IQHab › United States › HVAC › Furnace Replacement Cost (2026)
Furnace Replacement Cost
Replacing a furnace is a common, big home investment. Here's the range and what changes it.
Low$3,500
Typical$5,500
High$9,000
Per furnace · USD
What's included
Labor
$1,500–$3,000
Materials / equipment
$2,200–$5,000
What changes the price
- Efficiency (AFUE)
- Fuel type — gas, electric or oil
- Venting, ducts and thermostat
- System capacity
Regional notes
- Cold regions need higher-capacity furnaces.
- Gas furnaces are common where gas is available and can be cheaper to run.
Cost by state
Costs vary by regional labor market. See local estimates for your state:
Browse all U.S. statesHow to get an accurate quote
- Get several quotes and compare, not just price.
- Be specific about size, materials and any existing issues.
- Ask whether the quote includes labor, materials, permits and cleanup.
- Confirm the contractor is licensed and insured before you hire.
Cost by type
Furnace cost depends on fuel type and efficiency. Here's the typical installed range:
| Furnace type | Typical cost |
|---|---|
| Gas (80% AFUE) | $3,500 – $5,000 |
| Gas (90%+ AFUE) | $4,500 – $6,500 |
| Electric | $3,000 – $5,000 |
| Oil | $4,000 – $6,500 |
Efficiency pays back
A high-efficiency furnace costs more up front but can lower heating bills substantially, especially in cold climates.
Example
Replacing a gas furnace
Replacing a 20-year-old gas furnace with a 96% AFUE unit in a 2,000 sq ft home typically runs around $5,500 installed, including the permit. Adding a smart thermostat adds ~$200.
How to save
- Check utility and manufacturer rebates for high-efficiency models.
- Replace only when needed — don't oversize.
- Bundle with the AC installation if you're replacing both.
- Get multiple itemized quotes.