🏠  Get 3 Free Quotes from Approved Local HVAC Contractors   👏
Call a Local Pro on 626-609-7395
Get 3 Free Quotes
🇺🇸  🏠  Get 3 Free Quotes from Local HVAC Pros   👏  🇺🇸
Last updated:
HVACJudge V logo

How Much Does Furnace Replacement & Installation Cost in 2021

There are lots of variables to consider when replacing your furnace. This guide will walk you through the prices and options.

Based on national data, across all types of residential furnace replacement, the average cost is somewhere between $1900 and $7200.

As you can see, this is a huge range!

In the 10+ years I’ve worked in HVAC I’ve seen both ends of the spectrum.. and some a lot higher.

There are multiple factors that can affect wherein the range your furnace replacements will land.

This article covers them all, so you’ll leave with a firm idea about how much you should pay.

So please do read on to avoid getting ripped off.

Average Cost to Replace a Furnace

As we’ve touched on previously, the average price to replace a furnace is somewhere between $1900 and $7200.

The price is essentially broken down into 3 parts.

Firstly, there is the cost of removing and disposing of the original furnace.

Secondly, the price of the new furnace itself.

Thirdly, is the price of labor for the installation.

The price of all 3 parts depends on a few factors

  • The fuel of the furnace being installed
  • The location of the furnace installation site
  • The brand of the furnace
  • The type of furnace to be removed
  • The state and region that you live in

You are probably starting to note there really are a lot of variables, some of which are very unique to your property.

This is why I’d always advise getting 4 free furnace replacement quotes from HVAC contractors in your area. This way you’ll have a definitive answer to your pricing question.

However, in the meantime, here are some approximate pricing for different furnace types to be used as a guideline.

Gas Furnace Replacement Cost

Gas furnace replacement tends to be on the more expensive end of the spectrum.

The average cost of a gas furnace replacement is around $3600 – $11000.

High-efficiency gas furnaces will eat into your budget and push you into the higher range of the average, however, they are usually a good investment.

With a lifetime of 20+ years, when burning less fuel each year, there can be considerable cost savings compared to a less efficient model.

It could turn out you’re making a return on investment in as little as 10 years. Not bad!

If you already have an old gas furnace, a brand new efficient furnace is probably a good investment.

Gas furnace installation cost

The installation of a gas furnace tends to be more expensive than other types and there is maintenance that will need to be carried out going forward.

The average installation cost will be between $1700 and $4500.

Natural Gas Furnace Replacement Cost

Natural Gas Furnace replacement costs between $4700 – $8500.

This seems a bit more reasonable compared to a gas furnace, and benefits from lower yearly running costs.

Not to mention that natural gas is much better for the environment, releasing 50 to 60 percent less carbon dioxide (https://www.ucsusa.org/resources/environmental-impacts-natural-gas#:~:text=Natural%20gas%20is%20a%20fossil,new%20coal%20plant%20%5B1%5D.) than coal, so you’d be doing your bit to help out.

Natural gas furnace installation costs

The average natural gas furnace installation costs are around $2100.

This is assuming you’re replacing like for like, and based on an average-sized furnace.

If you’re planning to switch from another fuel type to natural gas, the average here really doesn’t apply. You’d be best getting a custom quote from an HVAC contractor.

Propane Furnace Replacement Costs

Propane furnace replacements are a bit more affordable, somewhere between $4000 and $7000.

Propane is a great choice where other fuel types aren’t readily available.

Propane generally has a larger tank, which means less time between fuel deliveries. There is normally less maintenance required too, which can be saving and less trouble for you.

Another perk is you have the option of running your household with the same fuel, rather than one fuel for heating and another for cooking.

Propane furnace installation costs

Installation of propane furnaces is usually a bit cheaper compared to other fuel types, which is a nice relief!

The average installation cost is around $3500 – $4400.

Electric Furnace Replacement cost

You’ll be pleased to hear that electric furnaces tend to be on the cheaper end! The average cost seems to be around $3000 – $5500.

An electric furnace is great as you don’t have to worry about deliveries, you can just plug in and go!

They are also highly efficient as there are no gasses lost, as with gas and oil furnaces.

The downsides are, of course, it’s more expensive to run and it’s slow to start. Getting up to temperature is nowhere near as which as with gas.

