Boiler or Furnace Replacement Cost Guide

The cost to replace a boiler or furnace varies widely based on equipment type, fuel source, home size, installation complexity, and local labor rates. This guide explains typical price ranges, factors that influence cost, financing and savings options, and tips to get accurate quotes. It helps homeowners understand expected expenses and make informed decisions when planning a replacement.

System Type	Typical Equipment Cost	Installed Cost Range
Gas Furnace	$700–$4,000	$2,500–$7,500
Electric Furnace	$600–$3,000	$1,500–$5,000
Oil Furnace	$1,000–$5,000	$3,000–$8,500
Hot Water Boiler (Gas)	$1,500–$6,000	$3,500–$10,000
Steam Boiler	$2,000–$8,000	$4,500–$12,000+

How Replacement Costs Are Calculated

Replacement cost comprises equipment price, labor and installation, material and permit fees, and any required modifications to ductwork, piping, flue, or electrical. Contractors factor in system sizing, efficiency level, fuel conversions, and access to the installation area. Labor often represents 30–50% of total cost, while high-efficiency equipment increases upfront expense but can lower operating costs.

Typical Cost Ranges By System Type

Gas Furnace Replacement Cost

Gas furnaces are common in many U.S. homes. A basic mid-efficiency model usually costs $700–$2,000, while high-efficiency (90%+ AFUE) units range $2,000–$4,000. Installed costs generally run $2,500–$7,500 depending on complexity and local labor rates.

Electric Furnace Replacement Cost

Electric furnaces have lower equipment cost but higher operating expenses in regions with high electric rates. Equipment prices range $600–$3,000. Installed costs typically fall between $1,500 and $5,000. Electric heat pump alternatives can be more efficient in many climates.

Oil Furnace Replacement Cost

Oil furnaces cost more due to fuel system components and tighter regulatory requirements. Equipment ranges $1,000–$5,000. Total installed costs often run $3,000–$8,500, and ongoing fuel delivery and storage expenses add to lifetime costs.

Hot Water Boiler Replacement Cost

Hot water boilers for hydronic heating vary by fuel and efficiency. Equipment for a gas-fired boiler can be $1,500–$6,000. Installed costs usually range $3,500–$10,000, higher if radiators or baseboard piping need replacement or if a conversion from steam to hot water is required.

Steam Boiler Replacement Cost

Steam boilers are less common and often more expensive to replace because of complexity and specialized labor. Equipment costs $2,000–$8,000. Installed costs commonly range $4,500–$12,000 or more if extensive piping and steam traps are required.

Key Factors That Increase Or Decrease Cost

• System Size And BTU Rating: Oversized or undersized systems reduce efficiency and comfort; proper load calculation raises cost but is essential.
• Efficiency Rating: High-efficiency (AFUE 90%+) systems are pricier but qualify for rebates and lower fuel bills.
• Fuel Type: Gas and oil systems require different vents, flues, and combustion air; conversions add significant costs.
• Access And Installation Complexity: Tight crawlspaces, basements below grade, or multi-story setups increase labor time and cost.
• Ductwork Or Piping Upgrades: Leaky ducts, obsolete boilers, or incompatible piping can add thousands in materials and labor.
• Code, Permits, And Inspections: Local permit fees and required safety upgrades contribute to the final price.
• Removal And Disposal: Safe removal and disposal of old equipment, especially oil tanks or asbestos-containing materials, adds cost.

How To Get Accurate Quotes

Gathering multiple detailed quotes helps identify reasonable price ranges and prevents surprises. Homeowners should request written estimates that list equipment model numbers, efficiency ratings, warranty terms, labor, permit fees, and any additional required work. Ask for a Manual J load calculation to confirm proper sizing and avoid oversized installations that reduce efficiency.

Financing, Rebates, And Incentives

Many homeowners use financing or incentives to manage replacement costs. Federal tax credits and utility rebates can offset high-efficiency equipment expense. Local utilities, state programs, and manufacturers often provide rebates for furnaces and boilers meeting efficiency thresholds.

Financing options include HVAC dealer financing, home equity loans, personal loans, and energy-efficient mortgages. Compare interest rates, terms, and total repayment amounts before committing.

