How Much Does a Gas Furnace Cost to Install?

• Typical Range: $700 to $10,000
• National Average: $2,175

A furnace is an essential feature of a home. It not only keeps the temperature comfortable for its residents but ensures the inner workings of a home, like water pipes, are able to function properly. It doesn’t take long for a broken furnace to make a home unsafe to live in.

When a furnace is on the fritz, knowing how much it will cost to replace can help a homeowner budget accordingly. According to Angi and HomeAdvisor, the typical price range to install a gas furnace is between $700 and $10,000, with the national average gas furnace cost coming in at $2,175. The final price tag depends on furnace type, size, brand, fuel source, efficiency, home size, and labor.

This guide will cover the different factors affecting a new furnace cost, along with money-saving tips, and provide a breakdown of the main benefits of choosing a gas furnace.

Factors in Calculating Gas Furnace Cost

Coming up with an estimate for gas furnace cost will take into account the type of furnace being installed, its size and efficiency, the size of the home it needs to heat, and the labor costs for installation. Fuel source and the appliance brand also play a role in determining the cost. The following details will help homeowners estimate HVAC unit replacement cost.

Furnace Type

The price of the furnace itself will make up 50 percent to 75 percent of the total project cost. Whether a homeowner is on a strict budget or is looking for the most state-of-the-art gas furnace on the market, the purchase price of the unit will have the biggest impact on the total investment.

There are three types of furnaces for homeowners to choose from: single-stage, two-stage, and modulating. Single-stage furnaces are generally the most affordable, although they are less efficient than the other two types. Two-stage furnaces can run at low or high capacity, making them slightly more efficient than single-stage ones. Modulating furnaces are expensive to purchase and install but are incredibly efficient and are ideal for homeowners who want more precise control over their home’s heating. Each of these types of furnace is discussed in more detail below.

Furnace Size

Furnace sizes are expressed in British Thermal Units (BTUs), which show how much energy a furnace uses to heat a specific space. Generally speaking, a larger furnace will be higher on the price scale than a smaller one. The following are typical price ranges for the most common gas furnace sizes, including installation costs.

• 40,000 BTU: $2,000 to $3,500
• 50,000 BTU: $2,300 to $3,800
• 60,000 BTU: $2,500 to $4,200
• 75,000 BTU: $2,700 to $4,600
• 80,000 BTU: $3,000 to $4,900
• 100,000 BTU: $3,400 to $5,400
• 120,000 BTU: $4,000 to $6,000

Furnace Efficiency

Efficiency is defined as the ability to accomplish a task with little to no waste. An efficient furnace can heat a home without wasting resources such as fuel. This is not only better for the environment but can drastically lower a homeowner’s heating bills. An efficient model can also extend the average lifespan of a furnace, which means homeowners won’t need to replace it as often.

Every furnace is given an Annual Fuel Efficiency (AFUE) rating to determine efficiency. The higher the AFUE rating, the more efficient the furnace will be at heating a home.

• A standard-efficiency unit has an AFUE rating of 80 percent to 89 percent and an approximate cost of $500 to $1,500.
• A moderate-efficiency unit has an AFUE rating of 90 percent to 95 percent and costs between $1,000 to $3,000.
• A high-efficiency unit has an AFUE rating of 96 percent or higher and a price range of $2,000 to $6,000.

Though a higher-efficiency furnace results in a higher overall cost, buying the most efficient furnace within a homeowner’s budget can help save on monthly energy costs and may be more cost-effective in the long run.

Furnace Brand

As is true of any other appliance, a furnace’s brand directly impacts the total installation cost. The best furnace brands offer gas furnace units in standard- and high-efficiency models to suit a range of budgets. The following are some of the most common gas furnace brands and their pricing, including installation.

Home Size

Larger homes require larger furnaces with higher BTUs. This directly affects the overall installation cost, as larger furnaces cost more than smaller ones.

A 1,000-square-foot house needs a furnace that has an average of 45,000 to 50,000 BTUs to remain comfortably warm. The average cost of a gas furnace unit that can handle this requirement is between $600 and $1,900. A 2,000-square-foot home needs an average of 90,000 to 100,000 BTUs, with an appropriate furnace for a home this size costing between $700 and $2,200. Finally, a 3,000-square-foot house needs approximately 135,000 to 150,000 BTUs to stay warm. A furnace that can meet this need costs between $1,200 and $5,600.

