Furnace Replacement Cost in 2026
Most homeowners pay between $3,000 and $7,000 to replace a furnace. The final cost depends on furnace type, efficiency rating, home size, and installation complexity.
Average Furnace Replacement Cost
| Furnace Type | Typical Total Cost |
|---|---|
| Gas furnace | $3,000 – $7,000 |
| Electric furnace | $2,500 – $6,000 |
| Oil furnace | $4,000 – $8,000 |
These prices usually include equipment and installation but may not include ductwork repairs, venting upgrades, or permit fees.
What Affects Furnace Replacement Cost
Furnace efficiency
Higher-efficiency furnaces cost more upfront but can reduce heating bills over time.
Home size
Larger homes require higher-capacity furnaces, increasing equipment and labor costs.
Fuel type
Gas furnaces are most common. Electric and oil furnaces vary in operating and installation costs.
Installation complexity
Older homes or systems may require venting, gas line, or electrical upgrades.
Furnace Repair vs Replacement Cost
Minor furnace repairs typically cost between $150 and $1,000.
If the furnace is old, inefficient, or frequently breaking down, replacement is often more cost-effective.
How to Reduce Furnace Replacement Costs
- Compare quotes from multiple contractors
- Choose the correct furnace size for your home
- Replace before peak winter demand
- Maintain the system regularly
Related HVAC Cost Guides
- HVAC replacement cost
- HVAC replacement cost per square foot
- AC vs heat pump cost
- HVAC repair vs replacement cost
Furnace replacement costs vary by location, fuel type, and home layout. Use these estimates for planning and confirm pricing with licensed contractors.