2026 cost guide
Furnace replacement cost in 2026
By the HeatAndAirCost editors · Last updated September 1, 2026 · How we research prices
Short answer
Most homeowners pay $2,800 to $7,500 to replace a furnace, with a national average around $4,800 installed[1]. Fixr puts the installed average at $5,200, with a range of $3,200 to $7,800[2]. Fuel type drives most of the spread: electric is lowest upfront, oil is highest, and gas is the most common choice.
Furnace replacement cost by type
These are researched 2026 ranges, not quotes. What you pay depends on fuel type, efficiency rating, and local labor.
| Furnace type | Typical 2026 range | Notes |
|---|---|---|
| Electric furnace, installed | $1,800–$7,300 | Lowest upfront, higher running cost in cold climates. |
| Gas furnace, installed | $2,800–$7,500 | Most common; high-end to $11,200. |
| Oil furnace, installed | $5,500–$13,500 | More with new tank or chimney liner. |
| High-efficiency upgrade (96%+ AFUE) | +~30% | Saves roughly $200 to $400 per year on heating. |
What moves the price
- Fuel type. Gas is the most common choice; oil is priciest upfront; electric costs less to install but can be more expensive to run in cold climates[1].
- Furnace size (BTU). Oversized units cycle on and off too often; undersized ones run constantly. Proper sizing matters for comfort and longevity.
- AFUE efficiency rating. A 96%+ AFUE model costs about 30% more upfront but saves $200 to $400 per year on heating bills[2].
- Ductwork or venting changes. Switching fuel types often requires new venting or duct modifications, adding cost.
- Removal of the old unit. Disposal and disconnection add to labor time and total cost.
- Local labor rates and permit fees. Installation labor varies significantly by region.
Repair or replace?
Before committing to a full furnace replacement, check whether a repair makes more sense. Our furnace repair cost guide lists common part prices, and the $5,000 rule gives you a clear decision framework.
Replacing the full system
If your AC is also aging, replacing both at once saves on labor and permits. See HVAC replacement cost for full-system pricing.
People also ask
Furnace replacement FAQs
How much does it cost to replace a furnace?
Most homeowners pay $2,800 to $7,500 to replace a gas furnace, with a national average near $4,800 installed. Electric furnaces run $1,800 to $7,300 and oil furnaces $5,500 to $13,500. High-efficiency models add about 30% upfront but cut annual heating bills by $200 to $400.
Is it worth replacing a 20 year old furnace?
Usually yes. A 20-year-old furnace is at or past its expected lifespan, and repair costs on aging equipment add up quickly. If a repair quote times the unit age exceeds $5,000 using the $5,000 rule, replacement is almost always the better financial move, and you gain modern efficiency and safety features.
How long does a furnace last?
Most gas furnaces last 15 to 20 years with routine maintenance. Electric furnaces can last 20 to 30 years, while oil furnaces typically run 15 to 25 years. Regular tune-ups, timely filter changes, and annual inspections extend lifespan toward the high end of those ranges.
What is the $5,000 rule for HVAC?
Multiply your furnace's age in years by the cost of the repair being quoted. If the result exceeds $5,000, replacement is generally the smarter financial decision. A $300 repair on an 18-year-old furnace scores 5,400 and tips toward replacement. See our full $5,000 rule guide for a detailed walkthrough.
Got a quote?
See if it's a fair price
Compare your quote against the ranges above, then get free quotes from independent, licensed HVAC contractors when you're ready.