How Much Does a New Furnace Cost? [2025 Data]

Normal Range: $2,822 - $6,882

A new furnace costs $4,802 on average, but the final total for parts and labor will depend on type of furnace, size of your home, and other factors, like efficiency and brand. Rates may range from $150 to $13,112.

How we get this data
woman, man, and child in cozy blankets huddled next to furnace in low light and smiling
Photo: BraunS / E+ / Getty Images
woman, man, and child in cozy blankets huddled next to furnace in low light and smiling
Photo: BraunS / E+ / Getty Images
Paige Bennett
Written by Paige Bennett
Contributing Writer
Robert Tschudi
Reviewed by Robert Tschudi
Expert Reviewer
Updated Jul 22, 2025
Highlights

  • The size and type of the furnace system are the most crucial cost factors to consider.

  • Account for 30 to 60 BTUs per square foot of living space, but ask your HVAC technician to decide what size is best for your home.

  • High-efficiency furnaces cost more upfront, but they will save you money on monthly heating and cooling costs over time.

  • You may qualify for government incentives that can reduce your total costs, especially if you install an energy-efficient unit.

New furnace installation costs can fluctuate, but anticipate spending between $2,822 and $6,882 on average. You probably haven’t had to install a new furnace recently because they last 20 years on average. So if you haven’t gone furnace shopping in a while, they might look a little different than your current unit.

Furnace Installation Cost Breakdown

While it would be great to think about the cost of a furnace as a one-size-fits-all price, it's not that simple. There are different sizes and types of furnaces, and even the brand can play a part in the overall cost.

Size 

Furnace capacity is measured in BTUs, or British thermal units, with each unit measuring the amount of heat needed to raise the temperature of one pound of water by one degree Fahrenheit. An average home will need a furnace with about 80,000 to 100,000 BTUs per hour. You can also determine what furnace size you need by figuring about 30 to 60 BTUs needed per square foot. 

Here's what you can expect to pay for a new furnace, on average, by BTUs:

Home SizeBTUs NeededAverage Cost
1,000 square feet30,000–60,000$1,200–$2,000
1,500 square feet45,000–90,000$1,800–$3,000
2,000 square feet60,000–120,000$2,400–$4,000
2,500 square feet75,000–150,000$3,000–$5,000
3,000 square feet90,000–180,000$3,600–$6,000
3,500 square feet105,000–210,000$4,200–$7,000
4,000 square feet120,000–240,000$4,800–$8,000
4,500 square feet135,000–270,000$5,400–$9,000
5,000 square feet150,000–300,000$6,000–$10,000

Type

The type of furnace—yes, there's more than one—can also impact what you'll be spending. Even though all furnaces heat your home, the way they are powered can be different.

Pros and cons chart of each type of furnace

Here's what the different types of furnaces generally cost:

Furnace TypeAverage Cost Installed
Electric$2,000–$7,000
Natural gas$3,800–$10,000
Oil$6,750–$10,000
Propane$3,700–$14,200

Most Common Types of Furnaces

When shopping for a new furnace, the first question you’ll need to answer is which type of fuel you want to use. The four most common types are natural gas, propane, oil, and electric. 

Natural gas furnaces are the most prominent choice for homeowners. According to Angi customer data, 58% have a natural gas furnace, while 12% use oil and another 12% use electric furnaces. You should consult a local furnace professional to determine the best furnace for your home.

Location

Location affects the cost of furnace installations since labor rates are more expensive in areas with higher living costs or higher demand. You can expect to pay at least $5,000 for a new furnace in states like Maryland, California, and Virginia.

Furnace price estimates vary on a state level. Find your state below:

Efficiency

While the more efficient furnaces are often the most expensive, it’ll be worth it to your wallet in the long run. The less heat wasted through ductwork, pipes, or a chimney, the more heat there is available to warm up your home. 

High-efficiency furnaces have an annual fuel utilization efficiency (AFUE) rating of 96% or higher. Mid-efficiency furnaces have an AFUE rating of 90% to 95%, and low-efficiency furnaces have an AFUE rating of 80% to 89%. 

Labor

In most cases, labor costs for installing a new furnace can run from $75 to $100 per hour. Labor costs can vary by location, though; for example, if you live in a place with a higher cost of living, you can expect labor costs to be higher.  

Permits

In some locations, it’s required to have a permit to install a new furnace. While this isn’t necessary for every city and municipality, this additional cost could run between $400 and $1,500. Your local furnace installer will be able to tell you if a permit is needed in your area. 

Removal of an Existing Furnace

In most circumstances, if you’re installing a new furnace, you’ll need to have your existing furnace removed. Most local HVAC contractors can dispose of the old furnace for you during installation but will charge a fee. The fee to remove an existing furnace can range from $60 to $330, depending on your location.

Ductwork Installation Cost

Depending on the age of your existing unit, you might need to install new ductwork when installing a new furnace. If your existing ductwork is incompatible with the new furnace or is insufficient to heat your home, your HVAC tech might suggest installing new ductwork to make sure your home is heated properly. Installing new ductwork will cost about $2,000 to $5,000.

