What Does a New Furnace Cost?
A new furnace installed in a standard single-family home typically costs $3,500 to $12,000, averaging around $6,000. The range reflects significant variation in furnace size, fuel type, efficiency rating, and installation complexity.
Standard Efficiency Gas Furnace: $3,500 to $6,000
An 80-percent AFUE gas furnace the standard efficiency grade installed in a home with existing gas lines, ductwork in good condition, and standard venting runs $3,500 to $6,000 for most homes. This range covers mid-grade brands (Carrier, Goodman, Rheem) in standard single-stage configurations appropriate for most homes. Standard efficiency gas furnaces use a metal flue pipe for venting simpler and less expensive to install than high-efficiency PVC venting. (For more on this, see High-Efficiency vs. Standard Efficiency Furnaces: What to Choose.) ENERGY STAR publishes certified efficiency ratings for heating and cooling equipment, which is the cleanest way to compare models.
High-Efficiency Gas Furnace: $5,000 to $9,000
High-efficiency (90 to 98.5 percent AFUE) condensing gas furnaces extract more heat from combustion gases and vent through PVC piping rather than a metal flue. Installed cost: $5,000 to $9,000. The premium over an 80-percent furnace ($1,500 to $3,000) recovers through lower gas bills over the furnace’s life. In cold climates with long heating seasons and significant heating loads: the payback on a high-efficiency furnace is typically 5 to 10 years. Federal tax credits (30 percent of cost, up to $600 for qualifying high-efficiency furnaces) improve the payback calculation. (For more on this, see How Long Does Furnace Installation Take?.)
Installation Complexity: Added Cost
Ductwork modifications, gas line changes, venting modifications (converting from standard to high-efficiency venting), and electrical upgrades can add $500 to $3,000 or more to the base installation cost. Converting from oil to gas requires a new gas line to the home (if not already in place): $500 to $2,500 additional. New ductwork in a home without existing ducts: $3,000 to $8,000. Always confirm what is included in a quote an equipment-only quote does not reflect the actual installed cost.
Furnace Installation Cost at a Glance
Furnace size and fuel type: Sized to your home; gas, electric, and oil differ in price.
Efficiency rating (AFUE): High-efficiency units cost more upfront but lower bills significantly.
Installation complexity: Ductwork, venting, or fuel-line changes raise the total.
Overall range: $3,500 to $12,000, averaging $6,000.
Planning Your Project Budget
The cost ranges in this article are based on industry data and are intended as planning benchmarks, not fixed prices. The actual cost for your project depends on your specific home, your local labor market, the current price of materials, and the scope the contractor confirms after a site inspection.
Always get at least two written quotes on equivalent defined scope before committing to any home services project. Wide price variation between quotes usually reflects differences in material quality, scope completeness (what is included and what is not), or contractor overhead and experience level rather than simple price competition.
Use the cost data in this article to ask better questions during the quoting process: What material is included? What does that per-square-foot or per-linear-foot rate include and exclude? Are permits, cleanup, and disposal included? What is the warranty on labor? These questions turn a quote into a comparable basis for decision-making. (For more on this, see Questions to Ask Before Installing a New Furnace.)
Working With a Contractor on This Project
Getting the right outcome on any home services project starts before the work begins. A few consistent practices make the difference between a smooth project and a frustrating one.
Get at least two or three quotes. A single quote gives you no basis for comparison. Two or three quotes reveal the market rate for the work, expose scope differences between bidders, and let you assess contractor communication quality before any commitment is made. The lowest bid is not automatically the best value if the scope is thin or the materials are underspecified.
Ask for licenses and insurance before work starts. Verify current general liability insurance and, for any work involving workers on your property, workers compensation coverage. Licensing requirements vary by state and trade; confirm the specific requirements in your jurisdiction. A licensed contractor who carries appropriate insurance protects both parties if something goes wrong during the project.
Get the scope in writing. A written proposal that specifies materials, labor scope, timeline, what is included (permits, cleanup, disposal), and warranty terms is the foundation of a professional engagement. Verbal agreements on any of these points invite misunderstanding. For any project over $500, written scope is non-negotiable.
Clarify the payment schedule upfront. A reasonable payment schedule ties major payments to project milestones: a deposit at signing, a payment at material delivery or project start, and a final payment at completion after a walkthrough confirms satisfaction. A contractor who requires full payment upfront before work begins is a red flag in any trade.
Ranges here are national ballpark figures, not quotes. Actual pricing varies by region, home condition, materials, and contractor. How we source cost data.