That said, if you’re replacing like for like, an electric furnace for electric furnace, it’s a decent affordable option.

Electric furnace installation costs

An electric furnace installation cost is around $2000. That’s the cheapest installation we’ve covered!

The reason for this is quite obvious, there is much less work involved vs something like natural gas.

This means contractors will be in your home for less time, and your heating system will be down for a shorter period too!

Coal Furnace Replacement Cost

Coal furnace replacement costs are fairly steep and have a wide range. Somewhere between $3200 and $9500 is a reasonable estimate.

If you’ve already got a coal furnace, you’ll fully understand the biggest downside! Having to feed the boiler every single day. Not particularly fun!

That said, a coal furnace is very affordable to run and it’s viable to run “off the grid”.

You could stock up on coal and not be paying fuel bills for the rest of the season.

Coal furnace installation cost

As you can probably guess from the overall cost, coal furnace installation is on the higher end of the pricing bracket. Somewhere between $3500 – $6400.

Oil Furnace Replacement Cost

Oil furnaces aren’t that popular these days, but for those who are replacing like for like, the price is approximately $6500 – $10500.

Oil furnace installation cost

It’s hard to nail down the exact installation cost, but I’d expect it to be about half of the total budget of the project.

Furnace Removal Cost

All the approximate prices above are based on a full service: removal, furnace, and installation.

If you’re just looking for removal you can exact to pay somewhere between $100 and $500.

This price range is dependant on the state of your current installation site, the distance to the nearest disposal point, and the environmental regulations that may (or may not) apply to the disposal of your type of furnace.

What Affects the Price of a Furnace?


The choice of brand certainly affects the price of the project.

Higher-end brands provide long warranties, better support, and more efficient models.

I often remind people that making a saving on brand is probably costing them more money in the long run.

The cost of an inefficient furnace, or a furnace that is always breaking down, quickly wipes out any savings that were originally made.

My advice is to go for an efficient furnace from a well-known brand, backed by a long warranty.

Ideally, a warranty that covers both parts and labor.


The current site of your furnace has a lot to do with the cost of the project.

Depending on the condition of the current infrastructure, the budget could half or double very quicly!

As each installation site is unique, Only an HVAC contractor will be able to provide you with an accurate estimate.

Previous furnace

If you’re swapping like for like the cost is going to remain lower.

When I say like for like, I mean gas for gas, electric for electric ect.

If you’re planning to switch fuel sources, like going from electric to gas, the price of the project is going to rocket.

It’s almost impossible to give an average cost for such a conversion. This is the time to get a no-obligation quote from 4 local HVAC contractors.

Labor prices

Depending on which state you live in, labor prices do vary quite significantly.

For example, an HVAC contractor in San Francisco is going to be more expensive than other areas of the country.

There is not much you can do about this.. other than move state! But it’s something to be aware of when looking at these average prices.


How much is a new furnace for a 2000 square foot home?

It will cost around $6000 to install a new furnace is your 2000 square foot home.

This can vary depending on the current furnace installation and the fuel type of your new furnace.

When should I replace my furnace?

You should consider replacing your furnace if:

  • It is considered unsafe.
  • Your fuel bills are rising and your suspect your furnace is coming less efficient.
  • The warranty has expired and you want to protect yourself from surprise bills or heating breakdown.
  • You want to switch to a different heat source

How much to replace a boiler with a furnace?

It will cost somewhere between $2000 and $6000, depending on the current installation site.

With huge a complex task at hand, it’s worth getting some quotes from HVAC contractors to arrive at a better estimate.

How much does it cost to convert an electric furnace to gas?

The cost will be in the region of $5000 to an eye-watering $15,000.

Much is this cost is installing the surrounding infrastructure such as gas lines and the return air stack.

How much does a new furnace replacement cost?

The average price for a new furnace is somewhere between $1900 and $7200.

That’s including disposal of your old furnace, your new furnace, and installation.

The price is heavily dependant on the fuel type of your new furnace.

My Conclusion

So there we have it, the average furnace cost and prices to remove, replace and install!

The price really does depend on the fuel source, the brand of furnace you choose, the current type of furnace, and the installation site.

This leaves the price range fairly wide, however to answer the original question: how much does it cost to replace a furnace.

Approximately somewhere between $1900 and $7200.