How Much Does a New Furnace Cost to Install or Replace?

Typical Range:

$2,800 - $6,758

Find out how much your project will cost.

Cost data is based on actual project costs as reported by 11,094 HomeAdvisor members. Embed this data

How We Get This Data































  • Homeowners use HomeAdvisor to find pros for home projects.
  • When their projects are done, they fill out a short cost survey.
  • We compile the data and report costs back to you.

Published January 10, 2022

Reviewed by After Hours Home Improvement, LLC, Reid Gravitte, Certified Electrician, Plumber and HVAC Specialist.

Written by HomeAdvisor.

Furnace Replacement Costs

Installing or replacing a furnace costs between $2,800 and $6,758 with an average cost of $4,667 including materials, equipment and labor. Replacing a gas furnace runs from $3,800 to $10,000 or more for high efficiency models in complex installations. Electric models run slightly less at $2,000 to $7,000. Labor costs make up $500 to $2,000 of the total project budget.

Always consult an HVAC professional. Quotes are almost always free and help identify your heating needs. Your HVAC pro will look at the size, configuration and age of your house to determine the most cost-effective way to heat it. Your location, livable square footage, and energy bills all factor into which furnace type, model and size is right for your home.

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National Average $4,667
Typical Range $2,800 - $6,758
Low End - High End $150 - $10,000

Cost data is based on actual project costs as reported by 11,094 HomeAdvisor members.

Average Cost to Replace a Furnace

the average cost to replace a gas furnace ranges from $3,800 to $10,000.

The average cost to replace a furnace runs from $2,000 to $7,000 depending on the type you go with and where you live. In extreme cases, you can spend upwards of $40,000 or more, especially for geothermal models.

  • Gas: $3,800-$10,000

  • Electric: $2,000-$7,000

  • Oil: $6,750-$10,000

  • Mini-Split: $5,000-$15,000

  • Geothermal: $10,000-$40,000+

There are a lot of brands to choose from, and it's important to do your research before choosing which is best for you. The one that works best for your house might not be the one that you recognize from radio or TV ads.

Gas Furnace Replacement Cost Estimator

Gas furnaces average $3,800 to $10,000 to install, but they can get as high as $12,000. High-efficiency models cost 50% to 100% more than standard models. They’re the most commonly used, particularly in areas that endure harsh winters. Labor starts at about $1,600.

The estimated costs below are starting points for what you’ll pay to purchase and install an 80,000 BTU furnace for a 1,600-2,000 square foot house. Expect to pay more for the unit and the furnace if you live in a larger home.

Gas Furnace BrandEstimated Furnace CostEstimated Minimum Cost Installed
American Standard$2,750$4,380
Average Cost*$2,250$3,850

*Represents the average cost. Cost of living and regional pricing differences affect actual prices. Add 50% to 100% for high-efficiency models.

Oil Furnace Replacement Cost

Oil furnaces cost anywhere from $6,750 to $10,000 or more to install. They’ve been used longer than gas or electric furnaces and are common in the northeast, where there’s a lot of oil. Due to current oil prices, however, they are considered obsolete.

The prices listed below are based on the size of a furnace needed to heat a standard home (1,600 to 2,000 square feet). The estimated costs below are starting points for what you’ll pay to purchase and install an oil furnace, and don’t include charges for any additional pieces, parts or labor that a pro may recommend during the installation process.

Oil Furnace BrandEstimated Furnace CostEstimated Minimum Installation Cost
Thermo Pride$2,400$7,250
Average Furnace Cost$2,300$7,200

Electric Furnace Replacement

Electric furnace installation costs $2,000 or more. Far less common than gas, you’ll find these "furnaces" in the form of heat pumps or georthermal systems in mild parts of the country where winters are relatively warm. While they’re extremely high-efficiency, they tend to cost more to run since they use a lot of electricity to heat a home.

The average prices for the following brands are based on a model appropriate for a 1,500 square foot home in a climate that rarely sees temperatures drop below freezing.

Electric Furnace BrandEstimated Furnace CostEstimated Minimum Installation Cost
American Standard$1,100$2,600
Average Furnace Cost$835$2,500
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Furnace Removal Cost

In some cases, recyclers might come and grab your old components for free or for a fee of around $50. Professional removal of the old furnace runs $60 to $500 or more depending on a variety of factors that include:

  • Distance to a dumpsite.

