Furnace installation cost in 2026
The complete pricing guide for replacing a residential furnace in the United States. Cost ranges by fuel type, AFUE tier, brand, and house size, with sizing and payback calculators that do not bury results behind a lead form.
Not affiliated with any HVAC manufacturer or installer. Pricing is sourced from industry datasets, manufacturer MSRPs, and quote samples across 12 US metros.
National installed range
National average gas install in 2026: $5,500 for a 90% AFUE single-stage in a 1,800 sq ft home.
Step 1
Pick your fuel
Each fuel has a different up-front cost, operating cost, and lifespan. The right answer is local: gas if your street has a main, oil if you are rural Northeast, electric only when nothing else fits.
Gas furnace
→$3,500–$14,000
Typical $5,500
- •80% to 98% AFUE
- •Cheapest to operate
- •15-20 year life
View detailed pricing →
Electric furnace
→$2,500–$5,500
Typical $3,800
- •Cheapest to install
- •High operating cost
- •20-30 year life
View detailed pricing →
Oil furnace
→$5,500–$10,000
Typical $7,500
- •Mostly Northeast US
- •Tank required
- •Highest operating cost
View detailed pricing →
Furnace installation cost calculator
Updated April 2026
Fuel
Efficiency tier
Home size
Climate zone
Estimated installed cost
202690-92%$4,450 – $7,950
Natural gas · 60,000-80,000 BTU · moderate climate
Equipment
$3,100–$5,100
Labour
$1,100–$2,600
Annual heating cost
$528–$1,056 per year
Pays back in 8.3 years
The 90-92% upgrade saves about $108/yr versus standard 80% AFUE. Over 15 years that is $1,620.
Estimate includes equipment, labour, permits, and old-unit removal. Excludes ductwork modifications, gas line work, and electrical upgrades.
Step 2
Cost by house size
Bigger homes need higher-BTU furnaces, which cost more in equipment and labour. Climate zone matters too, a 2,000 sq ft home in Minnesota needs more heating capacity than the same square footage in Tennessee.
| Home size | BTU needed | Gas installed | Electric installed | Oil installed |
|---|---|---|---|---|
| 1,000 sq ft | 40-60k | $3,500–$5,500 | $2,500–$3,800 | $5,500–$7,500 |
| 1,500 sq ft | 60-80k | $4,200–$7,000 | $3,000–$4,300 | $6,200–$8,500 |
| 2,000 sq ft | 80-100k | $5,000–$8,500 | $3,500–$4,800 | $7,000–$9,500 |
| 2,500 sq ft | 100-120k | $5,800–$10,500 | $4,000–$5,200 | $7,800–$10,000 |
| 3,000+ sq ft | 120k+ | $6,800–$14,000 | $4,500–$5,500 | $8,500–$10,000+ |
Ranges assume 90% AFUE for gas, standard electric resistance, and standard oil. Add 15-25% for variable-speed and 95-98% AFUE units.
Step 3
What drives the price
Six factors explain almost every quote-to-quote difference. Knowing where the money goes makes contractor proposals far easier to evaluate.
Fuel type
Gas, electric, oil, propane. Single biggest cost driver, equipment and operating cost vary 2 to 3x.
Home size & BTU
Larger homes need higher-BTU furnaces. A 100k BTU unit costs ~$1,500 more than a 60k unit at the same AFUE.
AFUE rating
80% standard vs 95-98% high efficiency. Premium adds $1,500-$2,500 and pays back in 5-8 years in cold climates.
Brand
Carrier, Lennox, and Trane sit 30-50% above Goodman or Heil. Installation quality matters more than the badge.
Stages & blower
Single-stage cheapest, two-stage adds $1,000, variable-speed adds $2,000-$4,000 with quieter and steadier comfort.
Region & labour
HVAC labour rates vary 40-60% across the US. Northeast and California pay $130-$160/hr, Midwest and South $80-$100/hr.
AFUE tiers
Efficiency is where you save
AFUE is the share of every dollar of gas that becomes heat in your home. A standard 80% unit wastes 20 cents of every dollar up the flue. A condensing 95-98% unit captures most of that back through a secondary heat exchanger.
Open payback calculatorStandard
Premium: $0
Payback: n/a (baseline)
Mid-efficiency
Premium: +$700-$1,200
Payback: 6-9 yrs in cold climate
High-efficiency condensing
Premium: +$1,500-$2,500
Payback: 5-8 yrs in cold climate
Top-tier modulating
Premium: +$3,000-$4,500
Payback: 9-12 yrs even in cold climate
Brands
Installed cost by brand
| Brand | Tier | Installed range | Notes |
|---|---|---|---|
| Carrier | Premium | $5,000–$12,000 | Best warranties, quietest blowers |
| Lennox | Premium | $5,200–$13,500 | Best warranties, quietest blowers |
| Trane | Premium | $5,000–$11,500 | Best warranties, quietest blowers |
| Bryant | Mid-tier | $4,200–$9,000 | Good value, wide dealer network |
| Rheem | Mid-tier | $3,800–$8,500 | Good value, wide dealer network |
| American Standard | Mid-tier | $4,500–$10,000 | Good value, wide dealer network |
| York | Mid-tier | $4,000–$8,500 | Good value, wide dealer network |
| Goodman | Value | $3,500–$7,500 | Lowest price, similar AFUE performance |
| Heil | Value | $3,500–$7,200 | Lowest price, similar AFUE performance |
Repair vs replace
Six signs the furnace is done
When two or more of these line up, the math usually favours replacement over a fourth or fifth repair. See the 50% rule →
Age over 15 years
Gas furnaces are designed for 15 to 20 years. After that, parts get harder to source and efficiency drops every winter.
More than one repair a year
Two service calls in a season is the tipping point. Repair bills add up to a new furnace payment fast.
Gas bills creeping up
Same usage habits but higher bills means efficiency is dropping. Compare year over year on the utility statement.
Uneven heating room to room
Cold rooms downstairs, hot upstairs, the blower can no longer push heat through the duct system the way it did new.
Yellow burner flame
A healthy gas burner runs blue. Yellow or flickering means incomplete combustion and a carbon monoxide risk worth taking seriously.
Banging, rumbling, or squealing
New furnaces are quiet. A loud cycle-on usually points to motor bearings, ignition issues, or a cracked heat exchanger.
2026 question
Should it be a heat pump instead?
Heat pumps cost more upfront ($8,000-$18,000 cold-climate) but run on 35-45% less energy in moderate climates and qualify for HEEHRA rebates of $2,000-$10,000 in participating states. Modern cold-climate heat pumps work to -5°F. Worth doing the math before locking in a new furnace.