How Much Does a New High-Efficiency Gas Furnace Cost in 2025?
Typical Range:
$2,000 - $12,000
Cost data is based on research by HomeAdvisor.
Updated December 21, 2024
Written by HomeAdvisor.Highlights
A new high-efficiency gas furnace costs $2,000 to $12,000, including installation, with an average cost of $7,000.
Gas furnace prices are heavily influenced by the furnace size and energy efficiency.
Furnace size is measured in British thermal units (BTUs), ranging from 25,000 BTUs for small homes to over 150,000 BTUs for large houses.
Furnaces with Annual Fuel Utilization Efficiency (AFUE) ratings over 90% are moderately high-efficiency, while ratings over 96% are true high efficiency.
Gas furnace prices range widely from $700 to $13,000 for the unit alone. A new high-efficiency gas furnace costs about $7,000, including installation. The typical cost range to install a high-efficiency gas furnace is between $2,000 and $12,000 for most homeowners, including the additional costs of ductwork, labor, and materials. Prices range depending on the furnace size, energy efficiency, and furnace type.
Average High-Efficiency Gas Furnace Cost
| Average Cost | High Cost | Low Cost |
|---|---|---|
| $7,000 | $12,000 | $2,000 |
Compare Quotes for Your High-Efficiency Gas Furnace
New High-Efficiency Gas Furnace Cost Factors
Several factors contribute to the cost of a new high-efficiency gas furnace. Shopping for the cheapest furnace may not save you the most long-term. Consider the efficiency of the furnace and its durability when making your decision.
Furnace Size (BTU)
The biggest factor driving gas furnace prices is the furnace size, as measured in British thermal units. BTUs reflect the heat required to raise the temperature of one pound of water by one degree Fahrenheit. A high-efficiency 100,000 BTU furnace costs $5,100 to $10,800, about 50% more than a 50,000 BTU unit.
The table below outlines the full furnace installation cost by size for high-efficiency models, including labor and materials. Standard-efficiency gas furnaces with 80% to 85% Annual Fuel Utilization Efficiency (AFUE) ratings can cost up to 50% less than high-efficiency models with 96%+ AFUE ratings.
| Furnace Size (BTUs) | Cost Range With Installation |
|---|---|
| 40,000 | $3,000–$7,000 |
| 50,000 | $3,450–$7,600 |
| 60,000 | $3,750–$8,400 |
| 75,000 | $4,050–$9,200 |
| 80,000 | $4,500–$9,800 |
| 100,000 | $5,100–$10,800 |
| 120,000 | $6,000–$12,000 |
Gas furnaces range from 40,000 BTUs for a small space in a moderate climate to 125,000 BTUs for a large space in a cold climate. Depending on the size of the home you need to heat, you can find furnaces offering as low as 25,000 BTUs and more than 150,000 BTUs.
Older homes aren’t insulated as well as newer homes, so they often require higher BTU models to achieve the same level of comfort and heating consistency. However, the two biggest factors determining how many BTUs you need are the size of your home and your climate zone.
Home Size
The size of your home greatly impacts the BTUs the furnace needs and overall gas furnace prices. A 1,000-square-foot home might only need 45,000 to 50,000 BTUs, while a 2,000-square-foot home could need 90,000 to 100,000 BTUs to effectively heat every room. The BTU estimates below are based on average homes in moderate climates.
| House Size in Sq. Ft. | Average BTUs Needed |
|---|---|
| 1,000 | 45,000–50,000 |
| 2,000 | 90,000–100,000 |
| 3,000 | 135,000–150,000 |
Climate
Your local climate can significantly impact the size of the furnace your home requires. Homes in the hottest parts of the country may only need 30 to 35 BTUs per square foot, while homes in the coldest parts need 50 to 60 BTUs per square foot. Your heating needs can nearly double new high-efficiency gas furnace costs for houses in colder climates.
Consult the U.S. Department of Energy’s climate zone map to determine your climate zone. The Hot-Humid, Hot-Dry, and Mix-Dry areas need fewer BTUs per square foot than areas in the Cold and Very Cold areas.
