When we built our home in northern Indiana in 2023, I paid $6,200 for a 95% AFUE gas furnace. It wasn’t the cheapest option, but winters here don’t mess around.
Most furnace repairs fall between $150 and $800. Replacement costs run anywhere from $2,800 to $6,900. So which makes sense for your situation?
Look at how old your furnace is, what percentage of a new unit this repair represents, and whether you’re becoming a regular at your HVAC company due to frequent repairs.
All costs sourced from contractor estimates via Angi.
Table of Contents
How much does it cost to repair a furnace?
Furnace repair bills typically run $150 to $800. Complex repairs push past the upper end of that range.
Common furnace repairs and their costs
| Repair type | Cost range |
|---|---|
| Ignitor replacement | $150 – $250 |
| Flame sensor | $150 – $250 |
| Relay or limit switches | $150 – $300 |
| Transformer | $100 – $175 |
| Gas valve | $200 – $600 |
| Control board | $200 – $600 |
| Flue pipe | $400 – $800 |
| Burners | $150 – $450 |
| Heat exchanger | $500 – $1,500 |
| Draft inducer motor | $200 – $1,500 |
| Coils | $600 – $2,000+ |
The ignitor fails more than any other component. Catch it during business hours, and you’ll pay $150 to $250.
Call at 2 a.m. when the temperature drops below freezing, and that same repair jumps to $350 to $500.
During my 12 years working for an HVAC sensor manufacturer, I saw ignitor failure data come through constantly. These components take a beating from repeated heating cycles and eventually wear out.
What drives repair costs up or down?
- An older furnace creates headaches. Try finding parts for a 20-year-old unit. You’ll pay more and wait longer for shipping.
- Gas furnace repairs typically run cheaper than oil system repairs since parts show up faster at supply houses.
- Emergency service calls always cost more. If your furnace quits on a holiday weekend or during a cold snap, expect to pay double the normal rate.
- Trip fees run $75 to $150. That’s what you pay before the tech even diagnoses the problem.
How much does it cost to replace a furnace?
Most replacements cost around $4,800. Your bill depends on the type, size, brand, and several other factors.
Replacement costs by furnace type
| Furnace type | Total cost range | Average cost |
|---|---|---|
| Gas furnace | $3,800 – $10,000 | $7,000 |
| Electric furnace | $2,100 – $7,900 | $5,000 |
| Oil furnace | $2,500 – $10,000 | $5,000 |
| Propane furnace | $3,000 – $9,000 | $6,000 |
Gas
Gas furnaces dominate the market. Natural gas beats electricity and oil on cost almost everywhere in the U.S.
Electric
Electric furnaces make sense in Florida or Southern California, places where winter means wearing a light jacket.
Oil
The Northeast clings to oil heat in older neighborhoods where gas companies never ran lines.
Propane
Propane becomes the only real option out in rural areas.
For high-efficiency models rated above 96% AFUE, expect to spend an extra $1,000 to $3,000. Your utility bills drop once it’s installed, and you’ll eventually make that money back. It just takes a while in warmer climates.
From an engineering standpoint, modern two-stage systems with better sensors and controls deliver comfort that single-stage units can’t match. They maintain steadier temperatures instead of the old on-off blast pattern.
What you’re actually paying for
- Half to three-quarters of your money goes toward the equipment itself. A decent mid-range gas furnace costs $2,000 to $4,000.
- Then comes labor at $1,000 to $3,000. Your city or county wants $200 to $500 for permits.
- Ductwork modifications run $1,500 to $7,000, based on how extensive the changes need to be.
- New programmable thermostats cost $100 to $400.
- Removing your old furnace runs $50 to $500. Some recyclers take it for $50 and strip it for scrap.
Factors that increase replacement costs
Square footage
Your home’s square footage drives capacity requirements. Contractors calculate in the size you need in BTUs.
Climate
If you live in a cold climate, you need 50 to 60 BTUs per square foot. Warmer areas get by with 30 to 40 BTUs. Two-stage and modular systems carry higher price tags but save money on operation compared to single-stage models.
Ductwork
Your ductwork matters, too. Old ducts often need sealing, fresh insulation, or complete replacement before modern high-efficiency furnaces will work right.
