The national average for furnace replacement is between $1,800 and $2,500. The cost can range dramatically higher depending on the model of furnace you select, any repair work you require, your location and the cost of installation. Furnace installation costs can be more than the furnace itself due to the cost of doing business and the expertise needed to install the HVAC equipment. Installing a new furnace generally requires technical know-how and the proper tools and licensing. It’s best to hire a pro and budget for furnace installation rather than risk potentially unsafe DIY installation. This will ensure your home’s safety. Check to see if your HVAC contractor has the proper licensing to do the job. If you need duct repair or replacement, expect to pay more for your furnace installation costs. The price for duct repair could be an hourly rate ranging on average anywhere from $85 to $150 per hour, with additional costs for parts.