Gas Furnace Installation Cost 2026
A gas furnace costs $3,800 to $10,000 installed. The national average is about $5,500. Equipment runs $1,500 to $5,000 and labour adds $1,000 to $3,000.
Cost by Efficiency Tier
Higher AFUE means more of your gas dollar becomes heat. A 96% furnace converts 96 cents of every dollar into warmth, compared to 80 cents for a standard unit.
| AFUE Rating | Installed Cost | Type | Best For |
|---|---|---|---|
| 80% | $3,800 - $5,500 | Standard (non-condensing) | Mild climates, tight budgets |
| 90% | $4,500 - $7,000 | Mid-efficiency | Most moderate climates |
| 95-98% | $5,500 - $10,000 | High-efficiency (condensing) | Cold climates, long-term savings |
Not sure which efficiency level is worth the cost? Our payback calculator shows exactly how long a higher-efficiency furnace takes to pay for itself.
Natural Gas vs Propane
If your home has a natural gas main, gas is the clear winner on operating costs. Propane is the fallback for rural homes without gas service.
Natural Gas
- + Cheapest fuel cost per BTU
- + Continuous supply (no tank refills)
- + Lower annual cost: $600 to $1,200
- - Requires gas main connection
- - Gas line install: $500 to $2,000 if none exists
Propane
- + Available anywhere (no gas main needed)
- + Same furnace models available
- - Fuel costs 2 to 3x more per BTU
- - Tank purchase ($1,500 to $3,000) or rental ($50 to $200/year)
- - Annual cost: $1,200 to $2,400
Gas Furnace Cost by Brand
| Brand | Gas Furnace Installed | AFUE Range |
|---|---|---|
| Carrier | $5,000 - $10,000 | 80% - 98.5% |
| Lennox | $5,200 - $10,500 | 80% - 98.7% |
| Trane | $5,000 - $9,500 | 80% - 97.3% |
| Goodman | $3,200 - $6,500 | 80% - 97% |
| Rheem | $3,800 - $7,500 | 80% - 96% |
See our complete brand comparison for warranty details, model lineups, and honest assessments.
Annual Operating Cost
What you will pay each year to heat your home depends on your climate, home size, gas prices, and furnace efficiency. Here is a worked example.
Example Calculation: 2,000 sq ft Home in Ohio
When Gas Is the Right Choice
Gas vs Electric: Gas costs 2 to 3 times less to operate in most states. Unless you have no gas access or live in a very mild climate, gas wins on lifetime cost.
Gas vs Oil: Gas is cheaper to both install and operate. Oil only makes sense in rural areas without natural gas mains, primarily in the Northeast.
Gas vs Heat Pump: In very cold climates (below 0F regularly), gas furnaces maintain consistent heat output. Modern cold-climate heat pumps work down to -15F but lose efficiency. A dual-fuel system (heat pump + gas backup) offers the best of both worlds. See our furnace vs heat pump comparison.