How much does a 98% AFUE furnace replacement cost in Indianapolis, IN?
| Typical totalinstalled, 98 afue | $8,194 |
|---|---|
| Range you should see in bidsthree bids on the same scope normally land inside this | $6,145 – $11,266 |
| Labor portion40% of the job — this is the part that moves by city | $3,277 |
| Material portion60% — bought at national prices | $4,916 |
| Heating, Air Conditioning, and Refrigeration Mechanics and Installers pay near Indianapolisabout $33/hr · Indianapolis-Carmel-Greenwood, IN metro | $68,700/yr |
| U.S. mean for the same tradeSOC 49-9021 | $64,780/yr |
| Versus the national pricetrade pay here runs +6.1% against the U.S. mean | +$194 |
| Design temperatures90°F summer and 2°F winter at Indianapolis International Airport — the two numbers a Manual J starts from, and the reason equipment sized for one city is wrong in another | — |
Notes
- Where the number comes from. The national price for a 98% AFUE modulating furnace replacement is $8,000 installed — gas furnace replacement pricing published for 2026. Labor is about 40% of that. Heating, Air Conditioning, and Refrigeration Mechanics and Installers near Indianapolis, IN average $68,700 a year against a U.S. mean of $64,780 — a factor of 1.061 — so the labor half is scaled by that and the material half is not. Source: BLS OEWS May 2025 for the Indianapolis-Carmel-Greenwood, IN metro area, SOC 49-9021.
- Why the city matters, not just the state. Trade pay moves inside a state as much as it does between states. Crews do not commute across a state to bid a job, and materials ship at national prices either way — so a metro wage is the honest input here and a state average quietly rounds four different cities into one number.
- Design temperatures. 90°F summer and 2°F winter at Indianapolis International Airport — the two numbers a Manual J starts from, and the reason equipment sized for one city is wrong in another.
- What is in the price: the furnace, removal and disposal of the old one, a new flue or vent kit, gas and electrical connections, a thermostat, permit and labor.
- What is not: ductwork changes, a chimney liner where an 80% unit is orphaned by a water heater, and any return-air work the new blower needs. These are the lines that turn a $8,194 quote into a $10,242 invoice, so ask about each one before signing.
- Use this as a bid check, not a quote. It prices an average job in average condition. Difficult access, the state of what is being replaced, the season, and a crew booked out three months all move the real number, and none of them are in a national average for the job.
a 98% AFUE modulating furnace replacement in Indianapolis, IN
$8,194 is the typical number, and three bids on the same scope normally land between $6,145 and $11,266.
That is $194 more than the same job priced at the national average.
Why the city changes the number
About 40% of this job is labor — $3,277 of the $8,194 above. Labor is the only part that moves locally; a bundle of material costs what it costs wherever it is nailed down.
Heating, Air Conditioning, and Refrigeration Mechanics and Installers near Indianapolis average $68,700 a year, against a U.S. mean of $64,780. That is a factor of 1.061, so the labor half is scaled by it and the material half is not.
Source: BLS OEWS May 2025 for the Indianapolis-Carmel-Greenwood, IN metro area, SOC 49-9021.
What the quote should include
Design temperatures
The lines that turn a quote into an invoice
Ask about each of them before you sign. On a job this size they are the difference between $8,194 and something a quarter higher.
Use it as a bid check, not a quote
This prices an average job in average condition. Access, the state of what is being replaced, the season, and a crew booked out three months all move the real number, and none of them are in a national average.
If a bid lands outside $6,145 – $11,266, that is not automatically wrong — but it is the question worth asking out loud.
Nearby sizes
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Read more
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- Repair or Replace a Furnace — And the One Fault That Ends the DiscussionMost furnace repairs are worth doing. One diagnosis is not a repair decision at all.
- What a Furnace Replacement Quote Is Made OfTwo quotes on the same basement can differ by thousands, and the difference is usually the venting.
- What Each Step Up in BTU Costs — and Why the Curve Is Nearly FlatThe price gap between an 80,000 and a 100,000 BTU furnace is small enough that nobody argues about it, which is how houses end up with the wrong one.