How Much Does a New Furnace Cost

Replacing a furnace is a major home investment in the United States. The total price to install a new furnace depends on several variables, including furnace type, efficiency, home size, ductwork, and local labor rates. Additional factors such as permits, installation complexity, and upgrades to the furnace control system can also affect price. This guide outlines current U.S. price ranges, explains the main cost drivers, and offers practical tips for budgeting, comparing quotes, and maximizing value. By understanding how each component contributes to the total, homeowners can plan more accurately and avoid surprises during installation.

Factors That Influence The Cost Of A New Furnace

Several core factors determine the installed price of a new furnace.

Furnace type and efficiency rating are primary drivers, followed by the home’s size and heating load.

Climate influences equipment selection, as harsher winters may require higher-capacity or more efficient units.

Ductwork condition, accessibility, and existing vents or gas lines affect labor time and costs.

Regional variation in labor rates and permit requirements can shift totals significantly from city to city.

Installation complexity—such as venting changes or zoning upgrades—adds to both equipment and labor charges.

• Tip: Get a precise load calculation (Manual J) to avoid under- or over-sizing the furnace.
• Tip: More complex jobs may require additional venting, new gas lines, or electrical work, increasing costs.

Understanding these drivers helps homeowners anticipate where costs will come from and how to prioritize upgrades for long-term savings.

Furnace Types And Price Ranges

Equipment cost varies with furnace type and efficiency. The following ranges reflect typical installed prices in the United States, including common labor and basic venting during standard installations.

Gas Furnaces

Gas furnaces, including high-efficiency condensing models, are the most common choice in many regions. Typical installed price ranges from about $3,500 to $9,000, with mid-range, 90%+ AFUE models often landing in the $4,500 to $7,000 band. Efficiency upgrades to 95% to 98% AFUE increase upfront costs but usually reduce annual operating expenses, especially in colder climates.

Electric Furnaces

Electric furnaces are typically less expensive upfront but can have higher operating costs in regions with high electricity prices. Installed price generally ranges from $2,000 to $6,000, depending on efficiency and the need for supplementary air handling. Electric furnaces are 100% efficient by design, but the price of electricity and the absence of combustion-related costs influence the long-term economics.

Oil Furnaces

Oil furnaces are less common in newer homes but remain an option in some markets. Installed prices often range from $4,000 to $9,000, with variability based on venting needs and fuel storage considerations. Oil systems typically incur higher ongoing fuel costs and maintenance compared with gas systems in many regions.

The following table summarizes typical installed price ranges by furnace type and highlights efficiency considerations.

Furnace Type	Typical Installed Price Range (USD)	Notes
Gas (80%–85% AFUE)	$3,500–$6,500	Lower upfront cost, moderate efficiency
Gas (90%–98% AFUE)	$4,500–$9,000	Higher efficiency, greater long-term savings
Electric	$2,000–$6,000	Lower installation cost, higher operating cost in many areas
Oil	$4,000–$9,000	Regional use; higher fuel costs

Prices vary by region, contractor, and specific model features such as variable-speed blowers or smart controls. Homeowners should request itemized quotes that separate equipment, labor, and any required ductwork or venting work.

Installation And Labor Costs

Installation costs can equal or exceed the equipment price, especially when ductwork requires sealing, resizing, or balancing. Labor is influenced by the complexity of converting fuel type, running new gas or electrical lines, or relocating existing components.

Typical labor considerations include:

• Permits and inspections, often ranging from $100 to $300 depending on the locality.
• Removal and disposal of the old furnace, included in many quotes.
• Ductwork modifications, resealing, and insulation that can add $1,000 to $3,000 or more.
• Venting changes or chimney work for gas systems, which can add several hundred to a few thousand dollars.
• System commissioning and startup, usually included in the installation package but sometimes billed separately.

Homeowners can reduce risk by obtaining multiple quotes, ensuring quotes are itemized, and confirming whether permits, disposal, and warranty coverage are included.

Size, Ductwork, And Home Layout

Correct furnace sizing is critical for comfort and efficiency. A professional performs a Manual J load calculation to determine the appropriate heating capacity in BTU per hour. Oversized units cycle on and off more, reducing comfort and efficiency; undersized units struggle to maintain comfort in cold weather.

Typical sizing guidance varies with climate and home characteristics. For reference, smaller homes in mild climates may require 40,000–60,000 BTU/h, while larger or colder homes can need 90,000–120,000 BTU/h. The actual size depends on insulation, window efficiency, downstairs layout, and air leakage. Ductwork condition and the ability to deliver air evenly across zones influence both initial cost and long-term performance.

Tip: Ask installers to show the Manual J calculation and explain how the chosen furnace size supports future heating needs and comfort goals.

Fuel Type And Energy Efficiency

Fuel type interacts with price, efficiency, and operating costs. Gas furnaces benefit from abundant, relatively inexpensive fuel in many regions, with efficiency measured by AFUE. Electric furnaces run on electricity and achieve nearly 100% efficiency, though electricity prices drive operating costs. Oil furnaces may be chosen where gas lines are unavailable or cost-prohibitive, but oil prices and supply can create variance in annual costs.