Generally speaking, a larger home will almost certainly need a more expensive furnace unit to heat it. Homeowners can use their home’s square footage to find the appropriate size furnace for their home, which will give them an idea of how much to budget for a new gas furnace.

Fuel Source

Gas furnaces can be powered by different fuel sources. How a furnace is fueled affects its installation cost, average energy bill, and even the life expectancy of the appliance.

Homes in secluded areas may benefit from a propane furnace. Propane can be cheaper than other types of energy and also offers reduced greenhouse gas emissions. On the downside, propane requires a homeowner to stay on top of fuel supplies to make sure the tank doesn’t go empty. Propane furnaces cost an average of $700 to $3,600, not including the cost of the propane itself. Running costs for a propane furnace are high, costing homeowners an average of $1,000 to $2,500 per year.

Natural gas is the most common gas furnace fuel source and typically the most affordable. While natural gas doesn’t need to be stored and refilled like propane, the lifespan of a natural gas furnace tends to be shorter than for other systems. A natural gas furnace costs between $700 and $3,500 for a standard-efficiency unit.

Labor

It typically takes a team to remove an old furnace and install a new one. Even if it’s a small team of two technicians, this can raise labor costs. A licensed furnace installer charges between $50 and $100 per hour. If they need to bring additional team members to assist with the job, a homeowner can expect $50 to be added to the hourly rate.

Overall, a homeowner can expect to pay between $500 and $2,000 in labor costs for furnace installation. A simple replacement should take only about 4 hours, while a new install can take between 10 and 15 hours, which increases the overall labor cost.

Installation Location

Furnaces can be installed in many different types of residences, all with their own unique price range. For example, installing a gas furnace in a tiny house costs between $1,000 and $2,500, while the cost to install a gas furnace in an apartment or mobile home is between $1,300 and $1,500.

Installing a gas furnace in a condo costs between $1,500 and $1,700, while a town house installation costs a bit more, between $1,700 and $2,500. Gas furnace installation in a cottage has a price range of $1,700 to $4,500, while installation in a house runs between $4,000 and $8,000.

Geographic Location

Material costs and labor for a furnace installation vary by geographic location. Installing a furnace in Chicago, Illinois, has the lowest price range of $2,400 to $5,500. Furnace installation gets more expensive in Nashville, Tennessee, and Seattle, Washington, with price ranges between $2,500 and $6,000. Detroit, Michigan, and Minneapolis, Minnesota, have furnace installation costs between $3,000 and $6,500, and homeowners in New York City can expect to pay between $3,500 and $7,500 for a new gas furnace.

Additional Costs and Considerations

The following additional costs and considerations may not apply to every furnace installation, but they’re important to know about in order to prevent surprise final bills and add-ons.

Gas Line Installation

When a homeowner is updating an old gas furnace to a new model, work on the existing gas line isn’t likely, but if an electric furnace is being converted to gas or a gas furnace is being installed in a new house for the first time, a new gas line will need to be installed.

This isn’t a job that can be tackled by a homeowner. It requires an experienced contractor and will need to be inspected before use. Homeowners can expect the cost of a new gas line to fall between $250 and $800.

New Ductwork Installation

New furnaces can often be integrated into a home’s existing ductwork, but if a home’s new furnace features a different design than that of the old furnace, an entirely new ductwork system may be needed. A new system may also be needed if the existing system has leaks or is damaged to the point where a replacement makes more sense than repairs.

A new ductwork system costs between $1,500 and $7,000, depending on how many stories a home has and the necessary number of intake and output vents. Siding and wall repairs can also add to this cost. If just some minor dust adjustments are needed, the expected cost for ductwork repair is around $1,000.

Old Furnace Removal

An old furnace must be removed before a new furnace can be installed. Of course, a furnace in a new build won’t have this cost to incur. For older homes, however, a replacement job will typically involve a removal fee.

In some cases, recyclers may agree to remove the furnace in question. They make most of their money selling the parts, so they usually charge only about $50 for removal. Homeowners can ask their HVAC professional whether they handle furnace recycling, and if not, whether they can recommend a professional who will.

