Furnace Replacement Cost Calculator

The total cost of a furnace replacement has two major components: the equipment and the installation labor. Understanding each helps you evaluate quotes and avoid overpaying.

Equipment Cost: $1,500–$6,000+

The furnace unit itself ranges from $1,500 for a basic 80% AFUE single-stage model to $6,000+ for a premium variable-speed, 98% AFUE unit. The three biggest cost drivers are:

• Efficiency rating (AFUE): Higher-efficiency furnaces cost more upfront but save $200–$400/year on heating bills. Use our energy savings calculator to see your potential return.
• Stage type: Single-stage (cheapest), two-stage (moderate), and modulating (most expensive). Modulating furnaces provide the best comfort and efficiency.
• Brand: Premium brands like Lennox and Trane cost 20–40% more than value brands like Goodman and Amana. The trade-off is typically better warranties and higher build quality.

Installation Labor: $1,500–$4,000

Labor accounts for 30–50% of the total cost. Installation is straightforward if the new furnace is the same fuel type and similar size. Costs increase when:

• Switching fuel types (e.g., oil to gas) requires new fuel lines and potentially a gas meter
• Ductwork modifications are needed for a different-sized unit
• The furnace is in a tight attic, crawl space, or closet (access difficulty)
• Code upgrades are required (common in older homes)

Don't Forget Tax Credits

High-efficiency furnaces (95%+ AFUE) qualify for a $600 federal tax credit under the Inflation Reduction Act. Heat pump systems qualify for up to $2,000. Many states and utilities offer additional rebates. Check our tax credits calculator to see what you qualify for.

Not sure if you need a new furnace yet? The $5,000 rule can help you decide whether to repair or replace.

An incorrectly sized furnace wastes energy and shortens the unit's lifespan. An undersized furnace runs constantly and can't keep up on the coldest days. An oversized furnace short-cycles, causing uneven temperatures, poor humidity control, and premature wear.

The right size depends on your home's square footage, climate zone, insulation quality, and window area. Use our furnace sizing calculator to find the recommended BTU output for your home.