Cost of New Furnace (2026): Project Planner

By HomeCost Guide · Updated October 2026 · Angi's figure for a new furnace installation; covers unit, labor, permits, and basic venting

A new furnace project costs $2,800 to $7,500 all-in for most homes, averaging around $5,500 (Angi). That covers the furnace, installation labor, permits, and hauling away the old unit. But 'furnace cost' and 'furnace project cost' differ — and the gap is where homeowners get surprised. Ductwork modifications, gas line extensions, condensing-vent retrofits, chimney liners, and code upgrades can add $1,000 to $5,000 beyond the equipment-and-labor quote.

This guide is a project planner, not an appliance price list. Below: every line item a furnace project can contain, with realistic ranges for each. Add up the lines that apply to your home and you'll have a budget you can hold a contractor to — instead of a single number that falls apart on install day. This guide is built as a project planner, not an appliance price list. Add up the lines that apply to your home and you'll have a budget you can hold a contractor to — instead of a single number that falls apart on install day.

1. Cost of New Furnace (2026): Project Planner cost breakdown

'New furnace' quotes usually exclude the extras: ductwork, electrical, gas line extensions, chimney liners, thermostats. Contractors quote the furnace job; the project often needs more. The planner below adds the line items homeowners most often discover mid-project.

Where the money goes: labor vs materials vs fees

• Furnace unit$700–$6,500The furnace, delivered and set. Typically 40–55% of the project total.
• Installation labor$1,000–$2,500Like-for-like swap: 6–10 hours for two techs. Add $500–$1,500 for venting retrofits, relocation, or tight access.
• Permits & inspections$400–$1,500Mechanical permit plus gas inspection; can trigger $75–$300 code upgrades each.
• Removal & disposal$60–$500Old unit haul-away, recycling, flue capping. Higher with asbestos-adjacent materials or mercury thermostats.

Sources: Angi, HomeAdvisor, Angi, USA Today. Figures are national averages compiled from published industry data; your price will vary by home and location.

2. Signs your furnace project can't wait

Signs your furnace project can't wait

• Cracked heat exchanger. The end of the furnace — can't be safely repaired, can leak carbon monoxide. Replacement is immediate, not optional.
• 15–20 years old with a major component failure. A $1,200 blower or $900 board on a 17-year-old furnace funds a dead unit.
• CO detectors alarmed or elevated CO measured. Evacuate, ventilate, call the gas utility — then replace.
• Heating bills up 20–30% with no rate or usage change. A 95%+ AFUE unit typically pays back in 5–8 years in cold climates.
• Repairs topping $2,000 in two years, or any single repair over $1,000 past age 12. The project budget beats the repair treadmill.

3. How a furnace project runs, start to finish

How a furnace project runs, start to finish

1. Pre-quote home survey. Walk the mechanical room, flue, gas line, and accessible ducts with a flashlight. Twenty minutes tells you which extras apply before any contractor visits.
2. Itemized quotes. 3–4 quotes, each with a Manual J, equipment model numbers, and itemized scope: venting, gas, ducts, permits, disposal, thermostat. Unitemized quotes can't be compared.
3. Rebate paperwork before install. Utility pre-approval if rebates require it; confirm the federal credit's current efficiency threshold; check manufacturer rebate calendars. A two-week delay for $500 is usually worth it.
4. Installation day(s). One day for a simple swap; up to three with extras. Gas off, old unit out, new unit set, venting/gas/condensate connected, pressure test, thermostat wired. No heat during the work.
5. Commissioning and paperwork. Gas pressure, temperature rise, combustion, and condensate verified; thermostat programmed; walkthrough done. Permit inspection sign-off. File everything — warranty claims require it.

4. What affects the cost

The furnace unit: where the money starts

Equipment spans an order of magnitude: ~$700–$1,500 for single-stage 80% AFUE, $1,000–$3,000 for two-stage 90–95%, $2,000–$6,500 for modulating 96–98% (Angi 2026). Contractor markup (20–40% over wholesale) covers warranty administration and overhead. When quotes differ by $1,500, check the model numbers — it's often just the equipment tier. When comparing quotes, ask for the model number and check the equipment tier yourself — two quotes $1,500 apart often differ only in which tier of box is inside.

