How Much Does Furnace Replacement Cost in 2026?

By Michael JohnsonUpdated November 11, 202612 sources comparedHow we estimate

Most homeowners pay $2,800 to $8,000 to replace a furnace, with a national midpoint of about $4,800 installed. That figure is the median of the averages published by HomeGuide ($3,700), This Old House ($4,771) and Fixr ($4,800). The biggest price drivers are fuel type, efficiency (a standard 80% AFUE furnace versus a 90%+ condensing model), the burner and blower type, and whether your venting or chimney has to change.

This guide covers replacing the furnace only, on your existing ductwork. If you're replacing the air conditioner at the same time, see our HVAC replacement cost guide, and if you're pricing a fix for the furnace you have, start with our furnace repair cost guide.

Furnace replacement cost by fuel type

The table compiles installed prices (unit plus labor) from four independent cost guides. The QuoteRuler range is where those sources overlap for a like-for-like swap, with Trane's 2026 dealer estimates used to anchor the gas rows.

Sources disagree most on oil and propane. HomeGuide's figures are close to unit-plus-labor for a direct swap, while the Angi-family numbers (also used by This Old House and Carrier) appear to include more fuel-line and tank work. The $14,200 propane high end likely includes a new tank, so we left it out of the typical range. Gas furnaces cluster around $3,800–$10,000 in most guides, which matches Carrier's $3,800–$12,000 for an 80,000 BTU unit in a 1,600–2,000 sq ft home.

80% vs. 90%+ AFUE: what changes with a condensing furnace

AFUE is the share of fuel that becomes heat in your home. A standard furnace is about 80%; a condensing furnace is 90% to 98%. Trane's 2026 estimates put a 96% AFUE single-stage install at $6,630–$6,946, about $1,500 more than its 80% equivalent ($5,093–$5,481). Bryant says high-efficiency models typically cost $1,000–$2,500 more up front.

The premium is not just the box. A condensing furnace cools its exhaust enough to produce water, so it:

• Vents through plastic pipe out a side wall or roof instead of the chimney. That means new intake and exhaust runs and holes through the house.
• Needs a condensate drain and sometimes a pump: $200–$600 (HomeGuide).
• Can strand your water heater. If an 80% furnace and a gas water heater share a masonry chimney, removing the furnace leaves the water heater "orphaned" in a flue that is now oversized. The fix is often a chimney liner, which HomeGuide prices at $900–$3,800 installed.

Going the other way matters too. Replacing an 80% furnace with another 80% model keeps your existing vent, which is part of why it's the cheapest option on paper. A federal rule from December 2023 would require 95% AFUE for most new gas furnaces, effectively mandating condensing models, starting December 18, 2028. Industry groups have petitioned the Department of Energy to push that date to 2030, per an April 2026 Federal Register notice, so the timeline is unsettled.

Is the upgrade worth it? ENERGY STAR estimates a certified gas furnace saves about $160 a year in northern states but only about $60 a year in the South. At a $1,500 premium, that is roughly a 10-year payback up north and 25 years in a mild climate.

Single-stage, two-stage and modulating furnaces

Trane is one of the few brands that publishes installed prices by stage, which makes the step-ups easy to see:

Two-stage adds roughly 5%–8% and variable-speed about 17%, which is how we set the calculator's multipliers. You get quieter operation, steadier temperatures and better dehumidification with your AC. HomeServe notes that a blower motor upgrade alone can add $500–$2,300.

What size furnace do you need?

Furnaces are sized in BTUs of heating output. Fixr and Angi use a rule of thumb of 30 to 60 BTU per square foot, so a 2,000 sq ft home falls between 60,000 and 120,000 BTU depending on climate. HomeGuide's installed gas prices rise only modestly with size: about $1,850–$5,300 at 50,000 BTU, $2,100–$5,700 at 80,000 BTU and $2,400–$6,200 at 120,000 BTU.

Bigger is not better. An oversized furnace short-cycles, wears out sooner and heats unevenly. Ask for a Manual J load calculation instead of a match to the old unit's label, especially if you've added insulation or new windows since it was installed.

Brand tiers

HomeGuide's brand table shows how much overlap there is. Installed gas furnaces run about $1,800–$6,200 for Goodman, $2,200–$5,800 for Carrier, $2,400–$6,000 for Trane, $2,000–$6,900 for Rheem/Ruud and up to $10,500 for Lennox's premium lines. The installer and the model tier inside a brand matter more than the logo.

Labor vs. materials

On a furnace-only swap, the equipment is usually the larger share. HomeGuide prices gas furnace units at $600–$1,900 for 80% AFUE and $900–$3,300 for condensing models, with labor at $600–$3,100. Fixr puts installation labor at $300–$1,800, or 10% to 40% of the total, and Carrier says labor starts at about $1,600 for a gas furnace.

We use a labor share of 35% in our state adjustments, in the middle of those figures. It runs higher on condensing conversions, where new venting and drains add hours, and lower on a simple electric swap. Installers charge about $70–$150 an hour (HomeGuide, Fixr), and most jobs take 4 to 10 hours.

