Cost of a New Furnace Guide

When it comes to heating your home, natural gas furnaces are considered the most popular choice in the United States and Canada. But nailing down a precise price tag requires looking at the variables. According to HomeAdvisor, there is a rather wide range – on average, between $3,800-$12,000, including furnace installation costs.¹

On the low end, the actual cost of the furnace might be less than $3,800 but that doesn’t include any installation labor or other material costs. The high end reflects a premium, high-efficiency model and more complex installation. A project can exceed $12,000 when it requires extensive modifications such as new venting, ductwork, electrical work or other gas furnace installation materials. 

Of course, average costs don’t really tell the whole story. By itself, a new furnace can be an energy-efficient and cost-effective heating system. When installed along with an air conditioner and evaporator coil, it becomes the central part of a complete HVAC system.

For more information on the many types of Carrier furnaces available, check out our furnaces product page. To help you make an informed choice about the right model for your home, this article delves deeper into the details of what factors can affect gas furnace costs.

Furnace Cost Framework: What You'll Pay for a New Furnace

Carrier's furnace cost framework starts with four major factors: furnace type, efficiency, heating capacity and installation requirements. The following ranges provide general planning estimates rather than a quote for a specific home.

Gas furnace pricing in this table is based on the $3,800-$12,000 planning range used in this Carrier guide. Electric and oil ranges are based on current published cost data and can vary substantially by home, region and installation requirements.¹,² Carrier's current furnace lineup includes Comfort™, Performance™ and Infinity® models with AFUE ratings reaching up to 97%, 97% and 98.5%, respectively.

Cost To Replace Furnace and Furnace Price Variables

The cost to replace gas furnace units depends heavily on technology and labor. Pricing differs based on the unit's efficiency (AFUE), heating capacity (BTUs), and advanced comfort features. If you are replacing an existing furnace with a similar unit, installation costs will generally be lower. However, if your new furnace requires additional labor and materials to run new ductwork or venting, the gas furnace cost installed will increase.

For a deeper dive into replacement costs, check out our article on gas furnace replacement.

Types of Gas Furnaces Impact Pricing

While electric and oil furnaces exist, natural gas models are the most popular choice for their cost-effectiveness. The technology within the furnace significantly dictates the price point:

• Single-stage furnace: This is the most basic and affordable option. It operates at 100% capacity when on and turns off completely when the temperature is reached. While cost-effective upfront, you may experience wider temperature fluctuations.
• Two-stage furnace: A step up in comfort, two-stage furnaces operate at a lower, energy-saving capacity most of the time and kick into high gear only when necessary. This creates more consistent temperatures and better energy efficiency than single-stage models.
• Modulating furnace: The pinnacle of comfort and efficiency. These units adjust their heating output in tiny increments to maintain a precise temperature. While they have a higher initial gas furnace cost, they are often the most energy-efficient options available, offering potential long-term savings. learn more about modulating vs variable speed furnaces.

Clint Newsome, owner of Albany Air Conditioning and Heating Co. in Albany, Georgia, explains how furnace staging can affect both the upfront cost of a furnace and its potential energy use..

“Generally, as you move from single-stage to two-stage to modulating equipment, the upfront cost increases. However, the ability to operate at lower heating outputs can improve efficiency and lower monthly heating costs, depending on the system and how it's used.”

Energy Efficiency (AFUE)

Efficiency is a major driver of equipment cost. You can check to see how energy efficient a natural gas furnace is by checking its AFUE (Annual Fuel Utilization Efficiency) rating. Think of AFUE like the MPG of your car; a higher number means the unit converts more fuel into usable heat. Learn more about AFUE.

High-efficiency furnaces generally carry a higher price tag because of the advanced components used to capture more heat from the fuel. Carrier's current furnace lineup includes models with AFUE ratings up to 98.5% with the 59MN7 Infinity 98 Gas Furnace.

When comparing furnaces, remember that AFUE is only one part of the cost equation. A higher-efficiency furnace may have a higher purchase price, while local fuel prices, how often the system operates, home insulation and other factors affect potential operating-cost savings.

How Much Does a Furnace Cost by Home Size?

