How Much Does It Cost to Install a Propane Furnace? [2025 Data]
The cost to install a propane furnace ranges from $2,000 to $8,000, with most homeowners paying $4,500. Factors include furnace size, efficiency, labor, and add-ons.
Installing a propane furnace costs an average of $4,500, with prices ranging between $2,000 and $8,000.
The main cost factors include furnace size, energy efficiency rating, labor, and any necessary modifications to ductwork or controls.
Investing in a high-efficiency furnace can lower fuel costs and offer a strong return on investment over time.
Completing this project ensures reliable heating, improved indoor comfort, and can boost your home's resale value.
Adding features like smart thermostats or air filtration can increase upfront costs but enhance overall performance.
This article was created using automation technology and thoroughly fact-checked and edited by an Angi Editor in accordance with our AI policy.
The cost to install a propane furnace averages $4,500, with most homeowners spending between $3,900 and $6,000. Prices vary based on the furnace size, efficiency, and the complexity of the installation. Per-BTU or per-square-foot pricing is less common, but larger homes and higher BTU units will increase your total cost.
A propane furnace installation is a major investment in your home's comfort and efficiency. This guide explains the factors that impact the cost of installing a propane furnace, helps you understand each factor, and prepares you to make informed decisions about your heating needs.
Propane Furnace Installation Cost Factors
Several factors determine the total cost of installing a propane furnace. Understanding each one will help you budget and plan for the right system for your home.
Types
Propane furnaces come in three main types: single-stage, two-stage, and modulating. Each type offers different performance and cost profiles.
Single-stage furnaces offer straightforward on/off heating and are well-suited for smaller homes or mild climates. Two-stage furnaces adjust between high and low settings, offering better efficiency and comfort. Modulating furnaces make continuous, minor adjustments for the highest efficiency and most even heating. More advanced types cost more upfront but can lower your long-term energy bills.
| Furnace Type | Description | Average Unit Cost | Average Installation Cost |
|---|---|---|---|
| Single-stage | Basic on/off operation, good for mild climates | $1,200–$2,300 | $700–$1,200 |
| Two-stage | High/low settings, improved efficiency | $1,600–$2,800 | $900–$1,400 |
| Modulating | Variable output, highest comfort, and savings | $2,300–$3,800 | $1,200–$1,700 |
Size
Furnace size, measured in British Thermal Units (BTUs), is a key factor in determining cost. Residential propane furnaces range from about 40,000 to 120,000 BTUs. The correct furnace size depends on your home's square footage, insulation, and the climate zone in which you live. An undersized furnace will work too hard and wear out quickly, while an oversized unit wastes energy and money. Accurate sizing ensures efficient heating and optimal cost.
| Furnace Size (BTUs) | Home Size (Sq. Ft.) | Description | Average Total Cost |
|---|---|---|---|
| 40,000–60,000 | Up to 1,200 | Small homes, mild climates | $2,000–$3,500 |
| 60,000–80,000 | 1,200–2,000 | Average homes, temperate climates | $3,000–$5,000 |
| 80,000–120,000 | 2,000–3,500 | Large homes, cold climates | $4,000–$7,500 |
Materials
Material choices affect installation costs. Standard installations use basic venting and ductwork, but upgrading to high-efficiency models may require special venting or sealed combustion. Replacing or modifying ductwork, adding air filtration systems, or installing a programmable or smart thermostat will add to your total cost. Optional upgrades like humidifiers or advanced air cleaners can further improve comfort but come at an extra cost.
Brand
Furnace brand impacts both unit price and installation cost. Well-known brands often cost more but may offer longer warranties, better reliability, or extra features. Some brands focus on high-efficiency technology, while others are known for budget-friendly options. Always consider warranty length, reputation for reliability, and service availability when choosing a brand.
| Brand | Unit Cost Range | Efficiency Range | Notable Features |
|---|---|---|---|
| Carrier | $2,000–$3,800 | 80%–98% | Leading efficiency, smart controls |
| Trane | $2,100–$3,600 | 80%–97% | Durable, quiet operation |
| Goodman | $1,200–$2,500 | 80%–96% | Budget-friendly, solid warranties |
| Rheem | $1,500–$3,000 | 80%–97% | Reliable, good efficiency |
| Lennox | $1,800–$3,500 | 80%–98% | Advanced filtration, quiet |
Propane Furnace Installation Costs
The installation process for a propane furnace includes several components, each with its own impact on the total cost.
Labor
Labor is a major part of the cost to install a propane furnace. Licensed HVAC contractors or installers charge between $75 and $150 per hour, or a flat fee of $1,000 to $3,100 for the project. Minimum service fees often include removal of the old furnace, installation of the new system, testing, and ensuring code compliance.
Labor rates can vary by region and project complexity. For example, replacing an old unit is less expensive than installing a furnace in a brand-new location, which may require extra ductwork or venting.
Delivery Costs
Delivery fees for a new propane furnace can range from $50 to $300, depending on the distance from the supplier, the unit's size, and its weight. Some suppliers include delivery in the unit price, especially if you purchase installation at the same time. Always ask if delivery is included before finalizing your purchase.
Haul Away Costs
Removing and disposing of an old furnace costs $50 to $200. If the old unit contains hazardous materials, such as asbestos or refrigerants, there may be additional disposal fees. Many installers offer haul-away services as part of their package, but third-party junk removal is also an option if needed.
