Furnace Replacement Cost in Livonia, MI (2026)
How Much Does Furnace Replacement Cost in Livonia, MI? (2026 Guide)

Most homeowners in Livonia, Northville, and Plymouth pay $3,500 to $9,500 to replace a gas furnace in 2026, installed. A basic 80% efficiency swap lands at the low end. A high-efficiency, variable-speed furnace with venting or ductwork changes lands at the top, and complex installs can run past $10,000.
That's a wide range, and the spread isn't random. The equipment is only part of the price. The rest is determined by what your home needs: how the furnace is sized, how it vents, whether the gas line and ductwork can support it, and how much labor it takes to do it right.
With heating season about to start, this guide breaks down where the money goes, what rebates are still available, and how to tell a good quote from a cheap one.
Furnace Replacement Cost by Furnace Type
The biggest single factor is the furnace you choose. Efficiency is measured in AFUE (Annual Fuel Utilization Efficiency), the percentage of the gas you pay for that becomes heat in your home. Here's what each tier typically costs installed in Southeast Michigan:
| Furnace type | Efficiency | Typical installed cost | Best fit |
|---|---|---|---|
| Single-stage, standard efficiency | 80% AFUE | $3,500 – $5,000 | Rentals, homes you'll sell soon, some attic or chimney-vented installs |
| Two-stage, high efficiency | 95–96% AFUE | $5,000 – $7,500 | Most Livonia-area homes; the best value for Michigan winters |
| Modulating, variable-speed | 97–98% AFUE | $7,500 – $9,500+ | Larger homes, long-term owners, rooms that run hot and cold |
In a Michigan winter, the efficiency gap matters. An 80% furnace wastes 20 cents of every heating dollar up the flue; a 96% furnace wastes 4. For a home that runs the furnace hard from November through March, that difference adds up every year you own it.
The stages matter too. A single-stage furnace is either fully on or off. Two-stage and modulating furnaces run longer at lower output, which means steadier temperatures, fewer drafts, and quieter operation. For our furnace installations in Livonia, we use Tempstar and AirQuest equipment across all three tiers, but the brand matters less than how the system is sized and installed.
Ranges reflect published 2026 pricing from Southeast Michigan contractors and cost guides. Your exact price depends on your home, which is why we quote after an on-site visit.
What Drives the Price Beyond the Furnace Itself
Two homes on the same Livonia street can get quotes $3,000 apart for the same furnace. The difference is almost always in the installation. These are the factors we evaluate on every estimate:
- Proper sizing. A furnace should be sized with a load calculation (Manual J) based on your square footage, insulation, windows, and air leakage. Many older homes have furnaces that are oversized by a third or more. An oversized furnace short-cycles, wears out faster, and leaves rooms uneven. Right-sizing sometimes means a smaller, less expensive unit.
- Venting. An 80% furnace vents hot exhaust through a metal flue and chimney. A 95%+ condensing furnace vents cool exhaust through PVC pipe, usually out a side wall. Switching from one to the other means new vent piping, and it can leave a gas water heater alone in an oversized chimney, which may then need a liner to vent safely.
- Condensate drain. High-efficiency furnaces produce water that has to go somewhere. If there's no floor drain nearby, a condensate pump is added.
- Gas line. A larger or higher-capacity furnace may need the gas line resized or re-piped to meet code.
- Ductwork and airflow. New equipment on undersized or leaky ducts will never perform as rated. Modifications, return-air additions, or custom sheet metal transitions add cost but often solve the comfort problems that made you want a new furnace in the first place.
- Electrical. Some replacements need a dedicated circuit or an updated disconnect.
- Your AC coil. The indoor AC coil sits on top of the furnace. If your air conditioner is 12 to 15 years old, replacing the coil or the whole AC system at the same time is often cheaper than doing it separately later.
- Permits and inspection. Furnace replacement in Livonia, Northville, and Plymouth requires a mechanical permit and inspection. A licensed contractor pulls it for you. If a quote doesn't mention a permit, ask why.
- Access. Tight basements, crawlspaces, attics, and finished utility rooms take more time to work in.
None of these are upsells when they're genuinely needed. They're the difference between a furnace that's simply installed and one that runs safely and efficiently for 15 to 20 years.
