Furnace Replacement Cost (2026)

Gas and electric furnace replacement costs for every budget.

Cost Summary

Low End

$2,500

National Average

$4,500

High End

$6,800

Unit: per systemTime: 4-8 hoursCategory: replacement

How Much Does Furnace Replacement Cost?

Furnace replacement involves removing your old heating unit and installing a new gas, electric, or oil furnace. Modern furnaces are significantly more efficient than older models, with high-efficiency gas furnaces reaching 96-98% AFUE ratings. This investment directly impacts your winter heating costs and home comfort.

Factors That Affect Furnace Replacement Cost

Fuel type: gas ($2,500-$6,800), electric ($1,500-$4,000), oil ($4,000-$8,500)

AFUE efficiency rating (80% standard vs 96%+ high-efficiency)

Single-stage vs two-stage vs modulating burner

System size (BTU output) matched to home

Ductwork modifications needed

Venting changes (standard vs direct vent)

Gas line upgrades

Brand and warranty level

What Is Included

New furnace unit installation

Old furnace removal and disposal

Gas/electrical connections

Venting and flue installation

Thermostat compatibility check

System testing and calibration

Carbon monoxide safety check

Permit and inspection

When You Need Furnace Replacement

Furnace is 15-20+ years old
Cracked heat exchanger (safety hazard)
Frequent repairs exceeding 50% of replacement cost
Uneven heating throughout home
Yellow or flickering pilot light
Excessive noise or strange smells
Rising energy bills despite maintenance

Pro Tips for Saving Money

$Never ignore a cracked heat exchanger - carbon monoxide risk
$High-efficiency furnaces (96%+) use PVC venting, saving chimney costs
$Two-stage furnaces are quieter and more comfortable than single-stage
$Check for utility rebates on high-efficiency models
$Fall installation often has shorter wait times and better deals
$Modulating furnaces provide the most even heat but cost 30-50% more

Frequently Asked Questions

How long does a new furnace last?

A well-maintained gas furnace lasts 15-20 years. Electric furnaces can last 20-30 years. Oil furnaces typically last 15-25 years with proper maintenance.

What AFUE rating should I choose?

In cold climates, 95%+ AFUE pays for itself in 5-7 years through energy savings. In mild climates, 80% AFUE may be sufficient. The federal minimum is 80% AFUE for non-weatherized gas furnaces.

Can I switch from oil to gas?

Yes, if natural gas is available in your area. The conversion costs $3,000-$7,000 including the new furnace, gas line installation, and removing the oil tank. Long-term savings on fuel make this worthwhile in most cases.

Do I need a furnace if I have a heat pump?

In moderate climates, a heat pump alone may suffice. In cold climates (below 25-30F regularly), a dual-fuel system with a gas furnace backup is most efficient.