Energy Efficiency
High-efficiency furnaces can cost $2,000 to $6,000, more than twice that of a standard efficiency unit. Including installation, high-efficiency furnace costs can reach $12,000 or more.
| Efficiency | AFUE Rating | Average Cost Range |
|---|---|---|
| Standard | 80%–89% | $500–$1,500 |
| Moderately high | 90%–95% | $1,000–$3,000 |
| True high | 96%+ | $2,000–$6,000 |
The Annual Fuel Utilization Efficiency (AFUE) rating evaluates the efficiency of a furnace. Furnaces rated 90% or more are widely considered high efficiency, but there is a price difference between 90% and 95% (moderate efficiency) and 96% and above (true high efficiency).
High-efficiency models increase comfort (less temperature fluctuation in your home), run more quietly, and save you money in the long run via lower monthly utility bills and potential tax and rebate incentives.
Furnace Type
In general, there are three types of furnaces to consider, increasing in price from single-stage to two-stage furnaces. Modulating furnaces are the most expensive type.
Single-stage furnaces: These common furnaces have a basic on-off mechanism and a single heat setting. They are the most affordable but the least efficient and comfortable.
Two-stage furnaces: A two-stage furnace offers more comfort and better efficiency because it includes both high and low settings for heating.
Modulating furnaces: The newest type of gas furnace is a variable-capacity system with a variable-speed blower. These use computer-controlled thermostats, allowing you to be more specific about temperature. They can be much more efficient but cost more to purchase and install.
Fuel Source
Aside from the natural gas furnace prices, you may also consider alternative fuel sources with other types of furnaces.
Propane
Propane furnaces cost $3,000 to $6,000, including installation. Much like their natural gas counterparts, high-efficiency propane furnaces also cost 50% to 100% more than similar capacity standard efficiency models. Propane works for off-grid and rural homes.
Electric
Electric furnaces cost $2,100 to $7,900 on average, including installation. Electric furnaces are increasingly popular options in areas where gas furnaces are being phased out. Pricing factors are similar to gas furnace prices, including BTUs, labor, and ductwork.
Downflow vs. Upflow
Downflow and upflow gas furnace prices are similar, but labor costs vary depending on the ease of access and the level of ductwork required by local furnace installers to get the system up and running.
Downflow furnaces: They bring cool air from the top and blow out heated air from the bottom. This makes them ideal for attic spaces, mobile homes, and houses without basements.
Upflow furnaces: They take cool air from the bottom of the air handler and push heated air out at the top. You can heat a home with a basement more efficiently with an upflow furnace.
Brand
High-efficiency gas furnace prices vary by brand, though most brands carry models across a broad price range based mostly on furnace size. A new high-efficiency gas furnace costs $3,000 to $13,000 from Trane, while Amana has a narrower band of $5,000 to $8,000. The cost estimates below include installation.
| Furnace Brand | Average Cost Range |
|---|---|
| Amana/Daikin/Goodman | $5,000–$8,000 |
| American Standard/Trane | $3,000–$13,000 |
| Carrier/Bryant/Day and Night | $4,500–$13,000 |
| Lennox | $5,000–$15,000 |
| Maytag/Frigidaire | $4,500–$11,000 |
| Payne | $5,000–$10,000 |
| Rheem/Ruud | $4,500–$10,000 |
| York/Coleman | $4,000–$10,000 |
Other Gas Furnace Installation Cost Factors
Several other important factors affect gas furnace prices.
Ductwork
Installing new ductwork costs $450 to $2,200, or $10 to $20 per linear foot. Even if you have existing ductwork, you might need to replace it if your contractor detects leaks. Leaks can lead to a loss of 10% to 30% of the heat from your furnace. Properly sealed ductwork reduces this loss to less than 5% on average.
Down the line, expect regular ductwork maintenance costs:
Cleaning ducts costs $270–$500. Get an inspection and cleaning at least once a year.
Home energy audits cost $210–$700 and help discover leaks.
Asbestos remediation costs $1,200–$3,260. Older homes might have ducts lined or covered in asbestos. These present a serious health hazard and should never be touched by homeowners. Contact an asbestos inspector in your area if you suspect this type of lining.