Read more

Furnace Maintenance 

While the cost of furnace maintenance won’t be hitting your wallet at the time of installation, it's essential to keep it in the back of your mind. Regardless of the type of furnace you choose, it’ll need tune-ups and maintenance at least once a year to hopefully avoid major repairs. Typically, HVAC maintenance fees cost between $60 and $550.

DIY vs. Hiring a Pro

Installing a furnace is not a job to handle on your own. A furnace installed incorrectly could be a health and safety hazard. The furnace must be properly connected to vents and gas lines to prevent the spread of carbon monoxide, a deadly gas, around your house. Save yourself the headache and hire a pro to do the job right.

“Whenever there are fossil fuels used in any appliance, such as a furnace, fireplace, clothes dryer or cooktop, we install carbon monoxide detectors,” says Bob Tschudi, general contractor in Raleigh, NC. “This is required in most states and municipalities and is a good safety measure, as even the most expensive appliances break down eventually.”

We've provided the average cost of installing a new furnace across the U.S. so you have an idea of what to expect:

How to Save on the Cost of a New Furnace

You might be heating up at the thought of spending a lot of money on a new furnace, but there are some ways to save on the overall cost. Comparing the type of furnace you need along with different brands is a great way to save money upfront, even before the installation. Here are few other ways to save money on the cost of a new furnace:

  • Ask for quotes from multiple HVAC professionals to ensure you’re getting the best deal.

  • Scope the internet and mailers for deals, coupons, and rebates from installers.

  • Try to learn the age of your existing furnace. Save money every month to replace it versus financing, if possible.

Tax Rebates on Eco-Friendly Furnaces

According to EnergyStar, gas furnaces that are 97% or more efficient and some oil furnaces are eligible for a tax rebate. This credit is effective for those furnaces purchased and installed from January 1, 2023, through December 31, 2032, and can be worth up to 60% of your total project cost, up to $600. 

Read more

How Angi Gets Its Cost Data

Home is the most important place on earth, which is why Angi has helped more than 150 million homeowners transform their houses into homes they adore. To help homeowners with their next project, Angi provides readers with the most accurate cost data and upholds strict editorial standards. We’ve surveyed over 10,000 real Angi customers about their project costs to develop the pricing data you see, so you can make the best decisions for you and your home. We pair this data with research from reputable sources, including the U.S. Bureau of Labor Statistics, academic journals, market studies, and interviews with industry experts—all to ensure our prices reflect real-world projects. 

Want to help us improve our cost data? Send us a recent project quote to [email protected]. Quotes and personal information will not be shared publicly.

Frequently Asked Questions

Warmed or cooled air can escape your home through drafty windows and doors. If you notice any gaps, be sure to caulk and seal them. You can also hire a local pro for an energy audit to get a list of energy-saving recommendations. 

Finally, check your insulation. It can settle in over time and become less effective. The Environmental Protection Agency (EPA) estimates that you can save an average of 15% on heating and cooling costs (or 11% of total energy costs) by sealing leaks and making sure attics, crawl spaces, and basements have a nice layer of insulation.

Don’t skip the most basic maintenance: changing the filter. Filters 1 to 3 inches thick need to be replaced at least every three months. Filters 5 to 6 inches thick could go a year before getting changed. The filters catch dust and allergens, so it’s worth keeping them clean.

It’s a good idea to have a professional service your furnace every year before winter. They’ll inspect, clean, and repair as necessary. This could give you peace of mind that you won’t be calling furnace pros for help during a cold snap in the middle of February.

If your furnace is over 18 years old and having problems, it might be more economical to replace than repair. Remember: new models are much more efficient than older ones, so you stand to save on monthly energy costs. You might also consider replacing your furnace if you are upgrading your AC unit, as it can be more cost-effective to upgrade both at the same time.

A furnace is a big unit where gas, heating oil, or electricity heats the air. The warmed air is then pushed back out through ducts and vents. 

A boiler uses electricity, heating oil, or gas to heat water that is pushed into the room through a radiator. This is one of the oldest and most effective ways to heat a house, but radiators can also be unsightly and leave hot and cold spots in the room.

Heat pumps use a refrigerant to move heat from outside into the house and return it to the room through ducts and vents.

When investing in a new furnace, it’s smart to do a home energy audit. That will give you a list of any projects that would help with efficiency, such as sealing or replacing windows and insulating the attic. You can also take this time to install a smart thermostat if you don’t already have one to make heating your home a breeze.

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Learn more about our contributors
Paige Bennett
Written by Paige Bennett
Contributing Writer
Paige Bennett is a professional editor and writer with experience covering design, DIY projects, food, health, and travel, and holds a bachelor's degree in journalism from Ohio University.
Robert Tschudi
Reviewed by Robert Tschudi
Expert Reviewer
Robert Tschudi has 16 years of experience in general contracting, home building and home remodeling. He and his wife currently co-own a remodeling business that they started in 2004.

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