Location of furnace
Location matters for labor. Basement installs go the fastest. Attic jobs take longer. Crawl spaces? Techs hate working in them and charge accordingly.
Repair vs. replacement: Which makes more financial sense?
Age and repair frequency tell you most of what you need to know about this decision.
When repair makes sense
- Most furnaces younger than 10 years old deserve a repair.
- Repairs costing less than 30% of a new unit make sense financially. One problem with an otherwise solid system doesn’t justify buying new equipment.
When replacement makes sense
- Your furnace is old: Furnaces older than 15 years tend to fail more frequently.
- It’s not cost-effective: Let’s say you get a repair quote of over 50% of the replacement cost. In that case, it is smarter to buy new equipment instead.
My neighbor paid $2,000 to fix his 17-year-old furnace in February. Come October, another problem cost him $1,800. He could’ve bought a new high-efficiency model for $6,500 and been done with it.
3. You’re spending a ton to heat your home. Old furnaces burn cash. Anything rated below 80% AFUE throws away 20 cents of every heating dollar. Today’s top units run at 95% to 98% efficiency.
Are your rooms heating unevenly? Do your bills seem to be creeping up for no reason? If so, it’s time to replace.
The $5,000 rule
Multiply your furnace’s age (in years) by the repair cost. When you get a number over $5,000, replacement makes more sense.
Take a 12-year-old furnace that needs a $600 repair…
12 x $600 = $7,200
That’s more than $5,000, so replacement wins. A seven-year-old furnace with the same $600 repair scores $4,200. It’s less than $5,000, so the repair makes sense.
How to save money on furnace repair or replacement
Good timing and smart shopping can save you serious money.
1. Get multiple quotes
Three estimates show you what’s reasonable. Watch out for HVAC contractors selling you equipment you don’t need or claiming an emergency when other companies see a simple fix. Check licenses and insurance before letting anyone near your furnace.
2. Time your replacement strategically
HVAC companies stay slammed when it’s cold and slow down come spring. Schedule your install for May or June, and you’ll save 10% to 20% off what you’d pay in the winter. Some furnace manufacturers offer rebates from $200 to $1,000, depending on when you buy.
Your utility company probably offers rebates, too. Federal tax credits cover qualifying equipment—you can get back 30% of what you spend, up to $600 annually. You need a furnace rated 97% AFUE or better to qualify, and this runs through 2032.
3. Consider mid-tier efficiency options
Getting the maximum efficiency doesn’t always make financial sense. The jump from a 95% to 98% AFUE model runs about $3,000 extra.
Your energy savings would be roughly $100 annually. That would take 30 years to break even on that investment.
Choose an efficiency level based on your climate and whether you’re staying put or moving in a few years.
4. Maintain your furnace to avoid costly repairs
Annual checkups cost $80 to $150 and catch problems before they become expensive.
Change your HVAC filters every three months if they’re 1 to 3 inches thick, biannually or annually for 5 to 6-inch filters (or earlier if visibly dirty).
I swap mine out myself and watch how air moves around the vents—I caught a few issues that way before they got worse. Don’t block your vents with furniture or boxes.
How to pay for furnace repair or replacement
You can use several financing options if you can’t cover the cost from savings.
Cash and savings
Paying cash means no interest, no monthly bills, and no credit checks to worry about. Some HVAC contractors provide cash discounts.
HVAC financing programs
Many contractors offer payment plans with 0% APR for six to 12 months. Read the terms carefully. These deals often use deferred interest structures. If you miss the payoff deadline by even one day, you’ll owe interest backdated to your purchase date, sometimes at rates exceeding 25%. Just be careful here, and make sure you understand the terms.
Home equity loans and lines of credit (HELOCs)
Homeowners with equity can borrow at rates far below those of credit cards or personal loans. You might get a tax deduction on the interest since it’s for home improvements. Spreading payments over five to 15 years keeps the monthly hit manageable, even when you’re spending $8,000 to $12,000. The trade-off? Your home serves as collateral.
