Furnace Replacement Cost in 2026 (By Type & Efficiency)

What a new furnace costs in 2026

Replacing a furnace costs most homeowners $3,000-$7,500 installed for a standard gas model, with high-efficiency condensing furnaces at $5,000-$10,000, electric furnaces at $2,000-$4,500, and oil furnaces at $5,000-$9,000. The spread comes from three things: furnace type, efficiency (AFUE), and how much install work your home needs. Here's the full breakdown so you can sanity-check any quote.

Quick takeaways:

• Standard gas furnace (80% AFUE): $3,000-$7,500 installed
• High-efficiency gas (95-98% AFUE): $5,000-$10,000
• Electric furnace: $2,000-$4,500 · Oil: $5,000-$9,000
• Furnace + AC together (full system): $7,000-$15,000
• Rebates and tax credits can shave hundreds to thousands off high-efficiency models

Cost by furnace type

For how the fuel types compare on running costs and lifespan, see gas vs. electric furnace - and in many climates it's worth pricing a heat pump before committing to any furnace.

What drives the price up or down

• Efficiency (AFUE). AFUE is the heating equivalent of SEER2: the percentage of fuel converted to usable heat. Standard is 80%; condensing models hit 95-98%. The premium runs $1,500-$3,000 and pays back fastest in cold climates with long heating seasons.
• Size (BTU). Larger homes need higher-BTU furnaces, which cost more - and correct sizing via a load calculation matters as much for furnaces as it does for AC sizing. Oversized furnaces short-cycle and die young.
• Blower type. Variable-speed ECM blowers add cost but cut electricity use and improve comfort versus single-speed.
• Install complexity. Venting changes (high-efficiency models need new PVC venting and a condensate drain), gas-line or electrical work, tight closets/attics, and code-required upgrades (permits, disposal) all add labor.
• Region. Labor rates vary - expect the higher end of ranges in high-cost metros, as with AC replacement.

What should be included in the quote

A proper furnace replacement quote covers: the furnace itself, labor, permits, old-unit disposal, venting and condensate work (for condensing models), a new filter setup, thermostat hookup, and startup testing including a combustion/CO safety check. Itemized quotes only - and these questions flush out lowball bait.

Rebates, credits, and timing

• Federal energy-efficiency tax credits apply to qualifying high-efficiency furnaces (and up to $2,000 for heat pumps).
• Utility rebates commonly add $100-$1,000+ for efficient models.
• Timing matters: replacing in the fall shoulder season - or planning ahead rather than mid-cold-snap - gets better pricing and scheduling (why timing matters).
• 0% financing is widely available on new systems for qualified buyers.

Repair instead? Run the framework

If your furnace is under ~15 years old and the fault is minor, repair may win - typical repairs run $150-$650. At 15-20+ years, or facing a cracked heat exchanger, replacement is usually the safer, cheaper-over-time call (lifespan guide).

Bottom line

Budget $3,000-$7,500 for a standard gas furnace, $5,000-$10,000 for high-efficiency, $2,000-$4,500 for electric - and $7,000-$15,000 if you're doing furnace + AC together. Get itemized quotes, size it properly, stack the rebates, and buy in the shoulder season if you can.

Ready for real numbers on your home? Connect with a licensed local pro for a free replacement estimate - honest sizing, rebates, and financing.