Most Oakland County homeowners pay $4,300 to $7,500 to replace a gas furnace in 2026, installed. A standard 80% efficiency furnace runs about $4,300 to $5,200. A high-efficiency 95% or 96% furnace runs about $5,050 to $7,500. Bigger jobs, like new ductwork or venting changes, can reach about $9,500.
| Furnace | Efficiency | Installed cost (2026) |
|---|---|---|
| Rheem Classic Standard efficiency | 80% AFUE | $4,300 – $5,200 |
| Rheem Classic Plus High efficiency | 95% AFUE | $5,050 – $5,600 |
| Rheem Prestige Premium, with EcoNet smart controls | 96% AFUE | $6,350 – $7,500 |
Furnace-only replacement in Oakland County, before rebates. Two-story homes, duct repairs, and venting changes move a job toward the top of its range or above it. Homes that need new ductwork cost more.
Where these prices come from: our own installed prices, the same ones behind the price calculator below. Across the furnace-only jobs we completed in Oakland County over the past 12 months, the average job came in around $5,500. Prices reviewed by John Serrano, October 2026.
Included in a standard replacement
- New Rheem furnace sized to your home
- New thermostat
- Equipment pad
- Gas, electrical, drain, and duct reconnections
- Removal and recycling of the old furnace
- Startup, safety check, and cleanup
- 1-year labor warranty, plus Rheem’s manufacturer warranty
Can add to the price
- New PVC venting and a condensate drain when moving from 80% to high efficiency
- Venting work for a water heater left alone in the chimney
- Duct repairs or new ductwork
- Gas line or electrical upgrades
- Hard-to-reach locations like attics and crawlspaces
Get your furnace price in 30 seconds
Pick the system you need replaced and answer a few quick questions. The calculator uses our real installed prices. It’s also on our instant HVAC price page.
What does a new furnace cost installed vs. the unit alone?
The price you see on a furnace online is the equipment by itself. An installed price adds everything it takes to make that furnace run safely in your home: removing the old unit, setting the new one, connecting gas, power, venting, drain, and ductwork, then starting it up and testing it.
That’s why national “average furnace cost” numbers can look lower than a local quote. Some leave out labor, some leave out venting, and some are averages across states with very different climates and labor costs. The prices on this page are installed prices for Oakland County homes.
What makes a furnace replacement cost more?
- Efficiency. A 95% or 96% furnace costs more up front than an 80% model and burns less gas every winter after that.
- Size. Larger furnaces cost a little more within the same line. The right size comes from your home, not the old furnace’s label.
- Venting. High-efficiency furnaces vent out the side of the house through white PVC pipe and need a drain for the water they produce. Switching from an 80% furnace with a metal flue means new venting.
- Ductwork. Leaky or undersized ducts may need repairs. Homes with no ductwork at all need a full duct system.
- The house itself. Two-story homes, tight utility rooms, and attic or crawlspace installs take more labor.
If your gas water heater shares a chimney with your furnace, ask about it before choosing a high-efficiency furnace. Once the furnace vents through PVC, the water heater can be left alone in a chimney sized for two appliances, and it may need a liner or new vent. That work belongs on the quote.
How much is a furnace for a 1,500 or 2,000 sq ft house?
For most Oakland County homes in that range, a furnace-only replacement lands in the same $4,300 to $7,500 range. Square footage alone doesn’t decide the size. Insulation, windows, air leaks, ceiling height, and duct layout all change how much heat a home needs, so the furnace should be sized with a load calculation for your house.
Most homes we replace use a furnace between 60,000 and 85,000 BTU. Within the same Rheem line, moving from the smallest to the largest size usually adds only about $600 to $900, so efficiency and installation work move the price far more than size does.
Ask every contractor what size furnace they’re quoting and how they got that number. If the answer is “the same size as the old one,” ask again. An oversized furnace costs more, turns on and off too often, and wears out sooner.
Is a high-efficiency furnace worth it in Michigan?
For most Oakland County homes, yes. Furnace efficiency is measured as AFUE, the share of the gas that becomes heat in your home. An 80% furnace turns 80 cents of every gas dollar into heat and sends the rest up the chimney. A 96% furnace keeps 96 cents. Michigan sits in ENERGY STAR’s northern region, where certified gas furnaces must be 97% AFUE or higher.
A 95% Rheem Classic Plus typically adds about $800 over a standard 80% furnace. A 96% Rheem Prestige adds about $2,000 to $2,300, and it runs on a lower stage most of the time, with EcoNet controls, for steadier, quieter heat. Long Michigan winters mean the gas savings add up faster here than in milder states, and utility rebates take back part of the difference.
