How Much Does Furnace Installation Cost?
Furnace installation costs $5,500 on national average, with most projects landing between $3,200 and $7,800. Gas furnaces, the most common type, run $3,800 to $10,000 installed (about $7,000 for a 1,600 to 2,000 sq ft home). Electric: $2,500 to $7,000. Oil: $4,000 to $10,000. Propane: $3,000 to $12,000.
Planning figures, not contractor quotes. How we calculate
Short answer
Budget $5,500 for a furnace replacement, the national average, with most projects landing between $3,200 and $7,800. Gas furnaces, the most common type, run $3,800 to $10,000 installed, or about $7,000 for a 1,600 to 2,000 sq ft home. The full national band across gas, electric, oil, and propane is $2,000 to $12,000.
Cost summary
Estimates per project. See the cited sources and methodology before using these figures for a decision.
| Cost level | Estimate |
|---|---|
| Low | $2,000.00 |
| Typical | $5,500.00 |
| High | $12,000.00 |
Calculate your planning range
Enter rates from your own quotes or research. We do not supply unverified local prices.
What you'll actually pay
Plan about $5,500 for a furnace replacement, which is the national average from Angi, with a second independent estimate landing at $5,200 as the midpoint (Angi; allbetterapp). Most projects settle between $3,200 and $7,800 for a standard installation.
The full national band runs $2,000 to $12,000 depending on fuel type, efficiency, and home size (ConsumerAffairs). Gas is the most common setup in the US, and that band reads $3,800 to $10,000 with roughly $7,000 as the average for a 1,600 to 2,000 sq ft home (Angi).
If your quote lands well below $3,000, ask what was left out: permits, ductwork fixes, and old-unit disposal are the usual missing line items. If it lands above $10,000, you are likely looking at a high-efficiency modulating system or a fuel conversion, not a straight swap.
Sources: Angi: Repair or Replace Your Furnace? (2026), allbetterapp: Furnace Replacement Cost 2026 (Full Breakdown), ConsumerAffairs: How Much Does a Furnace Cost? (2026), Angi: How Much Does a Gas Furnace Cost? (2026)
Cost by furnace type: single-stage vs two-stage vs modulating
Furnace type decides where you land in the national band before anything else does. A single-stage furnace runs at full blast or off, a two-stage furnace can run at a lower first stage on mild days, and a modulating furnace adjusts output in small steps to match the exact heat demand (allbetterapp). The installed cost steps up with each stage, so match the type to your climate and to how long you plan to stay in the home.
| Furnace stage | AFUE | Installed cost |
|---|---|---|
| Single-stage gas | 80% | $2,500 to $4,500 |
| Two-stage gas | 90 to 96% | $3,500 to $6,000 |
| Modulating gas | 97 to 98% | $5,000 to $8,500 |
Where the money goes on a standard install: expect $500 to $2,000 for labor at $50 to $100 per hour for a licensed installer, with labor typically 20 to 40 percent of the total project cost while the furnace unit itself is 50 to 75 percent of the project (Angi). That split is why a quote that lands hundreds below the band usually skipped labor scope, not equipment quality.
Sources: allbetterapp: Furnace Replacement Cost 2026 (Full Breakdown), Angi: How Much Does a Gas Furnace Cost? (2026)
Cost by fuel type
Gas furnaces cost $3,000 to $10,000 installed, and about 45 percent of US homes heat with natural gas, so this is the band most quotes land in (ConsumerAffairs). A standard gas swap sits near $3,800, while a high-efficiency modulating gas unit can reach $12,000 (Angi).
Electric furnaces run $2,500 to $7,000 installed. They last longer (20 to 30 years versus 15 to 25 for gas) but cost more to run in cold climates, which is why they dominate in the milder South (ConsumerAffairs; HomeGuide).
Oil furnaces run $4,000 to $10,000 and propane $3,000 to $12,000 installed (ConsumerAffairs). Both are concentrated in the Northeast and rural areas where gas lines do not reach. Switching fuels almost always adds electrical or gas-line work, so a like-for-like swap is the cheaper planning case.
Sources: ConsumerAffairs: How Much Does a Furnace Cost? (2026), Angi: How Much Does a Gas Furnace Cost? (2026), HomeGuide: How Much Does It Cost to Install a Furnace? (2026)
Cost by home size
For a 1,600 to 2,000 sq ft home, budget around $7,000 for a gas furnace replacement (Angi). Pearl's 2026 research puts the national median for a gas furnace alone at about $7,900 (citybiz).
Square footage alone should not set your system size. Colder climate zones need higher BTU output, and an oversized unit costs more to buy and cycles inefficiently (Angi). Insist on a Manual J load calculation before accepting a size recommendation (allbetterapp).
If the job includes new ductwork, plan $3,800 to $12,000 for furnace plus ducts; replacing the furnace and AC together runs $4,000 to $10,000 (HomeGuide). Leaking or undersized ducts are the most common surprise add-on.