Labor
Labor runs $50 to $150 per hour, with each worker clocking an additional $50 per hour. Installation runs about four hours for a simple gas furnace replacement and 10 to 15 hours for a straightforward new gas furnace installation. Professional labor makes up a sizable portion of high-efficiency gas furnace costs.
Fees and Permits
Building permits cost $520 to $3,050 in general, but for a standard HVAC job like a new furnace installation, expect to spend between $250 and $400 for the required permits. Most permits require inspection at various stages of the process.
Furnace Conversion
Furnace conversion costs can range from as little as $150 to convert from natural gas to propane. However, the expected cost can go from $500 to $6,500 for removing an oil heater and installing a new gas furnace. It ranges so widely because of local regulations and the complexity of your project.
Does a New High-Efficiency Gas Furnace Increase Home Value?
A new high-efficiency gas furnace can be a valuable asset when selling your home. Potential buyers appreciate modern, energy-efficient systems that promise lower utility bills and reduced environmental impact. A new gas furnace means they have one less thing to worry about when purchasing your home.
This investment improves your home’s marketability and enhances overall energy efficiency and performance. Homeowners may recover up to 50% of the cost during resale.
Budgeting for a High-Efficiency Gas Furnace
Installing a new high-efficiency gas furnace costs a significant amount of money. Smart homeowners can minimize costs and maximize long-term value with careful financial planning and strategic decision-making.
Obtain at least three professional estimates from reputable gas furnace installers to compare pricing and service offerings.
Research federal, state, and local tax incentives for energy-efficient home improvements.
Explore low-interest home improvement loans or other financing options to spread the cost over time.
Ensure you purchase a gas furnace that is appropriately sized for your home.
Budget for annual maintenance to avoid potential furnace repair costs.
Consider furnace units with high AFUE ratings of at least 90% for long-term utility cost savings.
Invest in a professional energy audit to identify other efficiency improvement opportunities.
How HomeAdvisor Gets Its Cost Data
No place is more important than your home, which is why HomeAdvisor connects homeowners with local pros to transform their houses into homes they love. To help homeowners prepare for their next project, HomeAdvisor provides readers with accurate cost data and follows strict editorial guidelines. After a project is complete, we survey real customers about the costs to develop the pricing data you see, so you can make the best decisions for you and your home. We pair this data with research from 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.
Still Have Questions About High-Efficiency Gas Furnace Installation?
FAQs
What is an inexpensive gas furnace price?
At the lowest end of gas furnace prices, you may find the cheapest gas furnace costs as little as $700. The basic model has less capacity and fewer features and will likely be less efficient than other gas furnaces. Wholesale or used gas furnaces are another way to save money, as much as half the price of a new one. Most pros don’t guarantee work or parts on used units, so buyer beware.
How long does a gas furnace last?
The expected lifespan of a typical gas furnace is anywhere from 15 to 30 years, depending on the brand and the quality of the furnace. This assumes regular inspections and maintenance, including possible minor repairs. Furnaces in colder climates may experience greater wear and tear due to extended use, which can shorten their lifespan compared to furnaces that don’t have to run as often or as hard.
Is it cheaper to heat with propane or electric?
When it comes to heating costs, natural gas is generally cheaper than both propane and electric furnaces. Propane may sometimes be cheaper than electricity to heat your home, but that depends on local utility rates and other factors. Due to seasonal and regional fluctuations in propane and electricity prices, it’s best to consult a local HVAC professional about the best option for your home.
Is a high-efficiency furnace worth it?
A new high-efficiency gas furnace costs more than lower-efficiency models, but it may be worth the investment for long-term comfort and energy savings. A high-efficiency gas furnace reduces monthly utility bills and greenhouse gas emissions. It also provides quieter heating and even temperatures throughout your home, justifying its higher upfront cost for many families.
What’s the difference between a furnace and a boiler?
Both furnaces and boilers are used to heat homes, but the main difference between a furnace and a boiler is how they heat your home. In the simplest terms, a furnace uses warm air. By contrast, a boiler uses hot water or steam. A new boiler installation costs about $3,700 to $8,300, comparable to gas furnace prices.
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