A contractor will also remove an old furnace before installing a new one. Professional removal can be as low as $60, but for heavy furnaces or those in hard-to-reach basement corners, fees can be as high as $500. Local environmental and dumping fees may also increase the price.

Furnace Conversion

Additional costs related to a furnace conversion depend on the type of conversion happening. For example, converting a natural gas furnace to a propane model can be as low as $150. Conversion kits cost between $50 and $150, while labor costs add an additional $100 to $150.

When it comes to gas or oil heat, many homeowners prefer to make the switch to gas. Removing an old oil heater and installing a new gas furnace has a cost range of $500 to $6,500. Local regulations play a large role in how much this will cost due to environmental regulations. The project can also be quite complex, especially in older and/or historic homes.

Permits and Inspections

When a homeowner is installing a gas heater for home use, a permit is almost always required. Gas furnaces are vented appliances that must be properly installed to ensure the safety of the residents. There may be scenarios or certain municipalities that do not require a permit, but it’s better to assume a permit is required and then be told to proceed without one by local permit officials rather than assume a permit is not required and be subject to fines and other additional costs.

A homeowner will never want to take a contractor’s word that a permit isn’t necessary when installing a furnace and should check on it themselves. Most contractors are more than happy to pull permits as required and cooperate with inspections. On average, homeowners can expect to pay between $250 and $400 for a building permit for a new furnace installation.

Rebates and Incentives

A high-efficiency gas furnace can earn a homeowner a yearly tax credit of $150 (subject to change annually). It’s not the easiest tax credit to claim, but for those with a gas furnace that has an AFUE (Annual Fuel Efficiency) rating of 95 percent or higher, the credit can certainly offset some of the initial and operating costs of a new furnace installation.

Sometimes new gas furnaces can also qualify for a number of local utility incentives and rebates. Homeowners can call their local utility company to inquire about current promotions and to see if there are any available rebates. The contractor installing the furnace may be able to offer additional money-saving tips regarding rebates and incentives as well.

Types of Gas Furnaces

Not all gas furnaces have the same design. Different types of furnaces have different price ranges based on how they’re manufactured. They may also require different installation methods, resulting in different labor cost ranges. The following can help homeowners estimate furnace repair costs based on type.

Single-Stage

Single-stage furnaces are the most common type of gas furnace found in homes today. They have a very simple operational process, with a single on-off mechanism. This makes a single-stage furnace easy to operate, especially with only one heat setting. Unfortunately, this also means this type of furnace is the least efficient and can be the most difficult to control in terms of comfort. With an installation range of $700 to $3,500, they’re the most affordable type for homeowners to choose from.

Two-Stage

A two-stage furnace is a condensing furnace with two levels of heat output: Low and high. This makes it easier for homeowners to control the temperature within their home. Most two-stage furnaces feature technology that allows the furnace to automatically switch to whichever output will maintain the most consistent comfort level without running at a higher output than necessary. Two-stage furnaces cost between $1,100 and $3,600.

Modulating

Modulating furnaces are the most expensive, with an installation cost between $1,300 and $6,700. Using a computer-controlled thermostat, a modulating furnace allows a homeowner to get incredibly specific about temperatures throughout their home. This furnace type features a variable-capacity system with a variable-speed blower. All of these upgrades mean that a modulating furnace costs more to purchase and install, but they’re remarkably efficient, which can soften the financial blow over time.

Benefits of Choosing a Gas Furnace

Installing a gas furnace comes with multiple benefits, most of which can be experienced right away. For homeowners on the fence about choosing a gas furnace over another type of furnace, the following benefits may be enough to sway them into calling a contractor for an install date.

Low Annual Running Cost

With the right model, a new natural gas furnace can halve a home’s heating bill. While the exact savings depends on individual unit efficiency ratings, new models are more efficient and therefore more cost-effective.

When making the switch from electric to gas, homeowners are likely to notice how much faster a gas furnace heats up a home compared to an electric system. The increase in speed alone can add up to big savings.

Also, generally speaking, natural gas tends to cost less than electricity. Compared to prices for electricity and other heating fuels, gas prices can help keep the homeowner’s energy bills lower.

