Cost of furnace

HVACUpdated March 2026

The answer to the cost of a furnace is that it can vary widely depending on several factors. Typical ranges for a new furnace installation can be anywhere from $3,000 to $10,000 or more, with the average being around $5,000 to $7,000.

The key factors that influence the cost of a furnace include the size of your home, the type of fuel (gas, electric, or oil), the efficiency rating, the brand and model, and the complexity of the installation. Larger homes, higher-efficiency models, and more complex installs will generally cost more. Additionally, labor costs, permits, and any necessary ductwork modifications can also impact the total price.

Sources

Air Conditioning Contractors of America (ACCA)— authority

ENERGY STAR— authority

U.S. Department of Energy— authority

Frequently Asked Questions

How do I know what size furnace I need?

The size of furnace you need depends on the square footage of your home. A professional HVAC contractor can perform a load calculation to determine the right size.

Should I replace my old furnace or just repair it?

If your furnace is over 15 years old, it may be more cost-effective to replace it with a new, more efficient model rather than continuing to repair an aging system.

What are the benefits of a high-efficiency furnace?

High-efficiency furnaces (90% AFUE or higher) can save you money on your energy bills and are better for the environment, but they also come with a higher upfront cost.

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