Know what your furnace replacement should cost
A 2,000 sq ft furnace replacement costs $4,550 to $7,450 in 2026, about $3 per sq ft installed. Across every option it runs from $3,150 (electric furnace) to $11,400 (gas, high efficiency).
Four questions gets you an itemised range, adjusted for construction wages where you live. The whole number, up front, before we ask for anything.
What furnace replacement work costs in 2026
| Project | Typical range |
|---|---|
| Gas, standard efficiency Around 80% AFUE, the common replacement | $4,550 – $7,450 |
| Gas, high efficiency 95%+ AFUE condensing, needs new venting | $5,950 – $9,650 |
| Electric furnace Cheaper to fit, more expensive to run | $3,400 – $5,600 |
| Oil furnace | $5,450 – $8,950 |
Where the money goes
The furnace itself
$2,760 · 46% of the job
Installation labour
$1,620 · 27% of the job
Venting and flue
$660 · 11% of the job
Gas line and electrical
$540 · 9% of the job
Permits and inspection
$420 · 7% of the job
Furnace Replacement cost by state
Labour is the part of this job that moves with geography. These are the same 2,000 sq ft project, priced against construction wages in each state.
- California $4,800 – $7,800 +4.6% vs national
- Texas $4,650 – $7,550 +1.3% vs national
- Florida $4,300 – $7,000 -6.0% vs national
- New York $4,750 – $7,750 +4.4% vs national
- Vermont $4,300 – $7,000 -5.9% vs national
- Washington $4,650 – $7,650 +2.5% vs national
- Wisconsin $4,500 – $7,400 -0.8% vs national
- West Virginia $4,300 – $7,000 -6.1% vs national
- Wyoming $4,300 – $7,000 -5.6% vs national
- Alaska $5,100 – $8,300 +11.5% vs national
- Alabama $4,350 – $7,150 -4.4% vs national
- Arkansas $4,200 – $6,800 -8.4% vs national
Questions homeowners ask
How much does it cost to replace a furnace for a 2000 sq ft house?
About $4,550 to $7,450 for a standard-efficiency gas furnace. Stepping up to a 95%+ AFUE condensing unit on the same home runs roughly $5,950 to $9,650, because the higher-efficiency unit usually needs new venting as well.
Should a 25 year old furnace be replaced?
Almost certainly. Most furnaces last 15 to 20 years, so a 25-year-old unit is past its service life and running well below the efficiency of anything sold today. Replacing on your own schedule is also cheaper than replacing in January when it fails, which is when contractors are busiest.
Is a high-efficiency furnace worth the extra cost?
It runs about 30% more up front. Whether that pays back depends on your climate and fuel price. In a cold region with a long heating season it usually does within the life of the unit, and in a mild one it often does not. Check for utility rebates first, since they can close most of the gap.
What is the labour cost to install a furnace?
Labour is roughly a quarter of the bill, about $1,600 on a typical $6,000 job, with the furnace itself close to half. The rest is venting, the gas and electrical connections, and permits. Quotes that look unusually cheap have usually left out the permit or the disposal of the old unit.
Reviewed and maintained by Anchorcost. Last checked September 3, 2026. Figures are verified against this page's own calculator on every build. How these figures are worked out.