How Much Will a New Furnace Cost
A new furnace typically costs between $3,800 and $10,000 installed, with the final price shaped by fuel type, unit size, efficiency rating, and regional labor rates. Getting at least three contractor quotes is the fastest way to understand what you will actually pay.
More from this site
Keep reading the latest coverage
Furnace Type and Price Comparison
| Furnace Type | Typical Installed Cost | Key Context |
|---|---|---|
| Gas (standard efficiency) | $3,800 – $6,000 | Most common choice for homes with existing gas lines |
| Gas (high efficiency 96%+) | $5,500 – $8,500 | Higher upfront cost, lower monthly fuel bills |
| Electric | $2,500 – $5,500 | Lower installation cost, higher operating cost in cold climates |
| Oil | $4,500 – $8,000 | Common in Northeast where natural gas is unavailable |
| Dual-fuel (heat pump + furnace) | $7,000 – $12,000 | Best for mild winters and electricity-rich regions |
What Drives the Final Price
Three factors matter most: unit size matched to your home's square footage and insulation, the Annual Fuel Utilization Efficiency (AFUE) rating, and local labor rates. A contractor may also need to update the gas line, electrical panel, or ductwork, which can add $1,000 to $3,000. Replacing a furnace in a crawlspace or attic with limited access often carries a premium.
When to Replace vs. Repair
If your repair bill exceeds $750 or the unit is over 15 years old, replacement usually makes more financial sense. A new furnace with a 10-year parts warranty and 20-year heat exchanger warranty can lower long-term ownership costs. Look for ENERGY STAR models to qualify for utility rebates that can offset the purchase price by several hundred dollars.