Meta Description: Curious how much a furnace costs? Learn average furnace prices, installation costs, rebates, and savings for gas, electric, oil, and high-efficiency models.
Furnace replacement is a major home expense, and prices vary widely by fuel type, efficiency, size, and installation complexity. This guide breaks down furnace costs for gas, electric, oil, and propane systems, plus labor, add-ons, and rebates. It also explains how high-efficiency furnaces can lower heating bills and when upgrading makes financial sense.
Furnace Cost At A Glance
The question “how much does a furnace cost” depends on fuel type, efficiency, and job scope. The ranges below reflect typical U.S. installed prices for a like-for-like replacement, not including full ductwork replacement or major structural changes.
| Furnace Type | Typical AFUE | Equipment Only | Installation Labor | Total Installed |
|---|---|---|---|---|
| Natural Gas (Standard) | 80–83% | $900–$2,500 | $1,800–$4,000 | $2,800–$6,500 |
| Natural Gas (High-Efficiency/Condensing) | 90–98% | $1,500–$4,500 | $2,500–$5,500 | $4,500–$10,000+ |
| Electric Furnace | ≈100% | $800–$1,800 | $1,200–$3,000 | $2,000–$5,000 |
| Oil Furnace | 83–90% | $1,800–$3,700 | $2,500–$5,500 | $4,300–$9,200 |
| Propane Furnace | 90–98% | $1,500–$4,500 | $2,000–$4,500 | $3,500–$9,000 |
Key takeaway: Most homeowners spend $3,500–$8,500 to replace a gas furnace. High-efficiency models and complex installs can exceed $10,000.
What Drives Furnace Prices?
Fuel Type
Fuel determines both upfront price and long-term operating cost. Natural gas furnaces are common and typically offer the best operating cost in gas-served areas. Electric furnaces have lower upfront costs but higher monthly bills in many regions. Oil and propane furnaces serve homes without gas lines, with equipment costs similar to gas but fuel costs that are often higher.
Efficiency (AFUE) And Staging
AFUE measures how much of the fuel becomes usable heat. Standard gas furnaces are 80–83% AFUE and vent through a chimney. High-efficiency units (90–98% AFUE) condense exhaust and use PVC venting. Staging affects comfort and price: single-stage is least expensive, two-stage costs more with better comfort, and modulating offers the most precise heat but is priciest.
Size (BTU) And Home Factors
Furnaces are sized by BTU output. A correct load calculation (Manual J) accounts for climate, insulation, windows, and air sealing. Oversized units cost more upfront and cycle inefficiently. Duct size and condition also influence the required blower and may necessitate upgrades that increase costs.
Brand And Warranty
Budget brands can reduce equipment cost by several hundred dollars. Premium brands often add features like variable-speed ECM blowers, quieter operation, and longer warranties. Warranty terms matter: look for at least 10-year parts and a long heat exchanger warranty. Labor coverage varies by contractor and is a valuable add-on.
Labor, Permits, And Region
Labor rates vary by market. Urban and high-cost regions tend to have higher installation costs. Permits and inspections add $50–$500, depending on local codes. Complex venting, gas line changes, or tight mechanical rooms can extend labor time and cost.
Gas Furnace Cost
For most U.S. homes with gas service, a gas furnace offers the best blend of cost, comfort, and operating expense. A like-for-like 80% unit typically runs $2,800–$6,500 installed. High-efficiency condensing models commonly range from $4,500–$10,000+, depending on home layout and venting needs.
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- Equipment price: $900–$2,500 for 80% AFUE; $1,500–$4,500 for 90–98% AFUE.
- Labor: $1,800–$5,500 depending on complexity, attic or crawlspace access, and venting.
- Venting: 80% units often use an existing chimney; liners may add $600–$2,000. High-efficiency units need PVC intake/exhaust lines and a condensate drain or pump.
- Gas line and code items: Modifications can add $300–$1,200. Electrical upgrades, shutoffs, drip legs, and seismic strapping (in some areas) may be required.
