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

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

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

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Reviewed by Adam Graham. Written by

If you heat your home with forced hot air, then you need to install a furnace 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 unit size and how efficient it is, with larger and more-efficient models costing more upfront. Labor fees for installation also vary depending on whether there is a gas line present and how complex the installation is. The average cost range for purchasing and installing a gas furnace designed to heat a 2,000-square-foot home with a 97% efficiency rating ranges from $3,000 to $8,000, with most homeowners spending around $6,000 total.

Gas Furnace Prices

Natural Gas Furnace Installation Costs
National average cost$6,000
Average range$3,000-$8,000
Minimum cost$3,000
Maximum cost$12,000

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Gas Furnace Installation Cost by Project Range

Moderate-efficiency gas furnace for 2,000 sq.ft. home
Average Cost
High-efficiency gas furnace for 2,000 sq.ft. home
High-efficiency furnace and ductwork for 2,000 sq.ft. home

Gas Furnace Cost by Brand

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 receive consistently good reports:

Gas Furnace Cost

Gas Furnace Cost



($2,000 - $3,000)

Less expensive

Made by the same company that produces Carrier

Not as efficient

Not many options


($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


($2,500 - $5,000)

Very quiet

Can improve the efficiency of other HVAC options like filtering

Difficult to install

Poor warranty

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 5 available

Very efficient

Can be loud


($3,000 - $5,000)

Single or multi-stage blower 5 available

Very efficient

Can be loud


($4,000 - $6,000)

Very reliable

High efficiency

Can be difficult to install

Will break down easily if poorly installed

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Gas Furnace Sizes

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, which includes most southern parts of the country, while Region 5 is the northern, coldest area. Consult the U.S. Energy Information Administration’s climate zone map to determine your zone number.

First, calculate the interior square footage of the heated areas of your home. Start by measuring the length and width of each room and multiply them together to calculate the square footage. Add up the square footage of all the rooms to get your total square footage. Then, multiply this by the number of BTUs needed per square foot for your region. Colder regions require more BTUs to heat the same-size space as homes in warmer regions.

What Size Gas Furnace Do I Need

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.

To get a general idea of how large a furnace you will need, the following chart shows how many BTUs are required for homes of different sizes in a Zone 4 climate.

Gas Furnace Btu Per Square Foot

Gas Furnace Btu Per Square Foot

Square FootageBTUs
80036,000 - 40,000
1,00045,000 - 50,000
1,20054,000 - 60,000
1,50067,500 - 75,000
2,00090,000 - 100,000
2,500112,500 - 125,000

Ideally, you want to get within 10% of these figures for your home’s size and region when purchasing a furnace for the best efficiency. Do not go more than 20% over because this can cause your furnace to work harder than necessary, driving up energy bills and lowering its lifespan.

Labor Costs to Install a Gas Furnace

Labor costs for a gas furnace installation vary depending on the installation complexity. For example, installing a vent makes 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.

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How Much Does It Cost to Run a Gas Furnace for an Hour

To get an idea of how much your gas furnace would cost to run for an hour, you need to consider several things, including the cost of gas where you live and the size of your furnace. Keep in mind that this can only give you a very general idea of how much it costs to run, and to truly calculate your exact cost per hour, you need to watch your gas meter to see exactly how much gas is being used. This is because the amount of gas each furnace uses varies depending on its efficiency rating, with higher-efficiency models using less gas than lower efficiency models.

A very general way to get a ballpark of how much it costs to run for an hour, find your furnace’s BTUs and the gas cost per cubic foot in your area. One cubic foot of gas is needed for 1,030 BTUs. For a 100,000 BTU furnace, you will use 97 cubic feet per hour.

Gas is sold in units of 100 or CCF, so you will need to divide 97 cubic feet by 100 to get .97 CCF per hour. Now, multiply the cost of one CCF of gas by .97 to get the average price to run a furnace for one hour. This does not factor in the high efficiency of some units. For that, you need to determine exactly how much gas your furnace uses by watching your gas meter.

The current national average cost of 1 CCF of gas is $0.986, resulting in a price of $0.96 an hour. Your area’s gas prices could be much higher or lower than this, so to get a more accurate number, call your gas company for more information.

Natural gas furnace closeup

Gas Furnace 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.

Gas Furnace Replacement Cost

Gas furnaces are fairly straightforward to replace, particularly if you are using the same basic make, model, and unit size. For some higher-efficiency models, there may be some additional installation costs, depending on the model. In addition, some higher-end brands have higher installation costs because the installer needs to undergo specialized training. This can make switching to a more efficient, high-end unit slightly more expensive in labor than it is to swap out a basic unit for the same type. On average, replacement costs have similar averages of $3,000 to $8,000, with most people paying around $6,000 for an installed high-efficiency furnace.

Keep in mind that most of the time when a furnace fails, it is a relatively 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.

