How Much Does a Furnace Replacement Cost? [2025 Data]
This project can cost anywhere from $150 to $13,100, so take a look at what could affect this price and get a quote from a pro.
Furnace installation requires a trained technician by law, eliminating the option for a DIY project.
Electric furnace installation costs $2,000 to $7,000, gas furnaces average $3,800 to $10,000, and oil furnaces range from $6,750 to $10,000.
Factors impacting project cost include furnace type, size, energy efficiency, and local labor rates.
Signs of furnace failure include a clogged air filter, uneven heating, strange noises, rusted or cracked parts, and increased energy bills.
Replacing an old furnace can lower repair costs, improve comfort and airflow, reduce noise, and lessen carbon footprint.
This article was updated using automation technology and thoroughly reviewed for accuracy by HomeAdvisor Editor Ryan Noonan.
Replacing a furnace can be a significant investment for homeowners. The average furnace replacement cost ranges from $2,819 to $6,878, with most homeowners spending around $4,799. Factors that affect the total cost include the type of furnace, its size, energy efficiency, and local labor rates. Check out how to budget for replacing your furnace with the help of a professional furnace installer.
Furnace Cost by Type
All furnaces work the same at the base, but different fuel types power them. The three most common are electric, natural gas, and oil. The type of furnace you choose depends on how low the temperature dips in your region.
Electric Furnace
Electric furnace installation costs around $2,000 to $7,000. It’s less common than a gas heat system, and in fact, it’s technically a heat pump or geothermal system in milder parts of the U.S., where winters are relatively warm.
Natural Gas Furnace
Gas furnaces average $3,800 to $10,000 to install, but they can cost as much as $12,000. New gas models will save you money because they're more energy efficient, but be prepared to spend more on the front end.
Oil Furnace
Oil furnaces have been around the longest and cost anywhere from $6,750 to $10,000 or more to install. They're widespread in the Northeast, where there's a lot of oil, but they're more expensive because oil is expensive to import and doesn't have good energy efficiency.
Cost Factors for Installing a Furnace
Consider how the following cost factors affect your budget for a furnace installation or replacement.
Size
Furnace capacity is measured in BTUs—British Thermal Units—with sizes typically ranging from 40,000 to 120,000 BTUs. To figure out what size you need, estimate about 30 to 60 BTUs per square foot. So, for a 2,000-square-foot home, you'd need a furnace rated between 60,000 and 120,000 BTUs.
| Furnace BTU | Home Size (Square Feet) | Average Cost Installed |
|---|---|---|
| 30,000 – 60,000 | 1,000 | $1,200 – $2,000 |
| 60,000 – 120,000 | 2,000 | $2,400 – $4,000 |
| 90,000 – 180,000 | 3,000 | $3,600 – $6,000 |
| 120,000 – 240,000 | 4,000 | $4,800 – $8,000 |
| 150,000 – 300,000 | 5,000 | $6,000 – $10,000 |
Energy Efficiency
Furnaces with a high-efficiency rating will save you money in the long run, although the units are more expensive to buy. To find the cost savings, multiply your monthly electric bill by the efficiency difference between your old and new furnace.
| Furnace Type | Average Price Range to Replace |
|---|---|
| Electric | $2,000 – $7,000 |
| Gas | $3,800 – $10,000 |
| Mini-split | $5,000 – $15,000 |
| Oil | $6,750 – $10,000 |
| Geothermal | $10,000 – $40,000+ |
Removal
Removing and disposing of a furnace costs around $60 to $330, depending on how hard it is to remove it, the dumping fee in your area, and your distance to the dump site.
Signs of a Furnace Failure
Here are some signs it might be time to replace your furnace:
It's over 15 years old: Older furnaces are less efficient and more prone to problems.
Rising energy bills: Higher-than-usual energy bills Indicate the furnace is working harder than it should.
Uneven heating: Some rooms are too hot or too cold.
Strange noises: Banging, rattling, or squealing sounds coming from the furnace.
Visible rust or cracks: These visible furnace defects can be dangerous and indicate wear.
Frequent cycling: It's cycling on and off more than usual.
Humidity issues: Poor humidity control can be a sign of furnace trouble.
