A new furnace costs $2,800 to $7,500 installed in national 2026 guides, with a $4,800 average. A 95% AFUE unit, new venting or ductwork pushes your quote higher. We install furnaces in Eugene, Springfield and Salem, and we quote in writing. Eugene and Lane County homes reach us at (541) 461-2101, and Salem and Marion County homes reach our Salem office at (503) 581-9982.
How much does a new furnace cost installed?
Most new furnaces cost $2,800 to $7,500 installed in 2026, with a $4,800 average, according to Fixr’s January 2026 guide.
This Old House’s April 2026 guide shows a wider spread of $1,600 to $10,000 around nearly the same average. Fuel and efficiency move your number more than any other choice. The table splits them out. We quote gas and electric furnaces for Eugene, Springfield, Salem and Keizer homes, and we explain the scope on our furnace installation and replacement page.
| Furnace (installed unless noted) | Price range | Source |
|---|---|---|
| Gas, 80% to 92% AFUE, single-stage | $2,500 to $4,500 | PickHVAC, Sep 2025 |
| Gas, 95% AFUE, two-stage | $3,500 to $6,500 | PickHVAC, Sep 2025 |
| Gas, 96% to 98% AFUE, modulating | $4,500 to $9,000 | PickHVAC, Sep 2025 |
| Gas, all efficiencies | $3,800 to $10,000 | HomeAdvisor figures via This Old House, Apr 2026 |
| Electric | $1,800 to $7,300 | Fixr, Jan 2026 |
These are national guides. Each one assumes a different house, region and crew. Use them to sanity-check a quote, not to set your budget. We never guess. We inspect your furnace, ducts and venting before we quote, and the quote we hand you is firm and in writing. Efficiency rating moves the table most, and it does so through the venting.
Why does a 95% AFUE furnace cost more to install than an 80% furnace?
A 95% AFUE furnace costs more because it vents through PVC pipe and needs a condensate drain, while an 80% furnace uses a metal flue. Different pipe means different labor.
An 80% AFUE furnace sends hot exhaust up a metal flue or chimney. Simple. A 95% AFUE furnace pulls so much heat out of that exhaust that the water vapor condenses, and that water has to drain somewhere, which is why, when we install one, we run PVC pipe out of the house and pipe the condensate to a drain. That’s a new route and a drain line, and your quote shows the labor. It’s real work.
PickHVAC puts PVC venting changes at $300 to $1,500 and a condensate pump or drain at $150 to $500, and if you keep an 80% unit in a masonry chimney, you may pay $500 to $2,000 for a liner instead. Ask which applies. Modulating furnaces sit at the top of the table. They adjust flame in small steps. We install Ruud equipment, and Rheem in the Salem area too.
The venting is only one line of the job. Where does the rest of the add-on money go?
What else adds to a furnace installation quote?
Venting, gas lines, ductwork, electrical work, the thermostat, the permit and removal of the old furnace all add to a furnace installation quote.
Location matters. A furnace in a hallway closet slides out easily, while one wedged into a crawlspace or attic takes far more labor to remove and to set. The ducts in those same spaces sit outside the heated part of your house, so any leak there wastes heat you just paid for. That’s money. We look first. We inspect the ducts at the furnace and we check the gas line before we quote either one. Both matter. We seal leaky ducts, and we replace the ones that have failed.
| Add-on | Price range | Source |
|---|---|---|
| Venting changes (PVC, condensate, liner) | $300 to $1,500 | PickHVAC, Sep 2025 |
| Gas line adjustment | $200 to $800 | PickHVAC, Sep 2025 |
| New fuel line | $9 to $27 per linear foot | Fixr, Jan 2026 |
| Duct sealing or repair | $1,000 to $4,000 | PickHVAC, Sep 2025 |
| Full duct replacement | $5,000 to $12,000 | PickHVAC, Sep 2025 |
| Thermostat | $150 to $750 | PickHVAC, Sep 2025 |
| Permit and inspection | $75 to $600 | PickHVAC, Sep 2025 |
| Old furnace removal | $150 to $400 | PickHVAC, Sep 2025 |
| 240-volt outlet for an electric furnace | $175 to $500 | Fixr, Jan 2026 |
Fixr prices the permit at $50 to $1,500 and removal at $50 to $330, so local fees and haul-away practice swing those rows. Expect variation. Size is the other lever, and it’s the one most often guessed. The ACCA’s Manual J load calculation sets the BTU rating from your walls, windows and insulation, not from the old furnace’s label. We recommend you ask any contractor, us included, for the Manual J numbers behind the furnace size on your quote. Get them.
Add-ons raise the price of replacing. When does paying for a repair make more sense than any of it?
Should I repair or replace my furnace?
Repair your furnace when the fix costs less than half the price of a new one, and replace it when the repair bill passes that line on an older unit. Age counts.
The U.S. Department of Energy’s Building America guide sets the line: when a repair costs more than half the price of replacement, replace. Fixr’s $4,800 average puts that line at about $2,400. Some cost guides use a stricter 30 percent line for older units, so a repair near that mark on a 15 year old furnace deserves a second look. Age moves the decision too. We test each part we suspect before we replace it. Energy Trust rates furnaces 15 years or older at 56% to 70% efficiency. An old furnace costs you more to heat with, even before it breaks, and that adds up every winter.
