How Much Does a New Furnace Cost? About $2,800 to $7,500 Installed
By Sharrk Team · November 1, 2026
A new furnace typically costs about $2,800 to $7,500 installed, with national averages near $4,800 in the Fixr and Angi guides. Simple electric swaps can come in lower, and high-efficiency gas, oil or propane jobs that need new ductwork or venting can go past $10,000.
That range covers the furnace, labor and standard installation. If your furnace just needs a part, see our guide to furnace repair cost instead. This post is about full replacement.
What do the major cost guides say a new furnace costs?
The big consumer cost guides land in roughly the same place, though each uses its own data:
| Source | Typical installed range | National average |
|---|---|---|
| Fixr | $2,800 to $7,500 | $4,800 |
| Angi | $2,822 to $6,882 | $4,802 |
| HomeGuide | $2,000 to $5,400 | $3,700 |
| This Old House (HomeAdvisor data) | $1,600 to $10,000 | about $4,799 |
| Carrier | $3,800 to $14,200 | not given |
Angi and HomeAdvisor are the same company, and This Old House says its figures come from HomeAdvisor estimates, so those two rows are not independent. Carrier's range is the widest because it includes propane, which Fixr also puts as high as $14,200.
How much does a furnace cost by fuel type?
Fuel type is the biggest single driver of price, according to This Old House. Installed ranges from three guides:
| Fuel type | Fixr | Angi | HomeGuide |
|---|---|---|---|
| Natural gas | $3,800 to $10,000 | $3,800 to $10,000 | $2,000 to $5,200 |
| Electric | $1,800 to $7,300 | $2,000 to $7,000 | $1,900 to $5,600 |
| Oil | $6,700 to $10,000 | $6,750 to $10,000 | $2,500 to $6,000 |
| Propane | $3,700 to $14,200 | not listed | $2,200 to $5,700 |
HomeGuide's figures run lower across the board. Fixr, Angi and Carrier publish nearly identical fuel ranges. If you're getting quotes in a high-cost area, Angi says to expect at least $5,000 in states such as Maryland, California and Virginia.
How much more does a high-efficiency (95% AFUE) furnace cost?
AFUE is the share of fuel that becomes heat. Angi groups furnaces as low (80% to 89%), mid (90% to 95%) and high (96% and up). Few guides publish installed prices by tier, so most of the numbers below are for the furnace unit before labor:
| Efficiency | Gas unit price (HomeGuide) | Gas price by tier (Angi) |
|---|---|---|
| Standard, 80% to 89% AFUE | $600 to $1,900 | $500 to $1,500 |
| Mid, 90% to 95% AFUE | $900 to $3,300 (90% to 99%) | $1,000 to $3,000 |
| High, 96%+ AFUE | included above | $2,000 to $6,000 |
HomeGuide labels its figures as unit-only. Angi's gas page doesn't say whether its tier prices include installation, but it puts labor at $500 to $2,000 and says the furnace is 50% to 75% of the total project. For an installed figure, HomeGuide puts high-efficiency furnaces at $3,300 to $10,000 installed and says high-efficiency models cost roughly 30% to 100% more than standard ones, with savings of about $100 to $200 a year. The U.S. Department of Energy view cited by This Old House is that 90%+ furnaces cost more upfront but pay back over time, especially in colder climates.
What else changes the price of a furnace replacement?
The quote you get depends on more than the box. Common line items from the guides:
| Cost driver | Typical cost | Source |
|---|---|---|
| Labor | $600 to $3,100 ($70 to $100/hour, 4 to 18 hours) | HomeGuide |
| Permit | $250 to $1,500 | HomeGuide |
| New ductwork | $2,400 to $6,600 | HomeGuide |
| Duct replacement | $1,400 to $6,000 | Fixr |
| Chimney liner (venting) | $900 to $3,800 | HomeGuide |
| Gas line | $500 to $2,000 | HomeGuide |
| Condensate drain | $200 to $600 | HomeGuide |
| Old unit removal | $50 to $330 | Fixr |
Size matters too. HomeGuide says homes typically need 25 to 50 BTU per square foot, and its installed gas prices rise from about $1,800 at 40,000 BTU to about $6,300 at 150,000 BTU. This Old House adds brand and features (variable-speed blowers, smart thermostats, filtration) and warns that an oversized furnace wastes money. Fixr notes that switching fuels can add fuel lines, a tank or a new 240-volt outlet. Replacing the furnace and AC together runs $5,000 to $11,000, per HomeGuide.
Should you repair or replace your furnace?
The rule of thumb shared by HomeGuide and This Old House: if the repair costs more than half the price of a new furnace, replacement is usually the better buy. Age is the other test:
- 15+ years old with frequent repairs: HomeGuide suggests replacing.
- Over 18 years old and having problems: Angi says replacement may cost less over time.
- Cracked heat exchanger on an older unit: Carrier says that often justifies full replacement, because it is the most expensive part to fix.
- 5+ years of life left: Fixr says repair may make sense.
Fixr and Carrier put typical gas furnace life at 15 to 20 years. HomeGuide lists 15 to 25 years for gas and oil and 20 to 30 for electric.