An 80% furnace can still make sense if you plan to sell soon, if the furnace heats a space you rarely use, or if adding PVC venting would be difficult in your home.
Do the gas-bill math. Going from an 80% to a 96% furnace burns about one-sixth less gas for the same heat. Add up your gas bills from December through March and multiply by 0.17 for a rough idea of yearly savings. If your current furnace is 20 or more years old, it’s likely running below 80%, so you may save more.
Gas or propane furnace: does it change the cost?
Most Oakland County homes heat with natural gas, and that’s what most of our installs are. We also install propane furnaces for homes without a gas line. A propane furnace is the same furnace set up for propane, so the installed price is close to a natural gas furnace. Propane usually costs more to burn for the same heat, which makes a high-efficiency model worth even more in a propane home.
Oil and electric furnaces are uncommon here. Electric furnaces cost little to install but a lot to run through a Michigan winter.
Which furnace brand should you choose?
Most furnace brands are made by a handful of companies, and every one of them sells a standard 80% line and high-efficiency lines of 95% and up. When two quotes name different brands, compare the efficiency, the size, and the installation more than the logo.
| Manufacturer | Furnace brands it sells |
|---|---|
| Rheem | Rheem, Ruud |
| Carrier | Carrier, Bryant, Payne, Heil, Tempstar, Comfortmaker, Arcoaire |
| Trane Technologies | Trane, American Standard |
| Lennox | Lennox, Armstrong Air, Ducane |
| Daikin | Goodman, Amana, Daikin |
| Johnson Controls | York, Coleman, Luxaire |
Sister brands from the same manufacturer often share designs and parts, with different features and warranties by line.
We install Rheem, in three lines: Classic (80%), Classic Plus (95%), and Prestige (96% with EcoNet). The bigger difference between two quotes is usually the installation: whether the furnace is sized for the house, whether the venting and gas connections are done right, and who answers the phone if something goes wrong.
What rebates can lower your furnace cost in 2026?
Both Oakland County gas utilities pay rebates on high-efficiency furnaces. Your rebate comes from whichever company supplies your natural gas, and the furnace has to be installed by one of its participating contractors. Rebate amounts below were last verified October 24, 2026.
DTE Energy furnace rebates
| Furnace efficiency | DTE rebate |
|---|---|
| 98% AFUE or higher | $400 |
| 96% to 97% AFUE | $200 |
| 95% AFUE | $100 |
DTE is also paying a $300 bonus on qualifying furnaces installed between October 1 and December 15, 2026, with applications due by December 18, 2026. Funding is first-come, first-served. Details are on DTE’s furnace rebate page.
Consumers Energy furnace rebates
| Furnace efficiency | Consumers Energy rebate |
|---|---|
| 97% AFUE or higher | $300 |
| 95% to 96.99% AFUE | $100 |
Consumers Energy requires a furnace of at least 95% AFUE. See Consumers Energy’s heating rebate page.
Is there a federal tax credit for a new furnace in 2026?
No. The federal Energy Efficient Home Improvement Credit, which paid up to $600 toward a qualifying furnace, ended for equipment installed after December 31, 2025. If your furnace went in before that date, you can still claim it on your 2025 return. Details are on the IRS credit page.
Check who supplies your gas before you choose between a 95% and a 96% furnace. With DTE, a 96% furnace earns $200 back instead of $100. With Consumers Energy, 95% and 96% both earn $100, and only 97% and higher earns $300. We’ll tell you which rebate your furnace qualifies for before you decide.
DTE’s $300 fall bonus has a hard deadline. The furnace has to be installed by December 15, 2026, and the application filed by December 18. Booking in early November leaves room for scheduling.
Signs it’s time to replace your furnace
- It’s 15 years old or more and needs a major part.
- Repairs are coming every season.
- Gas bills keep climbing while your usage stays the same.
- Some rooms stay cold no matter where the thermostat is set.
- A technician finds a cracked heat exchanger. That’s a safety problem, and replacement is usually the answer.
If your carbon monoxide alarm goes off, leave the house and call 911 first. Our guide to furnaces and carbon monoxide covers what to do next.
Should you repair or replace your furnace?
Most gas furnaces last about 15 to 20 years with yearly maintenance. A repair usually makes sense on a younger furnace or for a smaller part. Replacement makes more sense on an older furnace that needs a major part, keeps breaking down, or has a cracked heat exchanger.
You may hear about the “$5,000 rule”: multiply the furnace’s age by the repair price, and if the answer is over $5,000, lean toward replacing. It’s a rough starting point, not a final answer. Safety, how often it breaks, and what the replacement would cost all matter too.
Most furnace repairs in Oakland County run $100 to $800, and a blower motor can reach $1,400. See our furnace repair costs for the full list by part.