Our technicians diagnose the furnace first. We quote the repair in writing so you see the repair number before you weigh it against a new furnace, and we replace the furnace only when that math favors it. Simple. How long a furnace lasts covers the age and warning signs in more detail. If a replacement wins, the efficiency tier is the next choice, and it has a local price tag.
Is a 95% AFUE furnace worth the extra cost in Lane County?
A 95% AFUE furnace pays back slowly on Lane County gas bills, roughly 8 to 15 years on the numbers we can source. Long wait.
National guides quote national savings. We run the local number. Oregon DOE’s county profile shows the average Lane County home using natural gas burns 663 therms for $777 a year. A 96% furnace uses 17% less gas than an 80% one for the same heat. Applied to $777, that saves about $130 a year. At most.
The price gap between the two PickHVAC tiers is $1,000 to $2,000, which stretches payback to about 8 to 15 years. Slow. But a furnace 15 years or older loses more heat than that comparison suggests, so replacing an old one saves more than swapping between tiers.
Our call: 95% AFUE when you qualify for the $1,600 rebate below, when you already run PVC vent pipe, or when you want two-stage heat. Otherwise the same money does more work in duct sealing. We seal ducts too. Whether a gas furnace is the right answer at all depends on your utility bill.
Should I get a gas furnace, an electric furnace or a heat pump?
Choose by the fuel and the utility that already serve your house, because Oregon DOE shows Lane and Marion County homes heat very differently. Check yours.
Oregon DOE lists electricity as the primary heat in 75% of Lane County homes and natural gas in 18%. In Marion County it’s 52% electricity and 41% gas. Electric furnaces list lower than gas in the guides and need a 240-volt circuit, but EWEB says a heat pump can deliver triple the energy it consumes. If you heat with electricity, we also quote and install heat pumps, and what a heat pump costs in Eugene and Salem is the place to start.
If you heat with gas, you can pair a heat pump with a furnace as dual fuel. And no, Oregon’s new-home heat pump rule, effective 1 October 2026, does not force a heat pump on you. The rule covers new construction, not a furnace replacement in an existing house. Once you pick the equipment, how do you compare the bids?
What should a furnace quote include?
A written furnace quote should itemise eight lines: the model and AFUE, venting, gas or electrical work, duct changes, permit, removal, thermostat and warranty.
When you put two bids side by side, each should carry all eight of these. One lump number is hard to compare.
- Furnace model and AFUE rating
- Venting and condensate drain
- Gas or electrical work
- Duct changes or sealing
- Mechanical permit and inspection
- Old furnace removal
- Thermostat
- Warranty terms
Oregon requires a mechanical permit and inspection for furnace replacement, and we pull the permit as the installer. We itemise each of those lines on our quotes, so you can compare bids line by line. See choosing a furnace for a Salem home for the Marion County side. Does any of that cost come back as a rebate?
Is there a rebate or tax credit for a new furnace in Oregon?
The federal 25C credit ended for work placed in service after 31 December 2025, and Energy Trust’s gas furnace rebate is narrow.
The IRS lists the credit for property placed in service before 31 December 2025, so per the IRS it’s gone. Plan without it. Every range above is before any rebate.
Energy Trust of Oregon serves customers of PGE, Pacific Power, NW Natural, Cascade and Avista. Its gas furnace table lists $1,600 for a 95% AFUE furnace for income-qualified households, rental properties and owner-occupied duplexes or townhomes. Energy Trust lists no standard owner-occupied row for a detached house. Most single-family owners won’t qualify. The furnace must be your primary heat, can’t back up a heat pump, and needs a carbon monoxide monitor on every floor with a bedroom. Ask any contractor, us included, whether it’s a participating trade ally. EWEB runs a heat pump program, SUB runs one, and Salem Electric runs one too. None of them is this program, and Oregon rebates by utility lists them.
Frequently asked questions
Why is furnace installation so expensive?
Labor and code work take a big share. Fixr puts labor at $300 to $1,800, or $75 to $150 an hour. We itemise the rest, which is venting, duct work and the equipment itself.
Should I replace my furnace and AC at the same time?
Replace both when your AC is also near the end of its life. One visit, one permit and one matched system usually beat two separate jobs. New AC equipment now uses A2L refrigerant (R-454B or R-32), so a new AC needs a matched indoor coil.
Do I need a permit to replace a furnace in Oregon?
Yes. Oregon requires a mechanical permit and inspection for a furnace replacement, and we pull the permit as part of the job. The add-on table shows what permit fees run nationally.
Can I get an exact furnace price without a visit?
No. A guide can’t see your venting, your ducts or where the furnace sits, and those three things decide most of the price. We inspect your home and quote a firm price before any work starts.
Does a smart thermostat add to a furnace replacement quote?
It adds a line, $250 to $750 installed per PickHVAC for a smart model. That’s all. Compatibility matters, so we check your wiring for a common wire before we install a smart thermostat, because some older wiring needs one or an adapter.
How long does a furnace installation take?
It depends on the venting, ductwork and electrical work your house needs. We state the schedule in the written quote. Ask before you sign.
Call James Heating and Air Conditioning for a written price
If you want a firm number for your house, we inspect your furnace, ducts and venting and put the price in writing before work begins. James Heating and Air Conditioning holds Oregon CCB #47396 and has served Oregon homes since 1983. We answer emergency calls around the clock.
- Eugene, Springfield and Lane County: (541) 461-2101.
- Salem, Keizer and Marion County: (503) 581-9982.