The same sources pair home size with the BTU output the furnace must deliver. Use this table for planning, then insist on the Manual J load calculation above before buying a size.
| Home size | BTU need | Installed cost |
|---|---|---|
| Small, 1,000 to 1,200 sq ft | 40,000 to 60,000 BTU | $2,500 to $4,000 |
| Medium, 1,500 to 2,000 sq ft | 60,000 to 80,000 BTU | $3,500 to $5,500 |
| Large, 2,500 to 3,500 sq ft | 80,000 to 120,000 BTU | $5,000 to $7,800 |
| Large plus cold climate, 3,500+ sq ft | 120,000+ BTU | $7,000 to $12,000+ |
The rough sizing rule behind the table is 30 to 60 BTUs per square foot: 30 to 40 in warmer climates, 50 to 60 in colder ones (Angi).
Sources: Angi: How Much Does a Gas Furnace Cost? (2026), citybiz (Pearl 2026 research): How Much Does It Cost to Replace an HVAC System? (Pearl 2026), HomeGuide: How Much Does It Cost to Install a Furnace? (2026), allbetterapp: Furnace Replacement Cost 2026 (Full Breakdown)
Your install scenario sets the price more than the furnace model
Three scenarios cover nearly every furnace job, and identifying yours narrows the estimate more than any other single question. A like-for-like swap, same fuel with existing ductwork in good shape, is the simplest job and lands in the lower half of the standard $3,200 to $7,800 band. If your quote lands well below $3,000, this guide already flags it: ask what was left out, because permits, ductwork fixes, and old-unit disposal are the usual missing line items.
The middle scenario is a replacement plus ductwork work: rerouting, sealing, or adding runs in an older home. HomeGuide prices a furnace with new ductwork at $3,800 to $12,000, and the spread is the ductwork, not the furnace. If the contractor has not inspected the ducts, the quote is guessing at the biggest variable. Our ductwork replacement guide prices a full duct overhaul separately.
The expensive scenario is a fuel conversion or a combined furnace and AC changeout. HomeGuide puts a furnace plus AC replacement at $4,000 to $10,000, and quotes above $10,000 are conversions or high-efficiency modulating systems rather than straight swaps. Permits add $400 to $1,500, On rebates, the picture has shifted: the federal 25C credit of up to $600 for a 97 percent or higher AFUE gas furnace covered installs through December 31, 2025 only, so a 2026 replacement should be planned around state and utility rebates instead. The up-to-$8,000 heat pump figure is a state-run Home Electrification rebate for income-qualified households where the state program is live (allbetterapp).
Plan the disruption too: a standard like-for-like swap takes 4 to 8 hours; with ductwork modifications, fuel conversions, or code upgrades, expect 1 to 2 days. Plan for no heat during the job in cold months (allbetterapp).
Fuel conversions carry their own price tags on top of the furnace. Angi's conversion figures:
| Conversion | Cost |
|---|---|
| Propane to gas | $100 to $1,950 |
| Electric to gas | $120 to $9,850 |
| Heat pump to gas | $120 to $9,850 |
| Oil to gas | $500 to $6,540 |
Sources: Angi: How Much Does a Gas Furnace Cost? (2026), HomeGuide: How Much Does It Cost to Install a Furnace? (2026), allbetterapp: Furnace Replacement Cost 2026 (Full Breakdown)
What drives the price up
Efficiency rating is the biggest lever. Standard 80 to 89 percent AFUE units are the cheapest; 90 to 95 percent AFUE adds roughly $500 to $1,500; 96 percent plus AFUE high-efficiency units push toward the top of the band (Angi). The efficient unit costs more now and pays back on fuel over its 15 to 25 year life.
Ductwork condition moves quotes more than most homeowners expect. Duct replacement alongside a furnace adds thousands, which is why the furnace-plus-ductwork band tops $12,000 (HomeGuide). When the ducts only need attention rather than replacement, our air duct cleaning cost guide prices that service.
Permits and inspections add $400 to $1,500 (Angi). Emergency mid-winter replacements cost more than planned off-season installs, because you lose negotiating time and contractors charge peak-season labor (allbetterapp).
Fuel conversions stack costs: gas line extensions, electrical panel upgrades, and new venting each add their own line items (citybiz).
Sources: Angi: How Much Does a Gas Furnace Cost? (2026), HomeGuide: How Much Does It Cost to Install a Furnace? (2026), allbetterapp: Furnace Replacement Cost 2026 (Full Breakdown), citybiz (Pearl 2026 research): How Much Does It Cost to Replace an HVAC System? (Pearl 2026)
Repair vs replacement
Use the 15-year rule: if your furnace is over 15 and repairs are piling up, replacement usually wins (Angi). A single repair over half the replacement cost is the other trigger, and a blower motor alone can run $900 (Angi; allbetterapp).
Three or more repairs in two years is replacement territory regardless of age. A new high-efficiency unit also cuts heating bills by roughly $50 to $70 a month, which changes the payback math (allbetterapp).
