Furnace Replacement Cost in 2026: What to Expect (Gas, Electric & High-Efficiency)

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When a furnace dies in the middle of winter, you don't have much time to shop around, and that's exactly when homeowners overpay. Knowing what a fair price looks like before you need a new furnace can save you thousands.

Here's what a new furnace really costs in 2026, what drives the price up or down, and how to know whether to repair or replace.

Quick answer: how much does a new furnace cost?

For most homes, a new furnace costs about $3,500 to $7,500 installed. Simple electric furnaces can come in lower, while high-efficiency gas furnaces in large homes can top $11,000.

Furnace type	Typical installed cost (2026)
Electric furnace	$2,000 to $7,000
Standard-efficiency gas furnace (80% AFUE)	$3,800 to $6,500
High-efficiency gas furnace (90 to 98% AFUE)	$4,500 to $11,500
Furnace + central AC together	$5,000 to $15,000

Ranges based on 2026 national cost guides (Fixr, HomeGuide, HomeAdvisor, ConsumerAffairs and others). Your price depends on your home, location and installer. Always get 2 to 3 quotes.

What's included in the price?

A quoted "installed" price usually includes:

The furnace unit itself
Removal and disposal of the old furnace
Labor (typically a full day for a straightforward swap)
Connecting gas, electrical and venting
Basic ductwork connections
Startup, testing and safety checks
The manufacturer's warranty (and sometimes an installer labor warranty)

Often NOT included (ask!):

New ductwork or major duct repairs
New venting or chimney liner (common when upgrading to high-efficiency)
Permits (sometimes extra)
A new thermostat
Electrical upgrades
Gas line changes

Cost by furnace type

Gas furnace: $3,800 to $11,500

Natural gas furnaces are the most common choice in the U.S. and usually the cheapest to run in cold climates. (This winter, the average natural-gas-heated home is forecast to spend about $640 on heating, compared with about $1,196 for electric heat, according to the U.S. Energy Information Administration.)

80% AFUE (standard): Lower upfront cost. Uses a traditional metal flue.
90 to 98% AFUE (high-efficiency / condensing): Costs more upfront and often needs new PVC venting and a condensate drain, but wastes far less fuel.

Electric furnace: $2,000 to $7,000

Electric furnaces are cheaper to buy and install (no gas line or venting), but they're expensive to run in cold regions because they use electric resistance heat. They make the most sense in mild climates or where gas isn't available.

Thinking electric? Get a quote for a heat pump too. Heat pumps use much less electricity than an electric furnace for the same heat, and modern cold-climate models work well in most of the U.S.

Propane and oil furnaces

Common in rural areas without gas lines. Installation prices are similar to gas furnaces, but fuel costs are higher. This winter, oil-heated homes are forecast to spend about $2,115 and propane homes about $1,246 on average.

What affects your furnace price?

1. Home size (furnace capacity) Bigger homes need furnaces with more heating capacity (measured in BTUs), and bigger furnaces cost more. A proper installer should do a load calculation (often called a "Manual J") rather than just matching your old furnace's size. Many older homes have oversized furnaces.

2. Efficiency (AFUE) AFUE tells you how much fuel becomes heat. A 96% AFUE furnace turns 96 cents of every fuel dollar into heat; an 80% unit wastes 20 cents. Higher efficiency = higher upfront cost, lower bills.

3. Single-stage vs. two-stage vs. variable-speed

Single-stage: On or off at full blast. Cheapest.
Two-stage: Runs on low most of the time. Quieter, more even heat.
Variable-speed / modulating: Adjusts output in small steps. Most comfortable and efficient, most expensive.

4. Brand Premium brands cost more, but the quality of the installation matters more than the brand name for how long your furnace lasts.

5. Ductwork and venting Damaged or undersized ductwork, or switching from an 80% to a 90%+ furnace (which needs different venting), can add significantly to the cost.

