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How Much Does Furnace Replacement Cost?

Average National Cost
? All cost data throughout this article are collected using the RSMeans construction materials database.
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$2,800 - $9,175

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Updated On

February 25, 2024

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Highlights
  • Replacement furnace costs range from $2,800 to $9,175 on average, including installation. High-efficiency models fall on the higher end of the range.
  • Several factors impact the final cost of a replacement furnace, including type, size, efficiency rating (AFUE), brand, and climate zone, plus other factors such as labor, ductwork, thermostat, removal of the old system, etc.
  • Once your furnace reaches 15 to 20 years old, the repair cost often reaches or exceeds the replacement cost. Upgrading to a new furnace provides better reliability and efficiency, lower energy bills, more safety, and uses modern technology.

It doesn’t matter if your furnace fails in the middle of winter or the end of the cold season. When your furnace breaks down, it can be an expensive — and often unexpected — situation. 

When it comes to electric, natural gas, and oil furnaces, the best replacement type for your home depends on several factors. If your home already has an electric furnace, replacing it with a new, equivalent electric furnace is the most cost-effective method. However, if you have an old electric or oil furnace, I recommend upgrading to a new gas furnace if you can install a gas line affordably and easily. Gas furnaces have the best efficiency and will save you more money on energy bills in the long run.

To give you the most accurate estimate possible for your new furnace, the HVAC experts at Today’s Homeowner gathered cost data from direct-to-contractor resources. We’ll explain what goes into the cost of a new furnace, what you can expect for installation costs, and review the best furnace brands.

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HVAC Installation
In general, you can expect to pay between $5,540 to $10,980 per HVAC unit, installation costs, and removal of your old unit.
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trane furnace cost
Furnace Replacement
In general, you can expect to pay between $4,000 and $7,000, including installation, old furnace removal, and labor.
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trane heat pump cost
Heat Pump Installation
In general, you can expect to pay between $3,000 and $35,000, but most homeowners spend between $5,800 and $7,500.
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What Is the Average Furnace Replacement Cost?

On average, furnace replacement costs between $4,000 and $7,000 for the new furnace, installation, old furnace removal, and labor. The national average cost for a new gas, oil, or electric furnace is around $5,780, but electric and gas furnaces are typically more affordable than oil furnaces. 

Low Furnace CostAverage Furnace CostHigh Furnace Cost
$2,800$5,870$9,175
All cost data within this article is collected using the RS Means construction materials database.

Furnace Replacement Cost by Type

Furnace installation cost depends on the type of furnace and the fuel source. Electric furnaces are among the least expensive home heating systems, while oil and gas furnaces are more expensive.

Electric Furnace Cost

On average, electric furnaces cost between $1,200 and $7,000. Electric furnaces use heating coils to heat air, which is then distributed throughout your home through ducts and vents. 

Electric furnaces are known for their high energy costs, so it’s worth the higher up-front cost for a more energy-efficient unit. Since this system runs on electricity, electric furnaces are most common in warmer climates with mild winters.

Lennox oil furnace SLO185V Series
Lennox Oil Furnace
Image Credit: Lennox.com

Natural Gas Furnace Cost

The average price range for a natural gas furnace is typically between $3,280 and $7,550 or more. Natural gas furnaces are common in northern states with harsh winters because natural gas is cheaper than electricity. If you want to save even more money on your utility bills, you can opt for a new unit that is more energy efficient.

Oil Furnace Cost

You can expect to pay between $6,425 and $9,175 or more for a new oil furnace installation. These furnaces are often the most expensive to install and maintain and are less efficient than others. However, this fuel type is safer than gas furnaces because you don’t have to worry about carbon monoxide. Oil furnaces are common in northern regions where you want to pay the lowest possible electric bills to heat your home.

What is the Average Furnace Replacement Cost by BTU?

British Thermal Units (BTUs) measure your furnace’s heating efficiency. The more BTUs a furnace has, the more warm air it can pump through the pipes and heat your home. That said, larger homes require larger furnaces with more BTU capacity.

BTUs also depend on which region you live in. If you live in a northern region (region 4 or 5), you’ll need a system with more BTUs because your furnace will need to heat your home during colder winters. However, if you live in a southern region (regions 1 and 2), your furnace won’t need to heat your home in such extreme temperatures. So, you can get by with a less expensive furnace with a lower BTU rating.

