The typical furnace replacement cost is about $1,600 to $10,000 installed in 2026, and the typical homeowner pays close to $4,800. Gas furnaces run $3,800 to $10,000, electric furnaces $2,000 to $7,000, and oil furnaces $6,750 to $10,000. Efficiency, size and the state of your venting and ducts decide where you land in that range.
Furnace replacement cost by fuel type
| Fuel | Installed cost | Notes |
|---|---|---|
| Natural gas | $3,800 – $10,000 | Most common; cheapest to run where gas is cheap |
| Propane | $3,800 – $10,000 | Same furnace as gas with a conversion kit; fuel costs much more |
| Electric | $2,000 – $7,000 | Cheapest to buy, most expensive to run |
| Oil | $6,750 – $10,000 | Needs a tank, chimney and yearly cleaning |
80% vs 95% AFUE furnaces
AFUE (annual fuel utilization efficiency) is the share of the fuel that ends up as heat in your home. An 80% furnace wastes a fifth of the fuel up the chimney. A 95–98% condensing furnace captures that heat, but it needs PVC venting and a condensate drain, which adds $1,000 to $2,500 to the job if your home is set up for an 80% unit.
The upgrade pays back fastest in cold climates. For a home that spends $1,200 a year on gas with an 80% furnace, moving to 96% saves about $200 a year. In a mild climate that spends $500 a year, the saving is under $100 and the payback can stretch past 15 years.
Furnace size and cost
Residential furnaces range from about 40,000 to 120,000 BTU of input. A bigger furnace costs a few hundred dollars more, but the bigger risk is buying one that is too large. Oversized furnaces short-cycle, which wastes fuel, wears parts and leaves hot and cold spots. Ask for a Manual J load calculation rather than matching the old furnace’s size.
Extra costs to expect
- Venting changes: $500 to $2,500, mainly when switching to a condensing furnace
- Gas line work: $250 to $800 if the line needs extending or resizing
- Ductwork repairs: $300 to $1,500; full replacement much more
- Permit and inspection: $100 to $500
- Removal of the old furnace: often included, sometimes $100 to $300
Repair or replace?
A common rule of thumb multiplies the furnace’s age by the repair cost. If the result is over 5,000, replacement usually makes more sense. A 17-year-old furnace needing a $400 inducer motor (17 × 400 = 6,800) is a candidate for replacement; a 6-year-old furnace needing the same part is not. Most gas furnaces last 15 to 20 years.
Should you replace the furnace with a heat pump instead?
If your air conditioner is also more than 10 years old, a heat pump replaces both for less than buying a new furnace and a new AC separately. A heat pump costs $10,000 to $25,000, against roughly $4,800 for a furnace plus $5,000 to $10,500 for central air. It also removes the gas bill’s fixed monthly charge if nothing else in the house uses gas.
Whether it lowers your heating bill depends on your fuel prices. Run your numbers in the heat pump savings calculator or read heat pump vs furnace.
How to lower the cost
- Replace in spring or early fall, when contractors are less busy.
- Get three written quotes with model numbers and AFUE ratings.
- Ask your gas utility about rebates for 95%+ furnaces.
- Don’t pay for a bigger furnace than a load calculation shows you need.