How Much Does a New Gas Furnace Cost?
$2,990 – $4,360 Installed
Average Gas Furnace Replacement and Installation Costs
The average cost to replace an LP or natural gas furnace is around $870 for a standard efficiency furnace in a 1500 sf home and DIY installation. A high performance, high efficiency gas furnace installed by an HVAC Pro in the same home costs an average of $3,675, when only the gas furnace is replaced. If you need AC at the same time, expect the cost to go up.
Note: This page covers the replacement cost of propane and natural gas furnaces only. Although it will be mentioned briefly, we will not include comparisons of complete heating and air conditioning systems. Also note that while we do discuss DIY gas furnace installation, it is recommended for safety to have this job done by a licensed contractor. Check the Residential HVAC Costs page for other Costimates you may be interested in.
Overview of Furnace Replacement
In many forced hot air HVAC systems, a gas furnace provides both heating through the furnace itself and also the air handler for the air conditioning system in your home. Replacement cost will vary greatly depending on many factors specific to your home, the rest of your heating and air system, and the type of new gas furnace you choose to install.
This Costimates page will help you learn more about options you have where furnace replacement is concerned. We’ll explain the cost variables within your home itself that will affect furnace pricing, as well as why it might be more beneficial to replace the entire system at the same time. You’ll learn about new furnace features and technology that can increase the initial cost at time of installation, but reduce operating costs over the life of the furnace. We’ll also share our thoughts on DIY furnace replacement as well as cost comparisons from around the web and from homeowners like yourself, who have recently replaced their own gas furnace or system.
Related Cost Estimates
Furnace and Supplies Cost Details
Gas Furnace Wholesale Price Factors
As for the furnace cost itself there are several features and factors that will determine the wholesale price of your unit. Only you can decide which of these features is important for your needs, but some features will also have an effect on the installed furnace price, due to additional requirements or modifications to the rest of your HVAC system at time of install.
- Furnace Heating Capacity (BTU’s) – Furnaces are available from 40,000 to 160,000 btu’s. Larger capacity furnaces cost more and heat a larger number of square feet. The size you need will be determined by the size in square feet, and heat loss associated with your home.
- Number of Heating Stages – Single, 2 or even 3 stage gas furnaces are available. This is an efficiency and comfort feature. Single stage furnaces burn at a single, constant flame size (ex: 60,000 btu). Multi-stage furnaces have a gas valve that feeds more or less gas to the burner, resulting in 2 or 3 stages of heating (ex: 40k, or 60k, or 80k btu, depending on demand). Single stage furnaces are the most affordable and lowest efficiency, and multi-stage burners cost more, and result in higher efficiency and lower operating costs.
- Type of Blower Motor – There are several types of blowers available for gas furnaces. The most common are fixed speed blowers (uses 1 blower volume), multi-speed blowers (Like a hair drier, with 2-3 defined speeds), and modulating speed blowers (any speed between 400-2000 cfm). Fixed speed units cost less but use more energy to run, and modulating blowers cost the most, but have the highest efficiency and comfort.
- Fuel Efficiency (AFUE) – Available between 80% – 98% AFUE (Fuel Utilization Rating), lower efficiency units are less costly to install but you spend more money to operate. High efficiency furnaces are more expensive at the time of purchase, but cost considerably less over the life of the unit.
- Brand Name and Quality Rating – Different brands of furnaces cost more than others. This can be due to manufacturing differences, factory location and cost of labor, brand ratings, and dealer partnerships. Lower cost furnaces are available to buy on the web as a consumer and install yourself or hire a pro. Higher priced furnaces are only available through the brands dealer network, and must be installed by an authorized dealer.
- Built-in Technology or Communications – Some furnaces are simple “On or Off” units. When the thermostat calls for heat, they turn on and run until the demand is met, and shut off. Newer, communicating gas furnaces interface with smart controllers to automatically adjust to different needs in your home and communicate with smart phones, thermostats, etc.
Retail Cost Range (Furnace Only)
- $450 – $750 – 40k-120k btu 80% AFUE, single stage burner, fixed speed blowers. Very little smart technology. Low end of brand ratings.
- $650 – $1,450 – 40k-160k btu 90-95% AFUE, single/multi stage burners, single or multi-speed blowers. Smart technology. High end of brand ratings.
- $1,450 – $2,900 – 40k-160k btu 95-98% AFUE, multi stage burners, variable-speed blowers. Many smart features and communicating features. High end of brand ratings..
Cost of New Furnace Installation Supplies
Regardless of whether this is brand new or a replacement gas furnace or you’re just researching furnace prices, there may be supplies needed during the installation. Most reputable contractors will replace all of this, included in their quote.
- $15 – $40 | Sheet metal for transition / plenum to return and supply air duct.
- $40 – $760 | New Thermostat.
