Furnace replacement typically costs $3,800 to $10,000 installed for a gas furnace, with most homeowners in an average-sized house landing between $4,500 and $7,500. Electric furnaces often cost less to install but more to run monthly, while oil furnaces and high-efficiency (95%+ AFUE) gas units sit at the top. Where your quote lands depends on furnace type, size, ductwork condition, and installation complexity.
Call a licensed local HVAC pro now for a fast, accurate quote.
A furnace is the workhorse of your home's HVAC system, and furnace replacement is one of the bigger jobs in home HVAC service, ranking alongside a central AC or heat pump swap. For the wider view across every system, see our HVAC installation cost guide.
Furnace Replacement Cost by Type
| Furnace Type | Typical Installed Cost | Notes |
|---|---|---|
| Gas, 80% AFUE (standard efficiency) | $3,800 - $6,000 | Lower equipment cost, standard atmospheric venting |
| Gas, 95%+ AFUE (high efficiency) | $6,000 - $10,000 | Secondary heat exchanger, PVC intake/exhaust venting |
| Electric | $2,000 - $7,000 | Cheaper equipment and simpler install, higher operating cost |
| Oil | $6,500 - $12,000 | Tank, more complex venting, and delivery logistics add cost |
High-efficiency furnaces cost $1,500 to $3,500 more upfront than a standard-efficiency unit of the same size, mainly for the extra heat exchanger and condensate drain. That premium buys lower monthly bills over the furnace's life, so payback period matters as much as the sticker price. Brand and tier shift the number further; see top furnace brands compared. Oil furnace jobs also track local heating oil prices, plus tank and line work most gas installs skip.
What Affects Furnace Replacement Cost
- Size (BTU output). The new unit has to match your home's square footage and climate zone. Undersized furnaces run constantly and wear out early; oversized ones short-cycle and waste fuel. A load calculation, not a guess, should size the replacement.
- Efficiency rating (AFUE). 80% AFUE units cost less to buy. 95%+ AFUE units cost more upfront but burn less fuel per unit of heat delivered.
- Ductwork condition. Cracked, undersized, or leaky ducts add anywhere from a few hundred dollars for sealing to several thousand for a partial rebuild.
- Installation complexity and venting. Switching fuel types, relocating the furnace, or upgrading to direct (PVC) venting adds labor and material cost on top of the base installation number.
- Permits and code upgrades. Most jurisdictions require a permit and inspection for furnace replacement. Older homes sometimes need electrical or gas line upgrades to meet current code.
- Brand and features. Variable-speed blowers, modulating gas valves, and smart-thermostat compatibility all add to the equipment price.
Labor vs. Equipment: Where the Money Actually Goes
Roughly 40% to 55% of a straightforward swap's invoice is labor, not equipment. That share climbs if the crew reroutes ductwork, runs new gas line, or changes venting type. A same-day install in an easy-access mechanical room sits at the low end of any range; a furnace tucked in a tight attic or crawlspace pushes both labor and price higher.
Sample Furnace Replacement Quote: What a Real Estimate Breaks Down Into
Say you're replacing a 15-year-old, 80,000 BTU gas furnace with a similarly sized 96% AFUE unit in a 1,800-square-foot home with fair-condition ductwork. An itemized estimate might look like this:
| Line Item | Typical Range |
|---|---|
| Furnace unit (96% AFUE, 80,000 BTU) | $2,200 - $3,200 |
| Labor: removal and installation (1 day) | $1,200 - $2,500 |
| New PVC intake/exhaust venting | $300 - $800 |
| Ductwork sealing or minor modification | $0 - $1,500 |
| Permit and inspection fee | $75 - $300 |
| Old unit disposal | $50 - $150 |
| Total, all-in | $4,000 - $8,500 |
Ask any contractor to itemize a furnace repair estimate or replacement quote this way. A single line reading "furnace replacement: $X" hides where the money's going and makes bids hard to compare apples to apples.
Repair or Replace? How to Decide
Furnaces typically last 15 to 20 years with regular maintenance. Past that mark, sinking money into a major repair often isn't worth it. Run through this checklist:
- The furnace is 15 or more years old
- The repair estimate is more than half of what a new furnace would cost (the 50% rule)
- You've already called for repairs two or more times this heating season
- The heat exchanger is cracked, rusted through, or tripping a carbon monoxide alarm
- Gas or electric bills have climbed with no other explanation
- Rooms heat unevenly no matter how the thermostat is set
Check two or more boxes and replacement is usually the more economical move. A cracked heat exchanger is a replace call regardless of age; that's a safety issue, not a cost comparison. Facing a single, isolated failure instead? Furnace repair costs and common fixes is worth a look first, and general heating repair pricing covers the rest of your heating system.
Ways to Lower Your Furnace Replacement Cost
A few moves bring the number down without cutting corners on equipment. Ask about federal tax credits and manufacturer rebates for high-efficiency furnaces; both change yearly, so confirm what applies in 2026 with your contractor. Many installers offer financing that spreads the cost over monthly payments. If your AC is aging out too, ask about bundling furnace and AC furnace installation cost into one job; sharing labor and permit costs across both units is an overlooked way to cut the combined price. For the full walk-through of installation day, see our full furnace installation process guide.
Frequently Asked Questions
How long does furnace replacement take? A straightforward swap usually takes a single day, about 4 to 8 hours from removal to startup. Ductwork changes, a fuel-type switch, or new venting can add a second day.
Is furnace replacement covered by homeowners insurance? Only if the failure was sudden and covered, like fire or storm damage. Routine, age-related failure, which is most furnace replacements, isn't covered.
What's the best time of year to replace a furnace for a lower price? Late spring through summer, when HVAC companies aren't buried in heating emergencies, tends to bring better scheduling flexibility and, often, off-season pricing or promotions.
What size furnace do I need for my home? Size comes from a heat-load calculation, not square footage alone. It factors in climate zone, insulation, window count, and ceiling height. A pro should run this calculation, not just match your old unit's rating.
Is a high-efficiency furnace worth the extra cost? Usually, yes, if you'll stay in the home for several more winters somewhere with a real heating season. The higher AFUE unit costs more upfront but burns less fuel monthly, paying itself back over time. In a mild climate, or if you're moving soon, standard efficiency is often the more practical call.
An accurate furnace replacement cost starts with a home visit, not a phone estimate. Call a licensed local pro now for a fast, itemized quote before any work begins.
FAQ & Thermal Troubleshooting
Q:How long does furnace replacement take?
A straightforward swap usually takes a single day, roughly 4 to 8 hours from removal to startup. Jobs that involve ductwork changes, a fuel-type switch, or new venting can stretch to two days.
Q:Is furnace replacement covered by homeowners insurance?
Only if the failure was sudden and covered, like fire or storm damage. Routine wear and age-related failure, which accounts for most furnace replacements, isn't covered.
Q:What's the best time of year to replace a furnace for a lower price?
Late spring through summer, when HVAC companies aren't buried in heating emergencies, tends to bring better scheduling flexibility and, often, off-season pricing or promotions.
Q:What size furnace do I need for my home?
Size comes from a heat-load calculation, not square footage alone. It factors in your climate zone, insulation, window count, and ceiling height. A pro should run this calculation rather than just matching your old unit's rating.
Q:Is a high-efficiency furnace worth the extra cost?
Usually, yes, if you plan to stay in the home for several more winters and live somewhere with a real heating season. The higher AFUE unit costs more upfront but burns less fuel every month, so it pays itself back over time. In a mild climate, or if you're moving soon, the standard-efficiency unit is often the more practical call.