Gas Furnace Air Conditioner Combo Cost

If you live in an area where you will also have high summer temperatures, you may want to consider installing an HVAC system that can heat and cool your home from one unit. This can be more efficient and easier to install than some other methods.

Like furnaces, there can be a wide range of costs depending on the efficiency and unit size. This can mean that the average range of installing a gas furnace/air conditioner combo is between $4,000 and $12,000, with most people paying around $9,000 for a high-efficiency unit capable of heating and cooling a 2,000sq.ft. home.

Cost to Convert Propane Furnace to Natural Gas

If you have an existing propane furnace and your area has recently had a gas line added, you can save a lot of money on your heating costs each month by converting to gas. The actual furnace conversion is simple, with many furnaces capable of using either fuel, with a small conversion kit costing between $25 and $100 to make the switch.

The real cost comes in running the gas line from the main line to your home. Installing a gas line from the main line to your furnace costs around $500, along with the conversion and labor, making the total cost of converting around $1,200 total, assuming that you do not need a new furnace.

Cost to Convert Heat Pump to Gas Furnace

If you currently heat your home with an electric heat pump, you can save a lot of money each month by switching to a gas furnace. Gas furnaces are much more efficient and do a better job of heating your home, particularly if you live in a colder region.

If you do not already have a gas line, you need one run to your home, which has starting costs of around $500. You will then need to purchase and install the new gas furnace, for a price of about $6,000 for a high-efficiency unit or approximately $4,000 for a lower-efficiency unit. Given that electric heat pumps are typically only used in zones 1 and 2, you could likely use a smaller furnace for a total cost of $4,500 for the furnace and gas line install.

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High Efficiency Gas Furnace Cost

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.

Furnaces are considered high-efficient if they are rated at 90% or above. These furnaces also have a blower that helps circulate the air through your home more efficiently. You can now find gas furnaces with up to 97% efficiency, although they tend to have higher costs than high-efficiency oil or propane furnaces. The price of a high-efficiency unit installed is around $6,000 but can go as high as $10,000, depending on the size and the efficiency you want. The closer you get to 100%, the higher your costs will go.

The fire burns from a natural gas burner

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.

Gas Furnace Maintenance

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.

Electric vs Gas Furnace

Another option to heat your home is an electric furnace, and both electric and gas furnaces have their pros and cons. But due to the high cost of heating your home with electricity, electric furnaces are generally only recommended for regions 1 and 2 with partial use in region 3. If you live in a colder climate, you may not be able to find an electric furnace that is large enough and capable enough of handling the load. This is due to the higher costs to run an electric furnace vs a gas unit.

For regions that do not use a lot of heat, however, an electric furnace is generally less expensive to install. They are also quieter to run and use nearly 100% of the energy fueling them, so while they do cost more to run, they are technically more efficient.

Depending on the area where you live, an electric furnace may also be better for the environment. This is because different areas produce electricity with different methods. If you live in an area that produces electricity mostly through hydropower or another eco-friendly method, then switching to an electric furnace can also be a greener option for your home.

Oil Furnace vs Gas Furnace

Another option to consider is an oil furnace. Oil furnaces are generally a better fit for homes that do not have gas lines installed because they cost more to run than gas furnaces. The average cost to heat a home with gas is around $544, while the cost to heat the same house with oil is about $1,408 - a significantly higher amount.

However, if you do not have a gas line or access to a gas line, then an oil furnace can be a good choice. Oil is very efficient because it burns much hotter than gas, so you can heat your home for less fuel overall, which can be a better choice for the environment. They are also available in high-efficiency models that can help lower your overall fuel usage even more.

Oil furnaces require more maintenance than other furnaces because they produce a lot of soot. This means more frequent filter changes and more costly yearly maintenance to keep them clean and running at peak efficiency. They can also be more expensive to purchase and install than gas, so if you have the choice, a gas furnace will be less expensive to buy and install, less expensive to maintain, and will save you money on energy bills each month.

Mobile Home Gas Furnace Prices

Mobile homes are much smaller in general than traditional, stick-built homes. For this reason, you do not need to have nearly as large a furnace, which can mean significantly lower purchasing and installation costs. The furnace itself ranges from $800 - $1,000, with installation adding another $500, for a total of $1,300 - $1,500 for a mobile home gas furnace.

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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

The old furnace removal is often 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.​​

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

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.

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The information provided by our cost guides comes from a great variety of sources, including specialized publications and websites, cost studies, U.S. associations, reports from the U.S. government, contractors and subcontractors, material suppliers, material price services, and other vendor websites. For more information, read our Methodology and sources
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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.

The information provided by our cost guides comes from a great variety of sources, including specialized publications and websites, cost studies, U.S. associations, reports from the U.S. government, contractors and subcontractors, material suppliers, material price services, and other vendor websites. For more information, read our Methodology and sources