Labor: simple swap vs complex retrofit

A straight swap — same fuel, same footprint, same venting path — is cheapest (~$1,000–$1,800 labor). Deviations add hours: relocating the unit ($800–$2,000 extra for new gas, venting, electrical, duct transitions), attic/crawlspace installs (+20–40% over basement), carpentry for taller modern units in tight closets. Labor is where simple projects stay simple and complicated ones double. Labor is where simple projects stay simple and complicated ones double — and where underscoped quotes become expensive change orders.

Venting changes and the orphaned water heater

Moving from 80% to 90%+ AFUE means new PVC venting through a sidewall plus a condensate drain: $500–$2,000 depending on run length and masonry coring. The sleeper cost is the orphaned water heater — left alone in the old chimney, flue gases condense and destroy the masonry. A stainless liner ($1,000–$2,500) isn't optional; it's a safety issue the quote must address.

Gas, electrical, and condensate

Gas: $500–$2,000 for in-home extensions/upsizing, plus permit and pressure test. Electrical: modern furnaces need a dedicated circuit and disconnect — usually present on swaps, but panel upgrades ($1,200–$3,000) appear on older homes. Condensate: condensing furnaces produce gallons of acidic water daily in heating season; no nearby floor drain means a condensate pump ($150–$300 installed). Without a nearby floor drain, a condensate pump ($150–$300 installed) routes the acidic condensate to a drain or outside.

Ductwork: assess before you buy

New equipment on bad ducts wastes money. Get a duct pressure test ($150–$300) before the furnace quote: sealing runs $500–$1,500, partial replacement $1,000–$2,700 (HomeAdvisor). Two-stage and modulating furnaces only deliver their comfort advantage with adequate return airflow — starved returns make premium equipment perform like basic equipment. Least glamorous line item, most skipped. Get the duct pressure test ($150–$300) before the furnace quote, not after — it determines whether the ducts or the furnace get your money first.

Permits and code upgrades

The inspection can require: service disconnect within sight, combustion air, condensate overflow switch, CO detectors, flue clearances — $75–$300 each, potentially $500–$1,500 total on older homes. 'No-permit discounts' are a trap: unpermitted gas work voids the manufacturer warranty and can void homeowners insurance for gas incidents. Budget the permit; it's the cheapest insurance on the project. Budget the permit; it's the cheapest insurance on the project — and the inspection is what protects you from the gas leaks that cheap quotes risk.

Thermostat and comfort add-ons

A two-stage/modulating furnace on a 1990s thermostat can't do its job — budget $150–$400 installed for a modern one that supports staging. Worth pricing while the crew is there: whole-home humidifier ($400–$800), media air cleaner ($300–$600), control-board surge protector ($150–$250). Each is 20–40% cheaper during the install than as a standalone visit. Ask for payback math on each upsell. None are required; all are 20–40% cheaper during the install than as standalone visits — ask for the payback math on each.

Timing, region, and duration

Emergency winter replacements cost 10–20% more than shoulder-season work with zero negotiating leverage. Nursing a limping furnace to March/April typically saves $500–$1,500 on identical equipment. Regionally, the same project costs 20–30% more in high-labor markets (CA, NY, MA) than the Midwest or South. Duration matters too: one day for a swap, 2–3 without heat when extras are involved — plan for winter.

5. Saving money & hiring right

Questions to ask your contractor

• Itemize it: equipment model, labor, venting, gas work, ductwork, permits, disposal, thermostat — each on its own line?
• What venting changes does this tier require, and what happens to my water heater's flue?
• Is the quoted size from a Manual J load calculation?
• What code upgrades might the inspection require, and what's your allowance?
• Which rebates and credits does this equipment qualify for — with certification paperwork?

6. How costs vary by state

Furnace project costs track regional labor and heating demand. Planning ranges adjusting the $2,800–$7,500 band — confirm with itemized local quotes.

7. Frequently asked questions