When it’s worth it: If gas rates are moderate and the home has frequent heating needs, the energy savings from 95%+ AFUE can deliver meaningful, ongoing reductions in bills.
Electric Furnace Cost
Electric furnaces have the lowest equipment cost and a straightforward install, but monthly heating costs are typically higher than gas in many U.S. regions. Expect $2,000–$5,000 installed for a standard replacement.
- Best fit: Homes without gas service where heat pumps are impractical, or as backup heat for a heat pump.
- Operating cost: At $0.15/kWh, electric resistance heat costs about $4.40 per 100,000 BTU of delivered heat, often 2–4 times more than gas.
- Electrical panel: High-amp breakers may be needed; upgrades can add $300–$1,500.
Alternative to consider: A modern cold-climate heat pump often beats electric furnaces on operating cost and can provide efficient air conditioning, though initial costs are higher.
Oil And Propane Furnace Cost
Oil and propane systems serve many rural homes. Equipment costs resemble gas, but installation and operating costs can be higher.
- Oil furnace: $4,300–$9,200 installed. If replacing or adding a storage tank, add $1,000–$4,000 for a standard above-ground tank and lines. Annual cleanings and nozzle replacements are important for reliability.
- Propane furnace: $3,500–$9,000 installed. Propane equipment is similar to gas, but fuel costs per BTU are typically higher. A propane tank lease or purchase may add ongoing fees.
- Chimney and venting: Oil appliances may require chimney relining ($600–$2,000). Propane high-efficiency units use PVC venting like gas.
Budget note: Oil and propane price volatility can make operating costs unpredictable. Efficiency upgrades help manage long-term expenses.
High-Efficiency Furnace Payback
Upgrading from an 80% AFUE furnace to a 95–98% AFUE model reduces fuel use for the same heat delivered. Whether it pays off depends on local gas prices, climate, and usage.
| Assumption | Value |
|---|---|
| Gas Price (Per Therm) | $1.00–$1.50 |
| Annual Gas Use (Therms, Heating) | 500–900 |
| Efficiency Upgrade | 80% to 96% AFUE |
| Annual Fuel Savings | ~12%–20% of heating gas use |
| Typical Dollar Savings | $100–$300+/year |
| Extra Upfront Cost | $1,000–$2,500 |
| Simple Payback | 4–12 years |
Homes in colder climates or with higher gas prices see faster payback. Two-stage or modulating high-efficiency models also improve comfort and reduce temperature swings.
Installation Scope And Add-On Costs
Beyond the furnace itself, installation details influence total cost. Below are common line items that can raise or lower a “furnace installation cost.”
| Item | Typical Cost | Notes |
|---|---|---|
| Permit & Inspection | $50–$500 | Required in most jurisdictions |
| Chimney Liner (80% Gas/Oil) | $600–$2,000 | Stainless steel liner for safety and code |
| PVC Venting (Condensing) | $300–$1,200 | Material and labor vary by run length |
| Condensate Pump/Drain | $150–$450 | Needed if gravity drain is not possible |
| Gas Line Modification | $300–$1,200 | Sizing, shutoff, sediment trap, pressure test |
| Electrical Circuit/Thermostat Wire | $150–$800 | New circuit or low-voltage rewiring |
| Duct Repairs/Transitions | $300–$1,500 | Adapting plenum, sealing, balancing |
| Full Duct Replacement | $2,000–$7,000+ | More if new ducts throughout a home |
| Whole-Home Humidifier | $400–$1,200 | Bypass, fan-powered, or steam units |
| Air Cleaner/HEPA/UV | $400–$2,500 | Indoor air quality upgrades |
| Smart Thermostat | $200–$600 | Device plus professional install |
| Zoning System | $1,500–$3,500 | Multiple zones with dampers and controls |
| Asbestos Abatement (If Present) | $1,000–$3,000 | For older duct or flue materials |
Tip: Ask for a line-item quote so optional add-ons can be compared across contractors and prioritized within budget.
Furnace Replacement Cost With AC Or A Heat Pump
Many homeowners coordinate furnace replacement with air conditioning or a heat pump to refresh the entire air handler and coil. Expect the combined project to cost more but deliver matched-system performance.
