How Much Does a New Furnace Cost?

On February 25, 2026 By newsroom Topic: Home Services

Installing or replacing a furnace ensures your home stays warm and comfortable. Here's an overview of furnace installation costs and factors to consider:

Average Costs

National Average: $5,500
Typical Range: $2,600–$6,400
Furnace Unit: $2,300–$7,200
Installation Labor: $150–$500 per hour
Old Furnace Removal: $60–$500
Total Costs by BTU Rating:
40,000–60,000 BTUs: $2,000–$4,500
75,000–100,000 BTUs: $2,500–$5,900
120,000–140,000 BTUs: $4,000–$8,000

Costs by Furnace Type

| Furnace Type | Cost Range | Best For |
|-----------------------|-----------------------|---------------------------------------------|
| Gas Furnace | $3,800–$10,000 | Cold climates; efficient & fast heating |
| Electric Furnace | $2,000–$7,000 | Mild climates; low maintenance |
| Oil Furnace | $6,750–$10,000 | Areas without natural gas lines |
| Mini-Split System| $2,000–$15,000 | Zoned heating; homes without ductwork |
| Geothermal System| $4,000–$17,000 | High efficiency; eco-friendly solutions |

Regional Costs

Furnace costs vary by location due to labor and material differences:

New York City: $3,500–$7,500
Chicago: $2,400–$5,500
Los Angeles: $3,000–$7,000
Seattle: $2,500–$6,000

Factors That Influence Furnace Costs

Ductwork: $3,000–$5,000 for new installations.
Gas Line Installation: $250–$800 for homes switching to gas.
Permit & Inspection: $400–$1,500.
Home Size: Larger homes require higher BTU furnaces, increasing costs.
Efficiency Rating: High-efficiency furnaces cost more upfront but save on energy bills.

Furnace Maintenance Tips

Filter Replacement: Every 3 months for standard filters; annually for high-capacity ones.
Annual Servicing: Hire a pro to inspect and clean your furnace before winter.
Carbon Monoxide Detectors: Install to ensure safety with gas or oil systems.

FAQs

When Should I Replace My Furnace?

If your furnace is over 18 years old and experiencing issues, it’s likely more cost-effective to replace it.

What Can I Do to Lower Heating Costs?

Seal windows and doors to prevent drafts.
Upgrade attic and crawl space insulation.
Perform an energy audit for targeted improvements.

What’s the Difference Between a Boiler, Furnace, and Heat Pump?

Furnace: Heats air and distributes it via ducts.
Boiler: Heats water, which radiates heat through radiators.
Heat Pump: Transfers heat between inside and outside using refrigerants.

A new furnace is a significant investment, but it improves comfort and energy efficiency. Choose the best option for your climate, home size, and budget!