Skip to Content

How Much Does It Cost To Replace A Furnace [Costs Of Different Types]

This article is for informational purposes. Always seek the advice of qualified professionals.

Your old furnace won’t evenly distribute heat to your house without frequent fixing. But you might still not get much improvement in its performance. If this is happening to you, it’s time to replace the old furnace.

How much does it cost to replace a furnace?

The cost for replacing a furnace ranges from $5,000 – $8,000. This is the cost of replacing a furnace including the installation fee. Depending on your HVAC requirement the price may increase than this range. The type of furnace you’ll be using also determines how costly it’s gonna be.

That was only a sneak preview. Clearly, you’d need more details than this. This is why you must read my piece till the end to get your answers straight.

Let’s begin!

Furnace Replacing Cost Calculator

There are so many types of furnace models to choose from nowadays. It’s understandable if you get confused. 

Before buying a furnace for replacement it’s important to know their price. Because furnaces are not cheap. Especially when you go to install them. 

Let’s not forget the additional costs as well. Seems like trouble? Don’t worry, I have got your back.

Instead of calculating all the costs separately, you can use this calculator of mine. It can give you the exact number that you’re looking for.

Cost For Replacing An Old Furnace With An Electric Furnace

Aspects700-1,200 sq. ft.1,200-1,600 sq.ft.1,600-2,000 sq. ft.2,000-2,500 sq. ft.2,500-3,000 sq. ft.
Old furnace Removal Cost$150-$400$150-$400$150-$400$150-$400$150-$400
Permit cost$250-$1,500$250-$1,500$250-$1,500$250-$1,500$250-$1,500
Furnace Cost$2,000-$3,600$3,200-$4,150$4,000-$4,600$4,500-$4,950$4,800-$5,500
New Furnace Installation Cost$3,150-$4,200$3,870-$5,050$4,940-$6,100$5,950-$7,250$7,080-$8,200
Labor Cost$200-$800$200-$800$200-$800$200-$800$200-$800
Ductwork Cost$1,400-$5,600$1,400-$5,600$1,400-$5,600$1,400-$5,600$1,400-$5,600
Basic Electrical Work$100-$250$100-$250$100-$250$100-$250$100-$250

Cost For Replacing An Old Furnace With An Heat Pump Furnace

Aspects700-1,200 sq. ft.1,200-1,600 sq.ft.1,600-2,000 sq. ft.2,000-2,500 sq. ft.2,500-3,000 sq. ft.
Old Furnace Removal Cost$150-$400$150-$400$150-$400$150-$400$150-$400
Permit Cost$250-$1,500$250-$1,500$250-$1,500$250-$1,500$250-$1,500
Furnace Cost$3,100-3,800$3,700-$4,300$4,200-$5,000$4,900-$5,600$4,800-$5,500
New Furnace Installation Cost$3,890-4,950$4,850-$5,700$5,500-$6,300$6,120-$7,780$7,670-$8,860
Labor Cost$200-$800$200-$800$200-$800$200-$800$200-$800
Ductwork Cost$1,400-$5,600$1,400-$5,600$1,400-$5,600$1,400-$5,600$1,400-$5,600
Basic Electrical work$100-$250$100-$250$100-$250$100-$250$100-$250

Cost For Replacing An Old Furnace With An Gas Furnace

Aspects700-1,200 sq. ft.1,200-1,600 sq.ft.1,600-2,000 sq. ft.2,000-2,500 sq. ft.2,500-3,000 sq. ft.
Old Furnace Removal Cost$150-$400$150-$400$150-$400$150-$400$150-$400
Permit Cost$250-$1,500$250-$1,500$250-$1,500$250-$1,500$250-$1,500
Furnace Cost$4,100-$5,400$5,200-$6,200$6,000-$7,100$6,900-$7,850$7,700-$8,500
New Furnace Installation Cost$5,070-$6,400$5,930-$7,350$7,125-$8,235$8,000-$9,750$9,690-$10,500
Labor Cost$200-$800$200-$800$200-$800$200-$800$200-$800
Ductwork Cost$1,400-$5,600$1,400-$5,600$1,400-$5,600$1,400-$5,600$1,400-$5,600
Basic Electrical Work$100-$250$100-$250$100-$250$100-$250$100-$250

