Furnace cost by type and efficiency
| Furnace type | Installed price |
|---|---|
| Gas 80% AFUE (standard) | $3,800–$6,200 |
| Gas 90–95% AFUE | $5,200–$8,800 |
| Gas 96%+ AFUE (premium) | $7,500–$12,000 |
| Electric | $1,600–$7,500 |
Efficiency is measured in AFUE, the share of fuel that becomes heat. An 80% AFUE furnace sends 20 cents of every heating dollar up the flue; a 96% model wastes about 4 cents. Guides disagree on how much of the bill is the furnace itself, from roughly 30% to 65%, with the rest going to labor, venting, materials and permits.
80% or 95%: which pays off?
A high-efficiency furnace usually costs $1,000–$2,500 more installed than an 80% model. In cold climates where the furnace runs five or six months a year, the fuel savings can repay that in roughly four to seven years. In mild climates the payback often stretches past ten years, which makes a standard model the practical choice, especially if you plan to move soon.
Watch the venting. High-efficiency furnaces are condensing units that vent through PVC pipe, so upgrading from an 80% furnace usually means new venting, about $899–$1,965. Make sure it's in the quote.
Gas or electric?
Electric furnaces cost less to buy and install ($1,600–$7,500) because there's no gas line or combustion venting. But they cost far more to run wherever electricity is expensive relative to gas, and in a cold climate the difference in yearly heating bills can dwarf the savings on installation. If you're considering electric heat, compare a heat pump too.
Extra costs to expect
| Item | Typical cost | When it's needed |
|---|---|---|
| PVC venting | $899–$1,965 | Switching from 80% to a 90%+ condensing furnace |
| Duct repair or modification | $500–$5,000 | Leaky or undersized ducts, or a new furnace footprint |
| Old furnace removal | $150–$400 | When the contractor doesn't include it |
| Permit | $80–$500 | Required for gas line work in most areas |
Is there a federal tax credit for a furnace in 2026?
No. The federal Energy Efficient Home Improvement Credit (Section 25C), which offered a credit for qualifying high-efficiency gas furnaces, does not apply to equipment placed in service after December 31, 2025. Some cost guides still mention it. Utility rebates vary by area; in some regions rebate programs now favor heat pumps over furnaces, so ask your utility.
Questions to ask before you hire
- How did you size the furnace? Ask for a Manual J load calculation rather than a match to the old unit.
- Is new venting included if I'm moving to a high-efficiency model?
- Are removal of the old furnace and the permit included?
- Is the thermostat and any duct work part of the price?
- What's the labor warranty, separate from the manufacturer's?
Methodology and sources
We price furnaces by type and efficiency as installed totals, then adjust the labor share for your state's HVAC technician wages. Read how we estimate costs.
- HomeGuide: gas furnace prices — installed prices by AFUE, removal fees
- HVAC Project Cost: furnace replacement and gas vs electric
- UniColorado: furnace installation cost — PVC venting, permits, labor share
- hvac.best: cost to replace a furnace — electric furnaces
- HowManyBTUs: furnace replacement cost — efficiency premium, equipment share
- Angi: gas furnace prices — labor share
- C&C Air: furnace replacement cost — equipment share of the bill
- BLS OEWS May 2025, State (SOC 49-9021, HVAC mechanics) — state labor index
What each source reports
Our estimate does not rely on any single page. This table lists each page we used and the figures it reports, so you can see where the ranges come from.
| Source | What it reports |
|---|---|
| HomeGuide |
|
| HVAC Project Cost |
|
| HVAC Project Cost | a typical electric furnace runs $1,600-$4,500 fully installed |
| hvac.best | electric furnaces $2,000-$7,500 installed |
| Angi | labor is usually 20% to 40% of the total furnace project cost |
| UniColorado (Denver contractor) |
|
| HVAC Project Cost |
|
Common questions about furnace replacement costs
How much does furnace replacement cost?
A typical job (gas, 80% afue) comes to about $5,150 nationally, within a range of $3,880 to $6,700. Use the calculator above to adjust for your state, the options you choose and any extras.
How much does a gas furnace replacement cost?
Installed, a standard-efficiency (80% AFUE) gas furnace comes to about $3,880–$6,700 and a high-efficiency (90–95% AFUE) gas furnace about $5,280–$9,300.
How much does an electric furnace replacement cost?
An electric furnace comes to about $1,680–$8,000 installed. It needs no venting or gas line, but running costs depend on your electricity rate.
What about an oil furnace?
Oil furnaces are not priced on this page. The ranges here cover gas and electric furnaces.
How much does it cost to replace the furnace and AC together?
They are priced as separate jobs: a gas furnace here and a central AC on the AC unit cost page, where a 3-ton unit comes to about $4,600–$9,000. Compare any combined quote with the two figures.
Where do these prices come from?
They come from 7 published cost pages from 5 publishers, last checked Sep 24, 2026. We report what those pages say and do not invent figures; the table above shows each source.
How does my state change the estimate?
The labor part of the price is scaled by the average wage for the relevant trade in your state, using Bureau of Labor Statistics data. Materials and equipment are not adjusted.
Why might a contractor's quote differ from this estimate?
A quote reflects your specific scope, access, local demand and what the contractor includes. Ask for line items rather than a single total so you can compare bids on the same basis.
All 7 sources behind these prices
Every figure in the calculator comes from one or more of these pages, with the number each one supports in the link text.
- HomeGuide: standard-efficiency gas furnace (80-89% AFUE) $3,800-$6,200 installed
- HVAC Project Cost: a standard 80% AFUE furnace for a 1,500-2,000 sq ft home runs about $5,000 installed at mid-range
- HVAC Project Cost: a typical electric furnace runs $1,600-$4,500 fully installed
- hvac.best: electric furnaces $2,000-$7,500 installed
- Angi: labor is usually 20% to 40% of the total furnace project cost
- UniColorado (Denver contractor): labor 25-35% of a furnace replacement
- HVAC Project Cost: ductwork repairs or replacement can add $500-$5,000