Cost to Replace a Furnace: Is It Worth It?
The cost to replace a furnace depends on your home size, unit type, and your existing furnace and ductwork.
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The cost to replace a furnace is about $4,800 on average, but the price can range from around $2,823 to $6,888, according to 2026 data from the home services website Angi. These are the main factors that affect furnace cost:
- The price of the furnace and labor for installation, plus permits and duct installation or removal if needed.
- The furnace type and heating capacity for your home size.
- The age of your existing furnace and ductwork. Furnaces last around 20 years on average, and older ductwork may not be compatible with a new unit.
Because your home can't be without heat for long, replacing your furnace is typically a good investment. Your return on investment (ROI) depends on the type of heater you choose and its energy efficiency.
Here's a breakdown of the costs to replace a furnace, as well as some alternative heating systems that might be better for your home.
Furnace cost by type
Furnaces come in five main types, with different cost ranges and features. Here are your options:
| Type | Price range | Things to know |
|---|---|---|
| Electric | $2,000 to $7,000. | Energy-efficient and low maintenance with a low installation cost, but has the highest monthly cost. |
| Propane | $3,700 to $14,200. | Has a higher energy output than natural gas and low monthly costs, but high upfront costs. |
| Natural gas | $3,800 to $10,000. | More energy efficient than oil and wood with low monthly costs, but has higher upfront costs than electric furnaces. |
| Oil | $6,750 to $10,000. | Works off-grid and has a high energy output, but can be expensive to run due to oil costs. |
| Wood | $2,600 to $12,500. | Lower-cost and works off-grid, but is less efficient and requires more maintenance. |
Natural gas furnaces are the most common. More energy-efficient natural gas models can cost more upfront but save you money down the road.
Furnace cost by home size
Furnaces are available in different heating capacities, which are measured in British thermal units (BTUs). One BTU represents the amount of heat needed to raise the temperature of a pound of water by one degree Fahrenheit.
Your home will need a furnace with a capacity of about 30 to 60 BTUs per square foot, with homes in colder climates at the higher end of that range. You might also need a higher BTU capacity if your home is older or not well-insulated, your windows aren’t energy efficient, or your furnace isn’t energy efficient.
Here are the BTUs recommended to heat homes of various sizes and the price range of a furnace with that capacity:
| Home size | BTUs | Average cost |
|---|---|---|
| 1,000 square feet | 30,000 to 60,000. | $1,200 to $2,000. |
| 2,000 square feet | 60,000 to 120,000. | $2,400 to $4,000. |
| 3,000 square feet | 90,000 to 180,000. | $3,600 to $6,000. |
| 5,000 square feet | 150,000 to 300,000. | $6,000 to $10,000. |
Labor costs for furnace replacement
For a standard furnace installation, which can take four to eight hours, expect labor costs of around $75 to $100 per hour. The following can increase labor costs:
- Removing your existing furnace can cost an additional $60 to $330.
- Installing new ductwork can cost about $2,000 to $5,000. Older ductwork may not be compatible with new furnaces. Replacement work typically takes five to seven hours, but can take much longer depending on the extent of the work. Over half of the cost will likely go toward labor.
- Getting a permit can cost $400 to $1,500 and may be required in some areas. Your furnace installer will obtain the necessary permits, and the cost may be included in your contractor’s quote.
Signs you need to replace your furnace
Furnaces typically last 15 to 20 years, but some types can last up to 30 years or more with proper maintenance. Outdated furnaces are less energy efficient, which can increase your monthly energy costs and may be more prone to dangerous carbon monoxide leaks.
Here are signs that it’s time to replace your furnace:
- Your energy bills are increasing.
- Your furnace is breaking down often and requires frequent repairs.
- Your home, or certain rooms, aren’t heating.
- Dust and soot are building up in your home.
- The furnace is making strange sounds, including popping, screeching and rattling.
- The furnace smells like rotten eggs, which is a sign that the furnace is leaking gas.
- The pilot light flame is yellow instead of blue, which can be a sign that the furnace is producing carbon monoxide.
Alternatives to furnaces
You don't necessarily have to replace your furnace with another furnace. Depending on where you live and the size of your home, you may be better off replacing your furnace with one of the following:
| Heating system | What it does | Best for |
|---|---|---|
| Traditional heat pumps | Heats and cools air by transferring warm air out of the home during summer and into the home during winter. | Homes located in areas that don't face extreme cold. Heat pumps may not perform the best in harsher climates. |
| Boilers | Heats the home by sending hot water or steam to radiators throughout the house. | Homes with people who have sensitivity to airborne allergens. These systems don't circulate dust or other allergens throughout the air like furnaces or heat pumps do. |
| Geothermal heat pump systems | Heats and cools the air by sending it underground to be warmed or cooled by the surrounding soil before circulating it back up through the home. | Homes on large properties that face cold winters. These systems are highly energy efficient and do well in cold weather, but they require a lot of space and the right soil conditions to build. |
Before you replace your furnace, talk to an HVAC technician about other options. You may also find that a combination of heating elements — a furnace and a heat pump, for example — is best for your home.
What Reddit users think about furnace replacements
Reddit is an online forum where users share their thoughts in “threads” on various topics. The popular site includes plenty of discussion on financial subjects like home improvement, so we sifted through Reddit forums to get a pulse check on how users feel about replacing their furnaces. People post anonymously, so we cannot confirm their individual experiences or circumstances.
Some Reddit users mention that the best time to replace a furnace is to wait until it fully breaks down, believing that they get their money's worth that way. Others say it's better to do it before it breaks to avoid the high costs and inefficient heating that come with a dying furnace.
Many agree that age alone isn't the best way to decide whether it's time to replace a furnace, with some claiming that their furnaces have lasted over 60 years. Reddit users also noted that where they live played a role in what type of heating unit they got. Some switched to heat pumps because propane is expensive in their area, for example.
Frequently asked questions
Is it worth replacing a 30-year-old furnace?
If your furnace is 30 years old and in good condition, you don't have to replace it immediately. Instead, get it inspected yearly for signs of serious problems. If you have a gas or oil furnace, make sure to put carbon monoxide detectors in your home in case of a leak.
If your furnace is 30 years old and you've already repaired it before, however, it might be more cost-effective to replace it sooner rather than later. Most furnaces last about 15 to 20 years, so a furnace that old is likely near the end of its life. By replacing your 30-year-old furnace, you'll also be able to benefit from a newer, more energy-efficient unit.
Does homeowners insurance cover furnaces?
Homeowners insurance doesn't typically cover furnaces that break down due to general wear and tear. Most of the time, homeowners' insurance will only cover furnace repairs or replacements if your furnace was damaged as a result of an accident, such as a fire. But, depending on your provider, you may be able to add coverage for mechanical issues to your policy.
When is the best time of year to replace a furnace?
The best time to replace a furnace is during the spring or summer, before it gets cold again. This way, you won't have to worry about being without heat when you really need it.
Fall and winter are also when most furnaces break down because that's when they're in use, so furnace technicians will be busiest around this time. If you're able to replace your furnace before then, you might even score a discounted rate.
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