How Much Does a Gas Furnace Cost? [2026 Data]

In 2026, the national average gas furnace replacement cost is $7,000 for a 1,600- to 2,000-square-foot house. Most homeowners pay between $3,800 and $10,000, with costs varying based on furnace type, efficiency rating, and BTU capacity. High-efficiency models can reach as much as $12,000.

Gas Furnace Cost by Type: What Determines the Price?

Gas furnaces come in three main types, ranging from $700 to $6,500. Single-stage furnaces operate on a simple on/off cycle and represent the most affordable entry point, while two-stage models add a low and high blower setting for better comfort. Modulating furnaces use computer-controlled thermostats to maintain a consistent temperature and carry the highest price tag, but their precision can translate to meaningful long-term energy savings.

Costs by type are broken down below:

Gas Furnace Cost by Efficiency: Why Do Rates Vary?

Every gas furnace carries an Annual Fuel Utilization Efficiency (AFUE) rating that measures how effectively it converts fuel to heat, with costs ranging from $500 to $6,000. Mid-range moderate-efficiency furnaces offer a solid balance between up-front cost and ongoing energy savings.

The following table shows how costs vary by efficiency rating:

Gas Furnace Cost by Size: Home Capacity and Budget

Gas furnace size is measured in BTUs (British thermal units), which indicates how much energy the unit needs to heat a given space, with costs ranging from $2,000 to $3,500 for a 40,000 BTU furnace up to $3,000 to $4,900 for an 80,000 BTU model. To determine the furnace size you need, a general rule of thumb is 30 to 60 BTUs per square foot, though your climate zone will influence where within that range you land.

Here is how costs differ by BTU output and home size:

Labor Costs for Gas Furnace Installation

Labor for gas furnace installation typically runs $500 to $2,000, with licensed installers charging $50 to $100 per hour and additional team members adding up to $50 per hour to the total. Most installers provide free quotes, and a qualified HVAC pro will factor in your location, home size, home age, and average energy bills to recommend the right furnace for your situation.

Gas Furnace Costs by Location: Where Do Prices Vary Most?

A 2,000-square-foot home in a warmer state like California, Florida, or Texas may need only 60,000 BTUs at a cost of $2,500 to $4,200, while the same home in a colder state like Ohio, Washington, or New York may require 120,000 BTUs at $4,000 to $6,000.

Where you live directly affects what you'll pay for a gas furnace, because colder climates require higher BTU output and larger, more expensive units. Warmer climates generally call for 30 to 40 BTUs per square foot, while colder climates typically require 50 to 60 BTUs per square foot.

Gas Furnace Conversion Costs: What to Budget For

Converting from another heating system to natural gas costs more than a straightforward furnace replacement, with conversions ranging from $100 to $9,850, so plan to budget accordingly. Costs vary significantly depending on your current system type, as shown below:

Gas Furnace Replacement Costs: What Should You Expect?

The furnace unit itself is the largest single expense, averaging $2,250 and topping out around $4,000 for standard models, while high-efficiency units suited to colder climates average $3,500 to $5,500. Beyond the equipment cost, labor and several additional expenses can add up quickly, so collect estimates from a qualified local HVAC expert before finalizing your budget.

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

The furnace unit accounts for 50% to 75% of the total cost of the furnace replacement project, making it by far the largest line item in your budget. As a general sizing rule, you'll need 30 to 50 BTUs per square foot, meaning an 80,000 BTU furnace is typically sufficient for a 1,600 to 2,000-square-foot home. Choosing a high-efficiency model or a larger-capacity unit will push the equipment cost higher.

Removing an Old Furnace

If you have an existing furnace, you'll need to factor in removal costs before the new unit can go in, with professional removal running $60 to $500 depending on your distance from a dumpsite, the weight of the unit, and any applicable environmental or dumping fees. In some cases, recyclers will take the old furnace for parts and charge as little as $50. Gas furnaces typically need replacement every 15 to 20 years, so the condition and age of your current unit should guide your timeline.

Installing New Ductwork

Installing new ductwork costs $1,500 to $7,000, depending on the number of stories, the number of intake and output vents, and any necessary siding or wall repairs. Proper integration with your home's ductwork, vents, and filters is essential for a new furnace to function correctly, and if your new unit has a different design than the old one, a full duct replacement may be required.

Minor duct adjustments and repairs are considerably less involved, running around $1,000.

Gas Line

If this is your first gas furnace, the cost to install a new gas line runs $250 to $800. Gas furnaces require a connection to a gas main, but if you're replacing an existing gas furnace, the line is already in place, and no additional installation is needed.

Permits and Inspections

Many jurisdictions require both a building permit and a professional inspection before a new gas furnace can be installed, with permits costing $400 to $1,500 and that fee typically covering inspection costs as well. These inspections confirm the furnace operates safely, so take time to compare inspectors in your area before making a selection.

Gas Furnace Costs to Consider: Extra Expenses to Plan For

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

If your home has an older furnace paired with an aging electrical panel, upgrading to a modern high-power model may require you to also cover the cost to replace your circuit breaker box, so budget around $1,150 for that additional work.

Warranties

Most new gas furnaces include a 10-year limited manufacturer's warranty on parts and a 20-year warranty on the heat exchanger, which is the most expensive component in the system. Before committing to a unit, ask your pro to walk you through the ins and outs of your warranty so you understand exactly what is and isn't covered.

Rebates and Incentives

Purchasing a high-efficiency gas furnace can qualify you for a yearly tax credit of $150, though you'll need to document that your unit carries an AFUE rating of 95% or higher to claim it. New gas furnaces may also be eligible for local utility rebates and incentives, so contact your utility company about current promotions and ask your contractor about any additional ways to reduce your out-of-pocket cost.

Why You Should Hire a Gas Furnace Installation Pro

Hiring a furnace installation professional near you means spending on labor—usually 20% to 40% of your total project cost. While it may be appealing to save by doing it yourself, installation requires specialized knowledge of HVAC systems, specific tools, and considerable time. Get it wrong, and you can cause serious safety hazards, violate code, or void your warranty.

Here’s why it’s ideal to hire a gas furnace installation pro

Hiring a pro to handle the technical task of installing a gas furnace makes sense. Here’s why:

• Professionals seal gas pipe joints and connections properly to prevent fire risk.

• Pros know how to avoid installation errors that could lead to carbon monoxide poisoning.

• They’ll ensure the setup meets local building codes and regulations.

• In some municipalities, it’s a legal requirement that a licensed professional completes gas furnace installation.

• Your furnace warranty may be void if a licensed pro doesn’t complete the work.

• Pros can recommend the right size and type of furnace for optimal energy efficiency and performance in your home.

• Pros have the proper tools for the job.

• Specialists complete the work quickly, carefully, and with minimal disruption.

• Reputable installers always carry out thorough safety and efficiency checks.

If you want to DIY gas furnace installation

While the main work is best left to the pros, you can save time (and maybe money) by taking care of a few things before your installer arrives:

• Clear the area around the furnace, as clutter or obstructions can slow down the job and increase the hourly rate.

• Check ahead to see if the company requires any paperwork or access to utilities.

• Dispose of the old unit, which may reduce your installer's quote.

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. 

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