Service Add-ons
Several add-ons can increase your overall installation cost:
Modifying or replacing ductwork to fit the new furnace
Upgrading to a programmable or smart thermostat
Adding air quality features such as humidifiers or air purifiers
Installing zoning systems for multi-level homes
Paying for building permits and required inspections
Surcharges for emergency or after-hours installation
These extras can add several hundred to a few thousand dollars to your total project cost, depending on your home's needs and your preferences.
Additional Costs to Consider
Beyond installation, there are a few additional costs to consider when budgeting for your propane furnace.
Warranty
Most propane furnaces come with a manufacturer's warranty that covers parts for five to ten years and the heat exchanger for up to 20 years. Some installers offer their own labor warranty for one year. Extended warranties can be purchased for $150 to $600, covering parts and sometimes labor for a longer period of time. Always review what is covered and for how long, as well as any registration requirements.
Operating Costs
Operating costs depend on your furnace’s efficiency and local propane prices. The average U.S. home uses 500 to 1,200 gallons of propane per heating season. At a national average of $2.50 to $3.50 per gallon, annual fuel costs range from $1,000 to $2,500. Higher-efficiency furnaces use less fuel, saving money over time. Propane is often more expensive than natural gas, but it can be a more cost-effective alternative to electric heat in certain regions.
Maintenance
Annual maintenance is key for performance and longevity. A professional tune-up, cleaning, and inspection costs $100 to $300. DIY tasks, such as changing air filters, cost less, but some maintenance—like checking heat exchangers—should always be done by a professional. Regular maintenance can help prevent breakdowns and keep your furnace running efficiently for 15 to 20 years.
Repair Costs
Common propane furnace repair costs include replacing the igniter ($150 to $400), blower motor ($400 to $800), or heat exchanger ($600 to $2,000). Emergency repairs may incur after-hours surcharges. If your furnace requires frequent or costly repairs, compare those costs to the price of a new, more efficient furnace.
DIY Propane Furnace Installation vs. Hiring a Pro
Some homeowners consider DIY installation to save on labor, but this project brings significant risks and requirements. DIY costs include purchasing tools, permits, venting, and materials, which can total $500 to $1,500. While you might save on labor, you must have advanced HVAC skills, knowledge of code requirements, and the ability to handle gas and electrical connections safely. Improper installation can cause safety hazards, code violations, or voided warranties.
Professional installers bring expertise, insurance, and ensure code compliance. Most installations take one to two days for an experienced professional, while DIY projects may take several days or longer to complete. For most homeowners, hiring a qualified local furnace installer is the safest and most reliable choice.
| Type of Install | Average Total Cost | Time Required | Safety/Code Compliance |
|---|---|---|---|
| DIY Installation | $2,000–$5,000 | 2–4 days | High risk, not guaranteed |
| Professional Installation | $3,000–$7,500 | 1–2 days | Guaranteed, insured |
Propane Furnace Repair vs. Replacement
When your propane furnace breaks down, you’ll need to decide between repairing and replacing it. Repair is often worthwhile for newer furnaces with minor issues or if the unit is still under warranty. Replacement is the better investment when your furnace is over 15 years old, requires frequent repairs, or has experienced major failures, such as a cracked heat exchanger.
A good rule of thumb is the 50% rule: if repair costs are more than half the price of a new furnace, replacement makes more sense. For example, with repair costs averaging $400 to $2,000 and replacement costs ranging from $2,000 to $7,500, investing in a new, high-efficiency furnace can lower long-term operating costs and enhance home comfort.
How to Save on Propane Furnace Costs
To keep your furnace installation within budget, consider the following tips:
Get multiple quotes from licensed HVAC pros to compare pricing and options.
Schedule installation during off-peak seasons for potential discounts.
Consider rebates and tax credits for high-efficiency furnace models.
Maintain your furnace regularly to extend its lifespan and avoid costly repairs.
Bundle installation with other HVAC upgrades for package discounts.
Choose standard features if keeping costs low is a priority.
Negotiate removal and delivery fees whenever possible.
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.
Most propane furnace installations take one to two days, depending on the project's complexity, whether it’s a replacement or new installation, and whether additional work, such as duct modifications or permitting, is needed. Simple replacements may be completed in a single day, while new installations or those involving significant upgrades could extend into a second day.
In most areas, a permit is required to install or replace a propane furnace. Permitting ensures the work meets local building codes and safety standards. Your installer will often handle the permitting process, ensuring everything is documented correctly and inspected for compliance. Ensure that you ask your installer about permitting requirements before the installation begins.
Look for a furnace with a high Annual Fuel Utilization Efficiency (AFUE) rating—ideally 90% or higher. Higher efficiency units cost more upfront, but can save you money on fuel over time by making better use of each gallon of propane. Always compare AFUE ratings when evaluating different models for efficiency.
Some natural gas furnaces can be converted to propane with a conversion kit, but not all models are compatible. Consult a licensed HVAC pro to determine if conversion is possible and cost-effective for your system. The process involves changes to burner orifices and safety controls, and must be completed to code.
Signs include frequent repairs, rising energy bills, uneven heating, strange noises, or if the furnace is over 15 to 20 years old. Upgrading to a new, efficient model can improve comfort and reduce costs. Pay attention to any safety concerns, such as carbon monoxide alarms or unusual odors, which should prompt immediate action.
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