  • Ease of removal.

  • Environmental and dumping fees.

Furnace Replacement Cost by Location

LocationAverage PriceTypical Range
Denver$4,000$2,600 - $5,600
Utah$4,000$2,800 - $5,700
New Jersey$5,000$3,500 - $7,200
Seattle$3,900$2,500 - $5,500
Atlanta$3,400$2,000 - $5,000
Chicago$3,700$2,400 - $5,300
Montana$2,900$2,300 - $3,600
Maine$3,200$1,800 - $5,000
Minneapolis$4,800$3,200 - $6,300
Pittsburgh$4,200$2,800 - $5,900
San Diego$3,100$1,900 - $4,600
Colorado Springs$4,300$2,900 - $5,800

New Furnace Installation Cost

Installing a new furnace costs anywhere from $2,000 to $10,000 or more. The cost breaks down into labor, unit cost and equipment. Your bill breaks down roughly like this:

  • Unit: 50%-75%

  • Labor: 20%-30%

  • Equipment, permits and removal: 15%-25%

Labor Costs for Furnace Installation

You’ll pay between $150 to $500 for professional labor to install a furnace. You can expect to pay $50 to $100 per hour for a licensed furnace installer, along with up to $50 per hour per additional team member. The cost will depend on your current set-up and whether you need to repair or install new ductwork.

Cost to Install Furnace and Ductwork

Installing new ductwork costs an average of $1,500 to $7,000. Most furnaces won’t work properly if the ductwork, vents, or various type of filters aren’t installed or adjusted properly for the new heating system. The total cost to install can vary widely based on factors including but not limited to:

  • Number of stories in a house

  • Intake or output vents

  • Accessibility

  • Siding and wall material

  • Temperature-control zones

Duct repair costs $1,000 to $5,000.

Permits & Inspections

Building permits cost from $400 to $1,500 depending on your location. Most places include inspection fees of $100 in the permit price. These ensure that the equipment operates safely. Some local gas providers offer free inspections. Shop around before settling on an inspector.

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New Furnace Prices

High Intensity Infrared Heater$500 - $3,000
Gas Furnaces$900 - $5,000
Oil$1,800 - $6,000
Electric$500 - $3,000
Coal$3,000 - $10,000
Geothermal$2,000 - $20,000+
Solar$15,000 - $30,000

Natural Gas & Propane Furnace Costs

Mid-range efficiency (80% AFUE)$900-$1,800
Mid-range efficiency (80% AFUE) w/ AC unit$2,500 - $5,000
High efficiency (94% AFUE)$2,000 - $3,000
Wall$1,200 - $1,700
Unit$1,000 - $4,800
Propane conversion kit$150 - $300

Installing a natural gas furnace costs $1,000 to $6,000 depending on the brand and if you’re converting from electric to gas. You can convert to propane for $200 to $500 with labor. If you have to endure cold and harsh winters, opt for gas-fired heating.

More efficient than electric.Best with sealed and well insulated homes.
Inexpensive fuel source.High environmental impact.
Fastest way to heat a home.Requires ductwork.
Best for northern climates.

Oil Burner Heating Unit Cost

An oil burning unit costs $1,800 to $6,000, not including labor.

When oil was cheap, oil furnaces dominated the market, particularly in the northeastern United States. As oil prices rose, the federal government gave rebate incentives for homeowners to convert to natural gas. Eventually, they became the dinosaurs of the heating market. Unlike other heating options, they require storage tanks. But this gives you the option of buying large amounts at one time, getting rid of the monthly heating bill.

More environmentally friendly than natural gasHigh fuel costs
On-site storage of fuelReleases carbon monoxide
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Electric Heater Cost

Electric heaters cost $500 to $3,000 for an entire home. It’s the cheapest way to go in terms of initial costs. But it’s the most expensive to run.

High efficiency.High monthly cost.
Safe and low maintenance.Takes a long time to heat a space.
Low initial installation cost.

Coal Furnace Cost

Coal furnaces run $3,000 to $10,000 and work much like a wood or pellet stove. They burn coal in a central chamber, heating the air above it. Most come with fans to then blow the air throughout ductwork.

  • Installing a pellet stove costs a third as much at $1,000 to $3,000. Wood pellets are also more readily available.

