Gas Furnace Costs

On February 25, 2026  By newsroom   Topic: Home Services

Cost Summary

  • Average Replacement Cost: $3,000–$6,000
  • Unit Cost Alone: $700–$6,500
  • Labor Costs: $500–$2,000
  • Permits & Inspections: $400–$1,500
  • Removal of Old Furnace: $60–$500

Cost by Furnace Type

| Furnace Type | Cost Range | Features | |-------------------|---------------------|--------------------------------------------| | Single-Stage | $700–$3,000 | Simple on/off action, least efficient. | | Two-Stage | $1,000–$3,500 | High and low blower speeds for efficiency. | | Modulating | $1,300–$6,500 | Variable speed for consistent temperatures.|


Cost by Efficiency Rating (AFUE)

| Efficiency | Cost Range | Details | |---------------------|---------------------|--------------------------------------------| | Standard (80–89%) | $500–$1,500 | Lower upfront cost but higher bills. | | Moderate (90–95%) | $1,000–$3,000 | Balanced cost and efficiency. | | High (96%+) | $2,000–$6,000 | Maximizes savings, higher upfront cost. |


Labor Costs

  • Hourly Rate: $50–$100 per installer.
  • Typical Total: $500–$2,000.

Factors include the complexity of installation, ductwork adjustments, and location.


Cost by Furnace Size (BTUs)

| Furnace Size (BTUs) | Cost | |-------------------------|--------------------| | 40,000 | $2,000–$3,500 | | 80,000 | $3,000–$4,900 | | 120,000 | $4,000–$6,000 | | 150,000 | $5,400–$9,000 |


Conversion Costs

| Conversion Type | Cost Range |
|--------------------------|---------------------|
| Propane to Gas | $100–$1,950 |
| Electric to Gas | $120–$9,850 |
| Oil Furnace to Gas | $500–$6,540 |
| Heat Pump to Gas | $120–$9,850 |


Additional Cost Factors

  • Ductwork Installation/Repairs: $1,500–$7,000.
  • Gas Line Installation: $250–$800.
  • Circuit Breaker Upgrade (if needed): $1,150.
  • Air Filters: Change twice a year for peak efficiency.

Potential Savings

  • Rebates and Incentives
  • Federal tax credit of $150 for high-efficiency furnaces.
  • Local utility rebates available for models with 95%+ AFUE ratings.

  • Warranties

  • 10-year limited parts warranty.
  • 20-year warranty on heat exchangers.

Signs It’s Time to Replace

  • Furnace is 15+ years old.
  • Frequent repairs costing 30–50% of a new furnace.
  • Uneven heating or rising energy bills.

For further help selecting the right furnace or locating rebates, feel free to ask!


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