Furnace Replacement Cost: Gas, Electric, and Oil Compared
Most furnace replacements cost $2,800 to $7,000 installed, with national averages near $4,800. Gas runs $3,800 to $10,000, electric $2,000 to $7,000 and oil $6,750 to $10,000 or more.
What furnace replacement costs
Furnace replacement cost for most homes falls between $2,800 and $7,000 installed. HomeAdvisor reports $2,823 to $6,896 with most homeowners paying about $4,814. Today's Homeowner gives $2,800 to $7,000 with an average near $4,800. A large home that needs a high-efficiency unit can reach $13,100, according to Today's Homeowner.
The total includes the new furnace, installation labor and removal of the old unit. Fuel type, heating capacity and efficiency rating make the biggest difference.
Cost by furnace type
| Furnace type | Installed cost |
|---|---|
| Electric | $2,000 – $7,000 |
| Natural gas | $3,800 – $10,000 |
| Oil | $6,750 – $10,000+ |
| Mini-split | $5,000 – $15,000 |
| Geothermal | $10,000 – $40,000+ |
Both sources agree on these ranges for electric, gas and oil. Electric furnaces are cheapest to buy but expensive to run, which is why they are most common in mild climates. Gas furnaces dominate colder northern states because gas is cheaper than electricity. Oil furnaces cost the most to install and are less efficient, and they are common in the Northeast.
Cost by home size and capacity
| Home size | Heating capacity (BTU) | Today's Homeowner | HomeAdvisor |
|---|---|---|---|
| 1,000 sq ft | 30,000 – 60,000 | $2,800 – $4,000 | $1,200 – $2,000 |
| 2,000 sq ft | 60,000 – 120,000 | $3,500 – $5,500 | $2,400 – $4,000 |
| 3,000 sq ft | 90,000 – 180,000 | $4,750 – $7,000+ | $3,600 – $6,000 |
The two sources disagree on size-based pricing, with HomeAdvisor lower, so treat the table as a spread rather than a single answer. HomeAdvisor suggests about 30 to 60 BTUs per square foot, so a 2,000 square foot home needs a furnace rated between 60,000 and 120,000 BTUs. Colder regions need more capacity than southern ones, and a contractor should run a proper load calculation before quoting.
Other costs to budget for
- Old furnace removal: $60 to $330 depending on access and local dump fees, according to HomeAdvisor.
- Annual maintenance: $100 to $300 for an inspection and cleaning, according to HomeAdvisor.
- Efficiency upgrade: high-efficiency units cost more up front, but HomeAdvisor says a new furnace can use up to one-third less fuel than an older one.
- Ductwork or fuel line changes: switching fuel type or capacity can add gas line or electrical work.
When to replace a furnace
Both sources point to age first. Start shopping when the furnace is 15 to 20 years old. HomeAdvisor lists these warning signs: rising energy bills, uneven heating, strange noises, visible rust or cracks, frequent cycling and humidity problems. A newer furnace also reduces repairs and runs more quietly. For a full system with air conditioning, see our HVAC replacement cost guide.
Why professional installation matters
HomeAdvisor says replacing a furnace is not a do-it-yourself project. It involves the home's heating and cooling system, gas or electrical connections and venting, so mistakes risk personal safety and damage to the house. Installers also size the furnace, connect it to existing ducts and test combustion safety, which is part of what you pay for in the installed price.
Ways to keep the cost down
- Get multiple quotes. HomeAdvisor recommends comparing several contractors for the same model and scope.
- Buy off-peak. Prices may be lower during warm-weather months, when installers are less busy.
- Change filters every three months. A clean filter helps the unit last longer and run efficiently.
- Schedule annual maintenance. A yearly inspection catches small problems before they become costly repairs, and some HVAC companies offer monthly or annual plans with discounts and priority service.
- Match capacity to the house. Smaller, well-insulated homes can use a smaller furnace, which Today's Homeowner says keeps costs on the lower end of the range.
Is your quote reasonable?
For a standard gas furnace in an average 2,000 square foot home, a quote between $3,500 and $6,500 is in line with the sources above. A quote under $2,800 usually means a small or basic electric unit. A quote above $7,000 should name a high-efficiency model, a large capacity, an oil system or extra duct and gas line work.
Ask each installer for the model, AFUE efficiency rating, BTU capacity, whether removal and permits are included, and the length of the parts and labor warranty. Get at least three written quotes, and schedule the work outside the peak winter season, since HomeAdvisor notes prices can be lower in warm months.
Furnace replacement cost calculator
Choose the furnace type and home size. Type ranges and size ranges come from two different sources, so both are shown.
The two sources disagree on size-based pricing, with HomeAdvisor lower. Treat the results as a spread, then compare three written quotes for the same model. A planning range, not a quote. Get at least three written quotes.
Last updated: October 2026