The Cost of a New Furnace (2025-2026 Buying Guide)

Is your furnace old, inefficient, or struggling to keep up? Replacing it can be one of the best investments you make for your home’s comfort and efficiency. But before calling an HVAC dealer, you probably want to know the big question: “How much does a new furnace cost?”

Let’s break down what affects furnace pricing so you can plan and budget with confidence.

How Much Does a New Furnace Cost?

On average, a new furnace, including professional installation, costs between $3,000 and $8,000. This may seem like a wide range, but the exact price depends on a slew of factors like the type of furnace, your home’s size, the unit’s efficiency, and how difficult the installation is.

If you choose to replace both your AC and furnace at the same time – which is often recommended if both systems are nearing the end of their lifespan – expect to pay about $10,500-$13,500 for a 3-ton system.

What Impacts the Cost of a New Furnace in 2025?

Furnace Type and Fuel Source

The type of furnace you choose is one of the biggest cost drivers:

• Gas Furnaces. The most popular option in areas with cold winters, gas furnaces offer high efficiency and relatively low operating costs. Installation typically costs more than electric models but is offset by lower utility bills in most regions.
• Electric Furnaces. Usually less expensive upfront and longer lasting, electric furnaces can cost more to run because electricity often costs more than natural gas. They’re typically best suited for milder climates.
• Oil Furnaces. An option in areas without natural gas access, oil furnaces are durable but often less efficient, with higher fuel and maintenance costs. They are especially common in the Northeast due to the region’s cold climate, historical reliance, and lack of natural gas infrastructure.
• Propane Furnaces. These heaters are like natural gas units but run on propane, which can be more expensive per gallon. Installation costs are often slightly higher.

Furnace Size (BTUs)

Furnace capacity is measured in BTUs (British Thermal Units) – the amount of heat the unit can produce in an hour. Larger BTU ratings mean the furnace can heat more space, but they also come with higher costs.

As a general guideline:

• Small Homes (<1,000 sq. ft.): Often need 40,000-60,000 BTUs.
• Average Homes (1,000-2,000 sq. ft.): Typically require 60,000-100,000 BTUs.
• Large Homes (>2,000 sq. ft.): May need 100,000-140,000 BTUs.

These are just ballpark ranges, and the exact size you need depends on more than just square footage. A professional HVAC contractor will perform an HVAC load calculation that also accounts for insulation, windows, ceiling height, air leakage, and your local climate. 

Buying the right size furnace is crucial. Oversizing or undersizing a furnace can lead to higher energy bills, uneven heating, and premature wear and tear.

Efficiency Ratings (AFUE)

Furnace efficiency is measured by AFUE (Annual Fuel Utilization Efficiency), which is the percentage of fuel converted into usable heat.

• Standard Efficiency. 80-89% AFUE. Lower upfront cost but higher long-term energy costs.
• High Efficiency. 90-98% AFUE. More expensive initially but significantly lowers utility bills over time.

For example, a 95% AFUE furnace wastes only 5% of its fuel, compared to 20% for an 80% model. In colder climates, a high-efficiency unit can pay for itself in energy savings.

Stages and Blower Speeds

How a furnace delivers heat affects both comfort and cost.

• Single-Stage Furnaces operate with one heat output – full capacity. Whenever they run, they’re working at maximum speed, which can lead to temperature swings and higher energy use. These models are typically the least expensive but also the most inefficient.
• Two-Stage Furnaces have both a low and high heat setting. Most of the time, especially during milder weather, they run at the lower setting to maintain steady, even warmth. On extremely cold days or when there’s a big drop in indoor temperature, they switch to the high setting for extra heating power. This flexibility improves comfort and efficiency compared to single-stage models.
• Variable-Speed Furnaces can adjust heat output in small increments, often between 25% and 100% capacity. Variable-speed furnaces run at lower speeds for longer periods, ramping up only when necessary, such as during frigid weather or after a door is left open. This precise control provides the best comfort and energy savings, though it comes with a higher upfront cost.

Brand and Features

Well-known brands with strong warranties tend to cost more, but they often provide better reliability and customer support.

Premium features can also add to the price, such as:

• Zoned heating
• Smart thermostats
• Air purification systems
• UV lights
• Humidifiers and dehumidifiers
• Ventilators
• Variable-speed motors

Installation Complexity

Labor and installation costs can vary significantly depending on your home’s setup and the condition of your existing system. If you’re replacing a similar furnace and your ductwork is in good shape, the installation is typically straightforward and less expensive.

However, the cost of a new furnace can rise when upgrades or conversions are needed, such as adding new ductwork, upgrading electrical systems, or running a new gas line. Local labor rates also play a role, with installation generally costing more in areas with a higher cost of living.

Furnace Maintenance and Longevity

Routine maintenance is the best way to protect your investment and prevent problems like dirty burners or failing components.

A professional tune-up typically includes:

• Checking fuel lines and connections.
• Inspecting heat exchangers for cracks.
• Cleaning burners and blower components.
• Verifying thermostat operation.
• Replacing or cleaning air filters.

Furnace maintenance improves efficiency, catches small problems before they become costly, and extends your furnace’s lifespan, which is typically 15-20 years with proper care.

Furnace tune-ups should ideally be performed in the fall before you turn the system on for the first time. That way it will be ready to go on the first cold day, and you’re not stuck with a furnace that won’t fire up.

Furnace Repair Costs vs. Replacement

Before committing to buying a new furnace, consider whether repairs might keep your current one running.

Average repair costs:

• Thermostat replacement: $100-$300+
• Ignitor replacement: $300-$400
• Blower motor replacement: $450-$1,500
• Heat exchanger replacement: $2,000-$3,000

If your furnace is over 15 years old, requires frequent repairs, or has a major component failure, replacement often makes more financial sense.

How to Get the Best Value for Your New Furnace

1. Get Multiple Quotes – Prices can vary widely between contractors.
2. Ask About Rebates and Tax Credits – High-efficiency models often qualify for incentives. For example, ENERGY STAR-certified furnaces with an AFUE of 97% or higher are eligible for a tax credit of 30% of the project cost, up to $600.
3. Consider total cost of ownership – A pricier, more efficient furnace can save money in the long run through lower energy costs, fewer repairs, and a longer lifespan.
4. Work with a reputable installer – Proper installation can affect performance as much as the furnace itself. Check a company’s reviews and credentials before making a hire.