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Furnace replacement cost by fuel type
Your fuel source sets the price range. Electric furnaces are the cheapest to buy, gas sits in the middle, and oil and propane systems can cost the most to install.
| Fuel type | Unit only | Installed total |
|---|---|---|
| Electric | $500-$1,100 | $2,000-$7,000 |
| Natural gas | $800-$2,800 | $3,800-$10,000 |
| Propane | $900-$5,000 | $3,700-$14,200 |
| Oil | $1,900-$3,100 | $6,750-$10,000 |
Sources: This Old House, May 2026 (unit prices); NerdWallet, Mar 2026, citing Angi (installed totals).
This Old House’s own averages match NerdWallet’s: $4,771 for a full replacement, with a typical range of $2,825 to $6,846. The unit itself is often less than half the bill. The rest is labor, parts, removal and permits.
Cheap to buy does not mean cheap to run. Electric furnaces cost less up front, but where electricity is pricey they can cost more each winter. Look at your local rates on our electricity cost by state page before choosing.
Cost by home size
Bigger homes need more heating capacity, measured in BTUs, and bigger furnaces cost more.
| Home size | Furnace size | Installed cost |
|---|---|---|
| 1,000 sq ft | 30,000-50,000 BTU | $1,200-$2,000 |
| 1,500 sq ft | 45,000-75,000 BTU | $1,800-$3,000 |
| 2,000 sq ft | 60,000-100,000 BTU | $2,400-$4,000 |
| 3,000 sq ft | 90,000-150,000 BTU | $3,600-$6,000 |
| 5,000 sq ft | 150,000-300,000 BTU | $6,000-$10,000 |
Sources: Bob Vila, Jan 2024 (BTU sizes); NerdWallet, Mar 2026 (costs for 1,000, 2,000, 3,000 and 5,000 sq ft); Bob Vila (1,500 sq ft cost).
Climate matters as much as square footage. HomeServe says homes in the southern U.S. need about 30 to 35 BTU per square foot, while the far north needs 50 to 60. An oversized furnace cycles on and off too often, so ask your contractor for a proper load calculation.
Standard vs high-efficiency furnaces
Efficiency is rated by AFUE, the share of fuel that becomes heat in your home. HomeServe treats 80% AFUE as standard, while high-efficiency models reach 90% to 98%, and This Old House notes some gas furnaces hit 96%.
HomeServe puts high-efficiency furnaces at $3,800 to $11,500 installed. Upgrading the blower motor to a variable-speed model adds $500 to $2,300.
A high-efficiency unit costs more up front but burns less fuel each year. It pays back fastest in cold climates where the furnace runs for months. In a mild climate, a standard model may make more sense.
Labor and extra costs
Labor for a straight swap is 4 to 8 hours at $75 to $100 an hour, per NerdWallet. That works out to about $300 to $800 (our calculation). The extras are where quotes grow.
| Extra item | Typical cost |
|---|---|
| Removing the old furnace | $60-$330 |
| Permit | $400-$1,500 |
| New ductwork | $2,000-$5,000 |
| Duct leak repair | $200-$700 |
| Duct cleaning | $450-$1,000 |
| New gas line | $500-$2,000 |
| Relocating the furnace | $2,000-$8,000 |
Sources: NerdWallet, Mar 2026 (removal, permit, ductwork); HomeServe, Feb 2026 (duct repair, cleaning); Bob Vila, Jan 2024 (gas line, relocation).
Permit costs vary widely by city. HomeServe lists $50 to $300, while NerdWallet gives $400 to $1,500, so check with your local building office.
Bigger projects: switching fuel or adding AC
Some furnace jobs turn into larger projects. These are the costs to know before you get quotes.
- Switching fuel. Converting from oil or propane to natural gas, or the other way, costs $2,000 to $10,000, per Bob Vila. That is on top of the new furnace.
- Running a gas line. If gas is available on your street but not in your house, a new line costs $500 to $2,000, plus a $50 to $200 permit.
- Adding or replacing AC. Bob Vila lists central air at $4,000 to $8,000. Because the furnace blower moves the cooled air too, it can make sense to replace both at once.
- Drywall patching. If the crew opens walls for ducts or pipes, drywall repair runs $150 to $325.
Upkeep after installation
A new furnace still needs care to reach its full lifespan. HomeServe lists a comprehensive maintenance plan at $150 to $500. Bob Vila puts a single annual service visit at $60 to $550 and a furnace cleaning at $70 to $300. Repairs, when they come, run $150 to $2,000.
Changing the filter on schedule is the cheapest upkeep of all. A clogged filter makes the blower work harder and can shorten the life of the system.
Repair or replace?
This Old House lists signs that a furnace is near the end:
- Repairs are getting more frequent and more expensive.
- Heating bills are rising without more use.
- Rooms heat unevenly, or the furnace turns on and off often.
- You hear buzzing or rattling, or see rust, soot or dust around the unit.
- A technician finds a cracked heat exchanger, which is a safety issue.
Age is the other clue. NerdWallet puts the average lifespan at 15 to 20 years. If your furnace is in that range and needs a costly repair, putting that money toward a new unit is often the better deal.
If your air conditioner is just as old, compare our HVAC replacement cost guide. Replacing both at once can avoid paying for two separate installs.
How to pay less
- Replace before it fails. Emergency installs in a cold snap leave little room to compare prices.
- Get three quotes with the same scope. Ask each contractor to list the unit, labor, permit, removal and any duct work separately.
- Check utility rebates. Some utilities offer rebates on efficient furnaces. Ask your utility and your contractor what applies.
- Keep your ducts if they are sound. Ducts in good shape can save you $2,000 to $5,000.
- Plan for it. A new furnace is a predictable expense in an older home. Building it into an emergency fund means you can pay cash instead of financing.
Planning other mechanical upgrades? Our tankless vs tank water heater guide shows when it pays to switch while the gas line is already being worked on.
See how we research every number on our method page, or browse more home and repair costs.
Common questions
How long does a furnace last?
NerdWallet says furnaces last about 15 to 20 years on average, and This Old House says most last 20 to 30 years. This Old House suggests considering a replacement after about 15 years if the unit needs frequent repairs.
Is a high-efficiency furnace worth the extra cost?
It depends on your climate. HomeServe lists high-efficiency furnaces (90% to 98% AFUE) at $3,800 to $11,500 installed. They cost more up front but burn less fuel, so they make the most sense in cold regions with long heating seasons.
What size furnace do I need?
HomeServe says homes in the southern U.S. need about 30 to 35 BTU per square foot, and homes in the far north about 50 to 60. A contractor should do a load calculation rather than simply matching your old unit.
How long does furnace installation take?
A standard swap takes about 4 to 8 hours, per NerdWallet. Bob Vila puts the range at 4 to 18 hours, since jobs with new ducts or gas lines take longer.
Sources
Every number above comes from these pages. We list the date each page showed when we checked it.
- NerdWallet, Cost to Replace a Furnace
- This Old House, Furnace Replacement Cost
- HomeServe, Furnace Replacement Cost
- Bob Vila, Cost of a New Furnace
Estimates are for general information only. Get written quotes from licensed local pros before you decide.
- Passed Level II of the CFA® Program
- Canadian Securities Course (CSC)
- Conduct and Practices Handbook (CPH)
Sepehr Parsa is a financial planner and the founder and editor of DollarMap. He has passed Level II of the CFA Program and completed the Canadian Securities Course (CSC) and the Conduct and Practices Handbook (CPH) course. He writes and edits our guides on cars, home repairs, budgeting, saving and investing, and checks that every number has a source.
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