- Furnace + Central AC: $7,000–$17,000 depending on SEER2 rating, coil, and condenser size. Higher SEER2 units and complex line set runs add cost.
- Furnace + Heat Pump (Dual-Fuel): $9,000–$20,000. A heat pump handles mild weather efficiently; the furnace takes over in colder temperatures for comfort and reliability.
- When to bundle: If the AC or heat pump is over 12–15 years old, or if the evaporator coil is leaking, combined replacement often makes technical and financial sense.
Compatibility matters: Pairing a high-efficiency, variable-speed furnace with a compatible modulating or two-stage AC/heat pump improves comfort and can reduce energy use.
Sizing And Load: Avoid Oversizing
Correct size is essential to cost and comfort. Contractors should perform a Manual J load calculation, not rely solely on rules of thumb. Envelope upgrades like air sealing and insulation can reduce required BTUs and allow a smaller, quieter, and less expensive furnace.
- Rough BTU guidance: 20–60 BTU per square foot depending on climate, insulation, and air leakage. This is a starting point, not a design rule.
- Staging: Two-stage or modulating furnaces run longer at low fire, improving comfort, humidity control, and noise compared with oversized single-stage units.
- Ductwork: Undersized or leaky ducts limit performance. Sealing, balancing, or resizing may be needed for a new high-efficiency system to deliver its rated output.
Bottom line: The right size furnace can be less expensive upfront and cheaper to operate.
Operating Costs By Fuel
Upfront furnace prices are only part of the story. Fuel cost and efficiency determine long-term spend. The table below estimates the cost to deliver 100,000 BTU of heat to the home using common fuels.
| Fuel | Price Assumption | AFUE/Effectiveness | Cost Per 100,000 BTU Delivered |
|---|---|---|---|
| Natural Gas | $1.00–$1.50 per therm | 95% AFUE | $1.05–$1.58 |
| Natural Gas | $1.00–$1.50 per therm | 80% AFUE | $1.25–$1.88 |
| Electric Resistance | $0.15–$0.18 per kWh | ≈100% efficient | $4.40–$5.27 |
| Heating Oil | $3.50–$5.00 per gallon | 85% AFUE | $2.94–$4.20 |
| Propane | $2.50–$3.50 per gallon | 95% AFUE | $2.63–$3.68 |
Local energy prices vary. Where electricity is inexpensive or where a heat pump can deliver 200–300% effective efficiency, electric options can be competitive with gas for operating cost.
Rebates, Tax Credits, And Financing
Financial incentives can lower furnace installation cost and improve payback. Availability varies by state and utility.
- Federal tax credits (25C): Many high-efficiency gas furnaces that meet efficiency tiers may qualify for a credit up to $600, subject to annual caps. Credits for other envelope upgrades can stack up to an annual maximum. Heat pumps have separate higher caps.
- Utility rebates: Gas utilities often offer $150–$800 for high-efficiency furnaces. Electric utilities commonly rebate smart thermostats and weatherization measures.
- Low-income and state programs: Weatherization assistance and state-managed rebates can reduce costs for eligible households.
- Financing: HVAC contractors frequently offer 0–9.99% financing or deferred interest promotions. Compare total costs; lower monthly payments can mask higher project prices.
Action step: Check your state energy office and local utility websites before purchasing. Incentive pre-approval may be required.
How To Get An Accurate Quote
Well-scoped quotes reduce surprises and help compare contractors. Use the list below to ensure apples-to-apples proposals.
- Load calculation: Request a Manual J and duct evaluation, not just square-foot sizing.
- Line-item detail: Model numbers, AFUE, staging, blower type, coil model (if AC/HP), and included upgrades like liners or PVC venting.
- Permits and inspections: Ensure they are included and pulled by the contractor.
- Warranty and labor coverage: Confirm parts, heat exchanger, and labor terms. Ask about maintenance plans.
- Timeline and cleanup: Installation duration, disposal of old equipment, and workmanship standards.
