How Much Does a New Gas Furnace Cost?

When it comes to heating your home, natural gas furnaces remain the most popular choice in the United States due to their cost-effectiveness and reliability. According to HomeAdvisor, the $3,800 to $12,000 range includes typical high-efficiency furnace installations, although actual costs vary based on equipment, home size, climate, installation requirements and local labor rates.. On the low end, a basic furnace might cost less than $3,800 before factoring in labor or materials. Conversely, a premium, high-efficiency furnace could exceed $12,000 if your home requires new ductwork, advanced venting, and extensive labor.

Of course, upfront costs are only part of the story. A new gas furnace is a long-term investment in your home’s comfort. When installed alongside an air conditioner and evaporator coil, it serves as the heart of a comprehensive, advanced HVAC system designed to lower your monthly energy bills and improve indoor air quality.

New Gas Furnace Cost: Carrier Pricing Guide

Carrier's new gas furnace cost range is approximately $3,800 to $12,000 installed. The exact price depends on the furnace model, heating capacity, efficiency, installation requirements and local labor costs.

This Carrier furnace pricing matrix is intended to show relative equipment positioning, not a guaranteed installed price. Installation quotes can vary substantially by home, region and project requirements. The Comfort 96 59SC6 uses a single-stage gas valve, the Performance 97 59TP7 uses two-stage heating, and the Infinity 98 59MN7 uses modulating technology.

Cost To Replace Furnace and Furnace Price Variables

The total cost to replace a gas furnace depends on the unit's energy efficiency (AFUE rating), its heating capacity, the type of blower technology, and the complexity of the installation process. Replacing an existing furnace with a similar model is generally more affordable than upgrading to a complex system requiring new ductwork.

Types of Gas Furnaces

Natural gas models are categorized by their heating output stages. Choosing the right stage impacts both upfront price and long-term comfort:

• Single-stage furnaces: These operate at 100% capacity when turned on and then turn off entirely. They are the most affordable option upfront but may result in wider indoor temperature fluctuations.
• Two-stage furnaces: Operating at either a reduced output (low stage) or full capacity (high stage), two-stage furnaces smooth out temperature swings. They run on the energy-saving low stage most of the time, adjusting to high only when necessary.
• Modulating furnaces: These systems feature multiple heating stages, precisely adjusting output to maintain consistent temperatures and quiet operation. While they are the most expensive natural gas models, modulating furnaces provide unparalleled energy efficiency and comfort. For example, Carrier's Infinity® 98 59MN7 can modulate its heating output in small increments and reaches up to 98.5% AFUE.

According to Daniel Donahue, general manager of Mullen Refrigeration Service in Latrobe, Pennsylvania, advanced technology features can affect pricing.

“The type of furnace matters a lot,” he explained. “Homeowners can choose from basic single-stage systems or more advanced modulating, variable-speed furnaces that offer greater comfort and efficiency, but at a higher upfront cost.”

Energy Efficiency (AFUE Rating)

You can determine a furnace's energy efficiency by its Annual Fuel Utilization Efficiency (AFUE) rating, which measures the percentage of fuel converted into usable heat. High-efficiency furnaces carry a higher initial price tag due to their advanced technology, but they help reduce energy waste and lower monthly heating bills.

Donahue added that furnace efficiency ratings can also significantly impact upfront installation costs.

“Modern furnaces can range from around 80% efficiency up to 98% efficiency,” he said. “Higher-efficiency systems typically cost more initially, but they can help reduce monthly heating costs over time through lower gas consumption.”

System Size

Donahue added the furnace's size plays a large part in its cost. 

“One of the biggest factors is the size of the furnace and how much heating capacity, or BTUs, the home requires,” Donahue said. “The home’s square footage, overall heat loss, insulation levels, and local climate all play a role in determining the proper furnace size.”

Learn more about calculating furnace size.

New Gas Furnace Cost by Home Size and Region

Furnace prices vary by region because installation labor, permit requirements, climate and the amount of heating capacity a home needs can differ substantially. Home size also affects the furnace's required BTU capacity. A professional load calculation should be used to determine the correct furnace size rather than selecting equipment based solely on square footage.

As a general planning guide, smaller homes typically require less heating capacity and may have lower equipment and installation costs, while larger homes may require higher-capacity equipment and more extensive installation work. Homes in colder climates may also require greater heating capacity than similarly sized homes in milder climates.

For an actual new gas furnace cost, a local Carrier dealer can evaluate the home's insulation, windows, ductwork, climate, existing equipment and heating load before recommending a properly sized system.

Additional New Gas Furnace Costs

Professional gas furnace installation generally involves $50 to $100 per hour in labor rates,² alongside potential costs for permits, old unit removal, and ductwork modifications. These figures are estimates and can vary considerably by location and project. Gas furnace installation is not a DIY project; it requires licensed professionals to safely manage electrical connections, gas lines, and venting.

When budgeting for installation, consider these typical cost ranges:

• Labor: Licensed technicians typically charge $50 to $100 per hour.² Depending on complexity, a full installation takes between 10 and 15 hours.
• Permits and Inspections: Local regulations vary, but required building permits generally cost between $400 and $1,500.²
• Furnace Removal: Safely removing and disposing of your old furnace costs between $60 and $500.²
• Ductwork: Simple duct modifications can cost up to $1,000, while installing a completely new duct system can reach up to $7,000.²

To get the most accurate estimate for your home, contact a local Carrier expert for a comprehensive evaluation.

How Much Is A New Furnace? Choose the Right Natural Gas Furnace for Your Budget

The best gas furnace for your budget balances initial costs with your local climate, desired energy savings, and long-term home comfort goals.

• Cold Climates: If you live in a region with long, harsh winters, a highly efficient, multi-stage, variable-speed furnace may provide greater comfort and efficiency, depending on your home's heating requirements and installation conditions.
• Warm or Humid Climates: In milder areas, a standard-efficiency, single-stage model may suffice. However, if humidity is an issue, a variable-speed fan can help control moisture levels when paired with your central air conditioner.
• Energy Savings and Rebates: High-efficiency furnaces cost more upfront but unlock long-term utility savings. Depending on where you live, local utility, state or manufacturer rebates, may also reduce the upfront cost.

Gas Furnace Tax Credits and Rebates

Federal tax credits for qualifying gas furnaces changed after 2025. For equipment purchased and installed during 2025, the Energy Efficient Home Improvement Credit (25C) could provide a credit of 30% of qualifying project costs, up to $600 for an eligible natural gas, propane or oil furnace. Eligible gas furnaces generally needed to meet the applicable efficiency requirements, including ENERGY STAR certification and the required AFUE threshold.

The federal 25C credit for these furnace purchases was available through December 31, 2025. Homeowners should check current IRS guidance and local utility programs before assuming a tax credit or rebate is available for a new furnace.

For additional savings, check your local utility and state rebate programs. Available incentives can vary by location, furnace efficiency and installation date.

What is the Yearly Cost of Running a Gas Furnace?

The annual cost of running a gas furnace typically ranges from $400 to $700 in fuel, plus $80 to $170 for routine maintenance. Actual operating costs vary based on local natural gas rates, furnace efficiency, climate, home size, thermostat settings and how much the system runs.

Over its 15+ year lifespan, a furnace requires ongoing care. General gas furnace repairs average between $100 and $600, depending on the furnace parts and labor required. Scheduling annual furnace maintenance ensures peak efficiency and protects your investment.