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How Much Does a New Gas Furnace Installation Cost?

Gas furnace installation prices can range between approximately $2,900 and $6,400, with an average price of $3,900, including your new equipment, materials and labour. The exact cost of a new gas furnace installation will depend on several factors including the design of the furnace, the square footage and layout of your home, as well as the condition of your home’s existing insulation and ductwork.

Gas furnaces use energy from natural gas to heat your home and keep it comfortable during colder months. The Home Depot offers a full range of products, from reputable gas furnace brands, available for new installation or replacement of an old furnace.

How A Gas Furnace Works

A new gas furnace is shown.

Gas furnaces are designed to heat an entire home and come in a range of sizes. All furnaces come equipped with a heat exchanger to transfer the heat generated by combustion of natural gas, and a blower motor that sends heated air to the rest of your home via ductwork. Even in warmer months, when the heat has been turned off, the furnace acts as the central distributor for your home’s forced-air system.

Gas Furnace Prices

Gas furnaces cost approximately $2,900 to $6,400, with an average cost of $3,900, before taxes. This price includes installation, which is bundled with your purchase.

Average cost: $3,900

Approximate cost range: $2,900 to $6,400

Our cost estimates include:

  • Gas furnace unit
  • Standard installation materials and labour
  • Standard warranty (1 year labour, 5 years parts)
  • Removal of the old unit (disposal fees extra)
Key Features
Average Approximate Cost (Materials and Labour) Price Range
  • 96% AFUE
  • Variable-speed blower motor
  • Two-stage heat    
$6,150 $5,450 - $7,500
  • 96% AFUE
  • Constant torque blower motor
  • Two-stage heat   
$5,950 $4,950 - $7,750
  • 96.5% AFUE
  • Variable-speed blower motor
  • Two-stage heat    
$4,750 $4,450 - $6,980
  • 96% AFUE
  • Variable-speed blower motor
  • Two-stage heat    
$4,450 - $6,980

All costs based on Ontario pricing and exclude applicable taxes. Costs shown are for illustrative purposes only and may not apply to all situations. Average prices include average installation cost for a 2-ton high efficiency Gas Furnace unit, in a 1,500 square-foot home. During the free in-home consultation, the Home Depot Installer will recommend the most appropriate HVAC system options, based on the size of the customer’s home as well as other unique factors.

High-Efficiency Furnace, Reduced Energy Costs

A Home Depot Home Services professional provides in-home consultation.

New gas furnaces are designed to deliver heat with greater energy efficiency than ever before. Not only that, but it’s never been easier and more affordable for homeowners to buy a high-efficiency gas furnace and replace their old unit.

AFUE Ratings Explained

AFUE, or Annualized Fuel Utilization Efficiency, measures the percentage of natural gas entering the furnace that is successfully converted to usable heat. 80 per cent AFUE is now considered the minimum standard fuel efficiency for a gas furnace, while AFUE of 95 per cent or higher is considered high efficiency. Energy efficiency in gas furnaces has improved significantly in recent decades.

Look for the AFUE rating to compare the performance of different gas furnaces. By comparison, medium-efficiency gas furnaces with AFUE ratings below 80 per cent were still commonly heating homes just a decade ago.

How Do High-Efficiency Gas Furnaces Save Money?

While a top-rated efficient furnace with AFUE ratings over 95 per cent carries a higher up-front cost, it can save energy - and therefore money on your energy bills - since it uses less fuel to heat your home than a less-efficient unit. Simply put, a high-efficiency furnace doesn't have to work as hard to accomplish the same job. Less work equals less energy, which in turn can lower costs for homeowners.

Boost Energy Efficiency With HVAC System Upgrades

Consider ways to optimize the energy efficiency of your furnace even further. Ask your installer about programmable and smart thermostat options to fine-tune your home's temperature scheduling and energy consumption. Or if you experience noticeable temperature differences between floors in your home, ask your installer about upgrading to a zoned system to regulate heat distribution more precisely and deliver more consistent comfort.

Investing in these system upgrades now can help you to save even more energy, and more money, in the long run.

What Are Some Home Heating Alternatives to a Gas Furnace?

If a gas furnace, fueled either by natural gas or propane, is determined not to be the right choice for your home, there are several alternative systems that you can consider. A Home Depot Installer can help you decide whether any of these alternatives is a better fit for your needs.

Oil Furnaces:

Some older homes may still use an oil furnace, although new ones are harder to find. Oil furnaces require fuel delivery, and storing oil requires the purchase of a specialized storage container. Typically, using oil to heat your home is more expensive than either natural gas or electricity. There’s also a higher risk of an oil furnace releasing carbon monoxide than with other fuel sources.

Electric Furnaces:

Electric furnaces are more popular in regions with milder winters; however, they may be a feasible alternative in remote areas, or those not served by natural gas. An electric furnace is easier to install and emissions-free, so there’s no risk of carbon monoxide. But electric furnaces take longer to warm your home, and depending on electricity prices in your area, can be more expensive to operate than a gas furnace.

Heat Pumps:

An energy-efficient alternative to a furnace, a heat pump is designed to run as an air conditioner in warmer months, then reverse function in colder months to heat your home. Heat pumps are increasingly popular as a single-unit alternative to both a furnace and a central air conditioner; however, their ability to heat your home effectively and efficiently diminishes as temperatures start to dip further below the freezing mark. Most heat pumps require a supplementary electric heating component to ensure your home stays warm through winter.