- Price validity: Due to equipment availability and fuel price changes, get a validity window in writing.
Tip: Obtain at least three written estimates from licensed, insured HVAC contractors and confirm they will register the equipment warranty.
Maintenance, Lifespan, And Warranty
Proper care preserves efficiency and extends life. Budget for annual service and filter replacements to keep systems safe and reliable.
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- Annual tune-up: $100–$200 for inspection, cleaning, and safety checks. Oil furnaces need more frequent service.
- Filters: $20–$60 per year for common sizes; more for specialty media.
- Lifespan: Gas: 15–20+ years; Electric: 20–30 years; Oil: 15–25 years with regular maintenance.
- Warranties: Heat exchanger coverage can be 20 years to lifetime; parts typically 10 years when properly registered. Labor warranties vary widely by contractor.
Safety note: For combustion furnaces, install carbon monoxide detectors on each level and near sleeping areas.
Real-World Price Examples
These sample scenarios illustrate how scope impacts the “furnace replacement cost” bottom line. Actual prices vary by market and home.
- Basic 80% gas furnace swap: Mid-size 80% furnace in basement, reuse metal vent, no duct changes. Permit and basic thermostat included. $3,400–$5,200.
- 95% gas furnace with PVC vent: Two-stage 96% furnace, new PVC intake/exhaust through rim joist, condensate pump, gas line update, smart thermostat. $5,500–$8,500. Utility rebate reduces net cost.
- Oil furnace replacement with chimney liner: New oil furnace, stainless liner, tune nozzle and pump, reuse existing above-ground tank. $5,500–$8,500.
- Electric furnace as heat pump backup: 15 kW electric furnace/air handler, new 60A breaker, paired with existing heat pump. $2,800–$4,700.
Expect higher costs for attic or crawlspace installs, difficult vent runs, extensive duct modifications, or premium, ultra-quiet furnaces.
Cost-Saving Tips Without Sacrificing Quality
- Right-size the system: Avoid oversizing; invest in air sealing and insulation to reduce required BTUs.
- Choose two-stage over modulating if budget is tight: It captures most comfort benefits at a lower price.
- Time the project off-season: Spring or early fall can bring better availability and promotions.
- Bundle smart thermostat and IAQ add-ons: Contractors may discount when installed with a furnace.
- Leverage rebates and credits: Pre-apply where required to lock in savings.
- Compare total value: A slightly higher bid with better labor warranty and proven install quality can cost less over time.
Frequently Asked Questions
Is A High-Efficiency Furnace Always Worth It?
Not always. If gas is inexpensive and annual heating use is low, the extra cost may take a decade or more to recover. In colder climates or where gas prices are higher, 95%+ AFUE often delivers faster payback and better comfort.
How Much Does It Cost To Replace A Furnace And AC Together?
Common ranges are $7,000–$17,000, depending on furnace efficiency, AC SEER2 rating, coil, and installation complexity. Dual-fuel heat pump pairings are more.
What Size Furnace Do I Need?
A Manual J load calculation should determine size. Roughly, many homes fall between 30,000 and 100,000 BTU output, but climate and insulation matter more than square footage alone.
Can I Install A Furnace Myself?
DIY is risky and often illegal for gas or oil systems due to permits, fuel piping, venting, and carbon monoxide hazards. Professional installation protects safety, efficiency, and warranty coverage.
How Long Does Installation Take?
A straightforward furnace replacement takes 4–10 hours. High-efficiency conversions with PVC venting or substantial duct changes can take 1–2 days. Complex projects may extend further.
What About Converting From Oil To Gas?
Where gas service is available, conversion can reduce operating costs and maintenance. Costs include the new furnace, gas line to the home, interior piping, venting, and safe decommissioning of the oil tank.
The Bottom Line On Furnace Prices
The average homeowner spends $3,500–$8,500 for a gas furnace replacement, with electric, oil, and propane options priced similarly on equipment but diverging in fuel costs. Installation details, efficiency, and home conditions drive the final price. For the best outcome, insist on proper sizing, get multiple quotes, and use available rebates to lower your net cost.
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.
