A new furnace typically costs between $3,500 and $8,000 installed, with most mid-range replacements falling in the $4,500–$6,500 range. Heat pump systems run higher — typically $5,000–$14,000 installed depending on configuration. The variation comes down to efficiency rating, equipment type, brand, and what additional work (venting changes, ductwork modifications, electrical upgrades) is required.
“The installed price is only part of the equation. A $1,000 difference in equipment cost can be offset in three to five years by lower energy bills if the higher-cost unit is significantly more efficient. Always ask for the operating cost comparison, not just the installed price comparison.”
— Sandra Kim, HVAC system designer and mechanical engineering technologist with 14 years of experience in residential load calculation and system optimization in the local area
Table of Contents
Furnace Cost by Efficiency (your region, 2026)
| Efficiency | AFUE | Typical installed range |
|---|---|---|
| Standard efficiency (minimum) | 92–95% | $3,500 – $5,500 |
| High efficiency | 96–97% | $4,500 – $6,500 |
| Premium variable-speed | 97–98% | $6,000 – $9,000 |
Note: As of 2023, the federal minimum AFUE for new furnace installations is 92% in most regions.
Heat Pump System Costs (your region, 2026)
| System type | Typical installed range |
|---|---|
| Air-source heat pump (central, replacing AC only) | $4,500 – $8,000 |
| Air-source heat pump (full system, replacing furnace + AC) | $7,000 – $14,000 |
| Mini-split heat pump (single zone) | $3,000 – $6,000 |
| Mini-split heat pump (multi-zone, 3–4 zones) | $8,000 – $16,000 |
Heat pump costs vary significantly by brand, efficiency rating, and cold-climate rating. Significant rebates may be available — see below.
Air Conditioner Replacement Costs
| Type | Typical installed range |
|---|---|
| Central AC (standard efficiency) | $3,500 – $5,500 |
| Central AC (high efficiency, 18+ SEER2) | $5,000 – $8,000 |
What Drives the Price Up
Venting changes. Switching from a lower-efficiency to a high-efficiency furnace often requires new PVC venting rather than using the existing chimney flue — adding $300–$800.
Electrical upgrades. Heat pumps require a dedicated electrical circuit; older homes may need a panel upgrade.
Ductwork modifications. If existing ducts are undersized or poorly sealed, modifications add cost.
Gas line work. Relocating or resizing the gas line adds to the installation cost.
Humidifier or air purifier. If a whole-home humidifier or air purifier is being added alongside the new furnace, budget an additional $500–$1,500.
Available Rebates (your country, 2026)
The a national energy-efficiency rebate program and regional programs offer rebates on qualifying high-efficiency heat pumps. Rebates of $2,500–$6,500 or more are available for cold-climate heat pumps meeting efficiency thresholds. Ask your contractor which programs apply to your installation — some require a pre-installation energy audit.
Related Questions
- Questions to Ask an HVAC Contractor Before You Hire One
- Questions to Ask When Getting an HVAC Quote
- Questions to Ask an HVAC Contractor About Heat Pumps
- Repair vs Replace: How Do I Know If My HVAC System Needs to Be Replaced?
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