When temperatures drop, your furnace becomes an essential device in your home. You need a heating system that works well during the coldest months of the year to keep your family warm until the warmer weather comes.  Therefore, it is vital to address any issues with your gas furnace if it stops functioning in winter. Fortunately, with proper installation, maintenance, and occasional repairs, gas furnaces can last many years.

However, if your gas furnace is not working, it may be necessary to replace it. While heat is vital during cold days, the thought that you will have to pay a hefty bill can send chills down your spine.

Don’t worry, in this article we break down the average costs, which will allow you to assess how much is a gas furnace with installation.

Cost of Installing New Gas Furnace

On average, expect to pay between $4,100 – $7,500 for a completely installed furnace. Although HVAC companies typically sell furnace units between $1,000 to $2,500, we recommend a professional installation. A Contractor secures a building permit and inspects the completed job.

Currently, the national average cost of a fully installed gas furnace is between $5,500 and $6,500. This cost includes inspections and building permits that are necessary when installing a new gas furnace. It also consists of the new unit, regular supplies, professional installation labour, and a standard 5-year to 10-year workmanship warranty provided by the installer.

What Factors Affect the Costs of Gas Furnace Installation?

Furnace installation costs largely depend on your specific needs and the features you’re looking for in a new furnace. For example, if you need ductwork installed to direct warm air through your home, this will add to installation costs.

Suppose your old furnace was located in an awkward spot or had trouble keeping up with heating demands during peak usage periods. In that case, you may want a more robust model. It will also affect how much it costs to install a new gas furnace.

The total cost of installing a new gas furnace is easy to break down into line items. The new furnace unit, any local permits, labour costs or local service charges, removal of the old furnace, and equipment are all included in the total price. If you want to make sure that your gas furnace works appropriately, it may be necessary to replace the ductwork as well.

  • A new furnace unit’s cost will account for approximately 60% of the installation cost estimate.
  • 15% of the total installation cost includes extra equipment, old furnace disposal, and local permits.
  • The expenses for local labour usually make up around 25% of total installation costs.
  • You can expect to spend an additional $300-$585 for ductwork replacement if it’s necessary.

Purchasing a New Gas Furnace

It is crucial to understand what you want when purchasing a new furnace unit. It will help you make the right decision about your HVAC system purchase. These are some things you should keep in mind to ensure you get the most out of your investment.

  • Should you consider repairing or replacing your old furnace?
  • What is the best gas furnace brand?
  • The correct size of a gas furnace?
  • The level of energy efficiency?

When you buy a new furnace, you’ll need to consider the unit’s SEER and AFUE ratings. The more efficient your new gas furnace is, the less it will cost to operate. Most models have efficiency ratings of 80% or higher, with some reaching 90%. In terms of total costs, electric furnaces tend to be about 50% more expensive to run than gas-powered ones.

In addition to energy costs, you should also consider how much it will cost to keep your home at a comfortable temperature. Manufacturers design modern furnaces for maximum heating efficiency even in cold weather conditions. It can increase their BTU output and make them ideal for larger homes.

Can I DIY My Gas Furnace Installation?

Professionals should handle gas furnace installation because it requires special care and technical knowledge to install heating equipment properly. Poorly installed gas furnaces can cause dangerous levels of carbon monoxide that may seep into your home. It’s better to leave this project to HVAC professionals instead of trying your luck with a DIY approach.

Find the Right Installer

It’s tempting to cut labour costs by installing a furnace yourself, but it is strongly discouraged.

Did you know? Contractors regularly report being called by furnace owners to repair faulty parts within the first five years of a newly installed gas furnace. The cause of over 50% of furnace problems is poor installation or neglect.

If there is no warranty, repairs can cost hundreds to thousands of dollars. If an unlicensed professional does the installation, a manufacturer’s warranty could be void.

While warranties and professional installations are crucial, they are not the only reason to choose a contractor. Other considerations include the size of your home, layout, insulation levels, local climate, brands, models, and features.

While you can spend hours and hours researching your options, it may be a better use of your time to find the right HVAC company to guide you through the process.  

After installing the gas furnace, maintenance is the key to ensuring the furnace lasts for how many years.


As a homeowner, you must protect your home from the adverse effects of undesired temperatures. To do so, you must first understand your options and dependencies.

Furnaces can be a great addition to any home, but only if properly selected and installed. Regular maintenance may help reduce expensive furnace repairs and extend the life of your furnace.