Home Services
Furnace Replacement Cost
Published September 24, 2026 · Last updated September 30, 2026
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The short answer
A new furnace costs about $4,814 on average, with most homeowners paying $2,823 to $6,897 installed. The type of furnace, its size, and its fuel (gas, electric, or oil) drive most of the price.
Furnaces last about 20 years on average. If yours is near that age and needs a big repair, replacement may cost less over time.
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What a new furnace costs
Price range
- Average: about $4,814
- Typical range: $2,823 to $6,897
Also budget for removing the old furnace, permits, and any ductwork changes.
Not a quote or an offer. Your price comes from the contractor. Source: Angi, 2026.
What moves the number
- Fuel type. Gas, electric, and oil furnaces cost different amounts to buy and to run.
- Size. It should match your home's heating needs, based on a load calculation, not just the old unit's size.
- Efficiency. Higher-efficiency furnaces cost more up front and less to run.
- Ductwork and venting changes. High-efficiency gas furnaces may need new venting.
- Access. Attics and tight crawl spaces take more labor.
What furnace efficiency ratings mean
Furnace efficiency is measured by AFUE (annual fuel utilization efficiency): the share of fuel that becomes heat for your home. Higher is better.
ENERGY STAR certified gas furnaces are up to 16% more efficient than standard models in the southern U.S., and up to 18% more efficient in the northern U.S. They also use more efficient blower motors.
A higher-efficiency furnace makes the most sense where winters are long and cold.
Repair or replace?
Replacement may make more sense when:
- The furnace is near or past about 20 years old.
- Repairs are frequent or expensive.
- Heating bills keep rising.
- Rooms heat unevenly, or the system runs constantly.
- A technician finds a cracked heat exchanger, which can let carbon monoxide into your home.
Safety first: carbon monoxide
Gas and oil furnaces burn fuel. Make sure you have working carbon monoxide alarms, and ask the installer to check venting and combustion as part of the job. If a technician says your heat exchanger is cracked, take it seriously.
Should you consider a heat pump instead?
A heat pump heats and cools with one system. In many climates it can replace a furnace. In very cold areas, some homes pair a heat pump with a furnace as backup. See heat pumps.
Tax credits: federal energy efficiency tax credits for furnaces and heat pumps ended after 2025. Ask your gas or power company about local rebates.
What to ask
- "Will you do a load calculation (Manual J) to size the furnace?"
- "What's the AFUE of this furnace?"
- "Does the price include removal, permits, and venting changes?"
- "What's the warranty on the parts and your labor?"
- "Are there utility rebates I qualify for?"
The catch: an oversized furnace can cost more and heat unevenly, cycling on and off. Don't let a contractor just match your old unit's size without a load calculation.
Keep reading
Replacing the AC too? See AC replacement. Want a warm house for less? See insulation.
More heating and cooling guides: HVAC replacement cost · AC replacement · Heat pumps · Repair or replace your HVAC · Insulation
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