5 Types of Furnaces: Pros, Cons, and Which Is Best for Your Home

When your furnace is fizzling out, consider these replacements

Woman reading comfortably under blanket
Photo: Bernardbodo / Adobe Stock
Woman reading comfortably under blanket
Photo: Bernardbodo / Adobe Stock
Get quotes from up to 3 pros!
Enter a zip below and get matched to top-rated pros near you.
Geo Icon

If your furnace is on the fritz, you may be considering your options for an upgrade that will efficiently and reliably heat your home. There are five common types of furnaces: natural gas, electric, propane, oil, and wood. Each furnace type has different benefits and drawbacks, from heating output and operating costs to life span and maintenance. Weigh the pros and cons of these five main types of furnaces.

Furnace TypeLife Span in Years
Natural gas15–20
Electric20–30
Propane15–20
Oil15–25
Wood10–20

1. Natural Gas

Natural gas furnaces are the most common type of home furnace. However, you’ll need access to a municipal gas line to use one, which means you’ll need to be careful with potential CO2 poisoning if the heater malfunctions.

The natural gas furnace is more expensive up front (about $1,700 to $9,700) but is often more affordable to operate long-term. Natural gas furnace operation is straightforward and works a lot like electric units to heat your home:

  • Natural gas furnaces use a flame to heat an exchanger.

  • The exchanger transfers the heat to incoming air.

  • The furnace blows the air out through air ducts.

ProsCons
Lower long-term costsHigher CO2 leak risk
Heats quicklyHigher up-front cost
More eco-friendly than oilNeeds gas line access

Best for: Efficient heating, large homes

Angi Tip

Install carbon monoxide alarms on every level of your home, in central locations, and outside bedrooms. Check all of your carbon monoxide detectors every month, and replace the batteries on a set schedule according to the manufacturer’s instructions.

Kassidy Barber
Content Editor, Angi

2. Electric Furnace

Electric furnaces are another popular option. They are more affordable to install (about $1,600 to $6,200 on average) but cost more to operate over time. Electric furnaces work similarly to gas furnaces, except they use electricity to create heat:

  • Electric furnaces pull surrounding air into the system.

  • The furnace uses electricity to operate heating elements, which warm incoming air.

  • The furnace then pushes the warm air out through your air ducts.

ProsCons
High energy efficiencyHigher operating cost
Lower installation costPower outages take out heat source
Better temperature controlLess effective in cold climates

Best for: Heating small spaces efficiently and on a budget

3. Propane Furnace

Propane furnaces operate similarly to natural gas furnaces, but they use propane (not natural gas). Averaging around $1,800 to $6,000, propane furnaces are less expensive than gas furnaces but also less efficient.

  • The propane furnace heats air by turning the liquid propane into a gas.

  • The gas moves across a heat exchange, heating the air.

  • The heated air exits through air vents.

ProsCons
Lower operating costsLess efficient
Quick heatingHigh up-front cost
Accessible in remote areasRequires space for propane tank

Best for: Cold climates, homes in rural areas

4. Oil Furnace

An oil furnace is a popular alternative to gas furnaces and electric furnaces.

Higher oil prices make them more expensive, and they require more furnace maintenance than some other types. The average cost of an oil furnace is $2,500 to $6,000. You’ll also need to keep your oil tank (which you’ll need to install) ready so that you don’t run your furnace dry.

An oil furnace uses a burn chamber to produce heat:

  • The fuel pump brings oil to the burner chamber, where the oil transforms into a mist.

  • This mist is then sprayed onto a burner.

  • The burner warms up and heats incoming air, which is then distributed through the duct system.

ProsCons
Provides a lot of heatHigh up-front and ongoing costs
Long life spanHigh maintenance
Accessible in remote areasLess eco-friendly

Best for: Cold climates, homes in rural areas

5. Wood Furnace

Wood furnace in family home
Photo: 4th Life Photography / Adobe Stock

You may be able to get a dual-source furnace that uses oil, gas, or kerosene as a backup. Wood furnaces can be very affordable, usually ranging between $2,600 and $12,500. However, they are less efficient than other furnace options and require a little extra work.

Wood furnaces require fuel (wood) to create heat for the home:

  • Wood furnaces use the heat from burning wood to warm your home. 