Energy Savings And Lifetime Cost Considerations

Replacement decisions should account for lifetime operating costs, not just upfront price. Higher-efficiency units cost more initially but reduce fuel use and emissions. Calculate payback periods based on projected fuel prices, system efficiency, and expected lifespan.

Maintenance habits such as annual tune-ups, filter changes, and system balancing extend life and maintain efficiency. Factoring in maintenance and expected equipment life—often 15–25 years for modern systems—helps estimate long-term value.

Common Additional Costs Homeowners Should Expect

• Flue Or Chimney Repair: Flue relining or chimney upgrades can add $300–$2,500.
• Duct Sealing And Replacement: Ductwork repair or replacement may cost $1,000–$5,000 depending on scope.
• Condensate Pumps And Drains: High-efficiency condensing boilers/furnaces require proper drainage, $200–$800.
• Gas Line Upgrades: Gas service upgrades or new lines can add $500–$2,500.
• Electrical Upgrades: New wiring, breakers, or a dedicated circuit may be $200–$1,500.
• Radiator Or Baseboard Replacement: Hydronic system changes can range $500–$4,000+.

Choosing The Right Efficiency Level

AFUE (Annual Fuel Utilization Efficiency) indicates how well a furnace or boiler converts fuel to heat. Lower-efficiency units (80% AFUE) have lower upfront costs but higher fuel bills; modern high-efficiency units (90%–98% AFUE) offer significant annual savings in many climates.

In colder northern climates, investing in higher AFUE equipment can provide faster payback. In mild climates, a moderate-efficiency system with lower capital cost may be more economical. Contractors should present comparative operating cost estimates to guide the decision.

When Replacement Is Necessary Vs. Repair

Deciding whether to repair or replace depends on age, repair history, and efficiency. Systems older than 15–20 years commonly warrant replacement due to reliability and efficiency losses. Frequent repairs, rising energy bills, or major component failures are signs replacement may be more cost-effective.

Use the 50% rule: if repair costs approach half the price of a replacement and the system is aging, replacement is often better. Also consider potential for improved indoor air quality and safety with upgraded equipment.

Tips For Finding Reliable Contractors

1. Request at least three written estimates that detail equipment, labor, and exclusions.
2. Verify licensing, insurance, and local code compliance.
3. Check references and online reviews, and ask to view past installations.
4. Confirm warranty coverage for both equipment and labor; get terms in writing.
5. Prefer contractors who perform Manual J load calculations and provide clear explanations of scope.

Case Examples And Typical Scenarios

Example 1: A 1,800 sq ft suburban home replaces a 15-year-old gas furnace with a 95% AFUE unit. Equipment $2,800, installation $2,200, duct sealing $800, permits $150, total $5,950. Annual fuel savings estimated $300–$500 versus the old unit.

Example 2: An older city rowhouse converts an aging steam boiler to a high-efficiency hot water boiler. Equipment $6,000, piping and radiator upgrades $4,500, labor and permits $3,000, total $13,500. The upgrade improves comfort and reduces maintenance but has a longer payback due to cost.

Questions To Ask During The Estimate

• What specific model and AFUE rating is quoted?
• Does the price include permits, disposal, and all related trades?
• Will the contractor perform a Manual J load calculation?
• What are the warranty terms for parts and labor?
• Are there available rebates or financing options?

Maintenance Recommendations After Replacement

Annual professional tune-ups maintain efficiency and catch issues early. Replace filters per manufacturer guidelines—typically every 1–3 months for forced-air systems. Keep vents and returns clear and ensure condensate lines remain unobstructed for condensing equipment.

Register equipment warranties with the manufacturer and retain installation documentation to simplify future service and potential warranty claims.

Resources And Where To Learn More

Homeowners can consult the U.S. Department of Energy for efficiency guidance, local utility rebate pages for incentives, and the Air Conditioning Contractors of America (ACCA) for contractor standards and Manual J information. Manufacturer websites provide product specs and warranty details.

Local building departments can clarify permit requirements and code compliance for heating system replacements. Comparing multiple reliable sources ensures well-informed decisions and realistic budgeting.