Cost of furnace replacement in Arizona (AZ)
A 60,000 BTU furnace installed
$4,100to $6,100
That is a standard 80% AFUE model, the federal minimum and what most replacements are. A 96% condensing furnace runs $5,100 to $7,700.
Is the efficient one worth it here?
Costs more
$1,300
Saves a year
$123
Pays back in
10.6 yrs
Arizona's heating season is short enough that the efficiency has little to work with — 1,800 heating degree days at $2.16 a therm. The cheaper furnace is usually the better buy here, and the difference is worth putting into insulation instead.
Before you replace like for like
A furnace is not the only option. A heat pump does the same job using electricity, and in some states costs less to run — it depends on the gap between gas and electricity prices where you live, which is not the same everywhere.
Compare both in ArizonaCommon questions
How much does it cost to replace a furnace in Arizona?
Between about $4,100 and $6,100 installed for a standard 80% AFUE furnace, or $5,100 to $7,700 for a 96% condensing model. A 1,800 square foot home in Arizona needs roughly 60,000 BTU of output.
Is a high-efficiency furnace worth it in Arizona?
Probably not. The condensing model costs about $1,300 more and saves roughly $123 a year, taking about 10.6 years to repay. In a mild climate the heating season is too short for the efficiency to earn its premium back quickly.
What size furnace do I need?
About 60,000 BTU for 1,800 square feet in Arizona's climate — roughly 33 BTU per square foot, which reflects 1,800 heating degree days a year. Colder states need more output for the same house.
More for Arizona
Sizing from Arizona's heating degree days for a 1,800 square foot home. Gas price from the US Energy Information Administration, 2026-05. Installed costs are a national estimate spread ±20% — ductwork, venting runs and your region move real quotes more than the furnace itself does. Get three.