Furnace Replacement Costs in 2025
Replacing a furnace is a major home investment, and understanding the costs upfront helps homeowners plan effectively. Whether you are comparing gas, electric, oil, or solid-fuel options, the type of furnace you choose and the complexity of installation will determine your final price.
On average, furnace replacement costs range from $4,000 to $10,000 in 2025. Gas furnaces remain the most common choice in U.S. homes, but electric and oil furnaces are still popular in certain regions.
Breakdown of Furnace Costs
| Furnace Type | Average Installed Cost | Best For |
|---|---|---|
| Electric Furnace | $2,000 to $7,000 | Homes without gas lines; mild climates |
| Gas Furnace | $3,800 to $10,000 | Most common; efficient and versatile |
| Oil Furnace | $4,500 to $9,000 | Older homes in the Northeast |
| Solid Fuel / Wood / Coal | $6,000 to $12,000 | Rural homes; off-grid heating |
Gas furnaces are the most widely installed due to their efficiency and reliability, but the right choice often depends on available fuel sources and your home’s location.
Furnace Repair vs. Replacement Costs
A simple repair may be the right choice if your system is relatively new. But if your furnace is nearing the end of its 15- to 30-year lifespan, replacement is often more cost-effective.
A common rule of thumb: If repair costs are more than one-third of replacement costs — especially on a unit older than 15 years — it’s usually better to replace.
- Average Repair: $300 to $1,200
- Replacement: $4,000 to $10,000+
Example: Spending $1,800 on repairs for an 18-year-old furnace that costs $5,000 to replace does not make financial sense.
New Furnace Installation Costs
Installing a new furnace includes more than just the equipment itself. Typical cost breakdown:
- Furnace Unit: About 60% of the total cost
- Labor and Service Charges: Around 25%
- Permits, Removal, and Extras: Roughly 15%
If ductwork also needs replacement, expect an additional $300 to $600 per duct run.
Furnace Cost by Size
| Home Size | Approximate Furnace Size | Typical Installed Cost |
|---|---|---|
| 600 to 1,000 sq. ft | 40,000 BTU | $2,000 to $2,400 |
| 800 to 1,200 sq. ft | 50,000 BTU | $2,400 to $2,800 |
| 1,000 to 1,400 sq. ft | 60,000 BTU | $2,800 to $3,300 |
| 1,200 to 1,600 sq. ft | 70,000 BTU | $3,000 to $3,500 |
| 1,400 to 1,800 sq. ft | 80,000 BTU | $3,300 to $3,700 |
| 1,800 to 2,400 sq. ft | 100,000 BTU | $3,800 to $4,200 |
| 2,400 to 3,000 sq. ft | 120,000 BTU | $4,300 to $4,700 |
Furnace Cost by Brand
| Brand | Cost Range |
|---|---|
| Trane | $3,500 to $7,500 |
| Carrier | $3,500 to $8,000 |
| Lennox | $3,500 to $9,500 |
| American Standard | $3,500 to $7,000 |
| Bryant | $2,800 to $6,500 |
| Amana | $2,100 to $8,200 |
| Rheem | $2,500 to $7,800 |
| Ruud | $2,500 to $7,500 |
| Daikin | $3,200 to $6,500 |
| Goodman | $2,100 to $6,300 |
Choosing Energy-Efficient Furnaces
Efficiency matters for both comfort and long-term savings. Furnace efficiency is measured by AFUE (Annual Fuel Utilization Efficiency).
- Older Systems: Often 65% to 75% AFUE
- New Standard Furnaces: 80% to 90% AFUE
- High-Efficiency Furnaces: 95% to 98%+ AFUE
Upgrading to a high-efficiency furnace can lower heating bills by $200 to $400 annually for the average household.
How Long Does a Furnace Last?
Most forced-air furnaces last 15 to 30 years with regular maintenance. To check your furnace’s age, find the model and serial number on the inside of the chamber door and call the manufacturer.
Common Furnace Repair Problems
Even with good maintenance, furnaces can develop problems. Common issues include:
- Dirty filters that restrict airflow and strain the blower motor
- Faulty thermostats that cause short cycling or no heat
- Malfunctioning pilot lights or igniters that prevent startup
- Blower motor or limit switch issues that cause overheating or constant running
- Electrical issues like tripped breakers or blown fuses
If your furnace isn’t working properly, call a licensed HVAC contractor to avoid safety risks or costly damage.
How to Prepare for Furnace Installation
Make the installation process smoother by preparing your home:
- Clear clutter around the furnace area.
- Remove valuables from the work zone.
- Expect a new thermostat — have touch-up paint ready if needed.
Most furnace replacements take one day, but complex installs or ductwork changes may take longer.
Regional Climate Considerations
Your local climate should guide your furnace choice:
- Mild Climates (Zones 1 to 3): An 80% AFUE furnace may be sufficient.
- Colder Climates (Zone 4): Aim for 90% to 93% AFUE.
- Harsh Winters (Zone 5): High-efficiency 95%+ AFUE furnaces offer the best comfort and savings.
Furnace Maintenance Checklist
Extend your furnace’s lifespan and improve efficiency with annual maintenance:
- Replace or clean filters every 1 to 3 months
- Check thermostat batteries and settings
- Schedule a professional tune-up before winter
- Inspect vents and ducts for leaks or blockages
- Test carbon monoxide detectors
Furnace Replacement FAQ
How Much Does It Cost to Replace a Furnace for a 2,000-Square-Foot House?
Expect to pay $4,500 to $8,500 for a properly sized furnace in a home this size. The cost depends on efficiency, fuel type, and local labor.
How Much Should I Budget for a New Furnace?
Budget $4,000 to $10,000 to cover the furnace, labor, permits, and potential ductwork. High-efficiency models may cost more upfront but can save money long term.
Hiring Local Furnace Installers
Choosing the right contractor is just as important as choosing the right furnace. Protect your investment by asking the right questions:
- Get at least three bids and avoid selecting solely on lowest cost.
- Request a detailed estimate with model numbers, sizing calculations, and timelines.
- Ask about equipment markups and hidden fees.
- Confirm that your contractor performs a Manual J load calculation to size your furnace correctly.
- Insist on name-brand equipment with reliable warranties.
Final Takeaway
A new furnace is a major purchase, but the right unit can deliver comfort, energy savings, and peace of mind for decades. Whether you choose gas, electric, or oil, be sure to work with a licensed contractor who can help size, install, and maintain your system correctly. Modernize can connect you with pre-vetted local HVAC pros, so you can compare quotes, explore financing, and find the right partner for your furnace replacement.
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