If you’re a homeowner, one of the questions that comes up most often is: “How much is a new furnace?” Replacing a furnace — especially alongside an air conditioner — is one of the bigger investments you’ll make for your home. It’s not just the furnace itself; the furnace and AC replacement cost depends on installation, efficiency, home size, and the type of system you choose.
I’m Mike Sanders, and I’ve spent over two decades working in HVAC. I’ve installed hundreds of furnaces and air conditioners, and I want to give you a clear, no-nonsense look at what affects furnace cost, what you should budget for, and how to get the most value out of your new heating system.
We’ll also touch on new furnace and air conditioner cost, so you have a full picture of the investment and why modern systems like the Goodman 3 Ton 14.5 SEER2 R-32 Bundle are worth considering.
🔍 Furnace Cost: What You’re Really Paying For
When homeowners ask “how much does a furnace cost?” they often focus only on the unit itself. But furnace cost includes several components:
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Equipment price – The furnace itself, which can range from basic models to high-efficiency systems.
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Installation cost – Labor, ductwork modifications, gas or electric connections, and permits.
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Efficiency rating – Measured in AFUE (Annual Fuel Utilization Efficiency); higher AFUE means higher upfront cost but lower long-term energy bills.
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Additional components – Thermostats, zoning, and filtration systems.
🏷 Average Cost to Replace a Furnace
According to HomeAdvisor, the average furnace replacement price in the U.S. ranges from $2,500 to $7,500 installed. The wide range depends on furnace size, efficiency, and complexity of the installation.
Here’s a breakdown:
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Standard-efficiency furnace (80% AFUE): $2,500–$4,000
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High-efficiency furnace (90–98% AFUE): $3,500–$7,500
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Gas vs. electric: Electric furnaces are generally less expensive upfront, but gas furnaces often cost less to operate.
For homeowners asking “how much does a new furnace and AC cost?”, combining both replacements can often save 10–20% compared to separate installations, thanks to reduced labor and bundled equipment pricing.
🛠 Factors That Affect Furnace Replacement Cost
Several key factors influence how much to replace a furnace:
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Furnace Size – Measured in BTUs. Oversizing a furnace can cause short-cycling, while undersizing leaves your home cold.
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Efficiency Rating (AFUE) – Higher efficiency units cost more but save energy and money long-term.
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Home Layout – Homes with multiple zones or complex ductwork require more labor.
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Ductwork Condition – Old or damaged ducts may need repair or replacement.
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Additional Features – Zoning systems, smart thermostats, or air filtration add to furnace and AC cost.
For a standard-sized home, most homeowners can expect a furnace replacement estimate in the $3,500–$6,500 range, including installation.
💰 How Much Does It Cost to Replace a Furnace and AC?
Replacing both your furnace and air conditioner simultaneously is usually the best approach. Here’s what a typical furnace and AC replacement cost looks like for a 2,000–2,500 sq. ft. home:
| Component | Equipment Cost | Installation Cost | Total Cost |
|---|---|---|---|
| Furnace (high-efficiency, 90–95% AFUE) | $3,000–$5,000 | $1,000–$2,500 | $4,000–$7,500 |
| 3 Ton AC (14.5 SEER2) | $3,000–$6,000 | $1,500–$3,500 | $4,500–$9,500 |
| Full Furnace + AC Replacement | $6,000–$11,000 | $2,500–$5,000 | $8,500–$16,000 |
If you’re looking for a reliable, efficient system at a reasonable cost, the Goodman 3 Ton 14.5 SEER2 R-32 Bundle is a strong option. It combines a modern, energy-efficient AC with a robust furnace to optimize comfort and reduce utility bills.
🔥 Factors That Impact Furnace and AC Replacement Cost
Understanding these factors can help you plan your budget:
1. Equipment Efficiency
High-efficiency furnaces can reach 95–98% AFUE, meaning nearly all fuel is converted into heat. While the price of a new furnace installed is higher, the energy savings over 10–15 years can be significant.
2. Fuel Type
Gas furnaces are more common in many areas and often cheaper to operate than electric models. Propane or oil furnaces can cost more both upfront and in fuel costs.
