Gas furnace installation cost
Natural gas remains the most popular fuel for residential heating in the US, and 2026 pricing has stabilised after the 2022-2024 inflation spike. Here is what a gas furnace replacement actually costs this year, broken down by efficiency tier, brand, and home size.
Cost by AFUE tier
AFUE (Annual Fuel Utilization Efficiency) is the share of every dollar of gas turned into heat. Higher AFUE costs more upfront but cuts the gas bill every winter for 15 to 20 years.
| AFUE tier | Type | Installed range | Annual gas cost |
|---|---|---|---|
| 80% | Single-stage standard | $3,500–$6,500 | $900–$1,400 |
| 90-92% | Mid-efficiency single or two-stage | $5,500–$10,000 | $700–$1,100 |
| 95-98% | High-efficiency condensing | $7,500–$14,000 | $550–$900 |
95%+ AFUE units are condensing furnaces. They extract heat from exhaust gases that 80% units waste up the flue. They require PVC venting (not metal) and a condensate drain.
Cost by brand
Same AFUE rating, different price tier. Premium brands invest in quieter blowers, better warranties, and more dealer support. Goodman, Heil, and Rheem are equally efficient at the same AFUE.
| Brand | Tier | Installed range | Heat exchanger warranty |
|---|---|---|---|
| Carrier | Premium | $5,000–$12,000 | Lifetime limited |
| Lennox | Premium | $5,200–$13,500 | 20 years |
| Trane | Premium | $5,000–$11,500 | Lifetime limited |
| Bryant | Mid-tier | $4,200–$9,000 | Lifetime limited |
| Rheem | Mid-tier | $3,800–$8,500 | 20 years |
| Goodman | Value | $3,500–$7,500 | Lifetime limited |
| Heil | Value | $3,500–$7,200 | Lifetime limited |
Cheapest fuel in most states
If your street already has a gas main, natural gas is almost always the lowest operating cost option, about one-third the price of electric resistance per BTU.
Same equipment, pricier fuel
Propane furnaces are gas furnaces with a different orifice. The fuel costs 2 to 3x more per BTU. Tank rental adds $50 to $200 a year.
When gas is the right call
- →Vs electric: Natural gas operating cost is roughly one-third electric resistance. Even with a heat pump, gas is competitive in cold climates below 20°F.
- →Vs oil: Cleaner, cheaper, no on-site storage tank. Oil is mostly a Northeast holdout. If natural gas is available, switching usually pays back in 5 to 8 years.
- →Vs heat pump: In zones 6 to 7 (Minnesota, Wisconsin, Maine, mountain West) gas furnace stays the default. A dual-fuel setup with a heat pump handling 30 to 50°F days and gas taking over below freezing is the efficiency sweet spot. See full comparison →
No gas main on your street?
A new natural gas service line typically runs $500 to $2,500 depending on distance from the main and trenching needs. The utility usually covers the first 50 to 100 feet for free. If gas is more than 200 feet away, propane or a heat pump is usually the better economics.