Efficiency levels influence upfront price and long-term savings. Modern high-efficiency gas furnaces (90%–98% AFUE) reduce wasted energy, particularly in tightly insulated homes. Higher efficiency tends to justify the increased initial investment in colder climates where heating demand is high. Conversely, in milder climates with moderate heating needs, a mid-range efficiency model may offer the best balance of upfront cost and operating cost.

When evaluating options, consider the long-term utility bills, local fuel prices, and the expected lifespan of the equipment. A higher-efficiency unit may pay for itself over several years through lower energy use.

Additional Costs And Upgrades

Beyond installation, several upgrades can affect overall project cost and long-term value. Common add-ons include smart thermostats, humidifiers, air purifiers, zoning systems, and enhanced air filtration. Each item adds price up front but can improve comfort, indoor air quality, and energy savings over time.

Typical upgrade costs include:

• Smart thermostat: $100–$300 for the device plus $100–$200 installation if not included.
• Whole-house humidifier: $300–$800, plus potential ductwork adjustments.
• Air purifier or UV germicidal system: $200–$1,000 for components; installation varies with existing ductwork.
• Zoning system: $1,500–$3,500 for multiple zones, plus labor.
• Duct sealing and insulation: $300–$2,000 based on size and condition.

Careful planning helps ensure these additions align with comfort goals and energy savings, rather than simply adding cost.

Incentives, Warranties, And Financing

Several incentives can reduce the net cost of a new furnace. Federal, state, and utility rebates or credits may apply for high-efficiency equipment and energy-retrofit projects. These programs vary by location and change over time, so it is important to check current offerings through reliable sources such as the U.S. Department of Energy, DSIRE, or local utility sites. Warranties typically cover parts for five to ten years, with some manufacturers offering extended coverage if the installation is performed by a qualified professional. Labor warranties are less common but may be included in some packages. Financing options, including promotions and low-interest loans, are frequently available through installers or third-party lenders.

For up-to-date information on incentives, consult U.S. Department of Energy, DSIRE, and local utility programs. When evaluating quotes, ask about available credits, warranties on parts and labor, and any financing terms.

Maintenance And Operating Costs Over Time

Regular maintenance helps ensure reliability and efficiency. Annual service typically costs between $100 and $250, depending on local rates and the scope of a tune-up. Filters should be changed or cleaned according to usage and manufacturer guidelines, and some systems require more frequent servicing at higher temperatures or with specific filter types. Fuel or electricity costs vary with usage, climate, and energy prices. A high-efficiency unit may cost more upfront but often yields meaningful savings on utility bills over the life of the system.

To estimate ongoing costs, homeowners can review past heating bills, compare local energy prices, and consider the unit’s AFUE. A well-maintained furnace can achieve better performance and last longer, reducing unexpected replacement costs for many years.

Choosing A Reputable Installer: What To Check

Selecting the right installer is as important as choosing the furnace itself. A reputable contractor should demonstrate proper licensing and insurance, hold relevant certifications (such as NATE), provide clear, written estimates, and offer a transparent warranty policy. Request references from similar installations and verify that the company complies with local building codes. Ensure the estimate includes all components: equipment, labor, duct modifications, permits, and disposal. Finally, ask about the startup procedure, system commissioning, and post-install support.

Good questions to ask include: How do you determine the appropriate furnace size? What does the warranty cover and for how long? Are there any anticipated additional charges beyond the written quote? Can you provide a detailed, itemized contract?

Cost Breakdown: Typical Price Ranges In The United States

Understanding a typical price breakdown helps homeowners plan a budget and compare quotes. The following ranges reflect common scenarios for single-family homes in residential settings. These estimates assume standard installation conditions and normal ductwork access. Individual projects can vary significantly based on climate, home configuration, and contractor practices.

Component	Typical Price Range	Notes
Equipment (Gas Furnace, 80%–98% AFUE)	$2,000–$4,500	Higher efficiency raises upfront cost but lowers operating expenses
Installation Labor	$1,500–$6,000	Depends on complexity, ductwork, and venting needs
Ductwork Modifications	$1,000–$3,500	Includes sealing, balancing, and possible upgrading
Permits and Disposal	$100–$300	Varies by jurisdiction
Additional Upgrades (Thermostats, Humidifiers, Zoning)	$200–$3,000+	Optional but can improve comfort and efficiency
Total Installed Price Range	$4,000–$12,000	Typical residential installations; regional variation applies

In summary, homeowners can expect a wide range for a new furnace based on fuel type, efficiency, and installation specifics. A mid-range, high-efficiency gas furnace with standard ductwork and a basic control system often lands between $4,500 and $7,500 installed. Adding upgrades or significant ductwork changes can push totals higher, while a basic electric system with minimal modifications may stay toward the lower end. Always compare itemized quotes to understand where costs come from and to identify potential savings opportunities.