How Much Does New Furnace Replacement Cost?

National data shows the average replacement cost of a furnace ranges from $1,795 to $6,290, with most homeowners paying about $3,817. Prices will vary based on city, cost of living, brand, efficiency, warranties included, and more. A new furnace will save you money in heating. However, figuring out a new furnace cost can be tricky. Use the average furnace replacement costs below to help give you a better understanding of the pricing. Then, get free estimates from furnace replacement professionals near you.

furnace replacement

New furnace replacement cost

The average cost of a new furnace ranges from $1,795 to $6,290 with most homeowners paying around $3,817. Furnace prices may vary depending on factors like brand, cost of installation, and size of your home.

Your new or replacement furnace cost will also differ based on the type of furnace you choose. Gas furnaces cost an average of $3,153, electric furnaces cost around $2,213 and oil furnaces cost around $6,085. If you want the most accurate pricing, you should consult an HVAC professional.

New Furnace Cost

Type of Furnace Type of Furnace High-Efficiency Furnace
Electric $1,975 $2,450
Gas $2,385 $3,920
Oil $5,880 $6,290

*These prices are an average estimated cost and are not guaranteed. Prices will vary based on city, cost of living, brand, efficiency, warranties included, and more.

Gas furnace prices

Gas furnaces cost around $3,000 on average. As the most popular type of furnace, these units are especially great for areas with harsher winters.

Electric furnace prices

Electric furnaces typically cost around $2,000 and are on the more expensive end of furnace types given the amount of electricity they use to heat a house. Electric furnaces are popular in areas with mild winter climates.

Oil furnace prices

Oil furnaces cost an average of $6,000 – much higher than the other furnace types. While oil furnaces have been around the longest, they are not widely used anymore.

Furnace installation cost

New furnace installation costs typically range from around $2,500 to $6,000 for labor with professional installation. Prices for installation and labor cost will depend on a number of factors, like brand and unit size, but generally cost average of $4,200.

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5 factors that affect furnace costs

1. Furnace installation

Furnace installation costs include the time it takes to install the furnace, where it’s being installed, how difficult it is to install, and whether or not new ductwork needs to be installed. On average, furnace installation costs approximately $4,200. Additional factors that can affect furnace installationcosts are the fuel type, brand, size and energy efficiency.

2. Furnace efficiency

Product Type
Product Type Up to AFUE Unit Cost Installed Unit Cost
Gas Furnace 97.3% $5,000 $6,500
Gas Furnace 97% $4,000 $5,500
Gas Furnace 92% $1,600 $3,100
Gas Furnace 96.7% $3,300 $4,800
Gas Furnace 95% $2,100 $3,600
Gas Furnace 96% $3,300 $4,800
Gas Furnace 80% $1,600 $3,100

Furnaces today are much more efficient than the hulking behemoths we remember from our childhood. That means that you have a host of different options when you’re looking to purchase your new unit. Furnaces with higher Fuel Utilization Efficiency Rating, or AFUE, run more efficiently and therefore cost more to purchase upfront, but end up saving you money in the long run on your utility costs. As you search for your new furnace, keep in mind that a jump from a standard-efficiency furnace to a high-efficiency furnace can cost anywhere between $400 and $1,000 more depending on the size and energy source.

Furnaces are rated by BTU, or British Thermal Units. A BTU is the amount of energy needed to raise the temperature of one pound of water one degree Fahrenheit. It is the imperial cousin of a Calorie, which is the amount of energy needed to raise one kilogram of water one degree Celsius. The stated BTU is the amount of fuel energy the furnace uses in an hour. So, a furnace with 100,000 BTU/90% AFUE will use 100,000 BTUs of fuel per hour and convert it to 90,000 BTUs of heat for your home.

3. Energy source

The type of energy you use to heat your home can be the most important choice you can make. Electric furnaces, for example, are less expensive but are also more expensive in energy usage than other types of furnaces. In areas where the winter is harsh, an electric furnace may have the highest lifetime costs. Gas furnaces are more expensive, but as natural gas is relatively cheap, they may be the most cost-effective option over the furnace’s lifetime. Oil is the most expensive in hardware cost. Use the chart at the top of the page for a better idea of furnace prices based on your energy source, which compares the average prices for a standard efficiency and high efficiency, name brand furnace, that would be best suited for use in a 1,500 to 2,000 sq. ft. home.

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4. Size of furnace

Just like most things in this world, bigger means more expensive. Have your contractor perform a Manual J HVAC load test to determine the right-sized furnace for your home so you don’t waste money on a furnace that costs more upfront and increases utility bills over the years.

Depending on the furnace’s energy source, an increase in size can have different effects on a unit’s initial price. For gas furnaces, for example, a 20,000 BTU increase costs around $400 for smaller furnaces and up to $1,200 for larger furnaces, while the same capacity increase for oil furnaces stays in the $300-$600 range no matter what the unit size.

5. Do-it-yourself home energy audits

Though the cost of a new furnace is one expense to plan for, overall energy bill savings are another consideration to make as you’re considering a new furnace purchase. Home energy audits help you assess the overall efficiency of your home, and can also help you find a way to save money on your HVAC equipment. By reviewing the interior and exterior of your home you can evaluate your home’s energy efficiency and determine where you can find energy savings. Like with many projects around the house, your budget will dictate who performs your home energy audit. Depending on how much time and money you want to spend, you can either hire an HVAC professional who is energy audit certified or perform a DIY home energy audit.

If you cannot afford the $500 to $800 that most homeowners spend on a home energy audit, you can perform a home test to locate some of your home’s inefficiencies on your own.

  • The first DIY home energy audit step is to review your energy bills. Energy Star has a simple and useful tool, called the Energy Star Home Energy Yardstick, that helps you compare your energy bills to similar homes across the country. If your bills are considerably higher than similar homes or they have been steadily increasing, you may have a problem.
  • Walk through your home and ensure that your doors and windows are free of any drafts.Poor insulation and gaps in your windows and doors let indoor air escape and outdoor air in, costing you money.
  • Caulk and seal any drafty windows or doors.This is one of the easiest things you can do to save energy and money!

Your home is your greatest investment. Buying the right furnace is an excellent way to ensure that your home and loved ones will be comfortable, no matter what comes outside. It is essential that you speak to a qualified HVAC expert or professional to determine accurate furnace prices. One of the best ways to find information about dealers and specialists near you is HVAC.com.

New furnace cost FAQs

How much does a new furnace cost?

The national average cost of a standard efficiency furnace ranges from $1,795 to $ 6,290. The price may vary based on brand, complexity of install, and the efficiency of the new unit.

How much does a new oil furnace cost?

For a 1,500 to 2,000 sq. ft. home, a new oil furnace can cost between $5,580, for a standard-efficiency model, and $6,290 for a high-efficiency model, including installation fees.

How much does a new boiler furnace cost?

A new boiler furnace can cost anywhere from $1,500 to more than $5,000. The cost depends on a variety of factors, including the type of fuel used, the brand, installation costs and your home’s specific heating needs.

How much does a new gas furnace cost?

As of 2018, a new 100,000 BTU gas furnace can run you between $650 and $1,350, with installation costing between $800 to $3,000.