Furnace Replacement Cost: Gas, Electric, and Oil Compared
Furnace replacement typically costs $2,800 to $8,000 installed, with gas furnaces averaging $3,800 to $10,000 and electric models running lower at $2,000 to $7,000.
What drives the price
Furnace replacement cost is driven mainly by fuel type, efficiency rating, and how much ductwork or venting modification the installation needs. Multiple independent cost surveys converge on a similar national range.
| Fuel type | Installed cost |
|---|---|
| Electric | $2,000 – $7,000 |
| Gas | $3,800 – $10,000 |
| Oil | $6,750 – $10,000 |
Gas furnaces sit in the middle: pricier than electric, but the improved efficiency of new gas models often lowers monthly heating costs enough to offset the higher upfront price over time.
What a typical gas furnace job looks like
For a 2,000 sq ft home, a high-efficiency gas furnace replacement with minor modifications runs about $4,000 to $8,000, with most homeowners spending around $6,000. A moderate-efficiency replacement with no modifications needed can come in as low as $3,000.
What pushes cost toward the high end
- Ductwork condition — if ducts are missing or undersized, new ductwork adds $1,900 to $6,000 depending on scope.
- Venting — a furnace needs an exhaust route; if none exists, installing one through a wall adds $500 to $2,000.
- Efficiency rating — higher AFUE-rated units (96%+) cost more upfront than standard 80% AFUE models, though they may qualify for a federal tax credit (up to $600 as of the 2025 tax year for qualifying 97%+ AFUE gas furnaces).
- Specialized installer training — some high-end brands require certified installers, which can raise labor cost even for an otherwise standard swap.
Is your quote reasonable?
For a standard gas furnace replacement in an average home with existing, adequate ductwork, a quote in the $3,800 to $8,000 range is normal nationally. If your furnace is 15 to 20 years old and a single repair quote comes in above half the cost of replacement, most HVAC pros recommend replacing rather than repairing. See our HVAC replacement cost guide if you're weighing a combined furnace and air conditioner replacement, since bundling both often costs less than replacing them separately.