Hey, Jake Lawson here. If you’re reading this, you’re probably asking yourself questions like: “How much is a new furnace?”, “What’s the cost to replace a furnace?”, or “How much will a new heating system cost?” These are big-ticket items, and understanding what goes into the price can save you thousands of dollars and a lot of stress.
In this guide, we’ll walk through everything you need to know about furnace replacement and furnace-and-AC installation. From pricing and installation factors to tips on getting the best deal, this is your ultimate resource. Whether you’re replacing an old heater, upgrading to a high-efficiency model, or installing a full heating and cooling system, this guide has you covered.
Understanding Furnace Replacement Costs
Before we get into numbers, let’s quickly understand what goes into a furnace replacement. A new furnace isn’t just the unit itself. Your total cost includes labor, ductwork (if needed), permits, and sometimes additional system components like a new thermostat or advanced filtration.
Key components of a furnace replacement include:
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Furnace Unit – The main heating system that warms your home.
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Air Handler or Blower – Circulates heated air through your home.
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Ductwork – Distributes heated air.
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Thermostat – Regulates temperature and can include programmable or smart controls.
When paired with a new air conditioner, the total furnace and AC replacement cost increases, but you also gain the benefits of a fully integrated heating and cooling system.
Average Cost of a New Furnace
So, how much is a new furnace? Costs vary depending on type, efficiency, and size:
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Standard Efficiency Furnaces: $2,500–$5,000 installed
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High-Efficiency Furnaces (90%+ AFUE): $4,500–$8,500 installed
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Premium Models and Larger Homes: $9,000+ installed
The price of a new furnace installed can fluctuate based on your home’s layout, local labor rates, and whether any upgrades are required. For a detailed breakdown of furnace costs by brand and size, check HVAC.com’s furnace pricing guide.
Furnace and AC Replacement Costs
Replacing both your furnace and air conditioner together is often more economical than replacing them separately. The average cost for a new furnace and air conditioner typically ranges from $7,000 to $15,000, including equipment and installation.
Here’s a general breakdown:
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AC Unit (3-ton standard system): $3,300–$7,800
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Furnace (standard to high efficiency): $4,000–$8,500
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Installation Labor: $1,500–$4,000
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Ductwork (if needed): $2,000–$3,000 per ton of HVAC capacity
Installing a matched furnace and AC system provides several advantages:
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Energy Efficiency – Matched systems operate more efficiently than mismatched units.
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Consistent Comfort – Proper sizing and matching ensures even heating and cooling throughout your home.
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Longevity – Coordinated systems tend to last longer with fewer repairs.
For additional insights on combined furnace and AC installation, check out EnergyStar’s guide on HVAC systems.
Factors That Affect Furnace Replacement Costs
Understanding what drives furnace replacement prices can help you budget and plan.
1. Home Size
Larger homes require furnaces with higher BTU output to heat efficiently. A furnace that’s too small will struggle to heat your home, while an oversized furnace can short-cycle and reduce efficiency.
2. Furnace Efficiency
Furnaces are rated using AFUE (Annual Fuel Utilization Efficiency):
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Standard-efficiency: 80–85% AFUE
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High-efficiency: 90–98% AFUE
High-efficiency units cost more upfront but reduce your energy bills over time. The Department of Energy has an excellent breakdown of furnace efficiency ratings and their impact on operating costs.
3. Ductwork
Homes without existing ductwork will require new duct installations, which adds significantly to the total cost. Even if ducts exist, old or leaky ducts may need repair or replacement.
4. Type of Fuel
Furnaces can run on natural gas, electricity, oil, or propane. Natural gas furnaces are generally the most cost-effective, but fuel availability and regional prices can influence your total cost.
5. Labor and Regional Rates
Labor rates vary by location. Urban areas with higher costs of living generally have higher installation fees.
6. Additional Features
Modern furnaces often come with variable-speed blowers, dual-stage burners, and integrated smart thermostats. These features improve comfort and efficiency but can increase the upfront cost.
How Much to Replace a Furnace?
On average, a standalone furnace replacement costs between $3,500 and $7,500, including labor and materials. Factors like efficiency, brand, home size, and ductwork requirements affect this range.
If you’re replacing both furnace and AC, expect the total cost to climb to the $7,000–$15,000 range, as outlined above. (This Old House HVAC installation costs)
Cost to Install a Furnace With Existing Ductwork
If your home already has ductwork in good condition, the cost to install a furnace is lower. Typical costs include:
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Furnace unit: $2,500–$5,000
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Labor: $1,000–$2,000
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Minor duct modifications if necessary
This can reduce the total installation cost by $2,000–$3,000 compared to homes needing new ductwork. (HVAC.com ductwork replacement guide)
New Furnace and Air Conditioner Cost
Combining both systems is often the smartest move, especially if your AC is nearing the end of its life. Here’s a snapshot of furnace and AC replacement costs:
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Standard 3-ton AC: $3,300–$7,800
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Standard furnace: $3,500–$6,500
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Labor and installation: $1,500–$4,000
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Ductwork (if needed): $2,000–$3,000
This setup provides a fully integrated HVAC system, delivering maximum efficiency and home comfort.
Financing Your Furnace Replacement
Many homeowners choose financing to manage the upfront cost. Options include:
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Home improvement loans
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HVAC company financing plans
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Low-interest credit cards
Be sure to compare interest rates and repayment terms. A higher-efficiency system financed over time can still save money in the long run due to lower utility bills.
Signs You Need a New Furnace
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Furnace is over 15 years old
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Frequent repairs
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Uneven heating or cold spots
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Rising energy bills
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Strange noises or smells
If you notice any of these issues, it’s a good idea to consult a licensed HVAC professional for a furnace replacement estimate.
Tips to Save on Furnace Replacement Costs
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Get Multiple Quotes – Always obtain at least three estimates.
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Install Off-Peak – Fall or spring installations can be cheaper than winter.
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Check for Rebates – Many utility companies offer rebates for high-efficiency systems.
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Maintain Your System – Proper maintenance can extend lifespan and reduce repair costs.
Recommended Systems
For homeowners looking for reliable, efficient, and eco-friendly heating and cooling, the Goodman 3-Ton 14.5 SEER2 R32 Bundle is an excellent option. It balances furnace and AC replacement cost, energy efficiency, and modern refrigerant standards for a comfortable home year-round.
Final Thoughts
So, how much does a new furnace cost? Depending on your home size, efficiency needs, and installation requirements, a standalone furnace replacement typically ranges from $3,500 to $7,500, while a full furnace and AC replacement ranges from $7,000 to $15,000.
While it’s a significant investment, the benefits—including energy savings, home comfort, improved air quality, and higher resale value—make it worthwhile.
Always consult with a licensed HVAC professional, get multiple estimates, and explore financing options. With proper planning, your new furnace and AC system will keep your home comfortable for years to come.