If your furnace is 15 or older and the repair is a blower motor, inducer motor, or gas valve, get a replacement price before you approve the repair. Putting $1,000 into a furnace near the end of its life often just delays a $5,000 decision by a year or two.
Is it better to replace your furnace now or wait?
If your furnace is 15 or older and needs a major repair, waiting rarely saves money.
- Equipment prices keep rising. HVAC manufacturers have raised equipment prices year after year, and the major brands announced more increases for 2026. A furnace you put off for a year or two will likely cost more, not less.
- A planned replacement beats a rushed one. When a furnace dies in January, you’re choosing from what’s available that week, without time to compare quotes, rebates, or financing.
- Rebates run on deadlines. DTE’s $300 furnace bonus ends December 15, 2026, and utility rebate amounts can change from year to year.
- Federal rules are changing. A U.S. Department of Energy rule would require new gas furnaces made after December 2028 to be about 95% efficient, which would end new 80% furnaces. The rule is being challenged in court, so the date may change. Details are on the Department of Energy’s announcement.
Waiting makes sense when the furnace is under about 10 years old, the repair is small, and a technician says it’s running safely. Either way, a written quote locks in today’s price: ours are good for 30 days.
Do you need a permit to replace a furnace in Michigan?
Yes. Michigan’s building code says that, except for replacing minor parts, mechanical work can’t start until a permit is issued by the local enforcing agency. When a contractor does the work, the contractor is responsible for the permit. Permits are handled by your city, township, or county, so the fee and inspection process depend on your address. Details are on the State of Michigan’s mechanical permit page.
How do you compare furnace quotes?
Compare what’s included, not just the bottom line. A good written quote shows:
- The furnace model number, AFUE, and size in BTU
- How the size was figured
- Venting and condensate drain work
- Gas, electrical, and duct work
- Who pulls the permit and schedules the inspection
- Removal and disposal of the old furnace
- Startup and safety testing
- Labor warranty and manufacturer warranty
- Which rebates the furnace qualifies for
Getting a furnace quote from a big-box store? Ask who will actually install it and who you call if something goes wrong in January. Many of those installs are handed to a local subcontractor, so the warranty call may not go to the company you bought from.
Replacing your air conditioner too?
If your AC is more than 10 years old, it’s worth pricing both. Our guide to the cost to replace your furnace and AC together covers combined prices, rebates, and when replacing both makes sense.
How can you pay for a new furnace?
We offer financing through Wisetack, and checking your options uses a soft credit check that won’t affect your score. See our furnace financing options for current terms, or schedule a furnace replacement in Oxford and Oakland County.
Frequently asked questions about furnace replacement
How much does a new furnace cost in Michigan in 2026?
Most Oakland County homeowners pay $4,300 to $7,500 for a new gas furnace, installed. A standard 80% furnace runs about $4,300 to $5,200, and a 95% to 96% high-efficiency furnace runs about $5,050 to $7,500. Bigger jobs with new ductwork or venting changes can reach about $9,500.
How long does a furnace replacement take?
Most furnace replacements take about half a day once our crew is on site. Replacing the furnace and air conditioner together usually takes most of a day.
Are furnace prices going up in 2026?
Most likely. HVAC equipment prices have risen year after year, and the major manufacturers announced more increases for 2026. A furnace price is only firm once it’s in a written quote, and ours are good for 30 days.
Can I replace my own furnace?
Michigan allows a homeowner who lives in a single-family home to do their own mechanical work, but a permit is still required. A furnace replacement involves gas piping, venting, and combustion testing, and mistakes can lead to gas leaks or carbon monoxide, so most homeowners hire a licensed contractor.
Does homeowners insurance cover furnace replacement?
Usually not when a furnace wears out from age. Some policies cover a furnace damaged by a covered event such as a fire or flood. Check your policy or call your agent.
How long does a gas furnace last in Michigan?
Most gas furnaces last about 15 to 20 years. A yearly furnace tune-up helps it reach the long end of that range. Our tune-up is $125.
When is the best time to replace a furnace?
Before it fails. A planned replacement lets you compare options and schedule the install instead of deciding during a no-heat call in January. Fall 2026 installs can also qualify for DTE’s limited-time furnace bonus.
Sources
- Furnace Rebates and Offers, DTE Energy
- Heating and Cooling Rebates, Consumers Energy
- Energy Efficient Home Improvement Credit, Internal Revenue Service
- Furnaces Key Product Criteria, ENERGY STAR
- Energy Efficiency Standards for Residential Furnaces, U.S. Department of Energy
- Mechanical Permit Information, Michigan Department of Licensing and Regulatory Affairs
- Installed prices: Oakland Heating & Cooling completed jobs and online price calculator, October 2026
