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Gas Furnace Installation Cost

Gas Furnace Installation Cost

National average
(high-efficiency gas furnace for 2,000 sq.ft. home)
Low: $3,000

(moderate-efficiency gas furnace for 2,000 sq.ft. home)

High: $12,000

(high-efficiency furnace and ductwork for 2,000 sq.ft. home)

Cost to install a natural gas furnace varies greatly by region (and even by zip code).
Get free estimates from air-conditioning and heating contractors in your city.

The average cost of installing a gas furnace is $3,000 - $8,000​.

In this guide

Pros and Cons of a Gas Furnace
Comparing Four Types of Furnace Fuels
Furnace Efficiency
Load and Btu
Installation Process
Labor Cost
Recommended Brands
Enhancement and Improvement Costs
Additional Considerations and Costs

How Much Does It Cost to Install a Natural Gas Furnace?

If you heat your home with forced hot air, then you need to install a furnace as the means to convert energy into heat. Furnaces are available in many fuel types, with gas furnaces being one of the most popular. Gas furnaces have the lowest ongoing monthly expenses, making them a good choice for those who want to heat their homes on a budget. 

Gas furnaces have a range of costs, depending on the size of the unit and how efficient it is, with larger and more-efficient models costing more. Labor fees for installation also vary depending on whether there is a gas line present and how complex the installation is. The average range of costs for purchasing and installing a gas furnace designed to heat a 2,000-square-foot home with a 95% efficiency rating ranges from $3,000 to $8,000, with most homeowners spending around $6,000 total.

Pros and Cons of a Gas Furnace

Gas furnaces have some of the lowest yearly expenditures compared to other furnace types. They are also one of the more environmentally friendly types of furnaces, letting off fewer emissions than oil or electricity. If you live in an area that can easily get natural gas, they are also usually fairly easy to hook up and install. Gas furnaces also do not require fuel storage like liquid propane 1 or oil, so you do not have added expenses, such as tanks or delivery fees. 

But gas furnaces are not available everywhere. Homes in rural areas do not normally have access to gas lines, making a gas furnace out of reach. They are also less efficient than other furnace types. While they can now reach 95% efficiency in some of the newest models, these tend to be very expensive. Getting a similarly efficient - or more efficient - furnace from another fuel type can cost a lot less up front. 

Comparing Four Types of Furnace Fuels

There are four basic types of furnace fuels - gas, liquid propane (L.P.), oil, and electricity. Each has pros and cons that may make one a better fit for your budget and lifestyle. This graphic ranks the four fuel types based on the cost of the furnace, the cost of fuel per year, how efficient it is, and how environmentally friendly it is. 

You can clearly see that while gas furnaces are more expensive up front, they cost the least per year to run. You can also see that while they stack up well in eco-friendliness, they lag in efficiency.

Comparing four types of furnace fuels

Furnace Efficiency

Regardless of what furnace type you have, it will have a rating that lets you know how efficient it is at converting energy into heat. This is known as the annual fuel utilization efficiency (AFUE). Each furnace has a rating as a percentage of the amount of fuel it converts to heat - the higher the number, the better the efficiency. Gas furnaces have historically not been the best at efficiency. They are getting better, however, and it is now possible to find them with ratings up to 95%. Keep in mind that the better the efficiency rating, the more expensive the furnace. 

Furnaces are considered high-efficient if they are rated at 90% or above. These furnaces also have a blower 2 that helps circulate the air through your home more efficiently.

Load and Btu

Not every furnace has the same amount of output. Heat output is measured in British thermal units (BTUs). The more BTUs, the more heat your furnace is capable of generating. Homes that are larger, have more than one floor, or are located in cold climates need more BTUs than houses that are smaller, have only one floor, or are located in warm climates. 

Generally, you calculate the load for your furnace based on two things: your home’s total square footage of finished, heated space and the region or climate your house is located in. Region 1 is the hottest, most southern parts of the country, while Region 5 is the northern, coldest area.

RegionBTUs per Square Foot
130 - 35
235 - 40
340 - 45
445 - 50
550 - 60

So a 2,000-square-foot home located in Texas would need a furnace capable of 60,000 BTUs, while the same-sized house in Wisconsin would require a furnace capable of 120,000 BTUs. This means the furnace for the Wisconsin home would be larger and, therefore, more expensive.

Installation Process

The installation process for a gas furnace varies slightly from home to home, depending on a few factors. If there is no gas line currently extending to the house, then a plumber will be required to run one to the new furnace. The furnace will also need an exhaust. So if there is not an exhaust source already, one will need to be installed through the wall near where the furnace will be placed. Finally, if there are no ducts or insufficient ones, then new ductwork will also need to be installed.

Otherwise, the installation of the furnace is fairly straightforward. The old furnace is disconnected from the fuel line, and the vent and ducts are removed. The new furnace is brought in, wired to the home’s electrical system, and the gas line is connected. The furnace is vented out the side of the house and connected to the ducts. If necessary, a new thermostat may also be installed. The entire process takes 2 to 3 hours on average.

Labor Cost

Labor costs for a gas furnace installation vary depending on the complexity of the installation. Having to install a vent, for example, will make the furnace more difficult and time-consuming to install, which results in a higher cost. Most gas furnace installations have labor costs that range from $500 to $3,000, depending on the complexity of the project, with most people paying between $1,500 and $2,000 out of the $6,000 total.

