Fix It Price

Furnace Replacement Cost

National planning ranges, installed: gas $3,800–$10,000, electric $2,000–$7,000, ducted heat pump $4,500–$8,000, oil $6,750–$10,000. Most like-for-like gas swaps land near $5,000. Here is what moves your number.

By HarryUpdated September 2026

HVAC technician connecting a new gas furnace to ductwork in a basement
AI-generated illustration

Natural gas furnace, like-for-like swap with existing ducts, installed, September 2026

$3,800 – $10,000

Electric furnace: $2,000–$7,000. Ducted air-source heat pump: $4,500–$8,000. High-efficiency (96%+ AFUE) gas: $7,500–$12,000. Permits, disposal and duct fixes add $400–$2,500 on top of a bare swap.

Published averages sit in the middle of that band. HomeAdvisor reports a typical furnace replacement at $2,823–$6,897 with most homeowners paying about $4,814. Fixr puts it at $2,800–$7,500 with a $4,800 average, and This Old House lands at $4,799. Those averages blend cheap electric units with expensive oil and high-efficiency gas systems, so the fuel line on your quote matters more than the national number. Angi's 2026 data says a gas furnace for a 1,600 to 2,000 square foot house averages about $7,000.

Gas vs electric vs heat pump: what each option costs installed

SystemInstalled rangeNotes
Electric furnace$2,000 – $7,000Cheapest to buy, most expensive to run. Unit is $800–$4,500. Needs a dedicated circuit; a panel upgrade adds $500–$1,800
Gas furnace, standard (80–89% AFUE)$3,800 – $6,200Single-stage, reuses the existing metal flue. Unit alone $700–$1,800
Gas furnace, moderate (90–95% AFUE)$5,200 – $8,800Usually two-stage. Condensing, so it needs PVC venting and a condensate drain
Gas furnace, high (96%+ AFUE)$7,500 – $12,000Modulating burners, sealed combustion. Unit alone $2,800–$6,200
Propane furnace$3,700 – $14,200Same hardware as gas with an orifice kit; the wide range reflects tank and line work
Oil furnace$6,750 – $10,000Common in the Northeast where gas mains are absent. Highest fuel cost
Ducted air-source heat pump$4,500 – $8,000Replaces furnace and AC in one. This Old House's 2026 survey average is $10,575 for central units
Dual-fuel (heat pump plus gas backup)$2,500 – $10,000Angi's range for the hybrid add-on. Heat pump runs most days, gas takes over in deep cold

Size and efficiency: the two numbers on every quote

Furnaces are sized in BTUs of output. Angi's rule of thumb is 30 to 60 BTUs per square foot depending on climate, so a 2,000 square foot house in Texas might need 60,000 BTUs while the same house in Ohio needs 120,000. Oversizing is the classic mistake: the furnace short-cycles, wears out early and heats unevenly. Ask for a Manual J load calculation, not a guess from the old unit's nameplate.

Home sizeGas furnace outputInstalled (HomeGuide)
Up to 1,200 sq ft40,000 – 50,000 BTU$3,800 – $6,700
1,200 – 1,600 sq ft50,000 – 60,000 BTU$4,200 – $7,200
1,600 – 2,000 sq ft60,000 – 70,000 BTU$4,700 – $8,000
2,000 – 2,500 sq ft70,000 – 90,000 BTU$5,100 – $9,500
2,500 – 3,000+ sq ft90,000 – 120,000 BTU$5,800 – $12,000

AFUE is the share of fuel that becomes heat in your house. An 80% furnace wastes 20 cents of every gas dollar up the flue; a 96% furnace wastes four. Angi prices the unit tiers at $500–$1,500 for standard, $1,000–$3,000 for 90–95% and $2,000–$6,000 for 96% and up. The catch is that condensing furnaces cannot use the old metal chimney. They need two PVC pipes to an outside wall and a drain for the acidic condensate, which is where a $1,500 unit premium turns into a $3,000 install premium in a finished basement.

What drives the price

DriverImpactNotes
Fuel type$2,000 – $8,000 swingElectric is simplest. Gas adds venting and a gas connection. Oil adds a tank and burner service
Efficiency tier+$1,500 – $5,000Unit premium plus PVC venting and condensate drain for anything over 90% AFUE
Ductwork$300 – $5,600+Sealing and minor repair $300–$1,500 (HomeGuide). Full replacement $1,400–$5,600+, or $1,000–$2,700 per HomeAdvisor for a 1,000 sq ft system
Fuel conversion+$1,800 – $12,000Electric to gas $1,800–$6,500; oil to gas $3,800–$12,000+ (HomeGuide). A new gas line alone is $350–$2,000
Labor$500 – $2,000Angi: $50–$100 per hour for the lead installer. Fixr: 4 to 10 hours at $75–$150. Labor is 10–40% of the total
Permit and inspection$250 – $500Angi lists HVAC permits at $250–$400 and gas furnace permits up to $500. HomeGuide sees $250–$1,500 in strict jurisdictions
Removal and disposal$60 – $400HomeAdvisor $60–$330, HomeGuide $150–$400. Often folded into the quote; ask
Region and season±25%Angi: expect at least $5,000 in Maryland, California and Virginia. January emergencies pay a premium

Regional ranges

Bob Vila's compiled city data shows how far labor rates move the same job. A furnace replacement runs $2,750–$7,400 in Boston, $2,500–$6,800 in Houston, $2,250–$6,000 in Atlanta, $2,150–$5,850 in Denver and Los Angeles, and $2,080–$5,600 in Indianapolis. The spread inside each city is bigger than the spread between cities, which tells you the equipment tier, not the zip code, sets most of the bill.