6. Where you live Labor rates, permit fees and demand vary widely. Prices also spike during cold snaps when HVAC companies are busiest.

Repair or replace? How to decide

Not every broken furnace needs replacing. Use these guidelines:

Situation	Repair or replace?
Furnace under 10 years old, repair under a few hundred dollars	Repair
Furnace 15 to 20+ years old	Start planning to replace
Repair would cost more than ~1/3 of a new furnace	Consider replacing
Cracked heat exchanger	Usually replace (safety risk)
Heating bills rising every year	Consider replacing
Frequent breakdowns (several repairs in 2 years)	Replace

The "$5,000 rule" (a quick rule of thumb): Multiply the furnace's age by the repair cost. If the number is more than $5,000, replacement is usually the better value. Example: a 15-year-old furnace × a $400 repair = $6,000 → consider replacing.

👉 Not sure if your furnace is failing? Read: Signs Your Furnace Is About to Fail

How long does a furnace last?

A well-maintained gas furnace commonly lasts 15 to 20 years, and electric furnaces can last even longer. Yearly tune-ups, regular filter changes and good installation all help your furnace reach the top of that range.

7 ways to save money on a new furnace

Replace before it fails. Shopping in an emergency in January means less choice and higher prices.
Buy in the off-season. Late spring and early fall are often quieter for HVAC companies, and you may get better pricing.
Get at least 3 quotes and compare the exact equipment model numbers, not just the total price.
Ask your utility about rebates. Many utilities and states offer rebates for high-efficiency furnaces and heat pumps.
Ask about financing offers, but compare the interest rate with other options.
Choose the right size. An oversized furnace costs more to buy and runs less efficiently.
Consider total cost, not just price. A high-efficiency furnace costs more upfront but can save money every winter, especially in cold climates.

About federal tax credits: The federal energy-efficiency tax credit that covered many furnaces and heat pumps was phased out for equipment installed after 2025. Check with your utility and state energy office for current rebates and incentives.

Questions to ask your HVAC contractor

Will you do a load calculation to size the new furnace?
What exact model number are you quoting, and what's its AFUE?
Does the price include removal, permits, venting changes and a thermostat?
What warranty comes with the equipment, and with your labor?
Do I need to register the furnace to get the full manufacturer warranty?
Are you licensed and insured in my state?

Frequently asked questions

How much does it cost to replace a furnace in 2026? Most homeowners pay about $3,500 to $7,500 installed. Electric furnaces can cost as little as about $2,000, and high-efficiency gas furnaces can exceed $11,000.

Is a high-efficiency furnace worth it? Usually, yes, in cold climates where your furnace runs a lot. In mild climates, a standard 80% furnace or a heat pump may make more financial sense.

How long does furnace installation take? A straightforward replacement usually takes one day. Jobs that need new ductwork or venting can take two to three days.

Should I replace my furnace and AC at the same time? If both are older than about 12 to 15 years, replacing them together can save on labor and ensure the systems are matched for efficiency. Expect $5,000 to $15,000 for both.

What size furnace do I need? It depends on your home's size, insulation, windows and climate, not just square footage. Ask your installer for a load calculation instead of simply copying your old furnace's size.

Can I install a furnace myself? No. Furnace installation involves gas lines, electrical work and venting that can cause carbon monoxide leaks or fires if done wrong. Most areas also require a licensed installer and a permit.

The bottom line

Expect to pay about $3,500 to $7,500 for a new furnace in most homes, with high-efficiency models in larger homes costing more. Get several quotes, ask exactly what's included, and check for utility rebates. And if your furnace is getting old, start planning now, replacing it on your schedule is always cheaper than replacing it in an emergency.

Want to lower your heating bill in the meantime? See 12 Ways to Lower Your Heating Bill This Winter.

Sources: 2026 cost guides from Fixr, HomeGuide, HomeAdvisor, ConsumerAffairs and ProFindr; U.S. Energy Information Administration, Winter Fuels Outlook (October 2026).