New Furnace Cost: $2,823 to $6,897 Gas and Electric (2026)

Installed prices for replacing an existing furnace. New ductwork, gas line work and a chimney liner are extra.

How much does a new furnace cost

A new furnace costs $2,823 to $6,897 installed in HomeAdvisor's 2026 data, and most homeowners spend about $4,814. HomeGuide puts a gas furnace at $3,800 to $12,000 installed, with the unit alone at $700 to $6,200. Fuel, efficiency and size drive most of the difference. HomeAdvisor's full range runs from $167 to $13,750.

How much does a gas furnace cost? 80% vs 95% AFUE

A standard 80% AFUE gas furnace costs $3,800 to $6,200 installed and a 96% or higher unit costs $7,500 to $12,000, according to HomeGuide. AFUE is the share of the fuel that becomes heat in the house; the DOE puts old furnaces at 56% to 70%, mid-efficiency units at 80% to 83%, and high-efficiency units at 90% to 98.5%.

HomeGuide gas furnace guide, Dec 2025. High-efficiency (condensing) furnaces need a drain line and different venting; ask whether that is in the quote.

ENERGY STAR says a certified gas furnace in the north is up to 15% more efficient than a baseline model and can save up to $85 a year; in the south it is up to 11% more efficient and saves about $30 a year on average. Colder places and higher gas prices favor the high-efficiency unit. The DOE's consumer guide lists ENERGY STAR gas furnaces at 90% AFUE in southern climates and 95% in northern ones.

Furnace cost by size (BTU)

A furnace for a house up to 1,200 square feet runs $3,800 to $6,700 installed, and one for 2,500 to 3,000 or more square feet runs $5,800 to $12,000, in HomeGuide's figures.

HomeGuide gas furnace guide, Dec 2025. Excludes ductwork.

Square footage is a rough guide. The DOE says contractors should size heating and cooling with ACCA Manual J, and that oversized systems cost more and give poor comfort. An oversized furnace also short cycles; see furnace repair for what that looks like.

Furnace installation cost: what else goes on the bill

• Old furnace removal: $150 to $330 in HomeAdvisor's figures; some contractors charge $150 to $400 extra (HomeGuide).
• Ducts: HomeGuide puts duct sealing and minor repair at $300 to $1,500 and ductwork replacement at $1,400 to $5,600 or more. See duct cleaning if the ducts are dirty but sound.
• Gas line: $350 to $2,000 (HomeGuide). New gas runs and leaks are covered in gas line repair.
• Permit: HomeGuide puts the average HVAC permit at $220.
• Fuel conversion: HomeAdvisor puts electric to gas at $5,000 to $15,000.

New furnace cost by brand

Brand matters less than the installer and the model line within the brand.

How long does a furnace last

A gas furnace lasts 15 to 25 years with regular maintenance, according to both HomeAdvisor and HomeGuide. HomeAdvisor lists an age over 15 years as a sign to consider replacing, and the DOE says replacing a system over 15 years old can cut bills. If a newer furnace needs one part, compare the quote against furnace repair costs first.

Is there a tax credit for a new furnace in 2026

No federal tax credit applies to a furnace installed in 2026. The IRS says the 25C Energy Efficient Home Improvement Credit, which allowed up to $600 for a qualifying gas, propane or oil furnace, is not allowed for any property placed in service after December 31, 2025. Some cost guides still mention it; the IRS rule controls. HomeGuide notes that high-efficiency models often qualify for rebates or incentives, so ask your gas utility and your state energy office what is open where you live.

Gas furnace or heat pump

ENERGY STAR says a heat pump can be a drop-in replacement when a furnace or central air unit needs replacing, and that adding a heat pump to an existing furnace (dual fuel) costs modestly more than an AC system. HomeAdvisor puts a dual-fuel setup at $2,500 to $10,000 or more. If the air conditioner is also near the end of its life, price both: heat pump installation cost and AC replacement cost.

Furnace replacement near me: what to ask

• What size and why? Ask whether they did a Manual J load calculation or matched the old unit.
• What AFUE? Get the model number so you can check it.
• What is included? Removal, permit, venting, drain line for a condensing unit, thermostat, and any duct or gas line work.
• Warranty: parts and labor terms in writing, and who registers the parts warranty.
• License: ask for the license number; the HVAC license table lists who issues it in six states.

A furnace is one of the bigger lines in home repair costs. Calls go to an independent company that serves your area and takes this kind of job. How calls work.

Cost to replace a furnace: gas, electric and oil compared

The cost to replace a furnace depends most on the fuel: HomeAdvisor's 2026 guide puts gas at $3,800 to $10,000 and electric at $2,000 to $7,000 installed. The two guides disagree most on oil, so get more than one quote for an oil furnace.

Installed prices. HomeGuide says electric furnaces cost less to replace but 2 to 4 times as much to run as gas.

An electric furnace also lasts longer, 20 to 30 years in HomeGuide's guide against 15 to 25 for gas. If your furnace is getting close to that age, how long a furnace lasts covers the repair or replace rules, and furnace blowing cold air covers the most common winter breakdown.

Replacing the air conditioner at the same time? HVAC system replacement cost prices the furnace and AC as one job and covers when to replace both.