Many different brands of gas furnaces are on the market. Most are available at your local big-box store, but others may be available through your heating provider. The following are some of the top brands that get consistently good reports:

Brand ProsCons


($2,300 - $3,000)

Less expensive

Some Energy Star models available

Made by the same company that produces Ruud

Not as efficient as other models

Not as many options

American Standard 

($3,000 - $5,000)

Quiet operation

Energy Star Rated

Single or multi-stage

Not many versions 

90% AFUE

Need to choose between quiet operation and efficiency


($3,000 - $5,000)

Single or multi-stage blower available

Very efficient

Can be loud


($3,000 - $5,000)

Single or multi-stage blower available

Very efficient

Can be loud


Gas furnaces are fairly low-maintenance. You need to change the filter every 1 to 3 months, depending on the type and manufacturer’s recommendations. Otherwise, the unit should be serviced and cleaned yearly to keep it functioning well.

Replacement vs Repair

Most of the time, when a furnace fails, it is a fairly easy repair. And while newer models are more efficient, it will generally save you money in the long run to make repairs instead of replacing. The only time replacement is recommended is when a major component of the furnace needs to be fixed, such as the heat exchanger or control module. Both of these are expensive and difficult to repair, and you still may need to replace the furnace when you are done.

Enhancement and Improvement Costs

Hepa Air Cleaner or Humidifier

It is possible to add either a high-efficiency particulate air (HEPA) filter or a humidifier to your furnace. The idea is that these will make your air cleaner and more comfortable. However, most of the time, this is not recommended because they often do not perform as well on the furnace as they do as stand-alone appliances. Adding them can add up to $1,000 to the final cost.

Old Furnace Removal

Often, the old furnace removal is included in the cost of the new furnace if you purchase the new one from the installer. When going through a third party, there may be an additional $50

Increased Electrical Power

If your new furnace needs more power than the old one, you may need a circuit upgrade. This will cost around $1,300 to $3,000 on average.

Programmable Thermostat

To get the most out of your new furnace, you may also want to upgrade to a programmable thermostat that sets the temperature based on the time of day and day of the week. They cost around $200 to $250.

Additional Considerations and Costs

  • Any replacement or reworking of your furnace or HVAC system will require a permit in most areas. Always check with your town or city hall for the most up-to-date guidelines.
  • Depending on the energy efficiency of your new furnace and the age of your home, you may be eligible for a tax credit. Check with an accountant to find out if your new system qualifies.
  • Most U.S. homes utilize gas furnaces. Although, some northern states use oil, and rural areas may use liquid propane or wood-burning stoves.
  • Buying a more eco-friendly furnace helps both the environment and your wallet. Solar panels, geothermal heat pumps, and wood-burning systems are all more eco-friendly choices.
  • You need to have your furnace inspected. This costs between $210 and $260, depending on the level of inspection.
  • If you currently have an electric furnace and are converting to gas, you need to add a gas line at an additional $200 to $500.


  • How much does it cost to install a gas furnace and ductwork?

Installing a new gas furnace and ductwork costs upward of $10,000 in total.

  • How long does a gas furnace last?

Gas furnaces can last 10 to 12 years on average. 

  • How long does it take to install a new furnace?

It should only take 2 to 3 hours, provided the install is not complex. 

  • Should ductwork be replaced after 20 years?

This depends on the ducts. Some may only need to be sealed, while others may need more returns added. 

  • Can you finance a new gas furnace?

Yes, some companies offer financing for the new furnace and the installation, depending on your credit score.​​

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Remodeling Terms Cheat Sheet

Definitions in laymen's terms, cost considerations, pictures and things you need to know.
See full cheat sheet.
glossary term picture Propane 1 Propane: A hydrocarbon gas used as a common fuel source
glossary term picture Blower 2 Blower: An accessory that makes a fireplace more efficient by circulating the warm air in the fireplace to other areas of the home

Cost to install a natural gas furnace varies greatly by region (and even by zip code). To get free estimates from local contractors, please indicate yours.

Professional Installing New Gas Furnace

Labor cost by city and zip code

Compared to national average
Akron, OH
Albuquerque, NM
Athens, GA
Atlanta, GA
Bakersfield, CA
Bellevue, WA
Bronx, NY
Brooklyn, NY
Canonsburg, PA
Charlotte, NC
Chicago, IL
Cincinnati, OH
Cleveland, OH
Colorado Springs, CO
Columbus, OH
Corpus Christi, TX
Dallas, TX
Denver, CO
Detroit, MI
Dover, PA
El Paso, TX
Eugene, OR
Fort Lauderdale, FL
Fort Worth, TX
Fremont, CA
Golden, CO
Green Bay, WI
Gurnee, IL
Hansville, WA
Harrisburg, PA
Houston, TX
Howell, MI
Indianapolis, IN
Lansing, MI
Las Vegas, NV
Leadville, CO
Lexington, KY
Lithonia, GA
Littleton, CO
Longview, TX
Los Angeles, CA
Milwaukee, WI
Minneapolis, MN
Modesto, CA
New York, NY
Oakland, CA
Oklahoma City, OK
Oregon, OH
Orlando, FL
Philadelphia, PA
Labor cost in your zip code
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