High Efficiency

Newer models of gas furnaces can be up to 98 percent more efficient than older ones. While the cost of a new furnace can be a large financial pill to swallow upfront, many homeowners find that new models pay for themselves over time in the form of energy savings.

High-efficiency heating also results in a smaller carbon footprint and less overall maintenance. Additionally, energy-efficient heating systems perform fewer cycles over their lifespans. Since the startup of a cycle causes the most wear and tear on a unit’s components, an energy-efficient furnace is more likely to last longer than a standard-efficiency one.

Low Emissions

Natural gas is the cleanest type of fossil fuel. Staying with or switching to a gas furnace during a replacement lowers the amount of greenhouse gas emissions from a home. In fact, coal generates 45 percent more carbon dioxide than natural gas. A home heated with gas generates 30 percent fewer greenhouse gas emissions than one heated with oil.

With less negative impact on the environment, natural gas furnaces are a greener choice for home heating. Also, using gas heating reduces the overall demand for electricity in a region and makes it less likely the electrical grid will become overwhelmed during the winter months.

Warmer Air

Compared to electric heating, gas furnaces can increase a home’s internal temperature by 25 degrees. This is comparable to an electric furnace, but even replacing a gas furnace with a new gas furnace can result in warmer air, since as a furnace ages it becomes less efficient and takes longer to heat up a space. In cases where a furnace is severely deteriorating, it may not be able to reach temperatures set on a thermostat, despite continuously running.

A main benefit of a new furnace install is the instant improvement in not just how warm a house gets but how quickly it reaches a desired temperature.

Reliability

Using electricity to heat a home will never be as reliable as using natural gas. Natural gas supply lines are installed underground, where they are safe from storms and accidents that can knock out the aboveground power lines that often supply a home with its electricity. This means that even if a storm knocks out the power for days, a home with gas-supplied heat will stay warm.

A home that relies on propane may have heat throughout a storm, but delays in propane delivery can be unreliable during severe weather or propane shortages. Having a gas furnace provides homeowners with peace of mind that despite weather issues or fuel shortages, their home will always be warm.

Gas Furnace Installation: DIY vs. Hiring a Professional 

Gas furnace installations can be pricey, so it’s understandable that homeowners may want to try to install their own furnace to save on labor costs. For most homeowners, though,a heating unit can be too technical. Industry knowledge is a must, and this is not a home improvement job with room for error.

There are several benefits to working with a contractor to install a furnace, the most significant being experience. A contractor has likely installed hundreds of furnaces and come across nearly every potential scenario. Research alone won’t provide a homeowner with this type of experience.

Contractors also have better access to parts and units. In fact, some manufacturers limit the sale of their high-efficient furnaces and best-priced HVAC units to only trained technicians. This ensures their units are always installed correctly, leading to better reviews and ratings. HVAC contractors may also have access to wholesale or discount pricing that homeowners can’t access on their own.

Finally, a DIY gas furnace installation can be dangerous, which is why many municipalities require permits for this type of job. This means that legally, a homeowner cannot install their own furnace without the potential for costly fees. Making an error during installation can also bring on a plethora of repair fees or, even worse, risk serious damage, like dangerous gas leaks and even explosions.

Having a gas furnace installed isn’t the most affordable of all home improvement projects, but trying to save money with a DIY install can end up costing homeowners more time and money in the end. Working with an HVAC contractor on a gas furnace install is always recommended.

How to Save Money on Gas Furnace Cost

Installing or replacing a furnace can be an expensive surprise for homeowners. Luckily, there are some ways to minimize the financial burden of a furnace replacement. Some can help shave costs off the installation, while others can help extend the life of a furnace. The following are a few ways homeowners can save on gas furnace costs.