Furnace cost is influenced by the heating capacity required for your home, but square footage alone should not be used to determine furnace size. Climate, insulation, windows, ductwork and other characteristics of the home also affect heating load. A Carrier dealer can perform a load calculation to determine the appropriate furnace size.

For example, a 2,000-square-foot home and a 2,500-square-foot home may require different furnace capacities depending on location and construction. A larger home will not necessarily require a proportionally larger furnace, and installing an oversized furnace can lead to inefficient cycling and uneven comfort.

As a general planning framework, homeowners can use the overall $3,800-$12,000 installed gas-furnace range as a starting point rather than assigning a fixed furnace price to a specific square-footage category.¹

How Much Does an Electric Furnace Cost?

Carrier's furnace cost guidance puts a new electric furnace at approximately $2,000 or more for a system appropriate for a 1,500-square-foot home, while current installation-cost data shows electric furnace projects can reach approximately $8,100 depending on equipment size and installation requirements.² Electric furnace costs can increase when electrical upgrades, new circuits, permits or other modifications are required.

Electric furnaces use electric resistance heating elements rather than burning natural gas or oil. Although electric resistance heating converts essentially all of the electricity used at the heating element into heat, operating costs depend heavily on local electricity rates and how frequently the system runs.

How Much Does a Furnace and AC Combo Cost?

The cost of a new furnace and air conditioner installed together depends on the equipment selected, home size, efficiency ratings, ductwork and installation requirements. Because a furnace and central air conditioner share components such as the blower, indoor coil and ductwork, installing both at the same time may affect the overall project cost compared with replacing either component separately.

Carrier offers matched heating and cooling systems across its Comfort™, Performance™ and Infinity® product families. Your local Carrier dealer can provide a system quote based on your home's heating and cooling loads and the equipment selected.

Additional New Furnace Costs: Installation Breakdown

When calculating the total gas furnace installation cost, labor and materials play a huge role. Furnace installation requires licensed professionals to handle gas lines, electrical connections, and venting safely.

Here is a breakdown of potential installation variables:

• Labor: Expect typical labor costs to vary by location, installation complexity and contractor. A more complicated installation can require substantially more labor than a straightforward replacement.
• Permits/inspections: Local regulations vary, and permit requirements and fees depend on your location and the scope of the project.
• Furnace removal: Disposing of your old unit safely can add to the project cost.
• Ductwork: Modifications or replacement may be necessary if existing ductwork is damaged, improperly sized or incompatible with the new system.
• Venting: High-efficiency condensing furnaces may require different venting than an older furnace, which can add labor and material costs.
• Electrical or gas modifications: Changes to electrical connections, gas piping or other infrastructure can increase installation costs.

Because these costs vary so widely, a professional in-home assessment is the best way to determine the installed price for your specific furnace replacement.

For the most accurate assessment, we recommend contacting your local Carrier expert.

How Much Is A New Furnace? Choosing the Right Model

Selecting a furnace isn't just about the lowest sticker price; it's about investing in the right solution for your climate and comfort needs.

• Cold Climate: Higher-efficiency furnaces can reduce fuel consumption compared with lower-efficiency models, which may be particularly relevant in homes with long heating seasons. The potential savings depend on fuel prices, system usage and other factors.
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• Warm/Humid Climate: In areas with mild winters, a lower-cost furnace may meet your heating needs. However, a variable-speed furnace paired with a compatible air conditioner can provide additional airflow and humidity-control benefits.
• Home Size: The correct furnace size should be based on a heating-load calculation rather than square footage alone. A properly sized system can help provide consistent comfort and avoid problems associated with oversized or undersized equipment.
• Efficiency: Carrier offers gas furnaces ranging from standard-efficiency options to models reaching up to 98.5% AFUE.
• Rebates and Incentives: While high efficiency furnaces cost more upfront, utility rebates can help offset the investment.

The Bottom Line on New Furnace Cost

A new furnace can cost anywhere from a few thousand dollars to more than $12,000 depending on the fuel type, efficiency, size, equipment features and installation requirements. For a gas furnace, Carrier's current cost guide uses $3,800-$12,000 as a general installed-cost planning range.¹ The most accurate price for your home will come from a local Carrier dealer after evaluating your home's heating needs and the requirements of the installation.