Furnace Replacement Cost in 2026
A new furnace costs $2,800–$6,900 installed on average in 2026, around $4,800 typical. Gas furnaces run $3,800–$12,000, electric $1,900–$5,600, and oil $2,500–$6,000. High-efficiency (90%+ AFUE) models cost more up front but cut heating bills.
| Item | Typical installed cost |
|---|---|
| Standard-efficiency gas | $3,800 – $6,000 |
| High-efficiency gas (90%+ AFUE) | $4,500 – $12,000 |
| Electric furnace | $1,900 – $5,600 |
| Oil furnace | $2,500 – $6,000 |
AFUE, explained
AFUE (Annual Fuel Utilization Efficiency) is the percentage of fuel a furnace turns into usable heat. A 95% AFUE furnace wastes only 5% of its fuel. Higher AFUE costs more up front but lowers your winter bills — the payback depends on your climate and gas prices.
Signs it is time to replace
Age past 15 years, rising heating bills, uneven heating, frequent repairs, or a cracked heat exchanger (a carbon-monoxide risk) all point to replacement. If your AC is also aging, replacing both together saves on shared labor.
Frequently asked questions
How long does a furnace last?
A well-maintained furnace lasts 15–20 years. Past 15, repair costs climb and efficiency drops, so replacement often makes financial sense.
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