staging and blowers.
Common Furnace Repair Costs
| Component | Typical Cost | Replace Or Repair? |
|---|---|---|
| Igniter/Flame Sensor | $150–$400 | Repair is reasonable on younger units. |
| Inducer Motor | $300–$800 | Repair if unit is under 12–15 years. |
| Blower Motor (PSC) | $450–$900 | Repair often makes sense. |
| Blower Motor (ECM) | $700–$1,500 | Consider age and warranty before repairing. |
| Control Board | $400–$900 | Repair if no other major issues. |
| Heat Exchanger | $1,500–$3,500 | Usually replace the furnace. |
Permits, Codes, And Safety Considerations
Professional installation is not just about comfort; it is about compliance and safety. Reputable contractors pull permits and schedule inspections when required.
- Combustion Air And Venting: Gas and oil furnaces need proper venting and combustion air. High-efficiency gas models require PVC venting and condensate disposal.
- Carbon Monoxide Safety: Install CO detectors on every level and near bedrooms. Test for back-drafting after installation.
- Electrical And Gas Codes: Bonding, shutoff valves, drip legs, and correct wire sizing are mandatory.
- Asbestos And Hazardous Materials: Old duct tape, insulation, or transite flues may require special abatement, adding cost.
- Upcoming Efficiency Standard: The U.S. Department of Energy finalized a rule requiring most new non-weatherized gas furnaces to be at least 95% AFUE starting in 2028. Expect more condensing installations going forward.
How To Get An Accurate Quote
Collecting well-scoped bids helps ensure a fair price and a furnace that actually fits the home. Here is a practical checklist.
- Ask For A Manual J Load Calculation: Avoid rules-of-thumb sizing. Request model numbers and BTU output, not just input.
- Measure Duct Static Pressure: Have contractors verify airflow capacity and propose duct changes if needed.
- Request Itemized Proposals: Equipment, labor, venting, electrical, gas line, thermostat, permits, and add-ons should be listed separately.
- Compare At Least Three Bids: Evaluate scope, warranty, and company reputation, not just price.
- Check Warranties: Look for 10-year parts on many brands and lifetime or 20-year heat exchanger. Ask about contractor labor warranties.
- Commissioning And Startup: Ensure combustion analysis, gas pressure set, temperature rise within spec, and homeowner training are included.
- Rebate Support: Prefer contractors who file utility rebates and provide IRS-compliant documentation for tax credits.
Brand And Model Tiers
Brand affects features and price, but a quality installation matters more than the logo. Many brands share similar internal components due to common parent companies or suppliers.
| Tier | Examples | What You Get | Typical Installed Range |
|---|---|---|---|
| Value | Goodman, Payne, Heil, AirQuest | Single/two-stage options, solid warranties, fewer extras. | $3,500–$7,500 |
| Mid-Range | Rheem, Ruud, Amana, Bryant, York | More staging options, ECM motors, quiet cabinets. | $4,500–$9,500 |
| Premium | Trane, American Standard, Carrier, Lennox | Modulating burners, advanced controls, strong dealer networks. | $6,000–$11,000+ |
Tip: Compare equivalent staging and AFUE across brands. The best installer with a mid-tier brand often beats a poor install of a premium model.
Add-Ons And Indoor Air Quality Options
Upgrades can improve comfort and health but affect the final total. Decide what matters for your home and climate.
- Whole-Home Humidifier: $400–$1,200 installed; helpful in dry winter climates to reduce static and protect wood.
- Media Air Cleaner (MERV 11–16): $400–$1,000; better filtration than 1-inch filters, less frequent changes.
- HEPA Bypass Or Electronic Air Cleaner: $800–$2,000; higher particulate removal for sensitive occupants.
- UV-C Or Photocatalytic Purifiers: $300–$1,000; targets microbes and VOCs; results vary by home and pollutant.
- Zoning Systems: $2,000–$4,000; multiple thermostats and dampers for larger homes or uneven layouts.
- Smart Thermostat: $150–$400; convenient scheduling and remote control; ensure compatibility with staging.
Timeline And What To Expect On Install Day
Most straightforward furnace change-outs take 6–10 hours with a two-person crew. High-efficiency conversions with new venting, condensate, or duct changes can extend to 1–2 days.
- Pre-Install: Permit pulled, materials ordered, and utility rebates pre-checked.
- Removal: Old unit disconnected and hauled away; area cleaned.
- Placement And Connections: New furnace set, duct transitions built, gas and electrical tied in.
