How Much Does It Cost To Run A Furnace? Good To Know

In this post, you will learn about the average cost of gas furnace installation to help you budget. 

How Much Does It Cost To Run A Gas Furnace?

The cost of gas furnace costs around $2300 – $8500 depending on its region, capacity, size, model and type.

How Much Does It Cost To Run A Furnace

Average Cost of Gas Furnace Installation

Gas furnace installation costs fluctuate depending on location, size, and efficiency rating. We created a table to give you an idea of the cost. 

Check it out:

RegionAverage Cost
Northeast$3,500 – $7,500
Midwest$2,500 – $5,500
South$2,800 – $6,000
West$3,000 – $6,500

Here are three tips for gas furnace installation:

  1. Consult a professional to determine what size unit you need.
  2. Look into energy-efficient models to save money in the long run.
  3. Set a budget before starting the process.

Factors Affecting Gas Furnace Installation Costs

To install a gas furnace in your home, multiple factors have an impact on the overall cost. 

The size of the furnace and the efficiency rating are two crucial aspects that determine the total cost. 

Ductwork is another factor homeowners must consider. This involves ensuring there are no obstructions with the duct pipes connecting to the furnace. 

Consider the following table:

FactorsCost Range
Furnace Size$1,500-$3,500
Efficiency Rating$500-$2,500
Permits and Labor Charges$400-$1,000

Location of the furnace

Gas furnace costs vary from urban to rural areas, due to availability, demand, and installation costs. 

Look at rebates or incentives for energy-efficient furnaces – they could lower the overall price. Research your options before committing to a purchase.

Get multiple estimates from contractors. Prices can differ depending on experience, reputation, and service quality. 

On average, gas furnace installation costs around $4,237. This includes labor and equipment fees. 

Home Size to install a furnace

The size of your home can hugely influence the cost of your gas furnace. Bigger homes need a more powerful furnace, hence why they cost more than smaller houses. 

Check out the table below to get an idea of the costs associated with various home sizes:

Home SizeFurnace SizeAverage Cost
1000 sq.ft.45,000 BTUs$1,500 – $2,500
1500 sq.ft.60,000 BTUs$2,000 – $3,500
2000 sq.ft.90,000 BTUs$3,000 – $5,000

For example, one homeowner spent an extra $1,500 on duct installation when he upgraded his furnace size. 

Type of Furnace

Gas furnaces are popular for heating homes and businesses. When considering a furnace, there are three types: single-stage, two-stage, and modulating. 

Let’s compare,

Cost Range$3,000-$5,000$3,500-$5,500$6,000-$10,000
Efficiency Rating (AFUE)80-85%90-95%96-98%

Additional Costs

Installing a gas furnace comes with a few costs beyond the initial purchase and installation. 

These additional costs are essential to know when budgeting. Here are some points to take into account:

  • Upgrading ductwork might be necessary if your old ducts can’t handle the increased air flows from the new furnace. This upgrade costs vary depending on length and condition.
  • You may need a new thermostat that meets current industry standards.
  • Installing zoning systems might be needed for multi-level homes or large bedrooms far away from the furnace.
  • Air duct cleaning services are required before replacement or retrofitting.
  • Permits from local government offices (building) are needed. Fines or delays could occur if you don’t obtain them.
  • Lifetime warranty agreement contracts protect components like heat exchanges and motors.

Gas Furnace Cost Calculator

Calculating the cost of a gas furnace is based on the size of your home, type and efficiency rating, and installation costs. 

We’ve made a Gas Furnace Cost Calculator Table:

FactorsRange of Costs
Furnace Type$1,000 – $3,500
Efficiency Rating80% – 97%
Installation Cost$2,000 – $7,500

Gas Furnace Efficiency

In order to improve the efficiency of your gas furnace, understanding AFUE, stage furnaces, energy efficiency rating, and gas furnace efficiency rebates and tax credits can be a solution for you. 

Understanding AFUE

AFUE stands for Annual Fuel Utilization Efficiency. It is a measure of how well a gas furnace converts fuel into heat. 

The higher the AFUE rating, the more efficient the furnace is.Check out this table:

Furnace AFUE RatingEfficiency Percentage

A rating of 80 means the unit uses 80% of its fuel to make heat. Conversely, a 95 rating implies it utilizes 95%. 