Running costs and the heat pump question

HomeGuide's monthly heating estimates: $30–$60 for natural gas, $40–$160 for a heat pump, $90–$200 for propane and $130–$180 for electric resistance. If you heat with electricity today, a heat pump cuts that bill roughly in half; HomeGuide notes heat pumps use about 50% of the electricity of an electric furnace. If you have cheap natural gas, a standard furnace remains the lowest-cost heat on the block, and the case for a heat pump rests on replacing an aging AC at the same time.

On efficiency upgrades within gas, Homestery's worked example is a fair rule: moving from 80% to 96% AFUE saves about $250 a year on a $1,500 heating bill. Against a $3,000 premium that is a 12-year payback, so high-efficiency pencils in cold climates and long stays, and rarely in the Sun Belt. The federal 25C credit for furnaces ended for equipment placed in service after December 31, 2025, per the IRS, so check utility rebates instead.

When repair beats replace

Two rules settle most calls. The $5,000 rule: multiply the furnace's age by the repair estimate. A 12-year-old furnace needing a $600 control board scores $7,200 and points to replacement. An 8-year-old unit with a $200 capacitor scores $1,600 and gets fixed. The 50% rule: if the repair is more than half the cost of a new furnace and the unit is over 10 years old, replace it. Typical repair prices from RealCostIQ: igniter $100–$250, control board $300–$650, blower motor $450–$2,000. HomeGuide puts the average gas furnace repair at $100–$480 with labor at $75–$150 an hour.

  • Repair it if the unit is under 12 years old, the fix is under $700 and the heat exchanger is sound.
  • Replace it for a cracked heat exchanger at any age, a 15-year-old unit with any four-figure repair, or a furnace that has needed two service calls in one winter. Angi says furnaces last about 20 years on average; HomeAdvisor's range is 10 to 15 for heavy-use units.
  • Replace with a heat pump if the AC is also past 12 years and you are on electric or propane heat. You retire two systems for the price of one.

DIY vs pro

A furnace swap is not a homeowner job. Gas piping, combustion venting and 240V circuits are inspected line items, most cities will not issue a homeowner mechanical permit for gas equipment, and manufacturers void warranties without a licensed install. What you can do: replace the thermostat ($120–$260 per Angi) and filters yourself, seal accessible duct joints, and pull the old unit to the curb if the installer discounts haul-away.

Quote warning: the number that hides is venting. A quote for a 96% furnace that does not mention PVC vent runs, a condensate pump or a drain is missing $500–$1,500 of work. Get three written quotes that name the brand, model, BTU output, AFUE, stages (single, two-stage, modulating), warranty years on parts and heat exchanger, permit, disposal and any duct changes. A contractor who sizes the furnace without a load calculation is copying the old nameplate, and the old one was probably oversized too.

Quick answers

How much does it cost to replace a furnace in 2026?

Plan on $3,800–$10,000 installed for a natural gas furnace and $2,000–$7,000 for electric, as of September 2026. HomeAdvisor puts the typical all-fuel project at $2,823–$6,897 with an average near $4,814, and Fixr at $2,800–$7,500. A 96%+ AFUE gas furnace runs $7,500–$12,000 installed per HomeGuide, and oil furnaces cost $6,750–$10,000.

Should I repair or replace my furnace?

Use two tests. The $5,000 rule: multiply the furnace age in years by the repair quote; over $5,000, replace. The 50% rule: if the repair costs more than half of a new furnace and the unit is past 10 years old, replace. A $250 igniter on a 12-year-old furnace scores $3,000 and is a repair. A $2,200 heat exchanger on a 15-year-old unit clears both rules and is a replacement.

Is a heat pump cheaper than a new furnace?

A ducted air-source heat pump costs $4,500–$8,000 installed per Angi and This Old House, though This Old House's 2026 survey of 1,000 homeowners put the average central heat pump job at $10,575. It replaces both the furnace and the AC, so compare it against a furnace-plus-AC bill, not a furnace alone. Running costs favor the heat pump over electric resistance heat; natural gas is usually cheapest to run at $30–$60 a month.

Before you sign: get the model number, BTU output and AFUE in writing, confirm who pulls the permit, and ask what the price does if the inspector requires new venting or a duct change. See how to read a contractor quote. Replacing the AC at the same time? Compare against our central AC replacement cost guide.

Sources

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