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Furnace Replacement Cost: 2026 Price Guide for PA and NJ

Furnace Replacement Cost: 2026 Price Guide for PA and NJ

A furnace replacement project in New Jersey usually costs $4,500–$12,000. In Pennsylvania, you can expect to pay $4,000–$9,000 for a new furnace system installed at your residential or commercial facility. These figures include everything: equipment cost, installation charges, and permit fees. However, the exact price may vary depending on square footage, equipment efficiency, and the service fees of the company you hire for furnace installation service in Pennsylvania or furnace services in New Jersey.

Commercial furnace installation projects cost more than residential projects due to increased complexity, equipment rentals, and more sophisticated control systems required at business facilities. This blog lists prices for new furnace installations by various factors, listing the verified cost ranges as of 2026.

Furnace Replacement Costs by Fuel Type

Furnaces have four main types by the fuel they consume to generate heat. As fuel sources vary, the underlying mechanism to generate heat energy and the equipment structure vary greatly, which directly influences the final quote.

Here are average prices of various furnace types with respect to Pennsylvania and New Jersey regions.

For Residential Furnaces

Furnace type

Pennsylvania

New Jersey

Oil furnace

3,875–$7,275

5,000–$8,500

Natural gas furnace

2,425–$4,850

4,000–$7,500

Propane furnace

2,900–$6,300

3,275–$7,075

Electric furnace

1,450–$3,400

3,000–$6,000

For Commercial Furnaces

Furnace type

PA residential

PA commercial

Oil furnace

4,500–$9,500

10,000–$25,000+

Natural gas furnace

3,800–$8,500

8,000–$22,000+

Propane furnace

4,000–$9,000

9,000–$24,000+

Electric furnace

3,000–$6,500

6,500–$16,000+

Furnace Replacement Cost by Equipment Efficiency

Furnace efficiency is measured by AFUE (Annual Fuel Utilization Efficiency). The equipment with a higher AFUE value comes with a higher price and returns the investment by saving more energy and incurring lower energy bills each month.

At Lehigh HVAC, we recommend choosing furnaces with AFUE values from 90 to 95% to beat the frosty cold in Pennsylvania and New Jersey regions. The costs with respect to energy efficiency are listed in the table below.

Furnace efficiency (AFUE)

Average installed cost (U.S.)

Average Installed Cost in PA and NJ

80–89% (Standard)

3,800–$6,200

4,500–$6,500

90–95% (mid to high)

5,200–$8,800

6,500–$9,000

96–98% (High to premium)

7,500–$12,000

8,500–$12,000

Furnace Replacement Cost by Building Size

A larger house or business facility needs a larger heating appliance to maintain a temperature in the desired range. This directly translates into a higher equipment price, higher labor hours, and a higher final invoice.

The table below provides an overview of costs with respect to the home size.

Building Size (Sq. Ft.)

Estimated Replacement Cost

Under 1,000

2,100–$6,800

1,000–1,500

2,500–$8,000

1,500–2,000

2,800–$8,800

2,000–2,500

3,000–$9,600

2,500–3,000

3,300–$10,400

Above 3,000

3,500–$11,200

Tips to Lower Furnace Replacement Costs

While you can replace your existing, outdated furnace for as low as $4,000, many homeowners and small business owners still find it a bit outside their affordability range. To help them, here are some tips to make furnace replacements affordable.

Choose the Right Size and Efficiency

No need to choose a larger-sized furnace if you own a small place. If you do so, be ready to accept surprising energy bills and frequent equipment wear and tear as well. The best practice is to get a Manual J load calculation and then choose a furnace that is the right size and efficiency to meet your heating needs.

Feel free to contact Lehigh HVAC for a load calculation and site survey.

Compare Quotes

Don’t accept the quote from a single contractor. Get quotes from at least 3 to 5 reliable service providers or HVAC companies and then compare their quotes. Analyze their prices, project deadline, services included, and overall credibility. This will help you choose the right service provider.

Read the Lehigh HVAC guides to learn about the top 5 HVAC companies in these two states.

👉 Best HVAC Companies in New Jersey

👉 Best HVAC Companies in Pennsylvania

Final Thoughts

Prices for furnace replacement in New Jersey and Pennsylvania vary greatly, ranging from around $4,000 to as high as $15,000 and even higher for commercial projects. The larger the building size and the equipment efficiency, the more you have to pay for the installation. However, these are not the only factors affecting it. Prices also depend on the technician fees, labor hours, labor rates in your region, equipment rentals, and permit fees by the local municipality in your region, though these factors have a minor effect on the overall price. To make the best deal in terms of price and service quality, compare at least 3 to 5 service providers.

If you want to learn about furnace installation services from Lehigh HVAC, please contact us at 484-961-7044.

Frequently Asked Questions:

A standard furnace usually lasts from 15 to 20 years when kept with proper maintenance and care.

A standard furnace replacement service usually takes 4 to 8 hours in New Jersey and Pennsylvania.

The most efficient fuel type for furnaces is electricity, as electric furnaces reach as high as up to 99% efficiency.

Yes, permits are required for furnace replacement projects in both Pennsylvania and New Jersey.

Spring and early fall are the best seasons to replace furnaces, as they prepare your home or commercial facility for a reliable heating season ahead.