House Size (sq ft)Region 1 BTURegion 2 BTURegion 3 BTURegion 4 BTURegion 5 BTU
80028,00032,00036,00040,00048,000
1,00035,00040,00045,00050,00060,000
1,20042,00048,00054,00060,00072,000
1,40049,00056,00063,00070,00084,000
160056,00064,00072,00080,00096,000
1,80063,00072,00081,00090,000108,000
2,00070,00080,00090,000100,000120,000
2,20077,00088,00099,000110,000132,000
2,40084,00096,000108,000120,000144,000
2,60091,00010,4000117,000130,000156,000
2,80098,00011,2000126,000140,000168,000
3,000105,00012,0000135,000150,000180,000

What Factors Impact Furnace Replacement Costs?

Furnace replacement cost depends on several factors, including the type of furnace you install, energy efficiency, the size of your home, and the climate where you live. Most of your furnace replacement cost can be attributed to the cost of materials and labor, but the factors that can raise or lower the cost of a new furnace include the following:

  • Climate
  • Efficiency
  • Furnace size
  • New versus replacement heating system

Furnace Replacement Cost by Climate

Where you live heavily impacts the type of furnace you need to heat your home effectively. For example, if you live in northern regions that experience cold winters, you will need a furnace with more BTUs than someone who lives in southern states, and you might opt for a two-stage furnace vs. a single-stage furnace. 

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Systems with more BTUs are larger and often more expensive than furnaces rated for fewer BTUs. For example, a 45,000 BTU furnace may cost between $3,200 and $4,500, but a 150,000 BTU furnace could cost $6,000 or more.

There are five climate zones that determine the type of furnace you need. Since BTUs are based on square footage, you can multiply the square footage of your home by a certain number of BTUs per square foot. Depending on where you live, you can estimate the size of your system using the following guidelines:

  • Region 1: 35 BTU per square foot
  • Region 2: 40 BTU per square foot
  • Region 3: 45 BTU per square foot
  • Region 4: 50 BTU per square foot
  • Region 5: 60 BTU per square foot

For example, if you have a 2,000-square-foot home and live in Minnesota, the appropriate furnace size is about 120,000 BTUs. If you live in Florida with a home of the same size, you can get by with 70,0000 BTUs. Local furnace installers know the best system size for your home, so contact a local HVAC contractor to find out more.

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Furnace Replacement Costs by Efficiency

Not only are efficient furnaces better for the environment, but these appliances can save you hundreds of dollars yearly. However, these high-efficiency furnaces come at a price. Generally, high-efficiency models are more expensive than lower-efficiency furnaces. For a moderate-efficiency furnace, expect to pay between $4,500 and $7,000, while the most efficient furnaces often cost between $6,000 and $10,000 — or more.

When looking to replace your furnace, the most important efficiency factor is the annual fuel utilization efficiency (AFUE) value. The AFUE rating indicates how much fuel your furnace converts to energy and how much is lost during conversion. That means that if your furnace has an AFUE rating of 85%, 85% of the fuel is converted, and 15% is lost.

AFUE is represented by a percentage and will likely range between 56% and 100%. The higher your AFUE, the more efficient your system is. Standard furnaces fall around or above 80%, but furnaces with 90% or more AFUE ratings can earn an ENERGY STAR rating. ENERGY STAR-certified gas furnaces with an AFUE of 97% or greater can qualify for the federal HVAC equipment tax credit. Coleman, Lennox, York, Honeywell, and Trane are the top furnace manufacturers, and all offer ENERGY STAR-certified gas furnaces with AFUE ratings of 90% or higher.

Furnace Replacement Costs by Brand

The brand of furnace you buy can also affect the price. The cost difference between the best furnace brands can be several thousand dollars. For example, a 100,000 BTU 96% AFUE furnace can cost $6,300 from Bryant but $5,998 from Amana and $8,986 from Carrier. Rheem furnaces tend to be on the more affordable end of the furnace cost spectrum.

This is also why getting multiple quotes from different service providers is important. Each HVAC company specializes in different brands, so it’s always a good idea to review the options different companies offer.

Furnace BrandAverage Cost
Rheem$4,100 – $4,960
Trane$4,800 – $13,500
American Standard$2,700 – $9,000
Lennox$2,900 – $8,300
Carrier$2,400 – $5,200
All cost data within this article is collected using the RS Means construction materials database.

