How long does a furnace last?

Most furnaces last 15-20 years with regular maintenance. Oil furnaces and heavily-used systems in cold climates may need replacement closer to the 15-year mark, while well-maintained gas furnaces in milder climates sometimes exceed 20 years.

Is a high-efficiency furnace worth the extra cost?

It depends on your climate and how long you plan to stay in the home. In cold climates with long heating seasons, the $200-$400 annual savings from a high-efficiency unit can offset the roughly 30% price premium within 5-10 years. In mild climates, the payback period is much longer.

Can I switch from oil to gas heating?

Yes, if gas service is available at your property, but budget for the gas line installation and oil tank removal on top of the furnace cost itself. A licensed HVAC contractor can assess feasibility and provide a full conversion quote.

What size furnace do I need?

Furnace size (BTU output) should be based on a Manual J load calculation that accounts for your home's square footage, insulation, window count, and local climate — not square footage alone. An oversized furnace cycles inefficiently; an undersized one struggles to keep up in cold weather.

Furnace Replacement Cost: Gas vs Electric vs Oil

Prices updated July 19, 2026

HomeRepairPrice Editorial Team

A new furnace installed costs $1,500 to $11,200 in 2026, with the fuel type driving most of the spread: electric furnaces are the cheapest to install, gas furnaces sit in the middle and are the most common choice, and oil furnaces cost the most upfront.

Cost by fuel type

2026 installed cost by furnace type

Item	Installed Cost	Typical Annual Operating Cost
Electric furnace	$1,500 – $6,500	$900 – $2,000
Gas furnace (standard efficiency)	$2,500 – $6,300	$500 – $1,200
Gas furnace (high-efficiency, 96%+ AFUE)	Standard cost + ~30%	$200 – $400 less than standard
Oil furnace	$6,000 – $12,500	Varies with oil market prices

Upfront cost vs. operating cost

Electric furnaces are roughly 40% cheaper to install than gas, but gas furnace owners typically spend less annually on heating — $500-$1,200 per year versus $900-$2,000 for electric. That gap means a gas furnace can pay back its higher install cost within a few heating seasons in colder climates, while electric can still make sense in mild climates or all-electric homes without existing gas service.

High-efficiency gas furnaces (96%+ AFUE) cost roughly 30% more upfront than standard-efficiency models but save $200-$400 per year on heating bills — worth the premium if you're planning to stay in the home long enough to recoup it.

Should you switch fuel types?

Switching from oil or electric to gas (or vice versa) adds cost beyond the furnace itself — a new gas line, tank removal, or electrical panel work, for example. If you're weighing an all-electric heat pump instead of a fuel-based furnace, see Heat Pump vs Furnace Cost: 10-Year Comparison for the full cost and rebate picture.

For the AC half of a full system replacement, see How Much Does It Cost to Replace an AC Unit?, or see the full HVAC system guide for how furnace and AC costs combine.

Prices on this page are researched ranges compiled from multiple public contractor-pricing sources, not quotes from us or a guarantee of what you will pay. Actual costs vary by region, material choice, and job complexity — always get itemized quotes from licensed local contractors before committing to a project. See How We Price for our sourcing methodology.

Frequently Asked Questions

How long does a furnace last?: Most furnaces last 15-20 years with regular maintenance. Oil furnaces and heavily-used systems in cold climates may need replacement closer to the 15-year mark, while well-maintained gas furnaces in milder climates sometimes exceed 20 years.
Is a high-efficiency furnace worth the extra cost?: It depends on your climate and how long you plan to stay in the home. In cold climates with long heating seasons, the $200-$400 annual savings from a high-efficiency unit can offset the roughly 30% price premium within 5-10 years. In mild climates, the payback period is much longer.
Can I switch from oil to gas heating?: Yes, if gas service is available at your property, but budget for the gas line installation and oil tank removal on top of the furnace cost itself. A licensed HVAC contractor can assess feasibility and provide a full conversion quote.
What size furnace do I need?: Furnace size (BTU output) should be based on a Manual J load calculation that accounts for your home's square footage, insulation, window count, and local climate — not square footage alone. An oversized furnace cycles inefficiently; an undersized one struggles to keep up in cold weather.

HomeRepairPrice Editorial Team

Our editorial team researches and cross-checks every price range against multiple contractor-facing sources (see our How We Price methodology) before publication. We are not a contracting company and do not sell leads, materials, or services.

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