A furnace replacement is a high-stakes purchase that usually happens at the worst time — when the old one quits in the cold. Here's what a new furnace costs in 2026, how gas and electric compare, and how contractors turn the details into a fast, accurate estimate.
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.
The right choice depends on local energy prices, climate, and existing infrastructure.
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.
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A typical gas furnace replacement runs about $4,500 to $9,500 installed in 2026, with most standard mid-efficiency jobs around $5,500 to $7,500. Electric furnaces cost less upfront — often $2,500 to $6,000 installed — but usually cost more to run.
A well-maintained gas furnace typically lasts 15–20 years; electric furnaces can last longer. Past 15 years, rising repair costs and lower efficiency usually favor replacement.
If both are aging, replacing them together saves on labor and ensures the blower, coil, and condenser are properly matched. Many contractors present a combined option alongside the furnace-only quote.
In colder climates with long heating seasons, the fuel savings from a 95%+ AFUE furnace often justify the higher upfront cost. In milder climates the payback is slower.