Benefits of Replacing an Old Furnace
Updating to a new furnace comes with several perks:
Lower repair costs: A new furnace is less likely to require as many repairs as an older furnace.
Enhanced comfort: Enjoy even and efficient heating throughout your home.
Improved airflow: A new furnace means better airflow, removing impurities from the air and preventing mold buildup
Quieter operation: Modern furnaces run more quietly.
Energy efficiency: A new furnace can utilize up to one-third less fuel than older models
Increased home value: Installing a new furnace can increase your home's resale value by improving energy efficiency and reducing future maintenance costs for potential buyers.
Great ROI: Lower heating bills mean you'll recoup your investment over time.
Furnace Maintenance Cost
Regular furnace maintenance can help extend the life of your unit and ensure it operates efficiently. The average cost for annual furnace maintenance ranges from $100 to $300, which includes a thorough inspection and cleaning by a professional HVAC technician.
Check out these cost-saving tips to make maintenance easier:
Schedule annual maintenance: Yearly inspections and maintenance prevents costly repairs down the line.
Consider maintenance plans: Many HVAC pros offer monthly or annual plans with discounts and priority service.
Change filters regularly: Keeps your furnace running efficiently by switching filters every three months.
Shop around: Get multiple quotes when replacing your furnace to find the right pro for your budget.
Buy during off-peak seasons: Prices may be lower for furnace maintenance during warm-weather months.
DIY vs. Hiring a Pro
Since installing or replacing a furnace requires extensive work in your home's heating and cooling system, it is not possible to DIY this project. If you don't have the experience or expertise to complete this installation, you risk your personal safety and could cause damage to your home in the process. Instead, hire a local furnace installer who can safely and efficiently replace or install a furnace in your home, plus recommend ways to maintain the essential appliance.
How HomeAdvisor Gets Its Cost Data
No place is more important than your home, which is why HomeAdvisor connects homeowners with local pros to transform their houses into homes they love. To help homeowners prepare for their next project, HomeAdvisor provides readers with accurate cost data and follows strict editorial guidelines. We surveyed over 10,000 real customers about their project costs to develop the pricing data you see, so you can make the best decisions for you and your home. We pair this data with research from reputable sources, including the U.S. Bureau of Labor Statistics, academic journals, market studies, and interviews with industry experts—all to ensure our prices reflect real-world projects.
Frequently Asked Questions
Converting an electric furnace to a gas furnace costs between $5,000 and $15,000. This price includes installing new gas lines, venting systems, and the gas furnace itself. Switching to a gas furnace can enhance energy efficiency and reduce monthly heating bills, but the initial investment is higher due to additional installation requirements.
Relocating a furnace in your house costs between $1,000 and $20,000 or more, depending on the complexity of the move. Factors influencing the cost include the distance the furnace is moved, necessary modifications to ductwork, rerouting of gas lines and electrical connections, and any structural changes required. This significant project should be handled by licensed professionals to ensure safety and compliance with building codes.
Converting a heat pump to a gas furnace costs between $1,000 and $5,500. This includes removing the existing heat pump and installing a new gas furnace. Additional expenses may arise from installing gas lines, venting systems, and modifying ductwork. Switching to a gas furnace can provide more efficient heating in colder climates, improving home comfort during winter months.
Replacing a boiler with a furnace costs between $2,000 and $6,000. This price includes removing the old boiler system and installing a new furnace. Additional costs may be incurred for installing ductwork and vents since boilers use water or steam, while furnaces use forced air. Upgrading to a furnace system can improve heating efficiency and distribution throughout your home.
A gas furnace usually lasts between 15 and 25 years when it’s properly maintained. Regular maintenance—including annual professional inspections, timely repairs, and routine filter changes—can extend your furnace's lifespan. Factors such as usage frequency, installation quality, and environmental conditions can also impact how long your furnace will operate safely and efficiently.
If your furnace is over 15 years old and experiencing frequent issues, it may be more cost-effective to replace it rather than continue with repairs. Newer furnaces are more energy-efficient, which can lower your monthly heating bills. Consider factors like repair costs, energy savings, and overall performance when deciding whether to repair or replace your furnace.
