More Heating & Cooling: Central AC Replacement ·AC Repair ·HVAC Replacement ·Heat Pump Installation ·Mini Split Installation
When a furnace stops keeping up — or a heating tech finds a cracked heat exchanger — replacement is often safer and cheaper than chasing repairs. A new furnace runs $3,000 to $12,000 installed, averaging around $4,800, with efficiency and fuel type driving most of the difference.
What you’re paying for
The furnace unit is roughly half the cost. The rest covers installation labor, any venting or gas-line adjustments, a thermostat, and permits. High-efficiency condensing furnaces vent through PVC rather than the old metal flue, which sometimes means new venting and a bit more labor.
Cost by efficiency
Furnace efficiency is measured in AFUE — the percentage of fuel converted to heat. It’s the biggest price lever, so it’s worth understanding the tiers before you shop. The table below shows typical installed pricing by efficiency level.
How high should you go?
In a cold climate with heavy heating use, a 96%+ AFUE furnace usually pays for itself through lower gas bills over its life. In a mild climate where the furnace runs only a few months a year, a standard 80% model is often the smarter value — the fuel savings won’t recoup the premium. Match the efficiency to your actual heating load, not the salesperson’s pitch.
Bundle with AC if you can
If your air conditioner is also near the end of its life, replacing both at once saves a second labor charge and ensures the blower, coil, and furnace are properly matched — a mismatched system runs less efficiently and can void warranties.
How to save on a furnace
- Get itemized quotes and compare the same efficiency tier.
- Match efficiency to your climate instead of automatically buying the top model.
- Replace in the off-season for better pricing.
- Check utility rebates for high-efficiency units now that federal credits have ended.
| Item | Typical range | Notes |
|---|---|---|
| Gas furnace unit | $2,000 – $6,000 | – |
| Installation labor | $500 – $2,000 | – |
| Venting / gas line adjustments | $300 – $1,200 | – |
| Thermostat & permits | $150 – $600 | When a heating and cooling project needs a permit on Permit Notebook, our sister site |
| Option | Typical range | Notes |
|---|---|---|
| Standard gas (80% AFUE) | $3,800 – $6,200 | Lowest upfront cost |
| Mid-efficiency gas (90–95% AFUE) | $5,200 – $8,800 | – |
| High-efficiency gas (96%+ AFUE) | $7,500 – $12,000 | Best for cold climates |
| Electric furnace | $2,000 – $7,000 | Cheaper to install, costlier to run |
What affects the price
- Fuel type Gas furnaces are most common; electric furnaces cost less to install but more to run; oil and propane vary.
- Efficiency (AFUE) An 80% AFUE model is cheapest; a 96%+ condensing model costs more but cuts fuel use.
- Size (BTU) Larger homes need higher-output furnaces, which cost more.
- Venting changes High-efficiency condensing furnaces often need new PVC venting, adding labor.
- Region & season Labor rates vary by market, and off-season installs are usually cheaper.
Furnace replacement cost by state
Where you live can change the price as much as the options you pick. Labor is a big part of the bill, and construction workers are paid more in some states than others. A typical furnace replacement job costs about $3,500 to $14,000 in Hawaii (17% above the U.S. average). In Arkansas, it costs about $2,600 to $10,200 (15% below the U.S. average).
See the typical cost in all 50 states and D.C.
| State | Typical range |
|---|---|
| Alabama | $2,600 – $10,400 |
| Alaska | $3,400 – $13,800 |
| Arizona | $2,900 – $11,400 |
| Arkansas | $2,600 – $10,200 |
| California | $3,400 – $13,400 |
| Colorado | $3,000 – $12,000 |
| Connecticut | $3,200 – $12,800 |
| Delaware | $2,900 – $11,800 |
| District of Columbia | $3,200 – $13,000 |
| Florida | $2,700 – $10,900 |
| Georgia | $2,800 – $11,000 |
| Hawaii | $3,500 – $14,000 |
| Idaho | $2,800 – $11,300 |
| Illinois | $3,400 – $13,800 |
| Indiana | $3,000 – $12,100 |
| Iowa | $2,900 – $11,600 |
| Kansas | $2,900 – $11,400 |
| Kentucky | $2,800 – $11,200 |
| Louisiana | $2,700 – $10,800 |
| Maine | $2,900 – $11,800 |
| Maryland | $3,000 – $12,000 |
| Massachusetts | $3,400 – $13,800 |
| Michigan | $3,000 – $12,000 |
| Minnesota | $3,300 – $13,100 |
| Mississippi | $2,600 – $10,400 |
| Missouri | $3,100 – $12,200 |
| Montana | $2,900 – $11,800 |
| Nebraska | $2,800 – $11,300 |
| Nevada | $3,100 – $12,400 |
| New Hampshire | $3,000 – $11,900 |
| New Jersey | $3,400 – $13,700 |
| New Mexico | $2,800 – $11,000 |
| New York | $3,300 – $13,200 |
| North Carolina | $2,700 – $10,800 |
| North Dakota | $3,000 – $12,100 |
| Ohio | $3,000 – $12,000 |
| Oklahoma | $2,700 – $10,900 |
| Oregon | $3,300 – $13,200 |
| Pennsylvania | $3,000 – $12,100 |
| Rhode Island | $3,100 – $12,500 |
| South Carolina | $2,700 – $10,900 |
| South Dakota | $2,700 – $10,800 |
| Tennessee | $2,800 – $11,000 |
| Texas | $2,700 – $10,900 |
| Utah | $2,800 – $11,300 |
| Vermont | $2,900 – $11,600 |
| Virginia | $2,900 – $11,400 |
| Washington | $3,500 – $13,900 |
| West Virginia | $2,900 – $11,400 |
| Wisconsin | $3,100 – $12,500 |
| Wyoming | $3,000 – $11,900 |
These are numbers to plan with, not quotes. Each one is this guide's U.S. range, adjusted for what construction workers earn in that state. See every state cost guide or how we estimate.
Common questions
- How long does a furnace last?
- Most gas furnaces last 15–20 years. Past 15, frequent repairs or a cracked heat exchanger usually mean it's time to replace.
- Is a high-efficiency furnace worth it?
- In cold climates with high gas use, the fuel savings from a 96%+ AFUE furnace often justify the higher upfront cost. In mild climates the payback is slower, so a standard model may be the better value.
- How much is just the furnace unit?
- The furnace alone runs about $2,000–$6,000 depending on size and efficiency; the rest of the cost is labor, venting, and permits.
- Should I replace my AC at the same time?
- If your AC is also near the end of its life, replacing both together saves on labor and ensures the components are properly matched.
- Gas vs. electric furnace — which is cheaper?
- An electric furnace costs less to buy and install but more to operate in most regions. A gas furnace costs more upfront but is usually cheaper to run where natural gas is available.
- What are the signs I need a new furnace?
- Age past 15 years, rising heating bills, frequent repairs, uneven heat, a yellow (not blue) burner flame, or a cracked heat exchanger all point to replacement.
How we estimate: These are typical U.S. prices for materials and for hiring a pro to install them. We checked them against the 2026 sources listed below (see how we get our numbers). Your price depends on where you live, the size of the job and the materials you pick. Get two or three written bids before you choose a contractor.
Sources
We checked the prices on this page against 2026 numbers from these sources:
- How Much Does a New Furnace Cost in 2026?, Angi
- New Furnace Replacement Cost (2026), HomeGuide
- How Much Does a New Furnace Cost? (2026), This Old House