Key takeaways
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Cost: $3K–$8.5K (avg ~$4.8K).
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Equipment: Gas, electric, oil, propane vary.
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Labor: 25–40%, higher with complexity.
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Extras: Ducts, gas/electric, permits, haul-away.
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Add-ons: Filters, humidifier, zoning, thermostats ($300–$8K).
Why this matters
Heating is usually the biggest winter energy expense in a U.S. home, so getting a new furnace is a big decision. What throws many families off is that the “price of the box” (the furnace) is only part of the bill. The rest comes from labor, permits, ductwork, gas or electrical work, and safe removal of the old unit. This guide explains each line item in plain language, using 2025 price ranges so you can budget with confidence.
What a complete 2025 install really costs
Most homeowners spend $3,000–$8,500 for a full furnace replacement in 2025, with a typical bill near $4,800. Basic electric swaps can land as low as $1,600, while high-efficiency systems with major changes can exceed $12,000. Geography matters: urban areas often run 20–40% higher than national averages; rural regions may charge less per hour but more for travel. Expect labor to be a quarter to two-fifths of the total, and remember quotes often bundle permits and haul-away. A quick way to sanity-check a bid is to separate equipment vs. everything else and confirm each line fits the ranges in this guide. Want a wider view of market pricing? See the blog’s Average Furnace Cost 2025 article for additional examples and savings tips.
Equipment costs by furnace type (and efficiency)
Gas furnaces are the most common and vary by AFUE efficiency and motor type. Expect 80% AFUE standard models around $1,500–$3,000, 90–95% AFUE high-efficiency at $2,500–$5,000, and premium variable-speed models at $3,000–$8,000. Electric furnaces carry the lowest upfront price ($1,000–$2,500) and suit mild climates. Oil furnaces usually run $2,500–$4,500 due to specialized parts. Propane models typically land $2,000–$4,000 in areas without natural gas. Efficiency affects utility bills, so weigh AFUE carefully against your climate and gas rates. If you’re comparing AFUE ratings, this primer helps: AFUE furnace efficiency explained.
Labor & installation complexity (the “work” side of the quote)
Installer time and difficulty drive the labor line. For a straightforward replacement using existing ductwork, plan $1,500–$3,000. Tight closets, attic work, code upgrades, or tricky venting push labor to $3,500–$5,000. If custom duct fabrication is needed, add $3,500–$6,000. Most projects take 4–10 hours with typical rates $75–$150/hr; emergency or weekend work can spike much higher. Pros also handle startup checks, gas leak tests, combustion safety, and controls setup—small tasks that prevent callbacks and keep warranties valid. Ask your installer to list what’s included (thermostat wiring, condensate drain, vent materials, code clearances). If paying all at once is hard, review HVAC Financing options and compare promotional APRs vs. rebates you may qualify for.
Ductwork, gas & electrical: the hidden line items
Ductwork changes can swing totals more than the furnace itself. Minor tweaks run $500–$3,000 (e.g., return drop $300–$400 or a few run modifications $300–$1,200 each). Full projects range $1,500–$15,000 (complete home ductwork $5,000–$15,000; rerouting $1,500–$9,000). New gas line runs up to 20 feet usually cost $400–$800; longer or complex routes can top $2,000. On the electrical side, a 240V outlet install is $175–$300; a new circuit is $250–$800; permits $30–$80. Don’t forget permits/inspections overall ($100–$500 typical, with specific local fees for furnace, mechanical, and gas). These items aren’t “extras”—they’re what make the system safe and code-compliant. For airflow tips that reduce hot/cold spots, see Ductwork design basics.
Optional add-ons & smart controls worth considering
A new furnace is the best time to add features that boost comfort and air quality. Air filtration systems ($500–$2,000) catch fine dust and allergens. Humidifiers ($400–$1,200) prevent dry winter air. Zoning ($2,000–$8,000) sends the right heat to the right rooms. UV lights ($300–$800) help keep coils cleaner. Thermostats: standard options installed are $150–$300; smart thermostats cost $250–$500 and may need a C-wire (~$150).
Removing the old unit, permits & inspections (don’t skip these)
Old-unit removal is easy to miss on quotes. Basic furnace removal runs $200–$800; with disposal/recycling, expect $300–$1,200. Oil furnace removal with tank cleaning can reach $500–$2,000+ due to environmental rules. Permits protect you: furnace/mechanical permits typically total $100–$500, with some cities listing furnace permits $24–$159, mechanical $92–$500, and gas line $13–$30. Inspections confirm venting, clearances, gas/electrical safety, and duct sealing. Keep copies of your permit card and inspection report; they help with resale and warranty claims. Need quick answers while you plan? Visit the Help Center or browse the full HVAC Tips for checklists you can use during contractor walk-throughs.
How to plan your budget (simple, U.S.-friendly steps)
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Pick your fuel & efficiency: Use local utility rates and climate to decide between 80% vs. 90–95%+ AFUE or an electric option.
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Check the home basics: Is ductwork sound? Is there a safe vent path? Will you need a gas run or new circuit?
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Request two to three like-for-like bids: Ask for equipment model numbers, AFUE, labor scope, permits, and haul-away listed separately.
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Decide on add-ons: Filtration, humidifier, zoning, UV, and a smart thermostat if wiring allows.
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Plan payment: Compare cash, rebates, and financing.
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Schedule smart: Avoid emergency installs when possible; off-peak timing can lower labor.
For more cost angles, the blog Furnace Cost by Brand in 2025 helps you benchmark models and pricing.
FAQs: quick answers a homeowner would ask
How long does a furnace install take? Most jobs finish in one day (4–10 hours); complex duct or code work can take longer.
Is a 95%+ AFUE furnace always worth it? In cold regions with high gas use, often yes. In mild climates, an 80–90% unit may pay back faster.
What raises the price the most? Major ductwork, new gas lines/electrical, tight spaces, and zoning systems.
Do I need permits? Yes—expect $100–$500 total. They ensure safe, code-compliant work.
What about thermostats? Standard installs run $150–$300; smart models $250–$500 (plus ~$150 if a C-wire is added).
Can I see more tips? Explore HVAC Tips for step-by-step guides and checklists.