Cost For Replacing An Old Furnace With An Oil Furnace

Aspects700-1,200 sq. ft.1,200-1,600 sq.ft.1,600-2,000 sq. ft.2,000-2,500 sq. ft.2,500-3,000 sq. ft.
Old furnace Removal Cost$150-$400$150-$400$150-$400$150-$400$150-$400
Permit Cost$250-$1,500$250-$1,500$250-$1,500$250-$1,500$250-$1,500
Furnace Cost$5,000-$6,300$6,000-$7,200$7,000-$8,500$8,300-$9,250$9,100-$10,500
New FurnaceInstallation Cost$5,950-$6,730$6,600-$7,345$7,180-$9,470$9,250-$10,450$10,200-$12,370
Labor Cost$200-$800$200-$800$200-$800$200-$800$200-$800
Ductwork Cost$1,400-$5,600$1,400-$5,600$1,400-$5,600$1,400-$5,600$1,400-$5,600
Basic Electrical Work$100-$250$100-$250$100-$250$100-$250$100-$250

Some of the costs included above can be omitted. Not sure how? Then the next segment will answer for you. 

Up next is the cost breakdown section for the list above.

Furnace Replacing Cost Breakdown

Replacing an old furnace is not cheap work. You may see the furnace price and assume that it’s not gonna be much. 

But that’s not the case. When replacing an old furnace many other factors need to be counted with it.

Replacing an old furnace comes with a lot of additional costs. Some of the factors can be avoided depending on your house’s HVAC condition. But still, there are many factors that you need to pay attention to.

That’s why it’s important to figure out which factors can cost you more money. You wouldn’t wanna pay an amount like the cost of building a tiny house

So, let’s take a look at these factors one by one.

Permit Cost

Replacing an old furnace will require some permit fees. It depends on the area you live in and also the house size. 

It’ll also vary depending on the furnace size. Permit for replacement will range from $250-$1,500.

The permit cost includes the inspection fee as well. Usually, it takes $100 to inspect a place for furnace replacement. 

But some houses do not require house inspection. If inspection isn’t required, you can appeal to cut the cost from the list.

Furnace Cost

There are many things to know before replacing a furnace. Firstly, you need to know which furnace would be proper for your home. There are various kinds of furnaces available in the market now.

You can choose from oil furnaces, natural gas furnaces, electric, or propane gas furnaces. As you can see there’s a lot of options out there. But you need to decide on which type you want.

Once you make your decision you’d need to know which size furnace you’ll need. For that, you’d need to do some simple calculations. First, you’d need to know your house size in sq. ft. area.

If you know your house size then finding the furnace capacity is easy. Furnace capacity is calculated in the BTU unit. For different sizes of furnaces, the capacity also differs. 

What capacity furnace you need also depends on the climate zone you live in. Look up the internet to know which climate zone you live in. Watching the climate zone map will be of help to understand it better. 

Basically, there are 5 climate zones. The BTU requirement per sq. ft. of these zones differs. 

The table below shows the BTU requirement for each zone-

Climate ZoneBTUs Per sq. ft.
Zone 130-35
Zone 235-40
Zone 340-45
Zone 445-50
Zone 550-55

Let’s say that you live in zone 4. Then you’d have to multiply your house size with 45-50 BTUs. 

Once you get the BTU measurement it’s easy to get the furnace size. A 1-ton furnace can produce 12,000 BTUs.