3. Home Size and Ductwork
Homes with existing ductwork in good condition save money. Installing new ductwork can add $1,500–$5,000 to the total furnace and AC replacement cost.
4. Installation Complexity
Some homes have difficult layouts, multiple levels, or restricted spaces that make furnace installation more labor-intensive. Labor can account for 25–40% of total replacement cost.
🏠 Average Cost to Replace a Furnace
If you’re asking “what’s the average cost to replace a furnace?”, here’s a snapshot of what homeowners pay:
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Small home (1,000–1,500 sq. ft.): $3,500–$5,500
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Medium home (1,500–2,500 sq. ft.): $4,500–$7,500
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Large home (2,500+ sq. ft.): $5,500–$9,500
Adding a matched AC system can bring the total new furnace and air conditioner cost to $8,000–$16,000, depending on efficiency and installation complexity.
For personalized cost estimates, Modernize offers a handy HVAC replacement calculator that accounts for home size, system type, and efficiency.
⚡ Furnace Replacement Estimate vs. Actual Cost
Homeowners often underestimate how much a furnace replacement costs. Here are the common misconceptions:
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“I only need the furnace” – Upgrading the AC at the same time can save money and improve overall efficiency.
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“Any 80% AFUE furnace will do” – Choosing a furnace too small or too low-efficiency increases long-term energy costs.
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“Installation is minor” – Professional installation ensures safety, efficiency, and warranty coverage.
According to This Old House, hiring a licensed professional is crucial. DIY or unlicensed work can void warranties and lead to safety risks.
💡 How to Reduce Furnace Replacement Costs
You can reduce furnace replacement cost without compromising performance:
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Use existing ductwork – Saves labor and materials.
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Bundle furnace and AC installation – Reduces total labor costs and ensures matched efficiency.
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Shop for energy-efficient mid-range systems – 14–16 SEER2 AC with 90–95% AFUE furnaces often deliver the best long-term value.
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Schedule in off-season months – Spring or fall installations can be cheaper than peak winter or summer months.
🌱 Modern Furnaces and Long-Term Value
Energy efficiency matters more than ever. Pairing a high-efficiency furnace with a modern R-32 air conditioner can reduce energy bills by 15–30% annually.
Other benefits include:
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Longer system lifespan – Less wear and tear from overworking inefficient units.
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Better comfort – More even heating and cooling, improved humidity control.
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Environmental compliance – R-32 refrigerant is cleaner and more efficient than older R-410A systems.
For comparison of efficiency ratings, check ENERGY STAR.
🔧 Cost to Install a Furnace
Installation cost varies depending on:
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Furnace size and efficiency
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Home layout and accessibility
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Labor rates in your area (national averages used here)
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Additional upgrades, like gas lines, electrical connections, or smart thermostats
For a 3–5 ton system in a standard home, expect $1,000–$2,500 for professional installation.
If you’re asking “how much does it cost to install a furnace and AC?”, combining installation with an AC replacement reduces labor costs and ensures optimal system performance.
✅ Furnace and AC Replacement: Is It Worth It?
Replacing an aging furnace and AC isn’t just about comfort — it’s about safety, efficiency, and long-term savings. Modern bundled systems like the Goodman 3 Ton 14.5 SEER2 R-32 Bundle offer:
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Reliable, proven performance
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Matched efficiency for furnace and AC
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Modern R-32 refrigerant for cleaner operation
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Competitive pricing compared to premium brands
Considering the total furnace and AC cost alongside energy savings, warranty coverage, and performance, investing in a new system now pays off for years to come.
Final Thoughts
If you’ve been asking “how much is a new furnace?” or “how much does a furnace and air conditioner cost?”, the key is understanding the full picture. Equipment cost, installation, efficiency, and home layout all factor into the total.
Bundled systems like the Goodman 3 Ton 14.5 SEER2 R-32 Bundle make replacing your furnace and AC simpler, more affordable, and more efficient.
Replacing your heating system now ensures comfort, safety, and energy savings for years to come.