Stage Furnaces

Stage furnaces are a type of gas furnace with multiple heating stages. These stages determine the amount of heat output, based on the home temperature.

To understand the advantages of stage furnaces, we can create the following table:

Different Types of Gas FurnacesBenefits
Single-stageEfficiency rating up to 80%
Double-stageEfficiency rating up to 96%Improved heat output controlCost savings
ModulatingEfficiency rating up to 98%Precise heat output controlMaximum cost savings

Energy Efficiency Rating

Higher ratings mean lower energy costs and a smaller carbon footprint. Also, check the Annual Fuel Utilization Efficiency (AFUE) percentage

It tells you how much of your fuel is converted into heat. Invest in a programmable thermostat for more efficiency.

Gas Furnace Efficiency Rebates and Tax Credits

This table shows some of the rebates and tax credits for gas furnace efficiency:

Utility CompanyRebate/Tax Credit AmountEligibility Criteria
Pacific Gas & Electric$20090% AFUE
Southern California Edison$30092% AFUE
Duke Energy Corp.Up to $40095% AFUE

Natural Gas Vs. Other Furnaces

Natural gas, propane, and oil furnaces are the common sources of fuel for heating homes. Choosing one can be a challenge. Let us look closer.

CriteriaNatural GasPropaneOil Furnaces
Cost of fuelLowest cost per therm.More expensive than natural gas, but cheaper than oil.Highest cost per therm.
CleanlinessClean burning fuel. Less carbon emissions than others.Cleaner burning fuel than oil. More harmful than natural gas.Messier burning fuel. High particulate matter and sulfur dioxide.
Energy efficiencyLowest, but good enough in moderate temperatures.Adequate even in cold regions, but uneven heat distribution can cause inefficiency.Highest efficiency. Great for extreme cold.

Gas Line Installation

Switching from oil to propane as a fuel source for heating can be tricky. Gas line installation could be the answer. 

A certified plumber is necessary for a successful installation. They inspect the space and size requirements, then determine the proper placement of connections, valves and appliances. 

Oil Tank or Propane Tank Removal

Removing an oil tank or propane tank can be daunting. Here’s a guide to help.

Hire a Contractor

Get an experienced contractor who does tank removals to assess.

Tank Decommissioning

The contractor will purge all contents and cut a hole in it. No residual oil is left behind.

Tank Disposal

The contractor will remove it from your property. They’ll dispose of it according to regulations.

Surface Restoration

Fill in any holes and lay new turf or other landscaping materials.

Installing a Gas Furnace

To install a gas furnace, you need to hire a professional who can help you choose the right gas furnace model based on your home size and heating requirements. 

Ductwork Installation

To make sure your space is heated efficiently, ductwork installation is key

Follow these steps:

  1. Cut and measure the ducts with tin snips and pliers to get smooth edges.
  2. Wrap insulation around the ductwork and make sure there are no gaps or overlaps.
  3. Secure the ducts with metal screws, and then put foil tape over all joints for airtight sealing.
  4. Create branches with fittings and hang support straps every 4-5ft for extra stability.
  5. Connect all branches to the main trunk line, leading to the furnace. Make sure the slope is right for drainage.

Vent Installation

Installing a gas furnace needs thought. Vent installation is a must, or else carbon monoxide poisoning may happen

Here’s how:

  1. Pick the route: Roof or walls, check if anything blocks flow.
  2. Measure and mark.
  3. Use seals and collars, high-temp silicone is non-combustible.
  4. Connect pipes securely, screws to avoid flue gas leak.

Upflow vs Downflow Furnaces

Upflow and Downflow Furnaces are two popular types of gas furnaces. An upflow furnace draws air in from the bottom and releases it from the top. Whereas, a downflow furnace sucks air from above and blows it out through the lower ducts.

Let’s create a table to compare them:

CriteriaUpflow FurnaceDownflow Furnace
Furnace InstallationBasement/CrawlspaceUpper level like attic/closet
Ducting ConfigurationAlong walls/floorsThrough ceiling/interior walls
Ventilation DuctsOn roofOn ground

Mobile Home Heating

During cold weather, heating is crucial for survival even in mobile homes. Installing a gas furnace is a great way to keep your home warm. 

Choose the right size based on your dwelling’s size and consult professionals. Proper ventilation and maintenance are important too.