Why is Reliability Important When Buying an Energy-Efficient Gas Furnace?

A person adjusts a thermostat in their home.

Obviously, no homeowners want to be left with a broken furnace in the dead of winter. But it's important to remember that there's more to reliability than a system that works for a long time without breaking down.

Simply put, a reliable gas furnace is one that consistently delivers the right amount of heat to your home, as efficiently and effectively as possible. It does what it’s supposed to do whenever you need it. With regular annual maintenance appointments, a reliable gas furnace should be able to meet homeowners' heating needs for many years to come.

The most reliable gas furnace brands offer high-efficiency systems that combine the following:

  • Class-leading efficiency (AFUE ratings of 95 per cent or higher)
  • A DC-powered blower motor that operates quietly and at variable speeds
  • A heat exchanger that won't break down in the first few years of your furnace's life span. Most top brands carry a limited lifetime warranty for the heat exchanger
  • Multiple stages of heat to ensure your home doesn't waste energy or experience drastic temperature swings as the gas furnace fires up and draws down

What Are the Most Reliable Gas Furnace Brands?

The Home Depot's licensed installers carry some of the best, most reliable gas furnace brands, with energy-efficient products from Trane, Comfortmaker and Ameristar. Each of these brands carry top-of-the-line AFUE ratings of 95 or higher, with additional features such as smart home compatibility, low-decibel operation, variable speed blower motors and multiple stages of heat. Plus, with available annual maintenance plans to keep your furnace operating smoothly, and optional extended warranty packages of up to 10 years parts and labour, you can stress less about mid-winter breakdowns - and protect your investment, too.

What Does BTU Stand For?

“BTU” stands for “British Thermal Unit”, which is used to measure thermal energy output. It takes one BTU to heat up a pound of water at sea level by one degree Fahrenheit.

While a gas furnace's AFUE rating relates to efficiency, its BTU rating reflects its overall heating capacity and output. The number of BTUs required depends on the square footage and layout of the space to be heated, as well as the condition of your home’s insulation and/or ductwork. Most gas furnaces carry output ratings in the range of 40,000-120,000 BTUs.

Other factors unique to your home, such as ceiling height, the amount of sunlight or shade it receives and the number of people living in it, also need to be considered to help determine the correct size and capacity for your gas furnace.

Adding a Gas Furnace Without Existing Ductwork

A professional working on a gas furnace.

The majority of gas furnace installations or replacements are done for homes with existing ductwork, a much simpler job that requires replacing the existing gas furnace and adjusting the ductwork to accommodate the new system.

Retrofitting a home for central air, however, is a much larger job, because it requires building a complete network of air ducts and vents into a finished home – often through walls, floors, ceilings and attic spaces.

Done properly, a skilled HVAC Installer knows how to get this job done in as minimally invasive a way as possible. For instance, ducts can sometimes be routed through attics, crawlspaces and closets, eliminating the need to tear down walls.

During your free, in-home consultation, a Home Depot Installer will be able to determine whether and where you need to add new ducts and provide a detailed cost estimate for the work involved.    

10 Factors That Affect Gas Furnace Prices:

Type of Furnace

A Home Depot Installer will help you determine which specifications, such as AFUE, the number of heat stages and blower motor speeds, are most suitable for your new gas furnace.

Size of Gas Furnace

Gas Furnaces are available in a range of sizes, with output ratings most commonly ranging from 40,000 to 120,000 BTUs. A Home Depot Installer will assess homeowners' needs to determine the correct size system.

Efficiency Rating (AFUE)

The most efficient Gas Furnaces carry a higher up-front cost, but they can lower energy bills over time by consuming less energy. AFUE (Annualized Fuel Utilization Efficiency) ratings of 90 per cent are standard, while 95 per cent or higher is considered high efficiency.

Brand Name

The Home Depot carries a variety of top gas furnace brands, including Trane®, Ameristar®, GE and Comfortmaker®, to match your needs and budget.

Amount of Work Required

Factors unique to your home, such as the location of the unit and general state of repair, could affect the overall gas furnace installation cost.


Most gas furnace installations only require minor adjustments to ductwork to fit the new equipment; however, the Installer will assess your ductwork to determine whether additional repair or replacement work is needed.

New Air Intake/Exhaust Piping

While older gas furnaces were connected to a chimney, high-efficiency units require their own intake/exhaust assembly, plastic piping that's routed directly from the unit to the outside of the home. Furnace replacement may also involve disconnecting the old chimney from the existing furnace and sealing it to prevent heat loss.

System Upgrades

The Installer may suggest additional equipment, such as a smart thermostat or HVAC zoning system, to control temperatures more precisely and boost your new gas furnace’s energy efficiency and performance.

Your Location

Gas furnace prices may vary from one region to the next based on local material and distribution costs, as well as travel distance for the Installer.


Extended warranties of 10 years, for both parts and labour, can be purchased over and above standard coverage for gas furnaces.

Can I Save Money By Installing A Gas Furnace Myself?

To ensure safe installation and optimal performance from your new equipment, you will need to get your gas furnace professionally installed.

Gas furnace installation is a complex job that includes work with electricity and gas lines. It requires the skill and expertise of a licensed HVAC technician. Home Depot Installers are trusted professionals, dedicated to matching the right air conditioner for your needs and ensuring that it works efficiently and effectively for years to come.

Request a FREE in-home consultation with a licensed Home Depot Installer.

Call 1-800-HOME DEPOT (1-800-466-3337), visit a store, or request a consultation online.

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