How much does it cost to replace a furnace?
Short answer: Replacing a gas furnace usually costs $3,800 to $10,000 installed. About $7,000 is typical for a 1,600 to 2,000 square foot home, and high-efficiency models can reach about $12,000 (Angi, 2026). Angi's average across all furnace types is $4,814. Permits, venting changes, and ductwork are what push a job to the high end.
Typical installed prices by fuel type (Angi, 2026)
| Furnace type | Installed cost |
|---|---|
| Natural gas | $3,800 to $10,000 |
| Electric | $2,000 to $7,000 |
| Propane | $3,700 to $14,200 |
| Oil | $6,750 to $10,000 |
What moves the price
1. Efficiency. A standard 80% furnace can often reuse the existing metal flue. A 90%+ condensing furnace needs PVC intake and exhaust pipes and a condensate drain. That extra work is a big part of the price gap.
2. Size (BTUs). Bigger homes and colder climates need more heat. Size should come from a load calculation (ACCA Manual J), not from the old furnace's label.
3. Permits and inspection. Angi suggests budgeting $400 to $1,500 for permits, removal, and connecting to existing ductwork.
4. Ductwork. Leaky or undersized ducts can add real cost. Ask whether the quote includes any duct work.
5. Blower type. Variable-speed (ECM) blowers cost more up front and run quieter and more evenly.
Rebates and credits in 2026
- Federal tax credit: gone. 26 USC 25C "shall not apply with respect to any property placed in service after December 31, 2025."
- Utah (Enbridge Gas ThermWise, 2026): $300 for a gas furnace rated 95% to 97.4% AFUE, $350 for 97.5% or higher with an ECM blower. Existing homes only, and you must apply within 6 months of installation. Details: ThermWise appliance rebates.
How to compare quotes
Get more than one written quote. Each one should list the model number, AFUE rating, BTU input, blower type, what venting and ductwork is included, permit, removal of the old unit, and warranty terms for parts and labor. Ask how they sized it. A contractor who doesn't do a load calculation is guessing.
If your furnace just stopped starting, try the furnace won’t turn on checklist first. Some no-start problems turn out to be a tripped breaker or a clogged filter.
FAQ
How long does a furnace last? Angi puts the average at about 20 years. Many last 15 to 20 with yearly maintenance.
Is a high-efficiency furnace worth it? In a cold climate with long heating seasons, usually yes, especially when a rebate covers part of the gap. In a mild climate the payback is slower.
Can I replace just the furnace and keep my AC? Often yes, but the new furnace's blower needs to match the AC coil. Ask the installer to confirm.
How long does installation take? A straight swap is usually one day. Changing to a condensing furnace with new venting can take longer.
Related: Furnace repair cost · Repair or replace? · Buying a furnace in Utah
Sources: Angi gas furnace cost, 2026 · Angi new furnace cost, 2026 · 26 USC 25C · Enbridge Gas ThermWise
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