How Much Does Furnace Replacement Cost?

A new furnace costs $2,800–$10,000+ installed, with most homeowners paying around $5,000–$6,000 for a mid-efficiency gas unit. The wide spread comes down to fuel type, efficiency (AFUE rating), unit size, and how much your existing ductwork, gas line, and venting need to change. Below are current national-baseline figures and what to watch in a quote.

Typical cost ranges

Furnace type	Typical installed cost (national baseline)
Electric furnace	$2,000–$4,500
Gas, single-stage (80% AFUE)	$3,500–$6,000
Gas, two-stage (92–96% AFUE)	$4,500–$8,500
Gas, modulating (96–98% AFUE)	$6,000–$10,000+
Oil furnace	$4,500–$9,000

The equipment itself usually runs $2,000–$5,000; labor and materials to install it add $1,500–$4,000 in most markets. High-cost metros and complex venting jobs push totals past $10,000.

What drives the price

Fuel type. Natural gas units are the most common and cheapest to run; oil furnaces cost more to install and fuel prices swing; electric furnaces are cheap to install but expensive to run in cold climates.
Efficiency (AFUE). An 80% AFUE furnace wastes 20% of its fuel. Jumping to 95%+ adds $1,000–$2,500 upfront but can cut heating bills 15–20% in cold regions.
Staging. Single-stage units run full-blast or off; two-stage and modulating furnaces adjust output, run quieter, and hold temperatures more evenly — for a premium.
Size (BTUs). An undersized unit can't keep up; an oversized one short-cycles and wears out faster. A proper Manual J load calculation is how pros size it, not a rule of thumb.
Ductwork and venting. High-efficiency condensing furnaces vent through PVC and need a condensate drain. If your ducts are leaky or undersized, expect $2,000–$5,000 in modifications.
Gas line and electrical. A new gas line run costs $300–$1,000; a dedicated circuit for electric models runs $200–$500.
Labor market. Installer rates vary widely by metro — get at least three quotes.

Common omissions and watchouts

Permits and inspections ($250–$500) are sometimes left off lowball quotes and added later.
Old unit removal and disposal ($50–$250) should be line-itemed, not assumed.
Thermostat upgrades — a basic smart thermostat adds $150–$350 and is often worth it.
Reused flue liners. A high-efficiency furnace must not vent into an old masonry chimney without a proper liner; shortcuts here are a carbon-monoxide risk.
Duct cleaning or sealing upsells — legitimate in older homes, but get the scope in writing.

Get a personalized estimate

Every home is different: fuel availability, duct condition, and local labor rates all move the number. Run your quotes through HomeJobCost's quote analyzer to see whether a contractor's line items line up with national baselines before you sign.

Bottom line

Budget $5,000–$6,000 for a straightforward like-for-like gas furnace swap, and $7,000–$10,000 if you're upgrading efficiency, changing fuel types, or fixing ductwork. The cheapest bid is rarely the best deal — prioritize a proper load calculation, a written scope, and permits over the lowest equipment price.