What drives the price up or down

• Efficiency. A 96% AFUE furnace costs about $1,500 more than an 80% model at the same stage level (Trane).
• New venting or a chimney liner. Liners run $900–$3,800, condensate drains $200–$600 (HomeGuide).
• Fuel switching. HomeGuide prices electric-to-gas at $1,800–$5,300 and oil-to-gas at $2,200–$8,800, mostly for new lines, tanks and venting. A new gas line alone is $500–$2,000.
• Ductwork tweaks. A new furnace's cabinet may not line up with the old plenum, and a larger blower can expose weak ducts. Duct repair runs $200–$700 and sealing $400–$2,700 (HomeGuide). Full replacement is a separate project, covered in our ductwork replacement cost guide.
• Permits. Most fall between $50 and $500, but Fixr and Angi quote up to $1,500 in some jurisdictions.
• Removal. Haul-away costs $50–$400 when it isn't included (Fixr, HomeGuide).
• Access. Attic and crawlspace installs take longer, and a tight closet may need framing changes ($500–$2,000, HomeGuide).

Furnace replacement cost by state

Labor rates and permit fees vary widely from state to state. The table below starts from our national range, compiled from the sources above, and adjusts only the labor portion (35%) using the Bureau of Economic Analysis Regional Price Parities for each state.

Treat these as starting points. Prices inside one state can differ as much as prices between states, especially between metro areas and rural counties.

Repair or replace your furnace?

Furnaces typically last 15 to 20 years (Carrier). Three quick tests help with the decision:

• The 50% rule. Carrier suggests comparing options before paying for a repair that approaches half the cost of a new furnace.
• The $5,000 rule. Multiply the furnace's age by the repair quote. Above $5,000, replacement usually wins (CBS News). A $400 repair on a 15-year-old furnace scores $6,000.
• Safety. A cracked heat exchanger can let combustion gases into the airstream. Don't run a furnace a technician has tagged unsafe.

Repair makes sense for an igniter, flame sensor, pressure switch or control board on a furnace that is well short of that 15-to-20-year life. Replace when the heat exchanger or the main blower fails on an older unit, or when repairs keep stacking up. Our furnace repair cost guide lists typical prices by part.

DIY is not an option for gas, propane or oil furnaces. They involve gas connections, combustion venting and carbon monoxide risk, and most areas require a permit and inspection. Hire a licensed HVAC contractor, and make sure the job includes a combustion and CO test at startup.

Furnace only or a full system?

If your AC is the same age as the furnace, replacing both at once usually saves on labor and gets you matched equipment; our HVAC replacement cost guide covers combined pricing. In mild climates, a heat pump may replace both; see our heat pump installation cost guide.

How to save money on a new furnace

• Don't count on the federal tax credit. The 25C credit that offered up to $600 for a qualifying furnace does not apply to property placed in service after December 31, 2025, according to the IRS. Be wary of any quote that still promises it.
• Check utility rebates. Many gas utilities still rebate high-efficiency furnaces. Search the ENERGY STAR Rebate Finder by ZIP code before you sign, since some programs need pre-approval.
• Replace before it fails. Planning a spring or early-fall install avoids emergency rates and gives you time for three quotes.
• Match efficiency to climate. In a warm state, a well-installed 80% furnace may cost less over its life than a 96% unit plus new venting.
• Keep the same fuel and location unless savings clearly justify a conversion.
• Ask for a load calculation. Right-sizing can let you buy a smaller, cheaper furnace.

How to compare furnace quotes

A fair quote should list:

• Brand, model number, BTU output, AFUE and stage or blower type.
• Removal and disposal of the old furnace.
• Permit and inspection fees.
• Venting work: new PVC runs, chimney liner, or confirmation that the existing vent is reused and safe for the water heater.
• Condensate drain or pump, if the furnace is condensing.
• Plenum, transition and duct modifications.
• Thermostat, if included.
• Manufacturer warranty, registration and the installer's own labor warranty.

Red flags: a price quoted by phone without looking at your vent and ducts; upsizing "to be safe" without a load calculation; no permit; no mention of what happens to the water heater's venting when you go condensing; or a 2026 quote that subtracts a federal tax credit.

Hidden costs people forget

• Chimney liner for an orphaned gas water heater: $900–$3,800.
• Electrical work. An electric furnace may need a new 240-volt circuit ($175–$500, Fixr) or a panel upgrade ($1,300–$2,500, HomeGuide).
• Asbestos testing around old duct wrap or furnace insulation: $250–$700 (HomeGuide).
• New thermostat to run a two-stage or modulating furnace properly: $140–$350.
• Annual tune-ups to keep the warranty valid: $70–$300 (Fixr).
• Air quality add-ons like media filters or humidifiers, often bundled into premium quotes.

Bottom line

A like-for-like furnace replacement usually costs $2,800 to $8,000, and about $4,800 is a fair national midpoint. Standard 80% gas furnaces sit at the low end; condensing, variable-speed and oil units sit at the top. The 25C tax credit ended after 2025, so check utility rebates instead. Get three itemized quotes that spell out venting, permits and removal before you choose.