Rebates, Tax Credits, and Financing in 2026
Utility rebates are still available; the federal tax credit is not. Here's where things stand this fall:
- DTE Energy furnace rebates. DTE residential natural gas customers can get $100 for a 95% AFUE furnace, $200 for 96–97%, and $400 for 98% or higher. The work must be done by a DTE participating contractor, and the home must be at least two years old. Funds are first-come, first-served. (DTE furnace rebates)
- Consumers Energy. If Consumers Energy supplies your gas, it runs its own heating equipment rebates through participating contractors. (Consumers Energy rebates)
- Federal tax credit: expired. The federal Energy Efficient Home Improvement Credit, which covered up to $600 on a qualifying furnace, ended for equipment installed after December 31, 2025. If a quote this fall promises a federal furnace tax credit, ask for details.
- Financing. Spreading the cost over monthly payments lets you choose the right furnace rather than the cheapest one. See our financing options.
Check your gas bill to see which utility serves your home, then ask your contractor which rebates your new furnace qualifies for before you sign.
Repair or Replace? When a New Furnace Makes Sense
Not every struggling furnace needs to be replaced. A failed igniter, flame sensor, or inducer motor is a reasonable furnace repair on a furnace with years left in it. Replacement starts to make more sense when:
- The furnace is 15 to 20 years old or older. Most gas furnaces are designed to last roughly that long.
- The repair costs more than about a third of a new furnace, especially on an older unit.
- The heat exchanger is cracked. That's a safety issue that can allow carbon monoxide into the home, and it's rarely worth repairing on an aging furnace.
- You've needed repairs two winters in a row, or parts for your model are getting hard to find.
- Your heating bills keep climbing even though your usage hasn't changed.
- Some rooms never get comfortable, no matter how you set the thermostat.
A good rule: if your furnace is past 15 years old and facing a major repair, get a replacement quote before you approve the repair. You'll at least know both numbers before the first cold snap forces the decision. If you're weighing a heat pump or dual-fuel system instead, see our heat pump installation page.
How to Compare Furnace Replacement Quotes
The lowest quote is often the one that leaves the most out. When you compare estimates, check that each one includes:
- A load calculation, not just a same-size swap of the old unit
- The exact make, model number, AFUE, and number of stages
- Venting, condensate, and chimney liner work, if needed
- Gas line and electrical work, if needed
- Any ductwork or return-air changes
- Permit and city inspection
- Removal and disposal of the old furnace
- Manufacturer parts warranty registration and a written labor warranty
- Start-up testing: gas pressure, temperature rise, and combustion analysis
- Which utility rebates the equipment qualifies for
If two quotes differ by thousands of dollars, line them up item by item. The gap usually shows up in one of these lines. And make sure the contractor is licensed in Michigan; you can verify any license through the state.
Get an Exact Price for Your Home
The ranges above are a starting point. The only way to know what your furnace replacement will cost is an on-site evaluation of your home, your ductwork, your venting, and your gas line.
OnPoint HVAC is a licensed, family-owned contractor (Michigan License #7118987) serving Livonia, Northville, Plymouth, and the surrounding communities. We size every furnace to the home, install it cleanly, and set it up to perform, not just to pass inspection. Learn more about furnace installation in Livonia, furnace installation in Plymouth, or heating and cooling in Northville.
If your current furnace is simply due for service rather than replacement, book a furnace tune-up before the cold sets in.
Call (248) 331-8090 or request your free estimate today, before the first cold snap fills the schedule.
FAQs
How much does it cost to replace a furnace in Livonia, MI?
Most Livonia-area homeowners pay $3,500 to $9,500 in 2026 for a new gas furnace, installed. Standard 80% AFUE furnaces sit at the low end, and 97–98% AFUE modulating furnaces sit at the high end. Venting, ductwork, or gas line changes add to the total.
How long does furnace replacement take?
Most straightforward furnace replacements are completed in one day. Jobs that involve new venting, a chimney liner, gas line changes, or ductwork modifications can take longer.
Is a high-efficiency furnace worth it in Michigan?
For most homeowners who plan to stay put, yes. Michigan's long heating season means a 95%+ AFUE furnace saves more on gas each year than it would in a milder climate, and it qualifies for DTE rebates that 80% models do not.
Are there rebates for a new furnace in 2026?
DTE Energy offers $100 to $400 for qualifying 95%+ AFUE furnaces installed by a participating contractor, and Consumers Energy runs its own rebate program. The federal furnace tax credit expired at the end of 2025.
How long does a furnace last?
A well-maintained gas furnace typically lasts 15 to 20 years. Annual tune-ups, regular filter changes, and correct sizing all help it reach the upper end of that range.
Should I replace my air conditioner at the same time?
If your AC is 12 to 15 years old, it's worth considering. The indoor coil sits on the furnace, so replacing both together avoids paying for that labor twice and gives you a matched system.










