A new furnace typically costs $3,500-$8,500 installed, with many homeowners paying about $5,800 for a standard gas system and straightforward replacement. Furnace type, heating capacity, efficiency rating, ductwork changes, and local labor rates have the biggest effect on the final quote.
| Item | Low | Average | High | Notes |
|---|---|---|---|---|
| Installed gas furnace | $3,500 | $5,800 | $10,000 | Common replacement range |
| Installed electric furnace | $2,000 | $4,000 | $6,500 | Equipment and electrical needs affect price |
| Installed oil furnace | $4,500 | $7,000 | $10,500 | May include oil-line or vent work |
| Gas furnace equipment | $1,200 | $2,800 | $5,500 | Before installation, varies by efficiency and capacity |
Installed gas furnace prices by efficiency and home size
A standard 80% AFUE gas furnace replacement generally costs $3,500-$6,500 installed. A 90%-96% AFUE condensing model commonly runs $5,000-$9,500, while a large or premium variable-speed system can bring the total to $10,000 or more. AFUE measures how much fuel becomes usable heat; higher ratings can reduce fuel use but usually cost more upfront.
Most homes need a furnace sized through a load calculation, not a rule based only on square footage. As a rough planning range, a 1,500-square-foot home might need 45,000-75,000 BTU per hour, depending on insulation, climate, windows, and layout. Assumptions: standard replacement, existing ducts in usable condition, and ordinary access. For a typical gas-furnace swap, budgeting $4,000-$8,000 covers many midrange installations.
What furnace installation quotes include
Quotes can differ because one contractor includes removal, venting, or thermostat work while another lists those items separately. The following breakdown reflects a typical gas furnace replacement; actual shares vary with the home and equipment.
| Cost component | Low | Average | High | What changes it |
|---|---|---|---|---|
| Furnace equipment | $1,200 | $2,800 | $5,500 | Capacity, AFUE, and blower type |
| Labor | $900 | $1,700 | $3,000 | Access, crew size, and installation complexity |
| Venting and materials | $200 | $650 | $1,500 | New PVC venting or gas connections |
| Removal and disposal | $100 | $250 | $500 | Old unit access and local disposal fees |
| Permit and inspection | $50 | $200 | $500 | Municipal requirements and scope |
Installation labor often works out to $75-$150 per technician-hour, although bids usually price the complete job. Compare written quotes by included work, not just the furnace model or headline total.
How BTU capacity, AFUE, and duct changes shift the quote
Capacity and installation conditions can move a price substantially. A 40,000-60,000 BTU unit is often less expensive than an 80,000-100,000 BTU model, but buying an oversized furnace can cause short cycling and uneven comfort. Ask whether the contractor performed a room-by-room load calculation.
Moving from 80% to 95% AFUE may add roughly $1,000-$3,000 for equipment and related venting. Replacing a single-stage unit with a two-stage or variable-speed model can add another $500-$2,000. Duct repairs may add $300-$2,000; extensive duct replacement can cost several thousand dollars. Venting changes are particularly common when switching to a high-efficiency condensing furnace.
Where labor rates make furnace replacement pricier
Installed prices are often 10%-25% above national midrange estimates in high-cost metropolitan areas, including parts of the Northeast, California, and the Pacific Northwest. Rural markets may be 5%-15% lower, but travel charges or limited contractor availability can offset that difference. Cold-climate areas may also favor higher-capacity equipment or more extensive venting work.
Local permit rules, fuel availability, and the age of the home matter as much as the state average. Request at least two or three local bids with the same capacity and efficiency assumptions. Regional averages are useful for screening quotes, but a site-specific estimate is more reliable.
Three replacement quotes for common home setups
A small, uncomplicated replacement might use a 60,000-BTU, 80% AFUE gas furnace. Equipment could be $1,800-$2,700, with 6-8 labor hours and basic materials; a realistic installed total is about $4,000-$5,500.
A 2,000-square-foot home could require an 80,000-BTU, 96% AFUE furnace. Equipment and venting may total $3,500-$5,000, with 8-12 labor hours and disposal; the installed quote may land around $6,500-$9,000.
A difficult replacement with a tight utility closet, new vent route, and minor duct repairs may reach $9,000-$12,000, even with similar capacity. These examples assume typical U.S. labor rates and exclude major electrical upgrades. Access and extra trade work can outweigh small differences in equipment price.
How long furnace installation takes and what adds labor
A like-for-like furnace replacement usually takes 4-8 hours for a two-person crew. A high-efficiency conversion, vent relocation, condensate drain, or control wiring changes may extend the job to 1-2 days. Labor often costs $900-$3,000 within a standard installation quote, with complex work priced separately.
Ask whether startup testing, thermostat setup, and removal of the old furnace are included. A diagnostic visit before replacement may cost $75-$200, often credited toward installation if the same contractor completes the work. Clarifying the work plan helps prevent add-on charges on installation day.
When a repair costs less than replacing the furnace
Common repairs such as an igniter, flame sensor, or thermostat issue can cost about $150-$600, while a blower motor or control board may run $400-$1,200 installed. A cracked heat exchanger or repeated major failures may make replacement more practical, especially when the furnace is 15-20 years old or older.
Compare the repair quote with the cost of a new system and consider reliability, remaining service life, and energy use. Repair is not automatically the cheaper long-term choice if breakdowns are frequent, but age alone does not prove replacement is necessary. A documented diagnosis can help distinguish a manageable repair from a failing system.
How to lower a new furnace bill without cutting essentials
Keep the project to a replacement when ducts, gas lines, electrical service, and venting are safe and correctly sized. Avoid paying for extra capacity or premium blower features without a comfort or control need. Get comparable bids specifying the same BTU range, AFUE, warranty, permits, disposal, and startup testing.
Scheduling before peak winter demand may improve appointment availability, though seasonal discounts are not guaranteed. Ask about manufacturer rebates or local utility incentives, which vary by equipment and location. Do not skip permits or required safety work to reduce the quote. Scope clarity and apples-to-apples bidding are usually the most dependable ways to control the final price.