What is the cost difference between 80% and 90% AFUE furnaces?

90% AFUE (condensing) furnaces usually cost $800–$2,000 more than 80% models but save on fuel. In cold climates, the payback can be 5–10 years. 95%+ AFUE adds more upfront cost.

How long does furnace installation take?

Replacement typically takes 4–8 hours (one day). New installation or complex venting can take 1–2 days.

Do I need to replace my furnace and AC together?

Not required, but replacing both as a matched system improves efficiency and often gives a better total price. If one is near end of life, consider both.

What is included in a furnace installation quote?

Typically: removal of old furnace, new furnace, venting (chimney or PVC), gas or electrical connections, thermostat, permits, and testing. Duct modifications are sometimes extra.

Are gas or electric furnaces cheaper to install?

Electric furnaces are usually cheaper to install ($3,000–$6,000) but can cost more to operate where electricity is expensive. Gas furnaces have higher upfront cost but lower operating cost in many areas.

How long does a new furnace last?

Well-maintained gas furnaces often last 15–20 years; electric 15–25 years. Annual maintenance extends life.

Does furnace installation require permits?

Yes, in most areas. Gas and electrical work require permits and inspections. Your contractor typically pulls permits.

What size furnace do I need?

Sizing is based on heat load (BTU), not just square footage. Oversized furnaces short-cycle; undersized struggle in cold weather. A contractor can perform a load calculation.

What affects furnace installation cost the most?

Home size (capacity), fuel type, AFUE, labor rates, venting requirements (chimney vs direct vent), and whether ductwork changes are needed.

Are there rebates for high-efficiency furnaces?

Many utilities offer rebates for 90%+ AFUE gas furnaces or ENERGY STAR units. Check your utility and state programs.

Should I get multiple furnace quotes?

Yes. Get 2–3 written quotes from licensed HVAC contractors. Compare equipment, labor, warranty, and scope.

When is the best time to replace a furnace?

Fall or spring often have better availability. Don’t wait until winter failure; emergency replacements can cost more.

What warranty comes with a new furnace?

Manufacturers typically offer 10–20 years on heat exchangers and limited parts. Labor warranties from installers (1–2 years) vary.

How much does a gas furnace cost for a 2,000 sq ft house?

For 2,000 sq ft, gas furnace replacement often runs $4,500–$8,000 (80–90% AFUE). High-efficiency (95%+) can be $6,000–$10,000.

Can I switch from oil to gas furnace?

Yes, if gas is available. You’ll need a new furnace, gas line, and removal of oil tank. Cost is higher than a like-for-like replacement but can pay off in operating savings.

Furnace Installation Cost Calculator

Estimate furnace installation cost by home size, fuel type (gas, electric, oil), efficiency (AFUE), and location. Get low, average, and high estimates below.

How much does furnace installation cost?

Furnace installation typically costs $3,500–$10,000+ depending on home size, fuel type, and AFUE. Gas furnace replacement for a 2,000 sq ft home often runs $4,500–$8,000. Get 2–3 local quotes.

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How to read this estimate

These figures are based on national average material and labor costs adjusted for the options you selected. Actual pricing varies with your local market, site conditions, material availability and contractor workload. Always get two or three written quotes before committing to a project.

Average Furnace Installation Cost

Cost by fuel type

2,000 sq ft, 80% AFUE

Fuel	Est. total
Natural gas	$4,500–$8,000
Electric	$3,500–$6,500
Oil	$5,000–$9,000

Cost by efficiency (gas)

2,000 sq ft

AFUE	Est. total
80%	$4,000–$7,000
90%	$5,500–$9,000
95%+	$6,500–$11,000

What Affects Furnace Installation Cost?

Home size — Drives BTU capacity and equipment cost.
Fuel type — Gas and oil usually cost more to install than electric.
AFUE — Higher efficiency adds 20–50% to equipment cost.
Venting — Direct-vent (PVC) vs chimney affects labor and materials.
Location — Labor and permits vary.

Data from contractor quotes

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Furnace Installation Cost FAQs

Common questions about furnace cost, gas vs electric, AFUE, and sizing.

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Disclaimer: Estimates are for planning only. Actual costs depend on your home, fuel, equipment, and location. Get 2–3 written quotes.