Pro tip: We’ve evaluated home equity companies to help you find the best HELOCs. Our latest analysis reviewed 850 data points from 34 lenders and financial institutions, with 25 data points collected from each, and we think Figure is the best option for creditworthy borrowers. (Check out our list of the best home equity loans here.)
Personal loans
Personal loans don’t touch your home equity. You can get approved in a day, sometimes faster. Fixed rates and set terms make your monthly budget predictable. Interest rates depend heavily on your credit scores. Borrowers with excellent credit typically see rates ranging from 7% to 10%, while those with fair credit face rates of 15% to 25%.
Credit cards
Save credit cards for true emergencies when you need immediate repair and lack other options. High interest rates of 18% to 25% make this the most expensive financing choice. Some cards offer 0% introductory periods lasting 12 to 18 months, which works when you pay off the balance before regular rates kick in.
Is repair or replacement right for you?
Spending thousands on a new furnace can empty your savings, but sometimes it beats getting your old one repaired. Run the $5,000 rule calculation, and then look honestly at your furnace’s age and repair history.
- If you’re calling for fixes twice a year on a 16-year-old unit, stop wasting your money.
- Now, suppose you have a well-maintained eight-year-old furnace hitting its first real problem: That one’s worth fixing.
Get at least three quotes from local HVAC companies before making any decisions. Ask the techs what else looks worn out and likely to fail soon.
My background in HVAC taught me that when one major component fails, others operating under the same conditions often follow within months. Shopping for furnaces during my Indiana home build taught me something else: Spending more upfront on efficiency will pay off over 15 winters, plus our house is more comfortable for it. Your gut and the math should point in the same direction.
FAQ
How long does a furnace typically last?
Gas furnaces go 15 to 20 years when you maintain them properly. Electric models? Those can last 20 to 30 years since there are fewer moving parts to wear out.
Is a furnace repair or replacement tax-deductible?
Repairs won’t help you at tax time. Replacements do when you install high-efficiency equipment. The 2025 Inflation Reduction Act lets you claim 30% of your costs back, maxed at $600 annually, on furnaces rated 97% AFUE or higher. This lasts through 2032.
Should I repair or replace a 20-year-old furnace?
If you’re asking the question, you probably need to replace it. You’re pushing well past typical lifespan even when the repair seems minor. Other components will start failing soon. Modern furnaces surpass anything from 20 years ago: They offer better efficiency, break down less, and heat more evenly.
How much does a furnace inspection cost?
Inspections typically cost $80 to $150. HVAC companies often drop the fee when you book them for repairs. Call in early fall before heating season kicks in, and they’re drowning in emergency calls.
Can I install a furnace myself to save money?
No; you need licensed pros who know gas lines, electrical work, and building codes. Install it yourself, and you’ll void the warranty, risk carbon monoxide poisoning or fire, and break local laws.
How can I tell if my furnace needs to be replaced?
Weird noises (banging, rattling, squealing) that stick can around can signal trouble. Routine breakdowns, uneven heating, or your carbon monoxide detectors alarming are other signs you may need a new furnace. Consult with an HVAC company first for its recommendations.
Article sources
At LendEDU, our writers and editors rely on primary sources, such as government data and websites, industry reports and whitepapers, and interviews with experts and company representatives. We also reference reputable company websites and research from established publishers. This approach allows us to produce content that is accurate, unbiased, and supported by reliable evidence. Read more about our editorial standards.
- Angi, How Much Does Furnace Repair Cost? [2025 Data]
- Angi, How Much Does a New Furnace Cost in 2025?
- InterNACHI, Homeowner Maintenance: Changing the HVAC Filter
- Red Cross Alumni Network, Furnace Replacement: When and How Much?
- Touchstone Energy, Questions to Ask When Replacing Your HVAC
About our contributors
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Written by Jonathon JachuraJon Jachura is a home improvement enthusiast and engineer with more than a decade of experience in HVAC systems and hands-on home projects. He enjoys helping homeowners understand, plan, and budget for upgrades that make their homes more comfortable and efficient.
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Edited by Kristen Barrett, MATKristen Barrett is a managing editor at LendEDU. She lives in Cincinnati, Ohio, with her wife and their three senior rescue dogs. She has edited and written personal finance content since 2015.