Let’s see the table below for a better understanding-

Area SizeFurnace BTUsFurnace Weight Range
700-1,200 sq. ft.31,500-60,0002.5 Ton – 5 Ton
1,200-1,600 sq.ft.54,000-80,0004.5 Ton – 6.5 Ton
1,600-2,000 sq. ft.72,000-100,0006 Ton – 8 Ton
2,000-2,500 sq. ft.90,000-125,0007.5 Ton – 10 Ton
2,500-3,000 sq. ft.112,500-150,0009 Ton – 12.5 Ton

Furnace price heavily depends on its size and the type you’re buying. For example, an oil furnace costs more than a gas furnace. An electric or heat pump furnace is cheaper than an oil or gas furnace.

Now, let’s take a look at the prices for different types of furnaces-

Furnace Weight RangeElectric Furnace CostHeat Pump Furnace CostGas Furnace CostOil Furnace Cost
2.5 Ton-5 Ton$2,000-$3,600$3,100-3,800$4,100-$5,400$5,000-$6,300
4.5 Ton-6.5 Ton$3,200-$4,150$3,700-$4,300$5,200-$6,200$6,000-$7,200
6 Ton-8 Ton$4,000-$4,600$4,200-$5,000$6,000-$7,100$7,000-$8,500
7.5 Ton-10 Ton$4,500-$4,950$4,900-$5,600$6,900-$7,850$8,300-$9,250
9 Ton-12.5 Ton$4,800-$5,500$5,500-$6,000$7,700-$8,500$9,100-$10,500

Depending on your house location, climate, and cost you can choose any of them.

Installation Cost

The installation cost for furnaces depends on quite a few things. It depends on the size and capacity of the furnace. It also depends on the house condition and the complication of the installation.

The table below shows the installation cost for different furnaces-

Furnace Weight RangeElectric Furnace Installation CostHeat Pump Furnace Installation CostGas Furnace Installation CostOil Furnace Installation Cost
2.5 Ton-5 Ton$3,150-$4,200$3,890-4,950$5,070-$6,400$5,950-$6,730
4.5 Ton-6.5 Ton$3,870-$5,050$4,850-$5,700$5,930-$7,350$6,600-$7,345
6 Ton-8 Ton$4,940-$6,100$5,500-$6,300$7,125-$8,235$7,180-$9,470
7.5 Ton-10 Ton$5,950-$7,250$6,120-$7,780$8,000-$9,750$9,250-$10,450
9 Ton-12.5 Ton$7,080-$8,200$7,670-$8,860$9,690-$10,500$10,200-$12,370

Labor Cost

The labor cost for replacing the furnace depends on the company you’re buying from. Some company’s charge higher than usual. The cost also depends on its complexity.

The workers usually work on an hourly basis. Professional laborers charge $150 to $500 per hour to install a furnace. But you may find a licensed furnace installer who charges $50-$150 per hour.

Count $50 per hour if there are additional team members working on it. Replacing a furnace in households takes 4-8 hours. So, the labor cost ranges from $200-$800.

Basic Electric Cost

To replace the furnace and all that equipment might cost some basic electrical fee. Sometimes the electric lines go through the drywalls. In such cases, some demolition costs for drywall might also get added.

But don’t worry! It won’t reach the amount of rewiring cost for a 2000 sq. ft. house

For the basic electrical cost, you’d have to pay $100-$250. Usually, there’s no intense electric work required for this job. 

Unless there’s any tangling issue with your electric and HVAC units. The HVAC experts will let you know if there are such situations.

Ductwork & Other Optional Costs

Installing ductwork is an optional cost for this project. It’s not necessary to replace all the ductwork when you replace your furnace. Old ductworks will work just fine if there’s no fault in them. 

You may have to replace two or a few more pieces of ductwork. It may cost you $1,400 to $5,600.

You can avoid installing new ducts if old ones can be repaired. The repair cost for ductworks ranges from $200-$700.

Afterward, you can seal the ductworks to be more assured of its utility. Sealing ductwork costs $400-$2,700. Installing complete new ductwork may cost you $2,400-$6,600.

Here I’ll add all the possible costs related to ductwork in a table-

New Ductwork Installation $2,400-$5,600
Ductwork Replacement$1,400-$5,600
Ductwork Repairing$200-$700
Cleaning Ductwork$300-$700
Ductwork Sealing$400-$2,700

Other than ductworks there could be a few more optional costs. It totally depends on your house’s HVAC condition. 