Is there still a federal tax credit for a new furnace?
No. The federal Energy Efficient Home Improvement Credit (Section 25C) no longer covers new installs. The IRS says that under Public Law 119-21 (the One, Big, Beautiful Bill), "the credit will not be allowed for any property placed in service after December 31, 2025." ENERGY STAR's furnace page likewise says the credit applied to products "purchased and installed between January 1, 2023, and December 31, 2025."
While it ran, the credit was 30% of the cost up to $600 for a qualifying gas, propane or oil furnace, such as an ENERGY STAR gas furnace at 97% AFUE or higher. If your furnace went in during 2025, you can still claim it on your 2025 return with IRS Form 5695. A furnace installed in 2026 does not qualify. Ask your utility and state energy office about local rebates; this guide doesn't cover them.
How should homeowners get a fair furnace quote?
- Get at least two or three written quotes for the same size and efficiency.
- Ask whether the quote includes permits, removal of the old unit, venting changes, a condensate drain and any duct work.
- Ask how the contractor sized the furnace. This Old House warns against oversizing.
- Compare 80% and 95%+ options side by side, including expected yearly savings.
- If the furnace is out right now, ask what a temporary fix costs while you decide.
How does Sharrk handle this?
For HVAC companies, the first cold snap brings a wave of no-heat calls, and many end in a replacement quote. Those calls come at night and on weekends, when the office is closed. Sharrk is an AI receptionist for HVAC that answers calls 24/7, books estimate visits onto Sharrk's calendar, Calendly, Cal.com or ServiceTitan, and live transfers hot calls to a person. Leads from Angi, Thumbtack, Networx, web forms and webhooks get a reply in under 30 seconds. Jobber clients come in as leads. Pair it with our HVAC no-heat call script so the agent asks the right questions about fuel type, furnace age and whether anyone is without heat.
Strikes are automated follow-up sequences, so open replacement quotes get a call, text or email instead of going cold. Hunts are reactivation campaigns on lists you have consent to contact, such as past customers with aging furnaces. Outbound calling needs a consent attestation and approved texting registration.
Mako is the AI assistant inside Sharrk. Describe what you want in plain English, such as "follow up on every furnace quote for two weeks," and Mako builds the agent, follow-up or campaign. You approve every change before it goes live.
Plans start with Sharrk Free at $0 with 2,500 one-time credits and no card. Core is $99 a month with 47,500 credits, about 250 call minutes with one phone number. There are no contracts or setup fees. Start free or book a demo.
Sources
- Fixr, Furnace Replacement Cost 2026, updated January 28, 2026, checked November 1, 2026.
- Angi, New furnace cost guide, no date shown (page title not shown in fetched text), checked November 1, 2026. Angi and HomeAdvisor are the same company.
- Angi, [How Much Does a Gas Furnace Cost? [2025 Data]](https://www.angi.com/articles/common-gas-furnace-prices.htm), no date shown, checked November 1, 2026.
- HomeGuide, How much does a new furnace cost to replace?, no date shown, checked November 1, 2026.
- This Old House, How Much Does a Furnace Cost? (2026 Pricing), updated April 3, 2026 (cost data from HomeAdvisor, a sister site of Angi), checked November 1, 2026.
- Carrier, Gas Furnace Replacement Guide, October 13, 2026, checked November 1, 2026.
- IRS, Energy Efficient Home Improvement Credit, last reviewed April 28, 2026, checked November 1, 2026.
- IRS, FAQs for modification of sections 25C, 25D, 25E, 30C, 30D, 45L, 45W, and 179D under Public Law 119-21 (FS-2025-05), August 21, 2025, checked November 1, 2026.
- ENERGY STAR, Furnaces (Natural Gas, Oil) Tax Credits, no date shown, checked November 1, 2026.
Frequently asked questions
How much does a new furnace cost installed?
A new furnace typically costs about $2,800 to $7,500 installed, with national averages near $4,800 according to Fixr and Angi. HomeGuide's figures are lower, at $2,000 to $5,400 with a $3,700 average.
Is a gas or electric furnace cheaper to install?
An electric furnace is usually cheaper to install, at about $1,800 to $7,300 per Fixr versus $3,800 to $10,000 for natural gas. Oil furnaces cost the most, about $6,700 to $10,000.
How much more does a 95% AFUE furnace cost than an 80% furnace?
A high-efficiency furnace costs roughly 30% to 100% more than a standard model, according to HomeGuide. HomeGuide puts standard gas units at $600 to $1,900 and 90%+ units at $900 to $3,300 before labor.
Can I still get a federal tax credit for a new furnace?
No, not for a furnace installed in 2026. The IRS says the Section 25C credit is not allowed for property placed in service after December 31, 2025, though a qualifying furnace installed in 2025 can still be claimed on a 2025 return.
When should I replace my furnace instead of repairing it?
Replace it when the repair costs more than half the price of a new furnace, according to HomeGuide and This Old House. Age matters too: HomeGuide suggests replacing a furnace over 15 years old that needs frequent repairs.