- Venting/Condensate: PVC runs, termination, and drain or pump installed; slope verified.
- Startup And Commissioning: Gas pressure, combustion, temperature rise, and safety controls tested.
- Walkthrough: Filter sizes, maintenance schedule, thermostat setup, and warranty registration covered.
Total Cost Examples
These sample scenarios show how the same house can produce different answers to “how much is a new furnace.”
- Basic Gas Replacement (80% AFUE, same vent): 80k BTU single-stage in basement; reuse ducts and thermostat; no electrical changes. $3,800–$6,000.
- High-Efficiency Gas Upgrade (95% AFUE): 80k BTU two-stage with ECM; new PVC vent, condensate pump, smart thermostat. $6,000–$9,000.
- Oil Furnace With Tank Replacement: 90k BTU furnace plus new 275-gallon tank and lines. $7,000–$12,000.
- Electric Furnace: 15 kW unit, minor electrical work, basic thermostat. $2,800–$5,500 (higher operating cost expected).
How To Lower Your Furnace Replacement Cost
Small choices can trim hundreds without compromising performance. Focus on scope, timing, and incentives.
- Right-Size The Equipment: Avoid oversizing; smaller properly sized units often cost less and run better.
- Schedule Off-Season: Spring or early fall can bring shorter lead times and better pricing.
- Leverage Rebates/Credits: Stack utility rebates with the 25C tax credit when eligible.
- Bundle Work: Combine duct sealing or thermostat upgrades to reduce separate trip charges.
- Choose Value Features: Two-stage with ECM often hits the sweet spot for comfort and cost.
- Maintain Ducts: Sealing and balancing can let you select a smaller furnace and reduce bills.
Frequently Asked Questions
Are 80% AFUE Gas Furnaces Still Allowed?
Yes, in many areas today, but rules vary by state and utility. The U.S. Department of Energy has finalized a standard requiring most new non-weatherized gas furnaces to be 95% AFUE or better starting in 2028, which will phase out most new 80% models.
How Long Does A Furnace Last?
Expect 15–20 years for gas and oil, and 20–30 years for electric furnaces with regular maintenance. Harsh operating conditions or poor airflow reduce lifespan.
Does A New Furnace Increase Home Value?
Buyers value lower utility bills and reliable heat. While it is not a dollar-for-dollar return, a modern high-efficiency furnace can improve marketability and reduce inspection concerns.
Can Existing Ducts Be Reused?
Often yes, if they are sized and sealed properly. Many homes benefit from adding return air, sealing leaks, or resizing certain runs. Ask for static pressure readings and a duct improvement plan.
What Maintenance Is Required?
Replace filters every 1–3 months; schedule annual service to check safety controls, combustion, and airflow. Tune-ups run $100–$250 and help maintain efficiency and warranty compliance.
Don’t Overpay for HVAC Services – Call 888-894-0154 Now to Compare Local Quotes!
Should I Switch From Gas To Electric?
An electric furnace is simple and cheaper to install but usually costs more to run. If electrifying, consider a cold-climate heat pump, which typically costs far less to operate than an electric furnace because it moves heat instead of making it.
What About Carbon Monoxide Risk?
Combustion furnaces can produce CO if venting fails or the heat exchanger cracks. Install CO detectors, maintain your system, and ensure proper venting and combustion air during installation.
Key Takeaways When Budgeting A New Furnace
- Most homeowners pay $3,500–$11,000 installed, with high-efficiency gas on the upper half of that range.
- Efficiency, sizing, ductwork, and venting drive price more than brand alone.
- Use utility rebates and the 25C federal tax credit to reduce net cost when eligible.
- Insist on Manual J sizing, measured duct static pressure, and proper commissioning.
- Consider lifetime costs: an efficient, right-sized system can save money every winter.
For more on choosing efficient equipment and available incentives, visit ENERGY STAR and your state’s listings at DSIRE. These resources help translate an initial “how much is a new furnace” search into an informed, cost-effective upgrade.
How to Get the Best HVAC Prices
- Firstly, keep in mind that installation quality is always the most important thing for residential HVAC project. So never sacrifice contractor quality for a lower price.
- Secondly, remember to look up the latest rebates as we talked above.
- Thirdly, ask for at least 3 bids before you make the decision. You can click here to get 3 free estimates from your local contractors, and this estimate already takes rebates and tax credit into consideration and filter unqualified contractors automatically.
Lastly, once you chose the right contractor, remember to use the tactics from this guide: Homeowners Tactics When Negotiating with HVAC Dealer to get the final best price.
