When your furnace starts struggling as the weather turns cold, it's natural to worry about the bill. Knowing the typical furnace replacement cost ahead of time can help you plan, compare quotes, and make a confident decision.
This guide covers national price ranges, the factors behind a quote, and how to decide between repair and replacement. It's written from the installer's side of the quote, based on how ARS®/Rescue Rooter® builds estimates for our furnace replacement services.
Already without heat? Call Today at 866-399-2885, and our trusted team can help you sort out your next step.
How Much Does Furnace Replacement Cost?
Most homeowners pay between $2,823 and $6,897 to replace a furnace, and the national average is $4,814. These 2026 national estimates from Angi include both the new equipment and the installation labor.
Here's what the Angi 2026 furnace costs data shows: "Most homeowners pay between $2,823 and $6,897." Angi adds, "In 2026, the national average cost for a new furnace installation is $4,814, based on 11,869 verified projects from Angi Pros."
Keep in mind that these furnace replacement cost figures are national estimates, so your own quote will vary. Your home's size, your region, your fuel type, and the condition of your ductwork all shape the final number.
You may notice that cost sites list different ranges for the same job. That's usually because each one slices the data differently, such as by fuel type, home size, or project year. For example, Angi's natural gas range of $3,800–$10,000 sits higher than its overall range because it reflects a different cut of Angi's data.
Furnace Replacement Price Factors
Your furnace replacement cost is the sum of several smaller choices and conditions in your home. Seeing them side by side can help you understand why two quotes may look so different.
All figures in the table below come from Angi's 2026 national data, and your quote will vary by home and region.
| Factor | Typical Cost Range | What It Means for Your Quote |
|---|---|---|
| Fuel type: electric | $2,000–$7,000 | The lowest starting price in Angi's data |
| Fuel type: natural gas | $3,800–$10,000 | Price climbs with size and efficiency, and it's simplest if you already have a gas line |
| Fuel type: oil | $6,750–$10,000 | Usually a like-for-like swap in homes that already use heating oil |
| Fuel type: propane | $3,700–$14,200 | The widest range in Angi's data, so a detailed quote matters most here |
| Home size: 1,000 sq ft | $1,200–$2,000 | Smaller homes need less heating capacity |
| Home size: 2,000 sq ft | $2,400–$4,000 | A common midsize range for many single-family homes |
| Home size: 5,000 sq ft | $6,000–$10,000 | Larger homes need more BTUs and a bigger unit |
| Efficiency (AFUE) | Varies by model | Higher ratings cost more upfront and may help lower heating bills |
| Labor | $75–$100 per hour | Complex installs take more hours |
| Old unit removal | $60–$330 | Often part of a replacement quote, so ask to be sure |
| Permits | $400–$1,500 | Set by your local building department |
| Ductwork | $2,000–$5,000 | Installing new ductwork can add roughly this much, and it's only needed if your ducts are damaged, leaky, or the wrong size |
Fuel Type
Most homeowners replace their furnace with one that uses the same fuel, which keeps the job simpler. Switching fuels can add gas line, venting, or electrical work to your furnace installation cost.
Each fuel has its own strengths:
- Electric: This type has the lowest upfront price in Angi's data and needs no combustion venting.
- Natural gas: This type is a popular pick where a gas line already reaches the home.
- Oil: This type is a practical fit for homes that already store heating oil on-site.
- Propane: This type is an option for homes without natural gas service, using fuel stored in a tank.
For a closer look at the trade-offs, read our guide to choosing the right furnace.
Home Size and BTUs
Furnace capacity is measured in BTUs. A BTU, or British thermal unit, is the amount of heat needed to warm one pound of water by one degree Fahrenheit.
Getting the size right matters for both comfort and cost. An oversized furnace may turn on and off too often, which can wear out parts and waste energy. An undersized furnace may run nonstop and still leave rooms cold.
That's why ARS Comfort Advisors start with a load calculation, which measures how much heat your home needs to stay comfortable. They factor in your square footage, number of bedrooms, and your home's orientation, elevation, and latitude.
A proper load calculation helps keep your furnace replacement cost in line with what your home actually needs. You pay for the capacity you'll use, without guessing based on the old unit's label.
