How Much Does a New Furnace Cost?

Furnace Replacement Costs in 2026

On average, furnace replacement costs range from $4,000 to $10,000 in 2026. Gas furnaces remain the most common choice in U.S. homes, but electric and oil furnaces are still popular in certain regions. See the table below for a cost breakdown by furnace fuel type (electric, gas, oil, and solid fuel).

Breakdown of Furnace Costs

Furnace Type	Average Installed Cost	Best For
Electric Furnace	$2,000 to $7,000	Homes without gas lines; mild climates
Gas Furnace	$3,800 to $10,000	Most common; efficient and versatile
Oil Furnace	$4,500 to $9,000	Older homes in the Northeast
Solid Fuel / Wood / Coal	$6,000 to $12,000	Rural homes; off-grid heating

Gas furnaces are the most widely installed due to their efficiency and reliability, but the right choice often depends on available fuel sources and your home’s location. For instance, in the Northeastern U.S., homeowners typically use gas furnaces during winter and central air over the summer.

New Furnace Installation Costs

Installing a new furnace includes more than just the equipment itself. Typical cost breakdown:

• Furnace Unit: About 60% of the total cost
• Labor and Service Charges: Around 25%
• Permits, Removal, and Extras: Roughly 15%

If ductwork also needs replacement, expect an additional $300 to $600 per duct run.

Furnace Repair vs. Replacement Costs

A simple repair may be the right choice if your system is relatively new. But if your furnace is nearing the end of its 15- to 30-year lifespan, replacement is often more cost-effective.

A common rule of thumb: If repair costs are more than one-third of replacement costs — especially on a unit older than 15 years — it’s usually better to replace.

• Average Repair: $300 to $1,200
• Replacement: $4,000 to $10,000+

Example: Spending $1,800 on repairs for an 18-year-old furnace that costs $5,000 to replace does not make financial sense.

Furnace Cost by Size

Home Size	Approximate Furnace Size	Typical Installed Cost
600 to 1,000 sq. ft	40,000 BTU	$2,000 to $2,400
800 to 1,200 sq. ft	50,000 BTU	$2,400 to $2,800
1,000 to 1,400 sq. ft	60,000 BTU	$2,800 to $3,300
1,200 to 1,600 sq. ft	70,000 BTU	$3,000 to $3,500
1,400 to 1,800 sq. ft	80,000 BTU	$3,300 to $3,700
1,800 to 2,400 sq. ft	100,000 BTU	$3,800 to $4,200
2,400 to 3,000 sq. ft	120,000 BTU	$4,300 to $4,700

Furnace size is another big factor that affects your final price. Different home sizes need different furnace sizes, and if you choose the wrong size, you could end up paying more than you should based on the size of your home. You can use our furnace size calculator to get an estimate. A good HVAC installer will also be able to help you find the right furnace size.

Furnace Cost by Brand

Brand	Cost Range
Trane	$3,500 to $7,500
Carrier	$3,500 to $8,000
Lennox	$3,500 to $9,500
American Standard	$3,500 to $7,000
Bryant	$2,800 to $6,500
Amana	$2,100 to $8,200
Rheem	$2,500 to $7,800
Ruud	$2,500 to $7,500
Daikin	$3,200 to $6,500
Goodman	$2,100 to $6,300

When looking at price by furnace brand, you’ll notice the more premium brand names at the top of the table cost more than the budget brands below. In the end, the brand you choose isn’t always as important as quality of installation. A good budget furnace can last for many years if installed properly, and a premium furnace could have issues over the years (or even a shortened lifespan) if it’s not installed by an experienced professional.

Some HVAC installers have preferred brands, so be sure to ask your installer which brands they prefer and why.

Furnace Cost by City and State

Modernize is now producing state- and city-specific guides to help you find the most accurate cost estimates for your area.

• Illinois furnace cost
  • Chicago furnace cost
  • Rockford furnace cost
  • Springfield furnace cost
  • Bloomington furnace cost
• Minnesota furnace cost
  • Minneapolis furnace cost
  • St. Paul furnace cost
• Michigan furnace cost – Detroit, Grand Rapids, Ann Arbor, and Lansing covered within.

Choosing Energy-Efficient Furnaces

Efficiency matters for both comfort and long-term savings. Furnace efficiency is measured by AFUE (Annual Fuel Utilization Efficiency).

• Older Systems: Often 65% to 75% AFUE
• New Standard Furnaces: 80% to 90% AFUE
• High-Efficiency Furnaces: 95% to 98%+ AFUE

Upgrading to a high-efficiency furnace can lower heating bills by $200 to $400 annually for the average household.

How Long Does a Furnace Last?

Most forced-air furnaces last 15 to 30 years with regular maintenance. To check your furnace’s age, find the model and serial number on the inside of the chamber door and call the manufacturer.

Common Furnace Repair Problems

Even with good maintenance, furnaces can develop problems. Common issues include:

• Dirty filters that restrict airflow and strain the blower motor
• Faulty thermostats that cause short cycling or no heat
• Malfunctioning pilot lights or igniters that prevent startup
• Blower motor or limit switch issues that cause overheating or constant running
• Electrical issues like tripped breakers or blown fuses

If your furnace isn’t working properly, call a licensed HVAC contractor to avoid safety risks or costly damage.

How to Prepare for Furnace Installation

Make the installation process smoother by preparing your home:

• Clear clutter around the furnace area.
• Remove valuables from the work zone.
• Expect a new thermostat — have touch-up paint ready if needed.

Most furnace replacements take one day, but complex installs or ductwork changes may take longer.

Regional Climate Considerations

Your local climate should guide your furnace choice:

• Mild Climates (Zones 1 to 3): An 80% AFUE furnace may be sufficient.
• Colder Climates (Zone 4): Aim for 90% to 93% AFUE.
• Harsh Winters (Zone 5): High-efficiency 95%+ AFUE furnaces offer the best comfort and savings.

Furnace Maintenance Checklist

Extend your furnace’s lifespan and improve efficiency with annual maintenance:

• Replace or clean filters every 1 to 3 months
• Check thermostat batteries and settings
• Schedule a professional tune-up before winter
• Inspect vents and ducts for leaks or blockages
• Test carbon monoxide detectors

Furnace Replacement FAQ

How Much Does It Cost to Replace a Furnace for a 2,000-Square-Foot House?

Expect to pay $4,500 to $8,500 for a properly sized furnace in a home this size. The cost depends on efficiency, fuel type, and local labor.

How Much Should I Budget for a New Furnace?

Budget $4,000 to $10,000 to cover the furnace, labor, permits, and potential ductwork. High-efficiency models may cost more upfront but can save money long term.

Hiring Local Furnace Installers

Choosing the right contractor is just as important as choosing the right furnace. Protect your investment by asking the right questions:

• Get at least three bids and avoid selecting solely on lowest cost.
• Request a detailed estimate with model numbers, sizing calculations, and timelines.
• Ask about equipment markups and hidden fees.
• Confirm that your contractor performs a Manual J load calculation to size your furnace correctly.
• Insist on name-brand equipment with reliable warranties.

Final Takeaway

A new furnace is a major purchase, but the right unit can deliver comfort, energy savings, and peace of mind for decades. Whether you choose gas, electric, or oil, be sure to work with a licensed contractor who can help size, install, and maintain your system correctly. Modernize can connect you with pre-vetted local HVAC pros, so you can compare quotes, explore financing, and find the right partner for your furnace replacement.