Furnace Replacement Cost by Model

Trane S9V2 Gas Furnace
Trane S9V2 Gas Furnace
Image Credit: Trane.com

All furnace manufacturers offer several different sizes and models to best fit your local heating needs, climate, efficiency requirements, and budget. Most major brands offer 6 to 12 models, from lower-efficiency, entry-level units with 80% AFUE to high–efficiency models sporting 96% AFUE ratings that cost a premium price.

Since there are so many models available from the major furnace brands, it would be hard to compare them all.

So, to give you an idea of the cost differences, the table below compares the most efficient gas furnace models from the most common brands in the U.S.

Furnace ModelMax Efficiency (AFUE)FeaturesCost Range
Rheem R98MV Endeavor Line Prestige Series Gas Furnace98%EcoNet Enabled, Ultra Quiet Operation, Modulating Gas Valve$3,500 – $7,500
Trane S9V2 Gas Furnace96%Slim Size, Variable Speed Airflow, Quiet Operation$8,500 – $10,500
American Standard Platinum 95 Gas Furnace97%Remote Communication, Quiet Operation, Flexible Control$7,000 – $9,500
Lennox SLP99V Signature Line99%Smart-Enabled, Quiet Operation, Variable Capacity$7,000 – $10,500
Carrier Infinity® 98 Gas Furnace98%Greenspeed® Intelligence, Humidity Control, Ultra Quiet Operation $7,500 – $10,000

New Vs. Replacement Heating System

The total cost of your furnace repair or replacement project depends on whether you are replacing the old furnace or installing a completely new type of furnace. Because all the equipment is already in the right place, replacing a furnace often costs less than installing a completely new furnace type. 

The cost of replacing a furnace includes the new furnace, installation, removal of your old appliance, and other furnace components. To replace your old furnace with a newer version, you can expect to pay between:

  • $2,000 to $7,000 for an electric furnace
  • $3,300 to $7,600 for a gas furnace
  • $6,400 to $9,200 for an oil furnace

Besides the furnace and installation costs, you may incur additional costs if you install a completely new system. You may have to pay for an electrician, new ductwork, an updated/smart thermostat like Ecobee, and other furnace components that can easily add $1,000 or more to your total cost.

Related: Should I Replace My 30-Year-Old Furnace?


Furnace Repair Vs. Replacement Costs

When your furnace stops working properly, you have two options: repair the existing unit or replace it entirely. In some cases, repairs may seem more affordable in the short term, but replacement is the better long-term investment. Consider the following factors when deciding between furnace repair and replacement:

  • Repairs: Some common furnace repairs include fixing igniters, replacing blower motors, cleaning heat exchangers, or patching cracks in the heat exchanger. On average, furnace repairs cost $300 to $500 but can run over $1,000 if multiple parts need replacing.
  • Replacement: As noted above, completely replacing a furnace ranges from $4,000 to $7,000 on average. Replacement guarantees you get an efficient, reliable system designed to last over 20 years. New furnaces also come with warranties on parts and labor.
  • Age: Once a furnace reaches 15 to 20 years old, the risk of breakdowns rises, and repair parts become hard to find. At this age, replacement often makes more economic sense than continuing repairs.
  • Efficiency: Upgrading an older unit to a modern high-efficiency model can slash your energy bills by up to 30%. The energy savings usually offset the higher replacement cost over time.

Common Furnace Repairs

Some of the most common furnace repairs include:

  • Igniter replacement: Faulty hot surfaces or spark igniters prevent the furnace from lighting. Expect to spend $300 to $500.
  • Blower motor replacement: Blower motors distribute heated air. When your furnace blower fails, it won’t push warm air into the ducts. Expect to spend $400 to $700.
  • Heat exchanger cleaning: Dirt buildup on the heat exchanger blocks airflow and reduces efficiency. Professional cleaning restores performance. Expect to spend $200 to $500.
  • Heat exchanger patches: Cracks allow dangerous exhaust gases into the ductwork. Patching is cheaper than full replacement. Expect to spend $500 to $1,500.
  • Flame sensor replacement: The flame sensor monitors the pilot light. If it fails, the furnace cannot detect a lit pilot, so it will not start the heating cycle. Expect to spend $150 to $300.
  • Thermostat wiring repair: Faulty thermostat wiring prevents communication between the thermostat and the furnace control board. This stops the furnace from turning on when heat is called for. Expect to spend $100 to $250.

