Complete guide to furnace replacement costs, including gas, electric, and oil furnace pricing.
Replacing a furnace is one of the most significant home investments you can make. The total cost depends on the type of furnace, efficiency rating, brand, and installation complexity. On average, homeowners pay between $7,000 and $15,000 for a complete furnace replacement including equipment and installation.
The furnace unit itself typically costs $3,000\u2013$8,000, with installation labor, materials, permits, and any necessary modifications adding $3,000\u2013$7,000 to the total.
The type of fuel your furnace uses is the biggest factor in equipment cost. Here is a comparison of the three main furnace types:
| Furnace Type | Unit Cost | Installed Cost | Efficiency |
|---|---|---|---|
| Gas Furnace | $2,500 – $5,500 | $4,500 – $7,500 | 80–98% AFUE |
| Electric Furnace | $1,500 – $3,500 | $3,000 – $5,500 | 95–100% AFUE |
| Oil Furnace | $3,000 – $6,000 | $5,000 – $8,000 | 80–90% AFUE |
Several factors beyond furnace type influence the total replacement cost:
Higher AFUE ratings (90%+) cost more upfront but save significantly on fuel bills. A 95% AFUE furnace costs $500–$1,500 more than an 80% model.
Premium brands like Carrier, Trane, and Lennox cost more than budget brands. Good/Better/Best tiers range from $2,500 to $6,000+ for the unit.
Larger homes need higher-capacity furnaces. A 3,000+ sq ft home may need 120,000+ BTU, adding $1,000–$2,000 to equipment cost.
If existing ductwork needs modification, repair, or replacement, expect to add $500–$5,000 to the project.
Most furnaces last 15\u201320 years. Here are the key signs that replacement is the better option:
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