The cost to install a gas furnace runs between $3,800 to $10,000 on average, though some models such as high-efficiency or modulating will come in closer to $12,000.
Installing a gas furnace can help keep your home warm and toasty even during the harshest of winters. The average gas furnace replacement cost for a 1,600 to 2,000-square-foot house is about $7,000, with a typical range of $3,800 to $10,000, though some high-efficiency models will cost as much as $12,000.
A new furnace cost depends on the type of furnace you choose, as well as labor and installation fees.
You’ll be looking at one of three main gas furnace types. There are better long-term savings to be had by investing in a more energy-efficient style—if your earmarked budget can stretch to that.
| Type of Furnace | Description | Average Cost |
|---|---|---|
| Single-stage | Simple “on/off” action | $700–$3,000 |
| Two-stage | Have high and low blower settings | $1,000–$3,500 |
| Modulating | Maintain a consistent temp with computer-controlled thermostats | $1,300–$6,500 |
Every gas furnace features a fuel efficiency rating. This is the Annual Fuel Utilization Efficiency (AFUE) rating. These efficiency ratings are broken down into three categories, each with differing price ranges.
| Efficiency Rating | Description | Average Cost |
|---|---|---|
| Standard | AFUE rating of 80% to 89% | $500–$1,500 |
| Moderate | AFUE rating of 90% to 95% | $1,000–$3,000 |
| High | AFUE rating of 96%+ | $2,000–$6,000 |
Labor will cost $500 to $2,000, though quotes are almost always free. You will pay $50 to $100 per hour for a licensed furnace installer, along with up to $50 per hour for any additional team members. A qualified HVAC pro will determine the best furnace to suit your needs, taking into account your location, the size of your home, the age of your home, and your average monthly energy bills.
Gas furnace replacement costs can vary based on location. In colder climates, you’ll need more BTUs to keep the space warm and toasty on a snowy day, while warmer climates require less of that heating power. As such, you’ll need to figure about 50 to 60 BTUs per square foot for homes in colder climates and about 30 to 40 BTUs for homes in warmer climates.
While a gas furnace for a 2,000-square-foot home in a warmer climate, like California, Florida, or Texas, may cost about $2,500 to $4,200 for 60,000 BTUs, a gas furnace for the same-sized home in colder states like Ohio, Washington, or New York may cost about $4,000 to $6,000 for 120,000 BTUs.
You'll have to boost your budget if you're converting a heating system rather than replacing an existing natural gas furnace.
| Conversion Type | Description | Average Cost |
|---|---|---|
| Propane to gas | You’ll save money on running costs | $100–$1,950 |
| Electric to gas | Great for people in extra cold conditions | $120–$9,850 |
| Heat pump to gas | Not much difference in running costs | $120–$9,850 |
| Oil to gas | Great for when gas comes to your neighborhood | $500–$6,540 |
Gas furnace capacity or size is ranked by BTUs, or British thermal units. This measurement logs how much energy a furnace needs to heat a certain amount of space. To determine the furnace size you need, you can estimate about 30 to 60 BTUs per square foot. So for a 2,000-square-foot home, you’d need a gas furnace with about 60,000 to 120,000 BTUs.
| Furnace Size (BTUs) | Average Cost |
|---|---|
| 40,000 | $2,000–$3,500 |
| 50,000 | $2,300–$3,800 |
| 60,000 | $2,500–$4,200 |
| 70,000 | $2,700–$4,600 |
| 80,000 | $3,000–$4,900 |
| 90,000 | $3,200–$5,000 |
| 100,000 | $3,400–$5,400 |
| 110,000 | $3,600–$6,000 |
| 120,000 | $4,000–$6,000 |
| 130,000 | $4,200–$7,000 |
| 140,000 | $4,800–$8,000 |
| 150,000 | $5,400–$9,000 |
The biggest cost will be the furnace itself. A brand-new furnace costs an average of $2,250 and tops out at around $4,000. High-efficiency models, which may be necessary for colder-than-average climates, average $3,500 to $5,500. There is also labor to consider, in addition to a number of hidden costs that you should keep an eye on as you collect estimates from a qualified local HVAC expert.