• Speak to more than one contractor, and get multiple quotes. While replacing a furnace is usually an emergency that needs to be quickly addressed, taking the time to get a few different estimates will ensure an accurate diagnosis with a fair, remedial price tag.
• Keep up on maintenance. This will help extend the lifespan of a furnace and ideally prevent a homeowner from needing to replace their furnace before its expected expiration date. Homeowners should also know the signs of a furnace breaking down.
• Research brand reviews. While a referral from a contractor can be helpful when homeowners are searching for a replacement furnace, taking the time to explore reviews from buyers living with the brand and model being considered can help narrow down the furnace field while pointing out any seemingly common issues. Shopping by price alone won’t guarantee a high-performing model.
• Replace the furnace as soon as possible. When a furnace stops working, the atmosphere of a home can get very uncomfortable, very quickly. In fact, living conditions can be dangerous in a home without a working furnace. But other household issues can quickly develop, like frozen pipes, which can not only burst and flood but cause damage to other appliances like dishwashers and washing machines. Fixing a furnace as quickly as possible can prevent other costly damage throughout a home.
• Weigh the financial pros and cons of replacement vs. repair. If the cost to replace a gas furnace seems impossible to absorb, homeowners can see if a more affordable repair is an option. However, if the repair will only buy a limited amount of time, seeking out other options like financing or a loan to help cover the costs of replacement could make more financial sense in the long run.

Questions to Ask About Gas Furnace Installation

Asking questions before hiring a contractor to replace a gas furnace is a smart way for a homeowner to protect themselves from an unpleasant experience or even fraud. What follows are some of the most important questions to consider asking when searching for a gas furnace contractor.

• Are you licensed and insured?
• How long have you been in business?
• Do you offer free estimates?
• Will you be completing the work yourself, or do you work with subcontractors?
• How is your team trained?
• How experienced are you and your team?
• Do I need a full replacement, or will a repair get me through the winter?
• Do you recommend a certain brand?
• Do you charge emergency fees?
• How do your prices compare to those of other HVAC contractors?
• How long until my new furnace can be installed?
• Is it safe or possible to continue using my furnace until the replacement can be scheduled?
• How long will the job take?
• Will you inspect the whole HVAC system, including ductwork and electrical components?
• Are there any rebates or discounts available?
• If I have problems with the new system, do you provide customer support?
• What type of maintenance do you recommend I complete on the new furnace?
• Do you provide maintenance on the equipment you install?
• Do you offer warranties on the equipment, the installation, or both?
• Do you offer financing?
• Should my energy bills go down with the type of furnace you’re recommending?
• Do you handle all paperwork and permits that may be required?

FAQs

A home’s furnace is an appliance that’s typically out of sight and out of mind; that is, until it breaks down. With the national average cost to install a gas furnace at $2,175, it’s not always easy to find a way to stay warm without draining an emergency fund. That’s why it’s best to know about gas furnace costs before they hit. The following frequently asked questions can help a homeowner better predict a faulty furnace and prepare financially for either a new install or replacement.

Q. How long does a gas furnace usually last?

The average gas furnace lasts between 15 and 30 years. The actual lifespan of a furnace will heavily depend on the brand, along with how often the furnace is used and what type of maintenance it undergoes. Regular tune-ups are one of the best ways to extend the life of a gas furnace.

Q. How do I know if my furnace is bad?

There are a few signs a homeowner can look for to determine if a furnace is in bad shape. High energy bills can signal a struggling furnace, while cold temperatures, despite a thermostat set to high, can signal a faulty furnace. A furnace giving off a strange odor or making concerning sounds can also signal a bad furnace. Age is another clue, with furnaces older than 15 years being more likely to show signs of wear and tear.

Q. Do gas furnaces lose efficiency over time?

Yes, gas furnaces lose efficiency over time. This is especially true if they have not been properly maintained. Higher energy bills are a common sign that a gas furnace is running longer to provide the same amount of heat.

Q. How often does a gas furnace need to be replaced?

Generally, it’s common for a gas furnace to be replaced after 15 years. After 30 years, it’s nearly a requirement to replace a gas furnace. Once a gas furnace starts to lose efficiency or becomes dangerous to operate, it needs to be replaced as soon as possible.

Q. Can a furnace explode?

Yes, it is possible for a furnace to explode; however, this is an unlikely scenario. Modern furnaces are built to high safety standards that make an explosion a rare occurrence. Proper maintenance is one way to reduce the likelihood of an explosion.

Q. What do I need to know about replacing a furnace?

Homeowners will need to know about different types of furnaces and the signs they show when a replacement is imminent. Understanding furnace replacement costs along with what a home warranty will or will not cover is also important.

Sources: Angi, HomeAdvisor, Fixr