# How much does a new furnace cost in 2026? Prices by fuel type

> A new gas furnace typically costs $5,000–$7,500 installed for an average home. See prices for gas, electric, oil and propane, plus what raises a quote.

- URL: https://2search.in/knowledge/articles/oct-26/furnace-replacement-cost
- Genre: Heating & cooling
- Country: United States
- Published: 2026-10-27
- Updated: 2026-10-27
- Publisher: 2search (https://2search.in)

> **Quick answer:** Replacing a gas furnace in a typical 2,000 sq ft home costs about **$5,000–$7,500 installed**, around **$6,250 on average**, when the existing ducts and gas line can be reused. Electric furnaces cost less to install but more to run. Permits ($100–$200) and haul-away of the old unit ($200–$350) are often extra.

> **Key takeaways**
> - A **straight gas-furnace swap** in an average home is usually **$5,000–$7,500** installed.
> - **Size by load calculation (Manual J)** — oversized furnaces short-cycle and wear out faster.
> - A **95%+ AFUE** furnace can cut gas use by about **15–20%** compared with an old 80% model.
> - The **federal 25C credit ended after 2025**; check utility rebates.
> - A **cracked heat exchanger** is a replace-now problem because of carbon monoxide risk.

A furnace usually fails at the worst possible time — the first cold week of the year. Knowing the normal price range before you call helps you spot a quote that is padded, and gives you room to compare a repair against a replacement.



![How much does a new furnace cost in 2026? Prices by fuel type Breakdown & Visual Guide](/images/articles/furnace-replacement-cost/diagram.svg)

## Furnace cost by fuel type

| Fuel | Hardware | Labor | Good to know |
| --- | --- | --- | --- |
| Natural gas | $2,000–$10,000 | $1,500–$3,000 | Most common; cheap to run where gas is available |
| Electric | $800–$3,000 | $1,000–$2,500 | Cheapest to install, most expensive to run |
| Oil | $2,000–$7,500 | $2,000–$5,000 | Needs a storage tank and regular deliveries |
| Propane | $2,000–$10,000 | $1,500–$3,000 | For homes without a gas line; fuel prices swing |

*Source: Inch Calculator furnace installation cost guide. Hardware prices span basic single-stage units to high-efficiency modulating models.*

## What pushes the price up or down

**Efficiency (AFUE).** AFUE is the share of fuel that becomes heat. An 80% AFUE furnace costs less upfront; a 95%+ condensing model costs more but burns less gas each winter. Condensing furnaces also need PVC venting and a condensate drain, which can add labor if you are upgrading from an older 80% unit.

**Single-stage, two-stage or modulating.** Single-stage furnaces run at full blast or not at all. Two-stage and modulating models run at lower output most of the time, which is quieter, more even and a bit more efficient — and more expensive.

**Size.** Bigger homes need more BTUs. A bigger furnace is not always better: an oversized unit short-cycles, wears out faster and leaves cold spots. Insist on a load calculation (Manual J) rather than "same size as the old one".

**Ductwork and venting.** Reusing good ducts keeps the job in the normal range. Leaky or undersized ducts, a new flue liner or relocating the furnace can add thousands.

**Fuel switching.** Moving from oil or electric to gas means running a gas line and possibly a new meter — a much bigger job than a straight swap.

**Location and season.** Labor costs more in high-cost cities. Emergency installs in the middle of a cold snap rarely get the best price.

## Repair or replace?

Most furnaces last **15 to 25 years**. Consider replacing when:

- the furnace is **15+ years old and needs a major repair** (heat exchanger, control board plus blower motor),
- a repair would cost **more than about a third** of a new unit,
- your heating bills keep rising even though your usage has not changed, or
- a technician finds a **cracked heat exchanger**, which can leak carbon monoxide — that one is a replace-now problem.

Small repairs like an igniter, flame sensor or thermostat are usually worth doing on a furnace that is otherwise healthy.

## Should you switch to a heat pump instead?

If your central air conditioner is also old, it is worth pricing a heat pump. One heat pump replaces both systems, and in mild and moderate climates it usually costs less to run. Read our full [heat pump vs furnace comparison](/heat-pump-vs-furnace).

One thing has changed: the federal 25C tax credit that covered up to $600 of a high-efficiency gas furnace (and up to $2,000 of a heat pump) **ended for equipment installed after December 31, 2025**. Check your utility for local rebates instead.

