How to Quote a Furnace Replacement — What to Include
Everything to include when quoting a furnace replacement. From equipment selection to labor hours and disposal fees.
Furnace replacements are one of the highest-value residential HVAC jobs, and homeowners take them seriously. A furnace is a multi-thousand-dollar purchase that keeps their family warm for the next 15 to 20 years. Your quote needs to reflect that importance — clear, detailed, and easy to compare against competitors.
This guide covers every line item that should appear on a furnace replacement quote, along with a complete sample table and a strategy for presenting tiered options that increase your average ticket.
When Homeowners Need a Furnace Replacement
Most homeowners do not wake up wanting to buy a furnace. They call because something went wrong. Understanding their situation helps you tailor the quote to their urgency and budget.
- Furnace is 15-20+ years old and repair costs exceed 50% of replacement value
- Heat exchanger crack detected — this is a safety issue that usually means immediate replacement
- Repeated breakdowns with increasing repair frequency, especially heading into winter
- High utility bills from an inefficient older unit (80% AFUE or lower)
- Home renovation or addition where the existing furnace cannot handle the new load
- R-22 system upgrade — homeowners replacing AC often replace the furnace at the same time for matched efficiency
When you understand the trigger, you can position your quote around solving their problem rather than just listing parts. A homeowner with a cracked heat exchanger cares about speed and safety. One with high utility bills cares about long-term savings.
Equipment Options
The biggest decision on a furnace quote is the efficiency rating and stage type. Educating the homeowner on these options is part of your value as a professional.
80% AFUE vs 96% AFUE
An 80% AFUE furnace sends 20 cents of every heating dollar up the flue. A 96% AFUE furnace only loses 4 cents. In cold climates where heating bills run $150 to $250 per month, that efficiency difference can save $300 to $600 per year. The equipment cost difference is typically $800 to $1,500.
An 80% AFUE unit uses a standard metal flue pipe (B-vent), while a 96% AFUE unit requires PVC venting because the exhaust is cool enough to condense. If the home currently has a metal flue, switching to high-efficiency means new PVC venting — which adds labor and materials to the quote.
Single-Stage vs Two-Stage vs Modulating
A single-stage furnace runs at 100% capacity or not at all. A two-stage furnace runs at roughly 65% most of the time and ramps to 100% when needed, resulting in more even temperatures and lower noise. A modulating furnace adjusts in small increments, providing the most consistent comfort.
| Type | Comfort Level | Noise | Typical Cost |
|---|---|---|---|
| Single-stage, 80% AFUE | Basic | Louder | $1,800 - $2,800 |
| Two-stage, 96% AFUE | Good | Moderate | $2,800 - $4,200 |
| Modulating, 98% AFUE | Excellent | Quiet | $4,500 - $6,500 |
Labor Breakdown
Furnace replacement labor includes more than just swapping boxes. Break it into distinct phases so the homeowner understands the scope of work.
Old Furnace Removal
Disconnecting gas, electrical, and ductwork on the old unit, then hauling it out. Budget 1.5 to 3 hours of two-person crew time. If the old furnace is in a tight basement or attic, access difficulty adds time. Include disposal fees of $100 to $200.
New Furnace Installation
Setting the new furnace, connecting the gas line, wiring the controls, and attaching to ductwork. A straightforward basement install takes 4 to 6 hours for a two-person crew. Attic installs or conversions from one efficiency level to another take 6 to 10 hours.
Venting
If staying with an 80% AFUE unit and the existing B-vent flue is in good condition, venting may only take an hour to reconnect. Upgrading to a high-efficiency unit means running new PVC intake and exhaust — typically 2 to 4 hours of additional labor and $150 to $400 in PVC materials.
Gas Line
If the existing gas line is properly sized and in good condition, reconnection is quick. If upsizing from a 60,000 BTU to a 100,000 BTU unit, the gas line may need to be upsized, adding $200 to $500. Always pressure test after connection.
Pro Tip
List labor as a single line item with a brief description of what it includes. Most homeowners do not want to see hourly rates — they want to know the total labor cost and what work is covered. Learn more in our guide to writing HVAC proposals.
Additional Items
These line items round out a professional furnace replacement quote and help avoid surprises.
- Thermostat: $75 to $300 depending on basic programmable vs. Wi-Fi smart thermostat. If the homeowner already has a compatible smart thermostat, note that you will reconnect the existing unit.
- Ductwork modifications: The new furnace may have a different footprint than the old one. Plenum transitions, return drop adjustments, and supply trunk modifications add $200 to $800.
- Mechanical permit: $75 to $300 depending on jurisdiction. Always pull the permit and schedule the inspection yourself.
- Carbon monoxide detector: Some jurisdictions require a new CO detector with furnace installation. Even where not required, offering one for $40 to $80 shows you care about safety.
- Air filter: Include a high-quality filter (MERV 11 or 13) with the new install. Costs $15 to $30 and starts the homeowner off right.
Complete Furnace Quote Example
Here is a sample quote for a mid-range furnace replacement — a two-stage, 96% AFUE unit in a standard basement installation.
| Line Item | Description | Price |
|---|---|---|
| Gas Furnace | Lennox ML196UH090 — 96% AFUE, two-stage, 90,000 BTU | $3,400 |
| Thermostat | Honeywell T6 Pro — programmable, 2-stage compatible | $165 |
| PVC Venting | 2" and 3" PVC intake/exhaust, 35 ft total run | $350 |
| Installation Labor | Removal of old furnace, install new unit, gas connection, electrical, ductwork tie-in, startup and testing | $2,200 |
| Duct Modifications | Plenum transition to match new unit dimensions | $350 |
| Mechanical Permit | City residential HVAC permit and inspection | $150 |
| Old Furnace Disposal | Removal and responsible disposal of existing unit | $175 |
| CO Detector | Kidde plug-in CO detector with battery backup | $55 |
| Air Filter | Honeywell MERV 13, 20x25x4 | $25 |
| Total | $6,870 | |
Want a template with these line items ready to go? Grab our free HVAC proposal template and customize it for your business.
Good-Better-Best Pricing Strategy
One of the most effective ways to increase your average ticket on furnace replacements is to present three options. This gives the homeowner control over their decision and reduces price objections because they are comparing your options to each other, not to a competitor.
| Option | Equipment | Key Benefits | Installed Price |
|---|---|---|---|
| Good | Single-stage, 80% AFUE | Lowest upfront cost, reliable heating | $4,800 |
| Better (Recommended) | Two-stage, 96% AFUE | Lower bills, quieter, more even temps | $6,870 |
| Best | Modulating, 98% AFUE | Lowest bills, whisper-quiet, premium comfort | $9,200 |
Research consistently shows that 50-60% of homeowners choose the middle option when presented with three tiers. The key is labeling it as “Recommended” and briefly explaining why it offers the best balance of value and performance.
Pro Tip
With ProposalKit, you can build good-better-best proposals in minutes with selectable options that let the homeowner pick their tier and sign digitally — all from one proposal link.