Replace immediately if the unit emits carbon monoxide, the heat exchanger is cracked, or rooms will not heat evenly after fixes. Those are safety calls, not budget calls (Angi).
The fuel savings are concrete enough to budget against: upgrading from an 80 percent AFUE furnace to a 96 percent AFUE model saves $840 per year on average (Energy Star), or $16,800 over a 20-year lifespan (allbetterapp).
Lifespan by fuel type rounds out the picture: gas 15 to 25 years and electric 20 to 30 years as above, plus oil 15 to 25 years and propane 15 to 20 years (HomeGuide).
| Situation | Unit age | Repair cost | Call |
|---|---|---|---|
| Minor part failure | under 10 years | $150 to $500 | Repair |
| Heat exchanger crack | 10 to 15 years | $1,500 to $3,000 | Depends |
| Repair exceeds 50% of replacement | 15+ years | $2,000+ | Replace |
| 3+ repairs in last 2 years | any age | cumulative $1,500+ | Replace |
Sources: Angi: Repair or Replace Your Furnace? (2026), allbetterapp: Furnace Replacement Cost 2026 (Full Breakdown), HomeGuide: How Much Does It Cost to Install a Furnace? (2026)
Are there tax credits or rebates?
The federal picture changed: the 25C credit of up to $600 for a qualifying 97 percent plus AFUE gas furnace covered installs through December 31, 2025 only, so a 2026 replacement should be planned around state and utility rebates instead. The up-to-$8,000 heat pump figure is a state-run Home Electrification rebate for income-qualified households where the state program is live (allbetterapp). Credits apply to the equipment, not the labor, so keep the invoice itemized.
Many gas and electric utilities add $200 to $1,000 in rebates for high-efficiency installations (allbetterapp). Check your provider before signing, since rebate paperwork is easiest to file while the job is being quoted. If the rebate picture tips your decision toward electric heat, our heat pump installation cost guide prices the full conversion.
If the upfront cost is the blocker, HomeGuide's payment rundown: supplier monthly financing, home-improvement or bank loans, $100 to $500 back in rebates or tax credits from manufacturers, dealers, utilities, or government programs, and credit card payment plans. Compare the financing cost against the fuel savings before choosing.
Sources: allbetterapp: Furnace Replacement Cost 2026 (Full Breakdown), HomeGuide: How Much Does It Cost to Install a Furnace? (2026)
When is the cheapest time to replace a furnace?
Spring and early fall. Contractors have open schedules, you avoid emergency pricing, and you can collect three competing bids without freezing (allbetterapp). Homeowners who bid jobs out typically save 20 to 40 percent over the first quote they receive.
Never replace in January if you can help it. A dead furnace in a cold snap is a forced purchase, and forced purchases get the worst prices. If your unit is past 15 years, get quotes in September, not February.
Sources: allbetterapp: Furnace Replacement Cost 2026 (Full Breakdown)
How to compare furnace quotes
Three bids is the minimum, but the comparison only works if the bids describe the same job. Use this five-point framework (allbetterapp):
- Get 3 or more written bids, not verbal estimates.
- Compare equipment specs, not just brand: model number, AFUE, BTU, and warranty terms.
- Check what is included in labor: removal, permits, ductwork inspection, thermostat wiring, and code compliance. Missing "extras" add $500 to $1,500 if they are not included.
- Verify licensing and insurance: unlicensed work can void the manufacturer warranty.
- Ask about rebates and tax credits before signing, not after.
Sources: allbetterapp: Furnace Replacement Cost 2026 (Full Breakdown)
Sources
- allbetterapp: Furnace Replacement Cost 2026 (Full Breakdown) (accessed 2026-10-09)
- Angi: Repair or Replace Your Furnace? (2026) (accessed 2026-10-09)
- citybiz (Pearl 2026 research): How Much Does It Cost to Replace an HVAC System? (Pearl 2026) (accessed 2026-10-09)
- Angi: How Much Does a Gas Furnace Cost? (2026) (accessed 2026-10-09)
- ConsumerAffairs: How Much Does a Furnace Cost? (2026) (accessed 2026-10-09)
- HomeGuide: How Much Does It Cost to Install a Furnace? (2026) (accessed 2026-10-09)
Frequently asked questions
How much does an HVAC project cost?
Budget $5,500 for a furnace replacement, the national average, with most projects landing between $3,200 and $7,800. Gas furnaces, the most common type, run $3,800 to $10,000 installed, or about $7,000 for a 1,600 to 2,000 sq ft home. The full national band across gas, electric, oil, and propane is $2,000 to $12,000.
Why is there a cost range instead of a single price?
Project costs move with scope, finish level, and local labor rates. This guide splits the national planning range into low, typical, and high levels, and the scope sections explain what pushes a project toward each end. Use the range to budget, then collect itemized contractor quotes for your exact project.
Are these figures contractor quotes?
No. They are national planning ranges compiled from published, cited sources, shown with their assumptions and limitations. Treat them as a budgeting starting point, not a bid. Our methodology page explains how every figure is sourced and reviewed.