  • Installing a wood stove costs $900 to $3,800 but doesn’t connect to ducts easily and requires constant cleaning. Some standalone coal furnace types work like a wood burning stove or fireplace, without the aid of ducts or fans.

Less expensive to run.High initial installation price.
Burns cleaner than wood without the need for a chimney.Must feed the boiler every 12 hours.
Completely off-grid compatible.Regular cleaning of ash required.

Geothermal, Solar & Other Green Options

Geothermal heat pump prices$3,700 - $17,000
Solar panels for electric heat cost$17,500 - $32,000
Split system heat pump costs$2,000 - $14,500
LEED certification (add on)$2,000 - $3,500

Solar panels, geothermal and other environmentally focused heating systems cost $2,000 to $30,000 but represent investments not only in your home but in a more sustainable planet.

Consider that the upfront costs are high, and at current energy rates, you may not recoup your initial investment, even over the life of your home. But if traditional fuels grow considerably more expensive, these eco-alternatives may start looking like smarter choices.

Extremely efficient optionsHigh upfront costs
Lower monthly utility billsExpensive maintenance
Environmentally responsible

Heating System Costs by Size

Furnace BTUsSquare FeetTotal Average Cost
40,000 - 60,000700 - 1,500$2,000 - $3,000
80,000 - 100,0001,300 - 3,000$2,600 - $4,200
100,000 - 125,0001,600 - 4,000$3,000 - $4,500
125,000 - 150,0002,000 - 5,000$3,300 - $6,500

The average home requires around 100,000 BTUs of heating at a cost of $3,000 to $4,500. Keep in mind that the AFUE rating affects the actual heating capacity of your furnace. For example, if your furnace has a rating of 80%, you’ll only get 80,000 BTU’s from a 100,000 BTU furnace.

What Size Furnace Do I Need?

Homes typically require 30 to 50 BTUs per square foot. To figure out the average heating capacity that a home requires, calculate the square footage of the home. Whether a home needs more or fewer BTUs depends on the climate zone where the home is located. To find the cost savings of an energy star rated high efficiency furnace, you can figure your savings by multiplying your monthly electric bill by the efficiency difference between your old and new furnace.

For example, if you have a 70% efficiency furnace and you replaced it with a 97% efficiency model, you’d have about 35% efficiency upgrade. Now just multiply that by your monthly bill. Divide the cost of the new unit by that figure and that’s how many months it’ll take to pay off.

  • Amana: $2,350. Standard models: AMCV8/ADCV8, AMEH8, AMH8, AMS8, ADSH8, ADSS8. All are AFUE 80 and come with a 10-year limited warranty on parts. Most models meet California’s emissions requirements.

  • American Standard: $1,600 . Standard series: Silver ZI, Silver XI, Silver SI, Silver SI+. Warranties on parts range from five to 10 years. Heat exchangers all have a 20-year warranty except for the Silver ZI, which has a lifetime warranty.

  • Carrier: $1,600 . The Comfort 80 ($1,000 average) has a 10-year warranty on parts and a 20-year warranty on the heat exchanger. Aimed at regions with mild winters and long summers. Carrier also offers a Base series: 58STA and 58STX.

  • Rheem: $1,200.Low-maintenance products. Parts warranties vary from five to 10 years, while the heat exchanger warranty lasts for 20 years or the lifetime of the product, depending on the model.

  • Trane: $1,600. Standard series: XT80, XB90, XR80, XL80, XC80. Warranties range from five to 10 years on parts and 20 years or lifetime on heat exchangers. Reputation for quiet motors on all models. Trane CleanEffects™ air cleaner offers up to 99.98% removal of allergens and other harmful particles in the air.

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Forced Air Furnace Installation Cost Factors

You might run into additional expenses when installing a new system, relocating one or switching fuel types.

Home Size, Climate Zone and BTUs Furnace Cost Factors

Furnace Size (BTU)Typical Furnace Cost with Installation*
40,000 - 60,000$2,000 - $4,500
75,000 - 100,000$2,500 - $5,900
120,000 - 140,000$4,000 - $8,000

*Prices reflect a standard 80%-85% AFUE rating. High-efficiency furnaces add 50% to 100% more cost.

