A gas furnace replacement in Grand Rapids typically costs $3,000 to $9,500 installed, based on 2026 Michigan pricing data, and replacing the furnace and air conditioner together typically runs $5,200 to $14,500. Efficiency, staging, venting changes and whether the AC coil is replaced at the same time decide where a job lands in that range.
The published ranges, and what they include
Statewide 2026 pricing data puts a gas furnace replacement at $3,000 to $9,500 installed, and a full furnace plus central air replacement at $5,200 to $14,500. A separate Michigan source puts a simple furnace swap from about $3,500, with high-efficiency combined systems that include duct changes running past $16,000. Those ranges include equipment, labor and the permit.
The same data shows Detroit-area pricing running 10 to 20 percent above the Michigan average, so Grand Rapids quotes usually sit closer to the statewide numbers. Use the ranges to sanity-check a quote, not as a price. The house decides the job, and a quote that ignores the venting or the coil is not comparable to one that includes them.
What pushes a quote up or down
Five things move a furnace price more than the brand name on the cabinet.
- Efficiency: an 80 percent furnace costs less than a 96 percent condensing model, which also needs PVC venting and a condensate drain.
- Staging and blower: single-stage, two-stage and modulating furnaces step up in price and in comfort.
- Venting: moving from a chimney to PVC, or adding a liner for a water heater left behind, adds work.
- Size: a furnace sized by load calculation may be smaller, and cheaper, than the one it replaces.
- The AC coil: if the air conditioner sits on the furnace, its coil may need replacing or refitting.
80 percent or 96 percent in a Michigan winter
In a heating climate like Grand Rapids, where the furnace runs through a long winter, the higher-efficiency furnace usually earns back its extra cost in gas savings over its life. The exception is a house where venting a condensing furnace is impractical, which is where an 80 percent model still makes sense. See the heat pump or gas furnace guide if you are weighing a heat pump instead.
Consumers Energy's 2026 rebate chart pays $100 on a qualifying 95 to 96.99 percent AFUE furnace and $300 on a 97 percent or higher model, through participating contractors. The federal tax credit that applied to furnaces expired at the end of 2025, so it no longer changes the math.
How to tell whether a quote is complete
Two quotes can differ by thousands of dollars simply because one includes work the other leaves out. Ask each contractor the same questions, in writing.
- Was the furnace sized with a load calculation, or copied from the old nameplate?
- Does the price include the permit and inspection?
- Is venting included, and what happens to the water heater venting?
- Is the AC coil being replaced, reused or checked for fit?
- Are the gas connection, shutoff and sediment trap new?
- Will combustion readings be taken and left with you at start-up?
What happens on installation day
A like-for-like furnace replacement is usually a one-day job. The old furnace is shut off at the gas and power, disconnected and carried out, and the new one is set on the same footprint or a new pad. Gas, electrical, venting and the condensate drain on a high-efficiency unit are connected, the AC coil is refitted or replaced, and the system is started.
Start-up is where a good install shows. Gas pressure is set to the manufacturer's specification, combustion is tested with an analyzer, temperature rise across the furnace is measured, and the thermostat is set up for the new furnace's stages. Those readings should be written down and left with you, and the permit inspection follows on a later date. If a quote does not mention start-up readings, ask why not.
When a repair is the better spend
Not every old furnace needs replacing. A furnace under about 15 years old with a failed ignitor, flame sensor or capacitor is a repair, not a replacement, and those parts cost a small fraction of a new unit. See what to check first before assuming the worst.
The case for replacement gets strong when the furnace is 15 to 20 years old and facing a major repair such as an inducer motor, control board or heat exchanger, or when repairs are coming every season. When we look at a furnace, we price both options on the same visit through furnace repair work and furnace replacement.
Furnace cost questions
Published statewide data puts it at $3,000 to $9,500 installed, depending on efficiency and installation.
Usually in labor, and the equipment is matched. Together they run $5,200 to $14,500 in Michigan data.
Yes, but in a Michigan winter the gas savings usually cover the difference over its life.
No. The federal 25C credit expired at the end of 2025.
Consumers Energy pays $100 on 95 to 96.99 percent AFUE furnaces and $300 on 97 percent or higher in 2026.
Usually one includes venting, the coil or the permit and the other does not.
Most are finished in a single day.