Average furnace replacement cost
In 2026, a typical gas furnace replacement runs about $4,500 to $9,500 installed, with most standard mid-efficiency jobs around $5,500 to $7,500. High-efficiency condensing furnaces and difficult installations push toward the top of the range.
Electric furnaces have a lower equipment cost — often $2,500 to $6,000 installed — but higher operating cost in most regions, so the lifetime math differs from the sticker price.
Gas vs. electric furnace
The right choice depends on local energy prices, climate, and existing infrastructure.
- Gas: higher equipment cost, lower operating cost in most areas, requires gas line and venting.
- Electric: lower upfront cost, simpler install, higher monthly cost where electricity is expensive.
- Heat pump alternative: increasingly popular for combined heating and cooling efficiency.
What AFUE efficiency means for price
Furnace efficiency is rated by AFUE (Annual Fuel Utilization Efficiency). An 80% AFUE furnace converts 80% of fuel to heat; high-efficiency condensing units reach 90–98% AFUE. Higher AFUE costs more upfront and may require different venting (PVC sidewall vent), but lowers fuel bills.
Factors that change your furnace quote
- Furnace size (BTU output) matched to the home's heating load.
- Efficiency (AFUE) and single-stage vs. two-stage / modulating burners.
- Venting changes, gas line work, and condensate drainage for high-efficiency units.
- Ductwork modifications and new thermostat.
- Permits, inspection, and removal/disposal of the old unit.
Estimate a furnace job in minutes
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