Efficiency Rating (AFUE)
AFUE stands for annual fuel utilization efficiency. ENERGY STAR defines it as "the percentage of the heat in the incoming fuel which is converted to space heat instead of being lost."
In plain terms, a higher AFUE means a larger share of your fuel becomes heat for your home. The ENERGY STAR furnace requirements set a "Rating of 95% AFUE or greater for U.S. South gas furnaces." Northern homes have a higher bar: "Rating of 97% AFUE or greater for U.S. North gas furnaces."
ENERGY STAR also sets an 87% AFUE threshold for oil furnaces, and its page lists which states count as North or South. Higher-AFUE models raise the upfront furnace replacement cost, but they may help lower your heating bills over time.
Efficiency matters because heating is a big part of home energy use. Here's how the EIA home energy use data puts it:
"on average, more than half—52% in 2020—of a household's annual energy consumption is for just two energy end uses: space heating and air conditioning."
Labor, Removal, Permits, and Ductwork
Beyond the furnace itself, a few add-on costs can shape your final furnace replacement cost. Here's what to expect, based on Angi's 2026 national data:
- Labor: Angi puts installation labor at $75 to $100 per hour, and complex jobs take longer.
- Old unit removal: Hauling away your old furnace typically runs $60 to $330.
- Permits: Many local governments require a permit, which Angi estimates at $400 to $1,500.
- Ductwork: Installing new ductwork can add roughly $2,000 to $5,000 to the job.
Ductwork condition can also move your quote significantly. If your ducts are in good shape, you may avoid that cost entirely.
What's Included in a Furnace Replacement Quote
A detailed quote helps you see exactly what makes up your furnace replacement cost. Here's how a typical new furnace installation quote comes together at ARS:
- In-home consultation: A trained Comfort Advisor visits your home, looks at your current system, and asks about your comfort concerns.
- Load calculation: The advisor measures your home to find the right furnace size.
- Good, better, and best options: You'll see a few equipment choices at different price and efficiency levels.
- Clear pricing: Each option shows a set price up front, along with any discounts or incentives that may apply.
- Old unit removal: The quote notes whether hauling away your old furnace is part of the job.
- Installation: Our experienced team can install your new furnace, with same-day installation available in some cases.
- Walkthrough: Before leaving, the team shows you how your new system and thermostat work.
Use this checklist when you compare quotes from different companies:
- Sizing: Did the contractor do a load calculation, or just match the old unit?
- Efficiency: What is the AFUE rating of each option?
- Scope: Are removal, permits, and any ductwork included in the price?
- Warranty: What manufacturer and workmanship coverage comes with the job?
- Payment: Are financing or payment plans available?
Comparing quotes line by line makes it easier to spot gaps. The lowest number may leave out work you'll end up paying for later.
Should You Repair or Replace Your Furnace?
Some furnace problems call for a repair, and others point to a new system. Our team handles both, so we can help you weigh each path honestly.
One term you'll see below is the heat exchanger, the part that moves heat from burning fuel into your home's air. The U.S. Consumer Product Safety Commission (CPSC) has investigated carbon monoxide incidents involving gas appliances. In CPSC gas appliance findings, the top reported failure was "a blocked or disconnected, breached, or hole in the vent pipe, chimney, or heat exchanger."
| Repair May Make Sense If… | Replacement May Make Sense If… |
|---|---|
| Your furnace is younger than our general 8 to 10 year replacement recommendation, which varies by home | Your furnace has reached or passed our general 8 to 10 year recommendation, which varies by home |
| You have a one-time problem, like a faulty igniter or thermostat | You're calling for repairs again and again |
| Your heating bills stay steady each year | Your heating bills keep rising with no clear cause |
| Every room heats evenly | Some rooms stay cold no matter how you set the thermostat |
| A safety check finds no major issues | A technician finds signs of a cracked heat exchanger or another possible safety concern |
Age also shapes whether a repair bill or a full furnace replacement cost makes more sense. The ENERGY STAR repair-or-replace checklist points toward replacement when equipment is older and "Extensive or costly repairs needed."
As a general recommendation, ARS suggests replacing a furnace every 8 to 10 years, though that varies with usage, climate, maintenance history, and installation quality. ARS recommends evaluating sooner, while ENERGY STAR replacement guidance suggests considering replacement when "Your furnace or boiler is more than 15 years old."