Gas furnaces have many advantages. They are cost-effective and energy-efficient. Plus, they work even during power outages. 

Electric Furnaces

Electric furnaces are becoming popular, as they provide energy efficiency and affordability. To install one, you must understand their features and functions. 

Here’s what you need to know before starting:

Types of Electric FurnacesConventional FurnacesDuctless Heat PumpsHybrid Heat Systems
FeaturesAffordableEasy MaintenanceEnvironment-Friendly
BenefitsEnergy EfficiencyCost-EffectiveQuieter Operation

How To Install A New Gas Line?

Here’s a simple guide:

  1. Check Needs: See how much gas you need. This determines pipe size and equipment.
  2. Get Pro: A licensed, experienced pro will ensure safety codes and regulations.
  3. Get Permits: Check with your gas provider, city, or county for necessary permits.

How to Hire a Professional to Install a furnace?

Gas furnaces are intricate systems that require an expert to install them. Trying to do it oneself is incredibly dangerous and could lead to serious harm or even death due to carbon monoxide poisoning. 

It’s essential to choose a licensed specialist who has expertise and information about the installation process.

A professional installer guarantees that the furnace is installed in compliance with local safety regulations, whether they be city, state or national.

When recruiting a professional, it’s important to research thoroughly. Look at their qualifications, licenses and certifications

Gas Furnace Models

Gas furnace models are essential for every home’s heating system. To pick the right one, factors like price, efficiency, and size should be taken into account. 

Here, we offer details on the popular gas furnace models in various categories.

ModelTypeEfficiency (AFUE)Cost*
Trane XV95Two-stage Variable speed95%$3,500-$7,800
Amana AMVM97Modulating Variable speed97%$2,700-$5,900
Rheem Prestige R96VTwo-stage Variable speed96%$3000-$5400
Goodman GMVM97/GCVM97Modulating Variable speed97%$2800-$5400

How To Select The Size Of Furnace?

When choosing furnace size, square footage of your home and other factors such as insulation and climate must be taken into account. 

Check out the table below for recommended furnace sizes for homes with different square footage and climates.

Square FootageMild ClimateCold Climate
1,000-1,500 sq. ft.45,000-60,000 BTUs50,000-65,000 BTUs
1,500-2,000 sq. ft.60,000-75,000 BTUs65,000-80,000 BTUs
2,000-2,500 sq. ft.75,000-90,000 BTUs80,000-100,000+ BTUs

Operating Costs Of Furnaces

To understand the operating costs associated with your gas furnace, you need to consider various aspects. 

Average Annual Fuel Cost

Fuel costs can really add up for businesses, especially those in transport or logistics. It’s wise to calculate these costs to stay on top of expenses.

Ignoring fuel costs can quickly drain budgets. To save money, businesses must understand their fuel patterns and create effective strategies.

Gas Prices

Gas prices are a big factor in operating costs. Companies that rely on transportation are especially affected. 

Let’s look at some facts. 

  • In 2015, the average price per gallon of regular gasoline was $2.43. 
  • In 2016 it dropped to $2.18. 
  • Then it rose up to $2.42 in 2017, and went even higher to $2.72 in 2018.
  • March 2021 saw an average price of $2.60 – a $0.50 increase from November 2020.

Heating Costs by State

Where does your state rank in terms of heating costs? Check out the table below!

StateAverage Heating Cost

Energy Bills and Efficiency of Gas Furnace

Cutting energy costs and becoming more efficient is key for businesses to make the most money. 

Installing LED lights, using green energy sources, and tuning HVAC systems are surefire ways to reduce energy use. 

Plus, investing in energy-saving appliances like computers and fridges can lower energy charges drastically. 

Maintenance and Inspections Of Furnaces

To ensure the longevity and efficiency of your furnace, maintenance and inspections are crucial. 

Annual Furnace Inspections

Annual furnace inspections are a must for keeping your heating system efficient and safe

Not having an inspection could lead to wear and tear, causing malfunctions or even life-threatening situations.

A certified technician will examine the furnace’s parts. This includes the heat exchanger, blower motor, ignition system, and venting. 

Scheduling an annual furnace inspection lets homeowners keep their heating system running at peak performance. 

Early detection prevents bigger issues that require more expensive repairs or replacements.

