How Much Does It Cost to Install a Propane Furnace in 2025?
Installing a propane furnace costs an average of $4,500
The average cost to install a propane furnace ranges from $3,900 to $6,000, with most homeowners paying an average of $4,500.
Key cost factors include home size, furnace efficiency rating, furnace type, and labor complexity.
Upgrading to a high-efficiency propane furnace can lower fuel consumption and monthly bills.
Replacing an old or inefficient unit can increase your home’s value and improve comfort.
This article was updated using automation technology and thoroughly reviewed for accuracy by HomeAdvisor Editor Ryan Noonan.
On average, installing a propane furnace costs between $3,900 and $6,000, and most homeowners spend an average of $4,500. A straightforward, like-for-like swap may run as low as $2,000, while upgrading to a high-efficiency model—especially when ductwork or controls need attention—can push the price to $8,000 or more. Your total depends on factors like furnace type, efficiency rating, maintenance, and labor.
Propane Furnace Installation Cost Factors
The size of your home and the type of propane furnace you choose significantly affect your total furnace installation costs, along with a variety of other factors. Here’s a closer look at how your final price breaks down.
Furnace Size
Sizing matters when it comes to buying a new furnace. An undersized furnace will struggle to heat your rooms, while an oversized model wastes energy and money. Your home’s square footage informs the size of the propane furnace that you need to install. Here are average costs, including labor and materials, for various-sized furnaces:
| Furnace Size (BTU per Hour) | Home Size (Sq. Ft.) | Average Cost (All-In) |
|---|---|---|
| 40,000–60,000 | Up to 1,200 | $2,000–$ 3,500 |
| 60,000–80,000 | 1,200–2,000 | $3,000–$5,000 |
| 80,000–120,000 | 2,000–3,500 | $4,000–$7,500 |
Furnace Type
There are three common types of propane furnaces, each offering different efficiency levels and coming at a different upfront cost.
| Furnace Type | Average Installation Cost | Average Unit Cost |
|---|---|---|
| Single-stage | $700–$1,200 | $1,200–$2,300 |
| Two-stage | $900–$1,400 | $1,600–$2,800 |
| Modulating | $1,200–$1,700 | $2,300–$3,800 |
Efficiency
You can choose between standard-efficiency furnaces (80%–90% AFUE) and high-efficiency models (90%–99% AFUE). Although high-efficiency units cost more upfront, they consume less fuel and lower your long-term running costs.
Labor
Labor for installing a propane furnace falls between $1,000 and $3,100. Most HVAC pros either quote a flat project price or bill hourly at $75 to $150 for 10 to 20 hours of work.
Maintenance Costs
Plan on $100 to $300 per year for a professional propane furnace tune-up—money well spent to keep efficiency high and avoid breakdowns and future furnace repair costs.
Installing a Propane Tank
When you install a propane furnace, you’ll need a propane tank on your property to store the fuel. Propane tank installation costs $600 to $2,500, depending on whether you opt for above- or below-ground installation.
Does Installing a Propane Furnace Increase Home Value?
Yes, installing a propane furnace can have a positive impact on the value of your home. Swapping an outdated system for a new high-efficiency propane furnace can lift your home’s value—especially if the existing unit is nearing the end of its life. A new system will help you save on your heating bills, and is an attractive feature to prospective buyers if you’re selling your home.
Budgeting for the Cost to Install a Propane Furnace
Consider these cost-saving strategies to make installing a propane furnace more wallet-friendly:
Book ahead: Aim for a spring or summer install when crews are less busy and rates tend to dip.
Consider long-term costs: High-efficiency models save fuel costs over time.
Check rebates: Look for federal, state, or local rebates for energy-efficient furnaces.
Compare quotes: Collect at least three detailed bids from licensed local furnace installation pros so you can weigh cost, warranty, and timeline.
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.
A propane furnace burns propane or liquid petroleum gas (LPG) to heat air, which moves through the ducts and into the rooms of your home. The propane is stored in an outdoor tank and connected to the furnace by a fuel line known as a forced air system. Unlike with a boiler system, there's no need for radiators with a forced air furnace.
A propane furnace lasts between 15 and 20 years. With regular maintenance, it could last much longer, with some furnaces lasting up to 50 years. As your furnace ages, it may need some basic repairs. Some people prefer to replace a furnace rather than do any repairs if it’s out of warranty.
Yes, propane furnaces are efficient. A low-efficiency furnace has an 80% efficiency rating, and a high-efficiency furnace has a 90% to 99% efficiency rating. Your fuel costs will decrease if you upgrade to a high-efficiency furnace. Single-stage propane furnaces cost the most to run and are the least efficient, while modulating furnaces are the most efficient, so they cost less to run per hour.
Potentially, propane can give off carbon monoxide when burning. However, a properly installed propane furnace is safe as it has a venting system to remove potentially harmful gases. It should also achieve an "ideal burn" where no carbon monoxide is left over. This is why professional installations and regular inspections are vital. As with any home appliance, keeping a carbon monoxide detector in your home is always a good idea.
A propane furnace needs a chimney or other venting system to adequately vent the exhaust. This process removes potentially harmful gases from the furnace and prevents them from being released into your home. If you don't have or want a standard chimney, you can vent your furnace horizontally through a wall.
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