What a new furnace costs, installed.
Updated October 12, 2026
Published figures put a standard-efficiency furnace at roughly $3,500 to $7,500 installed, and a high-efficiency unit as high as $11,500. Home size drives it more than anything else.
By home size
Standard installations, equipment and labour together.
| Home size | Installed cost |
|---|---|
| 1,000 – 1,500 sq ft | $2,000 – $4,500 |
| 1,500 – 2,500 sq ft | $3,000 – $6,500 |
| 2,500 – 3,500 sq ft | $4,000 – $9,500 |
| 3,500+ sq ft | $5,500 – $10,000+ |
By fuel and efficiency
High-efficiency units cost more up front and less to run. Whether that trade works out depends on how long you plan to stay and what you pay for fuel.
| Type | Installed cost |
|---|---|
| Electric | $2,500 – $7,000+ |
| Gas | $3,000 – $10,000+ |
| Oil | $4,000 – $10,000+ |
| Standard efficiency (80–89% AFUE) | $3,500 – $7,500+ |
| High efficiency (90–98% AFUE) | $3,800 – $11,500+ |
Repair or replace
A furnace past about fifteen years, facing a repair worth a large share of a new unit, is usually worth replacing rather than patching. A newer furnace with one failed part almost never is.
The exception that overrides the arithmetic is a cracked heat exchanger. That is a carbon monoxide risk, not a comfort problem, and it ends the conversation about repair.
Where quotes go wrong
The commonest problem is not price, it is sizing. An oversized furnace short-cycles, wears out early and heats unevenly, and it is a frequent shortcut. A contractor should be measuring your house and doing a load calculation, not sizing the new unit off the label on the old one.
Ask what else is included: removing the old unit, any ducting or venting changes, the thermostat, the permit and inspection. Those are the lines that differ between two quotes that look the same.
An honest note on these numbers
These are national published figures, not New Jersey-specific, and not a quote. Treat them as a sanity check on what you have been handed rather than a target.
When contractors in our network give us real South Jersey numbers, they will replace these.
Where these figures come from
Every number on this page comes from a published cost guide, listed below with its scope and date. None of it is a quote, and none of it is our own data — when it is, we will say so.
- HomeGuide — New Furnace Replacement Cost
National figures, written December 2025, labelled 2026 pricing
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General information for New Jersey homeowners, not a substitute for an inspection by a licensed contractor. Jersey Home Pros does not perform, supervise or guarantee any work.