Dirty air filters should be replaced regularly. They block airflow and make your heating system work harder. Cleaning registers and ducts improves warm air flow in your home.

Keeping the area around the furnace clean by removing dust and debris helps avoid potential fire hazards from combustible materials near the heat source. 

Replacement of Air Filters and Combustion Chamber

Maintaining and inspecting your furnace is key. An important part of a furnace is the air filter, which helps take out dust, junk, and other particles. 

Follow these steps to replace your air filters and combustion chamber:

  1. Turn off power supply – Trip the circuit breaker or unplug if there’s no off switch.
  2. Find the air filter – Most furnaces have a cover on its sides/bottom. Slide out the filter’s frame without damaging it.
  3. Replace Air Filter – Buy a filter that fits its dimensions. You can also seek professional help for suitable filtration, depending on your household conditions and budget.
  4. Clean Combustion Chamber – Use a brush, vacuum, or compressed air to clean deposits surrounding the combustion chamber area.

Carbon Monoxide Emissions

Carbon monoxide emissions can be a real hazard to ventilation systems. They are highly toxic and can induce serious health issues, even death. 

It’s essential to look over and keep up your ventilation systems regularly for carbon monoxide leaks. Being sure that your property is always safe needs effort.

Inspections must be done on the regular to keep dangerous amounts of carbon monoxide gas from accumulating. 

These emissions can come from various places in the building such as stoves and furnaces.

Air Leaks and Their Effect on Efficiency

Air leaks in a building are often overlooked, but can have a huge impact on energy efficiency. 

Cool or warm air escapes, and your HVAC system has to work harder to keep temperatures comfortable. This can result in higher bills and the system breaking down faster.

To avoid air leaks, professional inspections should be done regularly – especially in older buildings. 

Small cracks around windows and doors may be seen with the eye, however, some leaks are harder to spot. 

Sealing these early will make your HVAC system more effective and efficient.

Leaks can let in pollutants from outside, like mold spores, pollen, and other allergens, which could be bad for people in the building.

It is important to have a certified technician identify and fix problems before they worsen. Regular maintenance prevents breakdowns whilst keeping energy costs low.

Gas Furnace Brands

Each brand has its own unique features, pricing, and efficiency ratings. By comparing the top gas furnace brands, you can make an informed decision on which one would be the best for your home.

Consult with a professional HVAC contractor to get their experience and knowledge before deciding to purchase. 

Moreover, never share your furnace model number – it’s like your social security number, unique & important.

Model Number of different gas furnace brands

Finding the correct gas furnace is important. Its model number can tell you lots of things, like the capacity and features. 

Here’s a table to help decode it:

Column 1Column 2Column 3
ManufacturerFuel TypeEfficiency Rating

Warranty of the brands

Investing in a gas furnace entails considering its features and warranty. Having a comprehensive warranty safeguards you from any unexpected damages. 

Here’s a quick review of the different brands and their warranties:

BrandWarrantyCoverage Length
TraneParts & Heat Exchanger10 years
LennoxParts & Heat Exchanger10 years
GoodmanParts & Optional Heat Exchanger, Lifetime Limited Heat Exchanger with RegUp to 10 yrs for parts, lifetime for heat exchanger with reg
CarrierParts Only & Optional Labor & Heat ExchangerUp to 10 yrs for parts, extended coverage is optional

Brand Vs Brand Comparison

When choosing a gas furnace, size needs, energy demand and the climate of the area must be taken into account.

The following table shows the comparisons between top gas furnace brands.

BrandAFUE RatingPrice RangeWarranty LengthNoise LevelEnergy Star Rating
CarrierUp to 98.5 percent$2,500-$7,50010 yearsLowestENERGY STAR®
BryantUp to 98.3 percent$2,500-$7,50010 yearsLowestENERGY STAR®
LennoxUp to 98.7 percent$2,000-$6,00020 yearsLowENERGY STAR®
GoodmanUp to 96 percent$1,200-$2,50010 yearsModerateENERGY STAR®
RheemUp to 96 percent$1,500-$4,00010 yearsModerateENERGY STAR®


Gas furnaces have a higher efficiency rating than electric or oil furnaces. This leads to reduced energy bills and some states even offer tax credits or rebates. Despite initial installation costs, the benefits of upgrading outweigh the costs in the long run.