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How much does a furnace replacement cost in Ann Arbor, MI?

US national rangeUpdated Prices checked October 20261 source

A furnace replacement costs $2,823 to $6,896 nationally, typical $4,814. We have no documented price index for Ann Arbor for this job, so this is the US national range from HomeAdvisor, checked October 2026.

US national range, not adjusted for this city

Low
$2,823
Typical
$4,814
High
$6,896

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Furnace replacement cost in Ann Arbor, MI

We have no documented price index for Ann Arbor for this job, so the table shows the US national range.

Furnace replacement cost in Ann Arbor, MI
EstimateLowTypicalHighBasisChecked
US national range$2,823$4,814$6,896Per system, installed; typical range of customer-reported jobs (HomeAdvisor)October 2026

Furnace replacement cost by type or size

US national figures in USD, as published by each source.

Furnace replacement cost by type or size
Type or sizePrice (USD)Source
Electric furnace$2,000 to $7,000HomeAdvisor
Gas furnace$3,800 to $10,000HomeAdvisor
Oil furnace$6,750 to $10,000HomeAdvisor

What drives the cost of a furnace replacement

  1. Fuel type

    Electric furnaces cost least to install; oil costs the most.

  2. Efficiency rating

    High-AFUE furnaces cost more up front.

  3. Home size

    Furnaces are sized at roughly 30 to 60 BTUs per square foot.

  4. Climate

    Colder regions need more capacity.

  5. Removal of the old unit

    Removal and disposal typically add $150 to $330.

Permits and what's included in Ann Arbor

Permit note

Furnace replacement usually needs a mechanical permit, and gas work may need its own. Ask your local building department for the fee.

Rules are set locally; confirm with Ann Arbor’s building department.

What’s usually included

  • The new furnace
  • Connection to existing ducts, venting and fuel supply
  • Startup and testing

Scopes vary. Get the scope in writing on every quote.

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Top-ranked HVAC contractors in Ann Arbor

The top 3 of 328 HVAC contractors we rank for Ann Arbor, MI, by CR Score. Paid placement never changes rank.

  1. #1
    Breyer's Heating & Air Conditioning
    CR Score 655.0from 746 Google reviews
  2. #2
    Mrs. Michael Plumbers, Electricians, and HVAC Technicians
    CR Score 644.8from 926 Google reviews
  3. #3
    Indoor Comfort Heating & Cooling
    CR Score 644.9from 538 Google reviews

See all ranked HVAC contractors in Ann Arbor

How to check an HVAC contractor's license in Michigan

In Michigan, Michigan LARA, Bureau of Construction Codes licenses Mechanical contractor licenses.

  1. Check that the status is active and the name matches the contract or truck.
  2. Ask for proof of insurance before work starts.

No chip usually means we have not matched a state record yet. Check the lookup yourself before you hire.

Guide checked October 2026. How we verify licenses

Furnace replacement cost in Ann Arbor: questions

How much does a furnace replacement cost in Ann Arbor, MI?

A furnace replacement costs $2,823 to $6,896 nationally, typical $4,814. We have no documented price index for Ann Arbor for this job, so this is the US national range from HomeAdvisor, checked October 2026.

Do I need a permit for a furnace replacement in Ann Arbor?

Furnace replacement usually needs a mechanical permit, and gas work may need its own. Ask your local building department for the fee. Rules are set locally, so confirm with Ann Arbor’s building department.

What affects the cost of a furnace replacement?

Fuel type: electric furnaces cost least to install; oil costs the most. Efficiency rating: high-AFUE furnaces cost more up front. Home size: furnaces are sized at roughly 30 to 60 BTUs per square foot. Climate: colder regions need more capacity.

How many HVAC contractors serve Ann Arbor?

We rank 328 HVAC contractors for Ann Arbor, MI by CR Score. Get at least three written quotes for the same scope.

What is usually included in the price?

The new furnace; Connection to existing ducts, venting and fuel supply; Startup and testing. Always get the scope in writing on the quote.

Sources

Checked October 2026. Figures are estimates, not quotes.

  1. HomeAdvisor: Furnace replacement cost · page updated June 17, 2026 · checked October 2026Primary source. Used for: Low, typical and high; prices by fuel; drivers.
These are published estimates, checked October 2026. They are not quotes. Typical range shown: $2,823 to $6,896. Editorial policy

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