Furnace replacement costs $2,800 to $7,500 in 2026
The average new furnace costs about $4,800 installed. A mid range gas furnace, the most common job, runs $4,500 to $6,300. Electric furnaces start near $1,800. Oil and propane furnaces, and high efficiency gas models, can pass $10,000.
New furnace cost by fuel and scope
| Electric furnace | $1,800 to $7,300 installed. The cheapest to buy. Often the dearest to run where power is costly. |
|---|---|
| Natural gas furnace | $3,800 to $10,000 installed in one January 2026 guide. An August 2026 guide puts most gas jobs at $2,800 to $7,500, with an average near $4,500. |
| Propane furnace | $3,700 to $14,200 installed. Common where there is no gas line in the street. |
| Oil furnace | $6,700 to $10,000 installed. Mostly a Northeast job. |
| Furnace and AC together | $5,000 to $15,000 for a full system swap. |
| Labor alone | $300 to $1,800, or 10 to 40 percent of the bill. Most swaps take 4 to 10 hours at $75 to $150 per hour. |
| Duct repairs | $5 to $45 per linear foot for damaged sections. Old or leaky ducts can add $1,000 to $3,000. Full new ductwork runs $1,400 to $6,000. |
| Permit | $50 to $1,500, set by your town. |
| Hauling away the old furnace | $50 to $330 when it is not in the quote. |
What pushes a quote up
| Fuel | Staying with the fuel you have is the cheapest path. Changing fuel adds gas or oil line at $9 to $27 per foot, a tank at $600 to $2,500, or a 240 volt circuit at $175 to $500. |
|---|---|
| Efficiency | A furnace rated 96 percent AFUE or higher adds about 30 percent to the price. The Department of Energy estimate quoted by one 2026 guide is $200 to $400 a year saved on heating. |
| Size | Bigger homes and colder states need more BTUs. A furnace that is too big costs more and short cycles. Ask for a Manual J load calculation. |
| Ducts and venting | A high efficiency furnace vents through plastic pipe, not the old chimney. New venting and a drain line are extra work. |
| When you buy | Crews are busiest in deep winter. A no heat call in January leaves no time to collect three quotes. |
Furnace replacement cost by region
| Lower cost states | $2,200 to $6,000. Alabama, Arkansas, Indiana, Iowa, Kansas, Kentucky, Mississippi, Missouri, Oklahoma, Tennessee, West Virginia and most rural areas. |
|---|---|
| Average cost states | $2,800 to $7,500. Arizona, Florida, Georgia, Michigan, North Carolina, Ohio, Pennsylvania, Texas, Virginia and most mid size cities. |
| Higher cost states | $3,600 to $9,800. California, Connecticut, Hawaii, Massachusetts, New Jersey, New York, Washington, plus big metros such as Chicago, Denver and Washington DC. |
These rows are our estimate. We took the typical national range and adjusted it for local labor costs, which run about 20 percent lower in the cheapest states and about 30 percent higher in the dearest ones. Cold states need larger furnaces, so the same house costs more to fit in Minnesota than in Georgia even before labor.
Why five cost guides give five answers
Look this job up and the numbers do not agree. Fixr reports $2,800 to $7,500 with an average of $4,800. HVAC Project Cost says $2,500 to $11,200, with most people at $4,500 to $6,300. Sears Home Services says $3,500 to $7,500. Bryant, which makes furnaces, says $4,000 to $8,000 for a typical 2,000 square foot home. One contractor guide that quotes Angi puts most turnkey jobs at $6,000 to $7,500, and another says most people spend $5,000 to $10,000.
They are counting different things. The low numbers are a basic 80 percent gas or electric furnace dropped into the old spot, using the old ducts and vent. The high numbers include a 96 percent furnace, new venting, duct repairs and a permit. Read your quote for those four items before you compare it with any national average.
The tax credit that older guides still mention
Some cost guides still say a high efficiency furnace earns a federal tax credit of up to $600. An August 2026 guide lists that credit, known as Section 25C, as expired. Do not count on it. Check energystar.gov and your utility for rebates that are still running, and ask the contractor to put any rebate in writing.
Repair or replace
Most furnaces last 15 to 20 years. If yours is inside that window and the repair is small, fix it. If it is past 15 years and the repair is a heat exchanger or a control board, the money is better spent on a new one. A yearly tune up costs $70 to $300 and is the cheap way to find out early.
Why this costs more in 2026
A furnace is steel, copper and a circuit board, and it arrives on a truck. Freight and metal prices are both in the quote.
Fuel is the common thread. AAA's national average for diesel passed $6 a gallon for the first time on September 11, 2026, up from about $3.70 a year earlier (CBS 8 reporting AAA). Every truck roll and every delivery carries that. Materials moved too. Associated Builders and Contractors reported construction input prices up 4.8 percent in a year as of March 2026, the largest annual gain since January 2023, and the Associated General Contractors said diesel jumped 37.8 percent in one month, the largest one month rise since 1990 (Roofing Contractor, April 2026). Some suppliers added freight surcharges this year. Ask how long your quote is good for.
How to judge the quote in your hand
- Find the model number and the AFUE. Two quotes for a gas furnace are not the same job if one is 80 percent and the other is 96 percent.
- Ask for the load calculation. A contractor who sizes by the label on the old furnace is guessing.
- Check what is included. Permit, venting, duct repairs, thermostat and hauling away the old unit should each be a yes or a no.
- Compare three quotes on the same scope. Prices for the same furnace vary by thousands between companies.
- Ask about the warranty on labor. The maker covers parts. The installer covers the work, often for only one year.
Ways to pay less
- Replace before it dies. Spring and fall are the slow seasons. You can wait for the best quote.
- Keep your fuel. A like for like swap skips new lines, tanks and circuits.
- Seal the house first. Attic insulation and air sealing can let you buy a smaller furnace.
- Ask your utility. Rebates for high efficiency gas furnaces are often paid by the gas company, not the government.
What will this cost me?
Pick the job, your state's cost level and the last detail. The estimate updates as you change them.
An estimate built from published 2026 cost guides. It is not a quote. Get a written quote before work starts.
The one business per trade, per town that AI recommends.
When your customers ask an AI which company to call, we get you named, not your competitor. We work and monitor every major engine, ChatGPT, Google's AI Overviews, Gemini, Perplexity, Copilot, Claude, and Grok, so you show up wherever they ask. Fully done-for-you: setup, ongoing optimization, competitor tracking, a live dashboard, and monthly reporting. Backed by our 90-day money-back guarantee.
Book a free 15 minute callNo pitch deck. We run your audit live on the call.Common questions
How much does it cost to replace a furnace?
$2,800 to $7,500 for most homes in 2026, with an average near $4,800. A mid range gas furnace runs $4,500 to $6,300 installed.
How much is a new furnace for a 2,000 square foot house?
Bryant puts a typical 2,000 square foot home at $4,000 to $8,000 for equipment and installation. High efficiency models cost more.
What is the cheapest type of furnace?
Electric, at $1,800 to $7,300 installed. It costs less to buy but can cost more to run than gas.
How much does labor cost to install a furnace?
$300 to $1,800. Most installs take 4 to 10 hours at $75 to $150 per hour.
How long does a furnace last?
15 to 20 years with yearly service. Oil furnaces can reach 25 years and electric furnaces 20 to 30.