  • Newer wood furnace models have a blower that helps distribute the heat through your air ducts.

ProsCons
Lower ongoing costsLess efficient
High heat outputNeed space for wood storage
Off-grid heatingProduces a lot of ash and soot

Best for: Cold climates, budget-conscious homeowners

What to Consider When Buying a Furnace

No matter the type, you need to determine a few non-negotiable furnace features your home requires:

  • Size: This depends on your home’s square footage, insulation, and ceiling heights.

  • Efficiency: Two-stage and multi-stage units are more efficient than single-stage furnaces. 

  • Additional features: Dehumidifiers, smart thermostats, and temperature and noise controls come at a cost. 

  • Warranties: Installation or extended warranties can supplement your manufacturer's warranty.

  • Fuel source: Gas, electric, propane, and oil are all viable.

  • Climate and region: Different furnace types operate more efficiently in different conditions.

Alternative Heat Sources

In addition to traditional furnaces, there are alternative ways to heat your home. Some of the most popular options include solar heating, pellet stoves, and radiant under-floor heating, which can be used on their own or paired with a furnace heating system.

  • Solar heat: Solar energy options are one of the most costly projects you can choose, but if you live in a hot climate, the sun can benefit you by pumping energy into your home courtesy of solar panels or units.

  • Pellet stoves: A cleaner burning option than wood, pellet stoves can be installed as a free-standing stove or an insert that fits inside your fireplace opening.

  • Radiant heat: Also called baseboard heating, you can use supplemental radiant heat sources to warm a room addition. They’re inexpensive to operate, and some units have programmable thermostat options.

What Types of Furnaces Are Suitable for a House?

Replacing a furnace in a home is an expensive decision, especially since you only feel the results of your decision a few months out of the year. Not all furnaces are created equal, and you’ll want to do a bit of research to make sure you find the right one for your home.

It’s important to note that if your gas furnace is more than 15 years old and your electric furnace is more than 20 years old, you may want to consider a replacement. Failure to replace an old furnace can be dangerous. Not only do you risk losing heat in the winter, but you could also face danger from carbon dioxide poisoning or fires. When it’s time to replace a furnace, be sure to consult a local furnace installation company for quick, safe installation.

Frequently Asked Questions

The most common (and even the oldest type of) furnace is the natural gas furnace. Gas furnaces are so popular because they’re more efficient, heat your home faster than other furnace types, and are less expensive to use than electric furnaces. It also makes cooking a breeze, as it provides instant heat to let you start sizzling that steak or boiling your water a lot quicker.

Oil furnaces are the type of furnace that lasts the longest. When well-maintained, you can expect an oil furnace to have a life span of up to 25 years. Gas furnaces, on the other hand, typically only last around 15 years, with a common maximum of 20 years with exceptional maintenance.

Need professional help with your project?
Get quotes from top-rated pros.
The homeowners guide to heating and air conditioning services
From average costs to expert advice, get all the answers you need to get your job done.
Woman sitting on the couch using her laptop
Sep 6, 2024
Sep 6, 2024
Explore factors influencing oil furnace replacement cost, additional expenses, and savings tips. Make an informed decision for a cozy home.
Professional checking a furnace after moving it
Jan 3, 2024
Jan 3, 2024
Moving a furnace a few feet is not a huge matter. However, moving a furnace to another room or different part of the house will probably cost a few thousand dollars. It's a major job involving numerous different professionals.
Woman works at workbench in garage
Sep 3, 2024
Sep 3, 2024
A heater is essential if you spend any time in your garage. Find out the average garage heater installation cost based on fuel type, run time, and labor.
Air conditioner units on the patio of a house
Sep 4, 2024
Sep 4, 2024
Regular HVAC tuning can help prevent a number of issues, including heat pump failure. Read about the additional benefits of annual tune-ups in our guide.
Woman sitting on the couch enjoying her time at home
Aug 26, 2024
Aug 26, 2024
Learn how to redirect air vents with an easy-to-install deflector. You’ll have better airflow without having to call an HVAC pro.
Man lying on a couch reading a book
Jan 11, 2024
Jan 11, 2024
Check out all the pros and cons of a variable speed air handler before upgrading your home’s HVAC system.
Share project details to get started.