How Much Does a Gas Furnace Cost? [2025 Data]

Installing a gas furnace can help keep your home warm and toasty even during the harshest of winters. The average gas furnace replacement cost for a 1,600 to 2,000-square-foot house is about $7,000, with a typical range of $3,800 to $10,000, though some high-efficiency models will cost as much as $12,000.

A new furnace cost depends on the type of furnace you choose, as well as labor and installation fees.

Cost to Replace a Gas Furnace by Type

You’ll be looking at one of three main gas furnace types. There are better long-term savings to be had by investing in a more energy-efficient style—if your earmarked budget can stretch to that.

Gas Furnace Cost by Energy Efficiency

Every gas furnace features a fuel efficiency rating. This is the Annual Fuel Utilization Efficiency (AFUE) rating. These efficiency ratings are broken down into three categories, each with differing price ranges.

Gas Furnace Cost by Size (BTUs)

Gas furnace capacity or size is ranked by BTUs, or British thermal units. This measurement logs how much energy a furnace needs to heat a certain amount of space. To determine the furnace size you need, you can estimate roughly 30 to 60 BTUs per square foot. The size you need also depends on the climate zone you’re in.

Labor Costs for Gas Furnace Installation

Labor will cost $500 to $2,000, though quotes are almost always free. You will pay $50 to $100 per hour for a licensed furnace installer, along with up to $50 per hour for any additional team members. A qualified HVAC pro will determine the best furnace to suit your needs, taking into account your location, the size of your home, the age of your home, and your average monthly energy bills.

Cost of Gas Furnace Replacement Near You

Gas furnace replacement costs can vary based on location. In colder climates, you’ll need more BTUs to keep the space warm and toasty on a snowy day, while warmer climates require less of that heating power. As such, you’ll need to figure about 50 to 60 BTUs per square foot for homes in colder climates and about 30 to 40 BTUs for homes in warmer climates. 

While a gas furnace for a 2,000-square-foot home in a warmer climate, like California, Florida, or Texas, may cost about $2,500 to $4,200 for 60,000 BTUs, a gas furnace for the same-sized home in colder states like Ohio, Washington, or New York may cost about $4,000 to $6,000 for 120,000 BTUs.

Cost of Converting to a Natural Gas Heater

You'll have to boost your budget if you're converting a heating system rather than replacing an existing natural gas furnace.

Gas Furnace Replacement Cost Breakdown

The biggest cost will be the furnace itself. A brand-new furnace costs an average of $2,250 and tops out at around $4,000. High-efficiency models, which may be necessary for colder-than-average climates, average $3,500 to $5,500. There is also labor to consider, in addition to a number of hidden costs that you should keep an eye on as you collect estimates from a qualified local HVAC expert.

Here’s a breakdown of how you can expect to spend your money when taking on a gas furnace installation project:

Buying a New Furnace

Gas furnaces are complex pieces of equipment and, as such, will take up the lion’s share of your total installation cost. The furnace itself will gobble up 50% to 75% of the cost of the furnace replacement project. 

You will pay more for a high-efficiency furnace and the price will also escalate as you opt for larger units to cover more square footage. As a rule, you will need 30 to 50 BTUs per square foot. So, an 80,000 BTU furnace will keep a 1,600 to 2,000-square-foot home nice and toasty during the winter. 

Removing an Old Furnace

Chances are, this is not your first rodeo. You may have to remove an old gas furnace before you install the new one. In some cases, recyclers will grab the old furnace and use it for parts, charging you $50 or so. Professional removal will cost $60 to $500, depending on how far you live from a dumpsite, how heavy your furnace is, and any environmental and dumping fees required by law. You should replace a gas furnace every 15 to 20 years, depending on how well it is operating.

Installing New Ductwork

Your new furnace won’t work properly if it is not properly integrated with the ductwork, vents, and filters of your home. You may need an entirely new ductwork system, especially if your new furnace features a different design than your pre-existing furnace. Installing new ductwork costs $1,500 to $7,000, depending on the number of stories in your house, the number of intake and output vents, and any necessary siding and wall repairs. If you just need some minor duct adjustments and repairs, expect to pay around $1,000.

Gas Line

Gas furnaces need to connect to a gas main. If you are replacing a pre-existing model, the gas line should be ready to go and no installation will be necessary. If this is your first gas furnace, the cost to install a new gas line is $250 to $800.

Permits and Inspections

Depending on where you live, you may need a professional inspection and a building permit in order to install a new gas furnace. Building permits cost $400 to $1,500, and this price should cover any inspection fees. These inspections will ensure that the furnace operates safely, so be sure to shop around before settling on an inspector.

Other Factors Influencing the Cost to Install a Gas Furnace

There are additional factors to consider when pricing out gas furnace replacement costs. Some of these could actually save you money, so be on the lookout.

Upgraded Electrical Circuit

Do you have a vintage furnace that’s been in your home for decades? Upgrading to a modern, high-power model might mean having to shell out the cost to replace your circuit breaker box if it’s equally antique—budget around $1,150 for this job.

Warranties

Most new furnaces come with a 10-year limited manufacturer’s warranty for parts and a 20-year warranty on the heat exchanger, which is the most expensive component of a gas furnace. Ask your pro to explain the ins and outs of your warranty before making a final decision.

Rebates and Incentives

If you purchase a high-efficiency gas furnace you will receive a yearly tax credit of $150 (as of this writing.) There are some hoops to jump through, so gather proof that your newly installed gas furnace features an AFUE rating of 95% or higher. 

Additionally, new gas furnaces can qualify for a number of local utility incentives and rebates. Call your utility company to inquire about current promotions and be sure to ask your contractor for any money-saving tips.

How Angi Gets Its Cost Data

Home is the most important place on earth, which is why Angi has helped more than 150 million homeowners transform their houses into homes they adore. To help homeowners with their next project, Angi provides readers with the most accurate cost data and upholds strict editorial standards. We extensively research project costs to develop the pricing data you see, so you can make the best decisions for you and your home. We rely on reputable sources, including the U.S. Bureau of Labor Statistics, academic journals, market studies, and interviews with industry experts—all to ensure our prices reflect real-world projects. 

Want to help us improve our cost data? Send us a recent project quote to [email protected]. Quotes and personal information will not be shared publicly.