Here’s a breakdown of how you can expect to spend your money when taking on a gas furnace installation project:
Gas furnaces are complex pieces of equipment and, as such, will take up the lion’s share of your total installation cost. The furnace itself will gobble up 50% to 75% of the cost of the furnace replacement project.
You will pay more for a high-efficiency furnace and the price will also escalate as you opt for larger units to cover more square footage. As a rule, you will need 30 to 50 BTUs per square foot. So, an 80,000 BTU furnace will keep a 1,600 to 2,000-square-foot home nice and toasty during the winter.
Chances are, this is not your first rodeo. You may have to remove an old gas furnace before you install the new one. In some cases, recyclers will grab the old furnace and use it for parts, charging you $50 or so. Professional removal will cost $60 to $500, depending on how far you live from a dumpsite, how heavy your furnace is, and any environmental and dumping fees required by law. You should replace a gas furnace every 15 to 20 years, depending on how well it is operating.
Your new furnace won’t work properly if it is not properly integrated with the ductwork, vents, and filters of your home. You may need an entirely new ductwork system, especially if your new furnace features a different design than your pre-existing furnace. Installing new ductwork costs $1,500 to $7,000, depending on the number of stories in your house, the number of intake and output vents, and any necessary siding and wall repairs. If you just need some minor duct adjustments and repairs, expect to pay around $1,000.
Gas furnaces need to connect to a gas main. If you are replacing a pre-existing model, the gas line should be ready to go and no installation will be necessary. If this is your first gas furnace, the cost to install a new gas line is $250 to $800.
Depending on where you live, you may need a professional inspection and a building permit in order to install a new gas furnace. Building permits cost $400 to $1,500, and this price should cover any inspection fees. These inspections will ensure that the furnace operates safely, so be sure to shop around before settling on an inspector.
There are additional factors to consider when pricing out gas furnace replacement costs. Some of these could actually save you money, so be on the lookout.
Do you have a vintage furnace that’s been in your home for decades? Upgrading to a modern, high-power model might mean having to shell out the cost to replace your circuit breaker box if it’s equally antique—budget around $1,150 for this job.
Most new furnaces come with a 10-year limited manufacturer’s warranty for parts and a 20-year warranty on the heat exchanger, which is the most expensive component of a gas furnace. Ask your pro to explain the ins and outs of your warranty before making a final decision.
If you purchase a high-efficiency gas furnace you will receive a yearly tax credit of $150 (as of this writing.) There are some hoops to jump through, so gather proof that your newly installed gas furnace features an AFUE rating of 95% or higher.
Additionally, new gas furnaces can qualify for a number of local utility incentives and rebates. Call your utility company to inquire about current promotions and be sure to ask your contractor for any money-saving tips.
A gas furnace is a significant investment for homeowners, even if it will help cut down on the monthly utility bill. Research furnace installers near you ahead of time to make sure they have the necessary insurance and licenses to do the job. You can also search the web for customer reviews and check out the Better Business Bureau website for any warning signs. Finally, give them a call to get a feel for their professionalism and overall knowledge base.
Gas furnaces typically last 15 to 20 years. If your furnace is 15 years old and operating normally, there is no need to replace it. If it is 15 years old or more, however, and the furnace is beginning to show some signs of wear, you may want to start shopping around. Another sign it’s time to replace a gas furnace is if repairs will cost 30% to 50% of the cost of a new furnace.
While installing your new furnace, you should consider hiring a pro to perform a home energy audit. This audit will give you a handy list of any projects you could undertake to improve your home's overall energy efficiency rating, including replacing or sealing windows and insulating the attic. These improvements can help save you money each month in utility costs.