I have listed down all these possible costs for you. Take a look to know which costs you might need to add-

Home Energy Audit$200-$500
Asbestos Abatement $700-$2,200
Asbestos Testing$250-$700
New Gas Line$500-$2,000
Propane or Oil Tank Replacement$1,600-$4,300
Utility Closet Framing$500-$2,000
Chimney Liner Installation$900-$3,800
Thermostat Replacement$140-$350
Condensation Drain Installation$200-$600
HVAC Zoning System$2,000-$3,500
Drywall Fixing Cost$150-$325

You can change your old furnace blower motor when you’re at it. The cost of a furnace motor blower isn’t much. Replacing it altogether with a furnace may save some money for you.

Tips To Save Money On Replacing A Furnace

Replacing a furnace is a solid budget project. Meaning you can’t cut off many costs if it’s really required to be done. Installing a furnace comes with many additional requirements.

Most of the time you can’t avoid them. Because these factors are related to one another. 

But there are still a few possibilities left when it’s a replacement project. Let me tell you these in more detail-

Do The Measurement Right

Measurement is very important when buying a furnace. And many people make mistakes on this. If your house is 2,000 sq. ft. don’t just buy a 7.5-ton furnace. Firstly, think if you need furnace service all over your house or not.

Some parts of the house are always left unused like storage or the garage. You wouldn’t spend your night there. 

So, why go as far as to include them as well? The same goes for the rooms that you do not use very often.

Leave those parts of the house and do the area calculation. Prioritize the rooms and areas that must be covered. Then decide on which type of furnace would be suitable for you.

Choose a Cheaper Furnace

As you can see, electric furnaces are cheaper than other options. Rather than buying a gas or oil furnace buy an electric furnace. A heat pump will also be cheaper than the other two options.

Plus, electric and heat pump furnaces are more eco-friendly than gas and oil furnaces. Curious about where to get them from? 

These are some good electrical furnaces that are cheap yet good in quality-

Product 1
Product 2

Furnace cost depends on the brand as well. Look at the market price for furnaces of different brands. Some of the brands sell the same quality furnaces at higher prices than other brands. 

That’s why I did some research before buying one. Take suggestions from people that are more knowledgeable on this. 

Look at the customer responses at different brands’ websites too. You’ll understand which brand will provide a better service for you this way. 

Use Old Equipments

Since you’re replacing the furnace, try to utilize your old equipment. Especially ductworks because they are expensive. If you can work with old ones then it’ll be less costly for you.

If there are damaged ductworks, try to repair them. Don’t just throw them away without checking if they can be used again. 

Repairing old ductworks doesn’t cost much. So, it’ll also help you to save.

This goes for other equipment as well. As long as you can reuse them, don’t throw them away.

That’s it! Hopefully, the information given here will be of use to you.


Question: What is the difference between electric, gas, and oil furnaces?

Answer: The actual difference between these furnaces is the fuel source of it. Also, how fast these furnaces can heat up a house differentiates it. Electric furnaces are run by electricity from local grids or solar panels. While gas and oil furnaces burn natural gas, oil, or propane for heating. They can heat up a place faster than electric furnaces.

Question: How long can a furnace last?

Answer: A well-maintained furnace can be of service for 15 to 25 years. You may need to do small repairs or maintenance in the meantime. But if kept well, they’ll be usable for a long time without serious problems.

Question: How much does it cost to relocate a furnace?

Answer: The cost for relocating a furnace ranges from $2,000-$8,000. It depends on the house structure, moving distance, and furnace type. Relocating it a few feet away will cost less. If you replicate it to a new place the cost will be high.


That’s all about today’s discussion on how much it costs to replace a furnace. I have tried to give you all the information that might come in handy. 

Hopefully, now you can make your budget list with more ease. Don’t forget to check all the factors individually. 

Lastly, good luck with your project!