## How to get a fair furnace quote

1. **Get three written quotes.** Ask each to list the brand, model number, AFUE and warranty.
2. **Ask what is included:** permit, haul-away, new thermostat, filter base, gas line and venting work.
3. **Check the warranty in two parts:** the manufacturer's parts warranty (often 10 years if you register) and the installer's labor warranty (often only 1–2 years).
4. **Ask for a load calculation** — a contractor who sizes by eye is a red flag.
5. **Buy in the off-season** if your old furnace can limp along. Spring and early fall are calmer for contractors.

## Furnace cost by home size

| Home size | Typical furnace size | Gas furnace installed (80–96% AFUE) |
| --- | --- | --- |
| 1,000 sq ft | 40,000–60,000 BTU | $3,500–$6,000 |
| 1,500 sq ft | 60,000–80,000 BTU | $4,000–$6,500 |
| **2,000 sq ft** | **80,000–100,000 BTU** | **$5,000–$7,500** |
| 2,500 sq ft | 100,000–120,000 BTU | $5,500–$8,500 |
| 3,000+ sq ft | 120,000+ BTU (or two systems) | $6,500–$10,000+ |

BTU needs depend heavily on **climate and insulation** — a 2,000 sq ft home in Minnesota needs far more heat than the same house in Georgia.

## 80% vs 95% AFUE: what you save

> **Example:** A home needs about **60 million BTU** of delivered heat a winter. Gas costs **$1.50 per therm**.
> - **80% AFUE:** 60 ÷ 0.80 = 75 million BTU = **750 therms** → **~$1,125 a year**
> - **96% AFUE:** 60 ÷ 0.96 = 62.5 million BTU = **625 therms** → **~$940 a year**
> - Savings: **~$185 a year**. If the high-efficiency model costs $1,500 more, payback is about **8 years** — faster in cold climates or with higher gas prices.

In very cold regions (Minnesota, the Dakotas, Maine), a **condensing 95%+** furnace usually pays off. In mild climates where you heat only a few months, an 80% model can make more sense.

## Signs your furnace is failing

- **Yellow or flickering burner flame** instead of steady blue
- **Rising gas bills** with no change in use
- **Short-cycling** — turning on and off every few minutes
- **Strange noises:** banging, squealing, rattling
- **Uneven heat** — some rooms always cold
- **Soot** around the furnace or registers
- **Carbon monoxide alarm** going off — leave the house and call the gas company

> **Warning:** Install a **carbon monoxide alarm** on every level of your home and near bedrooms. A cracked heat exchanger can leak CO, which you can't see or smell.

## Maintenance that adds years

- **Change the filter** every 1–3 months during heating season.
- Get a **yearly tune-up** ($80–$200) before winter — burners, flame sensor, heat exchanger check, blower.
- Keep **supply and return vents** open and clear.
- Keep the area around the furnace **free of storage**, especially paint and chemicals.
- Pair it with a [smart thermostat](/smart-thermostat-settings-save-money) and good [attic insulation](/attic-insulation-cost) to cut run time.

## Frequently asked questions

### How much does it cost to replace a furnace in 2026?

For a typical 2,000 sq ft home with reusable ducts, a gas furnace costs about $5,000–$7,500 installed. High-efficiency or modulating units, duct repairs or fuel switching can push the total higher.

### How long does a furnace last?

Typically 15 to 25 years with yearly maintenance and regular filter changes.

### Is it cheaper to replace a furnace and AC at the same time?

Often, yes. You pay for one round of labor and the two units are matched for efficiency. It is also the best moment to compare against a single heat pump.

### How long does furnace installation take?

A straight replacement usually takes one day. Jobs that need new ducts, venting or a gas line can take two or three days.

### What size furnace do I need?

It depends on your climate, insulation and windows — a Manual J load calculation is the right way. Rough ranges are 30–60 BTU per square foot, higher in cold climates.

### Which furnace brands are most reliable?

Carrier, Trane, Lennox, Rheem, Goodman, Bryant and others all make reliable furnaces. Installation quality and maintenance matter more than the brand.

### Can I install a furnace myself?

It's not recommended. Gas lines, venting and electrical work need permits and licensed professionals for safety and warranty reasons.

### Is a high-efficiency furnace worth it?

In cold climates with long winters, usually yes. In mild climates, the savings may take a long time to pay back the higher price.

## Sources

- [Inch Calculator — Furnace installation cost](https://www.inchcalculator.com/average-furnace-installation-cost/)
- [Carrier — Gas furnace replacement guide](https://www.carrier.com/us/en/residential/hvac-resources/furnaces/gas-furnace-replacement/)
- [Trane — Federal tax credits for energy efficiency](https://www.trane.com/residential/en/resources/blog/federal-tax-credits-energy-efficiency/)
- [ENERGY STAR — Furnaces](https://www.energystar.gov/products/furnaces)