Furnace & Boiler Cost
A new furnace in Rochester and southern Minnesota typically costs $4,500 to $11,000 installed, and a new boiler typically costs $6,500 to $18,000. If you replace your furnace and air conditioner at the same time, plan on about $8,000 to $21,000. These ranges come from recent Tonna Mechanical installations. You can also see prices for other equipment in our cost guide.
When your furnace or boiler is getting old, or it just quit on a cold night, the first question is usually “what is this going to cost me?” Here is what Minnesota homeowners can expect to pay, what drives the price up or down, and how to lower your cost.
Typical furnace and boiler prices
| Equipment | Typical installed price |
|---|---|
| New gas furnace | $4,500 – $11,000 |
| New furnace and air conditioner together | $8,000 – $21,000 |
| Boiler replacement | $6,500 – $18,000 |
| Heat pump system | $10,500 – $32,500 |
These ranges are for general information only and are not a quote or estimate. Your price depends on the equipment you choose, your home’s size and layout, ductwork, venting, gas or electrical work, advanced labor needs, permits, and any rebates, tax credits or financing that apply. We give you an exact, upfront price after a free in-home estimate.
What affects the cost of a new furnace?
In fact, two furnaces can look alike and still be thousands of dollars apart. These are the biggest factors:
- Efficiency. Furnaces are rated by AFUE, the share of fuel that turns into heat. A 96% to 98% AFUE furnace costs more up front than a 92% model. But in a Minnesota winter, it can lower your gas bills. It can also qualify for bigger rebates.
- Single-stage, two-stage or variable-speed. Two-stage and variable-speed furnaces run longer at lower output. That means more even heat and quieter operation. However, they cost more than single-stage furnaces.
- Size. The right size depends on your home’s square footage, insulation and windows, not just on the old furnace. We size it for your home so it does not short-cycle or struggle on the coldest days.
- Venting, ductwork and gas lines. Switching from an older chimney-vented furnace to a high-efficiency furnace usually needs new PVC venting. In addition, ductwork or gas line changes add to the job.
- Your air conditioner. Is your AC getting older too? Replacing both together often saves on labor and gives you a matched system.
What affects the cost of a new boiler?
Boiler prices vary more than furnace prices. That is because boiler systems differ more from home to home.
- Boiler type. A standard boiler costs less than a high-efficiency condensing boiler. A combination (combi) boiler, which also heats your water, costs more but can replace your water heater.
- Piping and controls. For example, older homes may need new piping, pumps, zone valves or controls to work with a modern boiler.
- Venting and chimney work. Also, high-efficiency boilers vent differently from older ones, which can add to the job.
- Radiators and in-floor heat. Similarly, hot water radiators, baseboard and in-floor heating systems each have their own requirements.
Repair or replace?
If your furnace is less than about 10 years old and the repair is small, repairing it usually makes sense. Replacement is worth a look when:
- Your furnace is around 15 years or older, or your boiler is showing its age and needs repairs often.
- Repairs keep adding up, or a single repair is a big share of the cost of a new system.
- Your heating bills keep climbing, or some rooms never stay comfortable.
- You have a cracked heat exchanger or another safety issue.
Either way, we give honest advice and free second opinions. So if another company told you that you need a new furnace, we are happy to take a look.
How to lower the cost
- Utility rebates. Minnesota gas utilities offer 2026 rebates on qualifying high-efficiency furnaces and boilers. For example, CenterPoint Energy offers up to $1,000 on a qualifying furnace, and Minnesota Energy Resources offers up to $500. See 2026 rebates in our area.
- Federal tax credits. The federal 25C tax credit for furnaces, boilers and heat pumps is not allowed for equipment placed in service after December 31, 2025, according to the IRS, so do not count on it for a 2026 install.
- Financing. We offer financing on new heating and cooling systems.
- A free year of maintenance. Major heating and cooling purchases from Tonna include a free year of maintenance.
- Plan ahead. In other words, replacing an aging furnace before it fails gives you time to compare options instead of making a rushed decision in January.
Get an exact price
The ranges above are a starting point. To know your exact cost, you need an in-home estimate. Tonna Mechanical has served Rochester and southern Minnesota since 1976. Our NATE-certified technicians install Carrier equipment. We give you upfront pricing before any work starts. Call 507-288-1908 or request a free in-home estimate. For prices on air conditioners, heat pumps, water heaters and more, see our HVAC and plumbing cost guide.
Frequently asked questions
How much does a new furnace cost in Minnesota?
Most Tonna customers in Rochester and southern Minnesota pay $4,500 to $11,000 for a new furnace, installed. High-efficiency or variable-speed furnaces, larger homes and jobs that need new venting or ductwork are at the higher end. This range is for general information only and is not a quote.
How much does a new boiler cost?
A boiler replacement typically costs $6,500 to $18,000, depending on the boiler type, size, piping and venting. This range is for general information only and is not a quote.
Is a high-efficiency furnace worth it in Minnesota?
For most Minnesota homes, yes. Because Minnesota winters are long and cold, a 96% or higher AFUE furnace can save on gas over its life, and higher-efficiency furnaces qualify for larger utility rebates.
How long does it take to replace a furnace?
Most furnace replacements are completed in about a day. However, boiler replacements can take longer, depending on the piping and venting.
Are there rebates on new furnaces and boilers in 2026?
Yes. Minnesota gas utilities, including CenterPoint Energy and Minnesota Energy Resources, offer rebates on qualifying high-efficiency furnaces and boilers. However, amounts and deadlines vary. See our 2026 rebates page and confirm with your utility before you buy.