- $75 – $250 | Concentric kit, PVC pipe, or B-Vent for furnace flue and fresh combustion air.
- $25 – $75 | Condensate pump or drain line supplies for 90% or higher AFUE furnaces.
- $15 – $150 | Gas line supplies for connecting existing gas line to new furnace.
- $35 – $75 | Electrical wire, and/or new circuit breaker for connecting to power.
- $35 – $100 | Miscellaneous screws, fasteners, mastic, tape etc.
Permits, Inspection, and Furnace Installation Costs
New gas furnace installation usually requires an inspection and in some cases, a Manual-J load report. A contractor is required in most states to have the unit inspected in order to complete the job and assure the safety and thoroughness of the project. In some states, DIY’ers can do the install themselves at their own home but an inspection is still required.
- $50 – $200 ea. | Local permits (if required). You will likely require electrical, mechanical and plumbing inspections.
Furnace Installation Labor Factors
Variables within your home and with the contractor can have an effect on the overall installation cost of a gas furnace.
- Furnace Location – The harder it is to get to your furnace and heating system, the more it’s going to cost to replace. For example, if you have a utility closet on the first floor of your home, the contractor has very easy access to the unit. However, if it’s located in the back corner of your attic and the only way in or out is through a small attic-door, it’s going to be more time consuming and costly.
- Age and Condition of Old System and Ductwork – Newer systems are much more efficient than 15 years ago. If a contractor (or you) need to upgrade duct, gas lines, electrical, or any other number of things associated with a new furnace, they may required to bring the rest up to current code. This can get costly, quickly.
- Supply and Demand of Contractor – If the weather hits 20 degrees and contractors are very busy with installs in your area, they can and will increase their pricing based on demand. Alternatively, if you replace your furnace when business is slow, they’ll do it for much cheaper just to keep their crews working.
- 1 Day | A simple and uncomplicated upfit furnace installation in an easy to access location of your home is generally completed within 1 day. It may take a second day for inspections.
- 2 Days | If your system requires new flue vents, new electrical, new plumbing of a gas line, or new duct to be run in order to meet the new efficiency, expect longer installation time.
Is Replacement Covered under Homeowners Insurance or Home Warranty?
A great question that we’ve answered many times, is whether or not homeowners insurance will cover the replacement of a gas furnace. The answer is in the details of how it was broken. In this section, we’ll outline when and/or if your furnace is covered by insurance or your home warranty.
If your furnace failed as a result of something else occurring first, chances are good that it will be covered, otherwise, probably not.
A good example we use to help answer this question is a water leak. Let’s assume water leaks in your bathroom or laundry room, or even on your roof, which happens to be above the furnace which is located in a utility closet, the basement, or crawl space directly below. When the water leaks onto the furnace and causes something like a gas control valve or other important part to break, it would most likely be covered in all circumstances.
Cause = Water leak. Effect = Broken furnace. The answer will almost always result in the repair being covered by insurance.
On the other hand if you find out your heat exchanger has cracks in it due to normal wear and tear, aging, lack of furnace maintenance, or some other factor unrelated to a emergency or other system failure, it’s not likely to be covered.
In all cases however, it never hurts to call your homeowner insurance carrier and ask them about your coverage.
Home warranties are much different than insurance and depending on the type of warranty you purchased, may cover all or part of the cost to repair your furnace assuming it fails naturally. A big factor in the warranty coverage is the REASON for the failure.
For example, if you were cleaning the utility room and accidentally stuck the handle of the broom into the heat exchanger, it would not likely be covered in most cases due to owner error or negligence. (Surprisingly, this MAY be covered under your homeowners insurance though.)
On the other hand if the furnace quits running in the middle of the day and you find that the gas valve or some other component failed, they will pay the negotiated rate for the repair of the furnace and replacement parts.
In most cases complete replacement is not going to be covered.
DIY or Hire a Pro?
While you might be tempted to install your own furnace, if you aren’t on the upper end of the handyman scale, this is not an advisable practice. Even if you are a skilled handyman, it’s smart to hire a helper who works with HVAC, in order to make sure its done properly and will pass a safety inspection. Furnace replacement is one of the 10 most expensive repairs for your home, it only makes sense to let a Pro do the job.
Note: Many furnace manufacturers require an approved permit and inspection, as well as start-up from an licensed contractor to honor the warranty of the product. You could buy the best furnace on the market, and get very poor performance from it if it’s not installed correctly.
I worked with an HVAC company in the past. With the help from 2 installers on a day off, we installed a new gas furnace at my home and had it inspected the following week as a homeowner installed appliance. I would not have attempted this on my own otherwise. It’s a big project and safety is the most important factor. My situation was unique in that I had skilled labor and connections in the industry to get it done right. I would not do it again without that help, therefore, I always suggest a pro when it comes to a new furnace or HVAC system.