The U.S. Department of Energy (DOE) published gas furnace cost estimates in its December 18, 2023 furnace rule. It also published them in its September 2023 technical support document. The figures are averages from DOE's life-cycle cost model, in 2022 dollars. They are federal modeling inputs, not 2026 quotes. We did not adjust them for inflation. A 2023 study was prepared for the U.S. Energy Information Administration (EIA). It gives separate figures in 2022 dollars. We show them in their own table below.
What DOE counts in a furnace's installed cost
DOE defines life-cycle cost as "total installed cost (manufacturer selling price, distribution chain markups, sales tax, and installation costs) plus operating costs (expenses for energy use, maintenance, and repair)." It says installation cost "includes all labor, overhead, and any materials costs associated with the replacement of an existing furnace or the installation of a furnace in a new home, as well as delivery of the new furnace, removal of the existing furnace, and any applicable permit fees."
DOE furnace cost by efficiency level
DOE's tables cover non-weatherized gas furnaces (NWGFs) at five efficiency levels. The consumer price column shows DOE's average price before installation. It is for furnaces bought in 2029.
| AFUE | Consumer price, 2029 (2022$) | Installation cost (2022$) | Total installed cost (2022$) | Total vs. 80% AFUE (2022$) |
|---|---|---|---|---|
| 80% | $1,044 | $2,527 | $3,571 | — |
| 90% | $1,212 | $2,745 | $3,957 | $387 |
| 92% | $1,223 | $2,745 | $3,968 | $398 |
| 95% | $1,239 | $2,745 | $3,984 | $413 |
| 98% | $1,453 | $2,745 | $4,198 | $627 |
Source: DOE technical support document (September 2023), Tables 8.2.9, 8.2.12 and 8.2.13. Model averages in 2022 dollars. The "vs. 80%" column is DOE's own incremental cost.
DOE average total installed cost, non-weatherized gas furnace, by AFUE (2022 dollars)
- 80% AFUE (2022$)$3,571
- 90% AFUE (2022$)$3,957
- 92% AFUE (2022$)$3,968
- 95% AFUE (2022$)$3,984
- 98% AFUE (2022$)$4,198
DOE's notes on these results say they "do not include the impact of product switching." In DOE's life-cycle cost results, the average lifetime for these furnaces is 21.5 years.
Why condensing furnaces cost more to install
DOE "assumed that condensing furnaces that replace non-condensing furnaces do not utilize the existing venting system," and that they "instead require new, dedicated plastic venting that meets all applicable building codes and manufacturer instructions." Its support document lists the cost of each extra item when a furnace is replaced.
| Item (NWGF replacement installs) | Share of installs affected | Average cost (2022$) |
|---|---|---|
| Non-condensing: updating vent connector | 23% | $328 |
| Non-condensing: updating flue vent | 8% | $990 |
| Condensing: new flue venting (PVC) | 100% | $308 |
| Condensing: combustion air venting (PVC) | 62% | $324 |
| Condensing: concealing vent pipes | 5% | $603 |
| Condensing: orphaned water heater | 7% | $806 |
| Condensing: condensate removal | 100% | $92 |
| Condensing: multi-family adder | 2% | $241 |
Source: DOE technical support document (September 2023), Table 8.2.10. Model averages in 2022 dollars.
The final rule says that "on average for replacement installations, the incremental installation cost is $490 for condensing NWGFs relative to non-condensing NWGFs." The figure comes from DOE's analysis in 2022 dollars. Before these items, DOE's basic cost to install a replacement furnace is $669 nationally, in 2022 dollars. It is $748 in the North and $583 in the rest of the country.
DOE also warns against reading too much into online prices. It says "the vast majority of consumer furnaces are sold through a distribution channel involving a contractor, not via a retail outlet." For that reason, DOE says, "prices seen on a website are unlikely to be representative of typical prices ultimately paid for by consumers."
DOE's material and labor cost factors by state
DOE's support document lists material and labor cost factors for each state (Table 8D.4.3). They are based on RSMeans data. Below are DOE's index values for the states in our five markets. They are not dollar amounts. We have not turned them into dollar estimates.
| State | Plumbing/HVAC material | Plumbing/HVAC labor | Electrical material | Electrical labor | Weighted average material | Weighted average labor |
|---|---|---|---|---|---|---|
| Arizona | 1.00 | 0.76 | 0.99 | 0.63 | 0.99 | 0.73 |
| Washington | 1.00 | 1.10 | 1.00 | 1.09 | 1.03 | 1.03 |
| Texas | 0.99 | 0.59 | 0.97 | 0.57 | 0.98 | 0.64 |
| Florida | 0.99 | 0.62 | 0.97 | 0.63 | 1.00 | 0.67 |
| Ohio | 1.00 | 0.86 | 0.99 | 0.82 | 0.96 | 0.85 |
Source: DOE technical support document (September 2023), Table 8D.4.3.
EIA's 2022-dollar furnace estimates
The EIA study says, "All costs are shown in 2022 dollars (2022$)." Its gas furnace table for the North covers an 80 kBtu/h furnace. EIA says "the values in the table use only non-weatherized data."
| EIA level (2022) | AFUE | Retail equipment (2022$) | Total installed (2022$) |
|---|---|---|---|
| Current standard | 80% | $1,080 | $3,690 |
| Typical | 90% | $1,200 | $4,130 |
| ENERGY STAR (North) v4.1 | 95% | $1,220 | $4,150 |
| High | 99% | $1,390 | $4,320 |
Source: EIA, Updated Buildings Sector Appliance and Equipment Costs and Efficiencies, Appendix A (March 2023). Estimates in 2022 dollars, not 2026 prices.
EIA's notes say, "Electric consumption and cost values for 2022 and beyond are for a national sample and use the Residential Furnaces EERE 2022 NOPR Life-Cycle-Cost (LCC) spreadsheet." The spreadsheet comes from DOE's 2022 proposed rule. We keep the EIA and DOE tables separate.
DOE's 2026 review of the furnace standard
In a notice to its rulemaking docket dated June 30, 2026, DOE wrote, "DOE is currently reconsidering the energy conservation standards for commercial water heaters and residential furnaces." It added, "DOE anticipates publishing a proposed rule this fall." As of October 2026, we found no such proposed rule in the Federal Register.
On July 7, 2026, DOE published a request for information (91 FR 41578). It said DOE "requests comment regarding the assumptions, models, and methodologies that DOE uses in setting energy conservation standards for covered products and equipment." The request is about DOE's methods in general. It is not about furnaces alone. Our furnace guide covers the standard and its compliance dates.
Producer prices for heating and cooling equipment
The U.S. Bureau of Labor Statistics (BLS) publishes a producer price index for air-conditioning, refrigeration and forced air heating equipment manufacturing. Its series number is PCU333415333415. The index was 313.036 in January 2026 and 324.820 in August 2026. BLS marks May through August as preliminary. BLS says its Producer Price Index measures "the average change over time in the selling prices received by domestic producers for their output." It does not measure what a homeowner pays for an installed furnace. We found no producer price index for furnaces alone. Our 2026 price guide covers this index.
Furnace cost data we could not find
DOE reports national, North and rest-of-country averages, not prices for cities. Its state factors are indexes, not prices. For this guide, we did not check utility pages in our five markets for installed furnace costs.
To compare heating options, see our guides to heat pump costs, ductwork costs and repair costs. You can also try the heat pump vs. furnace calculator. For Ohio, see our guide to choosing a heat pump or gas furnace in Ohio.
For an overview of all our cost guides, see what federal sources say about HVAC replacement costs.