Our recommendation is simple: have a professional evaluate your system before you decide. If a fix makes sense, professional furnace repair may keep your home warm for seasons to come. For a deeper look at the cost of waiting, read our repair vs. replace guide.
Warning Signs It's Time to Replace
Some signs are easy to spot from home. If you notice several of these, it's time to schedule an inspection:
- Age and frequent repairs: Your furnace is near our general 8 to 10 year replacement recommendation, which varies by home, and needs service more often.
- Rising energy bills: Your heating costs climb even though your habits haven't changed.
- Uneven heat: Some rooms feel warm while others stay chilly.
- Strange noises: Banging, rattling, or squealing can point to worn or loose parts.
For more detail on each one, see these signs your furnace is failing.
Safety is part of this decision too. Carbon monoxide (CO) is a poison gas you can't see or smell, and the CDC lists gas- and oil-burning furnaces among its household sources.
The CDC carbon monoxide basics page states, "Each year, more than 400 Americans die from unintentional CO poisoning not linked to fires." The CDC also reports more than 100,000 emergency department visits and more than 14,000 hospitalizations each year.
The good news? Simple steps may help protect your family.
The CPSC heating safety tips advise having a professional inspect fuel-burning heating systems each year. CPSC also recommends CO alarms on every level of your home and outside bedroom areas.
Why DIY Furnace Replacement Can Cost More
Replacing a furnace yourself may look like a way to save on labor. In practice, the job involves gas lines, electrical connections, and venting that carries combustion gases out of your home.
A small mistake can lead to gas leaks, electrical hazards, or carbon monoxide problems. ENERGY STAR's repair-or-replace checklist also notes, "Only proper installation of your equipment will ensure that it operates at peak efficiency."
Add in specialized tools, permits, and the hours involved, and DIY may not lower your true furnace replacement cost. A professional install may help you get the job done right the first time.
Ways to Lower Your Furnace Replacement Cost
You have more control over your final furnace replacement cost than you might think. These tips may help you lower the price or spread it out:
- Replace before it fails: Planning ahead may help you avoid emergency timing and compare quotes without pressure.
- Compare good, better, and best options: A mid-range model may meet your needs at a lower upfront price.
- Ask about rebates: Ask your installer and your state energy office which rebates, if any, apply before you sign.
- Keep the same fuel type: Sticking with your current fuel may help you avoid gas line or venting changes.
- Spread out payments: Our furnace financing options may help you fit a new system into your budget.
- Protect your investment: An annual furnace tune-up may help your new furnace run efficiently, and a Pro Service Plan makes regular care easier.
Timing can help too. ENERGY STAR Home Upgrade tips note that contractors get busy once summer and winter come, so a fall heating checkup is best. ENERGY STAR adds, "Recognizing the symptoms early can help you plan for a replacement."
What about tax credits? As of October 2026, the federal 25C energy efficient home improvement credit no longer applies to new furnace installs. The IRS energy credit end date guidance is direct: "The credit will not be allowed for any property placed in service after December 31, 2025."
For context, the credit covered 30% of the cost, up to $600, for qualifying ENERGY STAR gas furnaces with 97% AFUE or higher. The ENERGY STAR furnace tax credit page confirms the credit's window:
"This tax credit is effective for products purchased and installed between January 1, 2023, and December 31, 2025."
For rebates, the DOE Home Energy Rebates page says, "Home Energy Rebates are now available in select states." Many focus on electric heating and cooling upgrades, so check with your state energy office. Tax rules can change, so a tax professional can confirm what applies to you.
When to Call a Professional
It's time to call a professional if your furnace needs frequent repairs or your heating bills keep rising. The same goes for uneven heat or strange noises. It also applies if your furnace is past our general 8 to 10 year replacement recommendation, which varies by home.
ARS has a trusted, experienced team that handles both furnace repair and replacement. Our work is backed by the Exceptional Service Guarantee. If you're unsatisfied within one year of your original invoice, we'll do whatever we can to make it right.
Emergency services are available, and we're available seven days a week. Call Today at 866-399-2885 or Schedule Service Online.
