Gas Furnace Installation Cost

How much does it cost to install a natural gas furnace?

Installing a new gas furnace in your home not only increases the system's power and efficiency but can also reduce your heating bill and improve the environment over other types of furnaces. A well-maintained gas furnace should last around 25 years, so an upgrade is an investment in your home. The most common furnace system is gas, and the size and power of the furnace depends on the size and age of your home.

For a 2000 square foot home, an installed natural gas furnace averages $5,000 - $7,000.

Cost breakdown

  • Parts: A typical natural gas furnace averages between $2300 and $3500, depending on the brand and efficiency. Larger houses will require larger furnaces in the $3500 range. Gas furnace efficiency is measured by the annual fuel-utilization efficiency (AFUE) rating, measured as a percentage. The higher the AFUE, the more expensive the furnace, but the more efficient it is. Older furnaces have lower AFUE ratings, but new furnaces today are require to have at least 78% AFUE. A 10% increase in AFUE can increase the cost of a furnace by about $1000.
  • Labor: Expect to spend $1,000 to $2,000 on labor costs. This price could move higher if the existing furnace is difficult to remove or if the heating system needs to be reconfigured to work with the new furnace (see below).
  • Removal and disposal: In most cases, you'll need to remove the old furnace. Labor and disposal fees can run you another $600 to $1000.

Enhancement and improvement costs

  • Extra features may lower your monthly energy bill, but they tend to cost more when the furnace is purchased and installed. Popular features include variable-speed blowers that move air slower when less heat is needed and variable heat output that automatically adjusts the heat output.
  • Additional furnace components, such as a HEPA air cleaner or humidifier, can be added to a standard gas furnace. These features improve air quality and breathability but will cost an extra $400-$800 per item.

Additional considerations and costs

  • Before spending the money to have a broken or faulty furnace completely replaced, have a specialist run a few tests to see if repairs can fix the problem. Investing in a check up could save you thousands of dollars if the current furnace can be repaired.
  • Different types and levels of insulation can help extend the life and power of your furnace. Old or thin insulation can allow heat to escape more quickly, which works against your furnace. If you need to replace or add insulation to your home, plan to add an additional $2500 to your budget.
  • Replacing the furnace or reworking the HVAC system requires a permit in most states. Check with your HVAC specialist for specific guidelines in your area.
  • You may be eligible for a tax credit depending on the efficiency of your new furnace and the age of your home. Credit amounts and requirements change every year, so check with an HVAC specialist or accountant for the most recent local information.

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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.

Labor cost by city and zip code

Compared to national average
Austin, TX
+13%
Baltimore, MD
+12%
Bethlehem, PA
+12%
Big Lake, MN
-2%
Boston, MA
+40%
Bremerton, WA
-18%
Bronx, NY
+32%
Brooklyn, NY
+16%
Buffalo, NY
-1%
Charlotte, NC
+6%
Chicago, IL
+40%
Cleveland, OH
+7%
Coldwater, MI
-21%
Colorado Springs, CO
-3%
Columbia, MD
+26%
Columbus, OH
+5%
Concord, MA
+41%
Covington, VA
-8%
Dallas, TX
+10%
Denver, CO
+1%
Detroit, MI
+16%
El Paso, TX
-28%
Fort Lauderdale, FL
+2%
Fort Mill, SC
-13%
Fort Wayne, IN
-7%
Fort Worth, TX
+6%
Fresno, CA
-6%
Grand Prairie, TX
+6%
Grayson, KY
-46%
Hampton, VA
-18%
Henderson, NC
-41%
Houston, TX
+24%
Hudson, MA
+11%
Hyde Park, MA
+38%
Jacksonville, FL
-1%
Kansas City, MO
+4%
Kirkland, WA
+12%
Las Vegas, NV
+7%
Long Beach, CA
+16%
Los Angeles, CA
+11%
Ludlow, MA
+21%
Lunenburg, MA
+26%
Metamora, MI
-24%
Miami, FL
+1%
Milford, PA
-11%
Milwaukee, WI
+12%
Minneapolis, MN
+25%
Morley, MI
-43%
Nashville, TN
+21%
New London, OH
-2%

Labor cost in your zip code

Methodology and sources