When a pro comes to your home to quote a heating system installation, they’ll do some load calculations to help determine what size (BTUs) you’ll need. A BTU or British Thermal Unit is how much energy it takes to raise one pound of water one degree Fahrenheit. Load calculations depend on several factors, including:

  • AFUE Rating. AFUE, or Annual Fuel Utilization Efficiency, of 80-90 means 80%-90% efficiency. So, a 100,000 BTU furnace with an AFUE of 80 would only put out an effective 80,000 BTUs. You can find the AFUE on a sticker on all furnaces.

    • Standard Efficiency = 80 to 89 AFUE

    • Mid Efficiency = 90-95 AFUE

    • High Efficiency = 96+ AFUE

  • Climate Zone. Recent changes to the ASHRAE climate zone map helps a pro determine the heating needs of your region.

  • Livable Square Footage. The size of your home makes a huge impact on the size of your furnace.

Crawl Space vs. Attic Furnace Prices

The cost differences between putting one in your attic or crawlspace depend heavily on which makes the most sense for the configuration of your home.

Best for cooling only the top floor.Great for single-story homes.
Often requires reinforcing the structure and insulation.Easier to install ductwork for ranch style homes.


How much does it cost to convert an electric furnace to gas?

Convert from an electric furnace to a gas furnace adds $5,000 to $15,000. You’ll need to factor in a few additional fees:

  • Gas line installation costs: $15-$25 per linear foot.

  • Ductwork installation or repairs: $8-$12 per linear foot.

  • Return air stack: $1,000-$5,000

How much does it cost to relocate a furnace in a house?

Relocating a furnace within a home can run you anywhere from $1,000 to $20,000 or more.

  • On the low end, relocation might be as simple as placing the new unit a few feet from the old when finishing a basement. The simplest move might only mean adding a few feet of ductwork.

  • On the high end, it might mean moving the entire system from a basement to an attic. This might require extensive construction with added duct work, drywall and new electrical circuits or gas lines.

How much does it cost to convert a heat pump to a gas furnace?

Converting a heat pump to a gas furnace requires removal of the old pump and installing a new furnace for $1,000 to $5,500. The new system should use your existing ducts with no problem, but it’s never a bad idea to have them inspected by a duct cleaning service near you.

How much to replace a boiler with a furnace?

Replacing a boiler with a furnace tends to run in the $2,000 to $6,000 range. Just removing the old system runs $500 to $1,000+. The accessibility, size and complexity of your existing setup accounts for most of the price difference.

What’s the average cost of converting from oil to electric heat?

The average cost to convert from oil to electric heat runs in the $2,000 to $5,000 range. Most homeowners spend $4,000 for a new furnace.

How long does a gas furnace usually last?

The average lifespan of a well-maintained furnace is 15 to 25 years. If you have a furnace that is less than 15 years old and well-maintained, ask your HVAC pro about making minor repairs before considering replacement.

When should I replace my furnace?

Replace your furnace every 20 years on average. However, if you’re looking to replace it for energy efficiency reasons, be sure to look into adding insulation, replacing windows and doing a home energy audit.

What is the best gas furnace for my home?

The best gas furnace for your home would probably be a centralized system with a fan. But without a site visit, it’s hard to determine the size, where to locate it and the specifics of your climate. Contact an HVAC pro near you for a free estimate.

What's the difference between a gas, oil and electric furnace?

Understanding different furnace types isn’t easy. The difference between gas, oil and electric furnaces lies in the fuel source and how fast they can heat your home.

  • Electricity, either from the local power grid or solar panels, is cleaner but takes longer to heat a space.

  • Gas and oil burn propane, natural gas or oil to heat air being pushed through your ducts.

What's the difference between a boiler, furnace and heat pump?

  • Boiler uses electricity or gas to heat water. The water then moves through your home, heating radiators in each room.

  • Furnaces have a central location that heats the air being pushed through your home.

  • Heat pumps use a refrigerant to move heat from the air, water or ground outside your home. It then transfers that heat into your house. Ductless mini-split heat pumps cost $1,300 to $8,000 and are the most common and affordable type. Geothermal is much more efficient.

What's the average cost of furnace and air conditioner replacement?

The average combo heat and air conditioning unit replacement cost ranges from $3,000 to $8,000.

How much does a high-efficiency furnace cost?

High efficiency furnaces cost $2,000 to $3,000 for the unit alone. Installation adds another $500 to $2,000.

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