Professional Vs. DIY Furnace Replacement

Some DIY projects are easy for homeowners to take on, but furnace replacement isn’t one of them. This home system is critical to the comfort of your home, and poor installation can compromise not only your heating and cooling systems but also your safety. 

Doing Furnace Replacement Yourself

Unless you’re an experienced HVAC technician, you should leave this home improvement project to the professionals. Replacing a furnace requires knowledge of heating and cooling systems, electrical work, precision metalwork, and plumbing. If you decide to replace the furnace yourself to save money, something could easily go wrong.

When a professional HVAC technician replaces your furnace, they do more than just replace the unit. HVAC technicians make sure your system is hooked up properly and working safely. Before they leave, they’ll check to ensure the system is heating properly, is not emitting harmful gasses, and is connected to the duct system. Plus, you often get a workmanship warranty covering the cost of repairing your furnace in case it’s installed incorrectly.

Hiring a Professional for Furnace Replacement 

Most heating, ventilation, and air conditioning contractors will come to your home within 24 hours of your call to give you a quote. If you have a furnace emergency, many top HVAC companies offer emergency service and can be at your home as soon as possible. 

To find a local HVAC technician, follow these steps:

  1. Find local experts near you: Use the button below to be connected to an experienced HVAC technician.
  2. Get a quote from a few options: Gather at least two quotes from local HVAC providers and compare the material and labor costs.
  3. Consult them about their recommendations: Ask each HVAC company what they recommend for your home so that you know the unit size and efficiency that is best.
  4. Choose a furnace from an HVAC provider: Choose the furnace that makes the most sense for your home’s needs and your budget.
  5. Have your furnace installed: Your HVAC technician will set up the soonest available time to come to your home and replace your furnace.
  6. Register your warranty: Register your HVAC system with the manufacturer so that you can benefit from warranty coverage. You may also want to buy a home warranty for your HVAC system to save money should it break down.
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Final Thoughts on Furnace Replacement Cost

Your furnace is one of the most important systems in your home, so when it breaks down, it’s important to get it up and running as soon as possible. Furnace replacement typically costs between $4,000 and $7,000, including the furnace, labor, components, and removal of the old unit. Your total furnace replacement cost depends on the system size, efficiency, brand, and overall project scope.


FAQs About Furnace Replacement Cost

Is it worth replacing a 20-year-old furnace?

Most furnaces have a 15 to 20 years lifespan, but if well maintained, some furnaces can function until they’re 30 years old. However, if your furnace is 20 or older, you should replace it, as older furnaces can fail without much notice.


What factors affect the cost of replacing a furnace?

Efficiency, system size, climate, and brand may affect the furnace replacement cost. The cost of furnace replacement may also be affected due to the size of the project. If you are replacing the same type of furnace, it will likely be cheaper than installing an entirely new type of furnace.


What is the average cost of replacing a furnace?

The average cost to replace a furnace is typically between $4,000 and $7,000 but can be higher or lower depending on the type installed, brand selected, size, etc.


What is the best type of furnace to buy?

The best type of furnace to buy is the right size for your home and has a good efficiency rating of 80% AFUE or higher. The most efficient furnaces have an efficiency rating of 90% AFUE, as these furnaces are often Energy Star certified. Several reliable furnace brands include Trane, American Standard, Goodman, Rheem, and Lennox.


Editorial Contributors
avatar for Alora Bopray

Alora Bopray

Staff Writer

Alora Bopray is a digital content producer for the home warranty, HVAC, and plumbing categories at Today's Homeowner. She earned her bachelor's degree in psychology from the University of St. Scholastica and her master's degree from the University of Denver. Before becoming a writer for Today's Homeowner, Alora wrote as a freelance writer for dozens of home improvement clients and informed homeowners about the solar industry as a writer for EcoWatch. When she's not writing, Alora can be found planning her next DIY home improvement project or plotting her next novel.

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photo of Roxanne Downer

Roxanne Downer

Editor

Roxanne Downer is a commerce editor at Today’s Homeowner, where she tackles everything from foundation repair to solar panel installation. She brings more than 15 years of writing and editing experience to bear in her meticulous approach to ensuring accurate, up-to-date, and engaging content. She’s previously edited for outlets including MSN, Architectural Digest, and Better Homes & Gardens. An alumna of the University of Pennsylvania, Roxanne is now an Oklahoma homeowner, DIY enthusiast, and the proud parent of a playful pug.

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