How Much Does It Cost To Install A Propane Furnace?


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Propane Furnace Costs

Indoor Cost Guides      Air-Conditioning & Heating (HVAC)      Propane Furnace Costs

Many homeowners have not waited for their outdated oil furnaces to fail before making the move to a propane furnace. It has to do with fuel efficiency and greener homes, and it can cut down on heating expenses dramatically.

Choosing the right model of propane furnace is an important part of the process but making certain the home is adequately insulated and fitted with well-sealed doors and windows are just as relevant. You will want to work with HVAC and furnace experts to choose the proper model for your home.

Of course, all furnaces have variable levels of efficiency, and you will want to do a lot of side by side comparisons regarding efficiency, brands, heat output, accessories, and more. Also, be aware of the AFUE or annual fuel utilization efficiency of the model you choose.

Item Cost
Removal and disposal of old equipment $600-$1,000
Furnace and parts $800-$2,000
Labor (NOTE: This figure goes up if the heating system requires adjustment OR if switching from natural gas or oil to a propane furnace option) $1,000-$2,000
Tank installation (If leased) $100 contract, $100 meter, $4 per foot gas line installation, and a concrete pad (if needed) at $75 for 1.1 yards
Total Costs $2,675-$5,700

Other considerations and costs

  • If the costs of operating the propane furnace are prohibitive to the budget, consider having an adjustable air blower added to the gear. It slows air movement when less heating is required.
  • Maintaining a propane furnace is crucial, and many agree that purchasing propane can be a more expensive option than natural gas or traditional oil
  • If your propane furnace uses an air blowing system, you may want to invest in both humidifier options as well as a HEPA air filter for the unit. These bump up the price by an average of $800 but can make the home far more comfortable and the air easier and cleaner to breathe.
  • Consider if you upgrade to a new propane furnace that comes with any tax credits or breaks. It is quite likely that you can enjoy such rewards for investing in a more energy-efficient, eco-friendly option.
  • Remember that most furnace installations also come with the need for proper permits. Your HVAC contractor will be able to obtain proper permissions, and if a new tank is to be installed, that too may fall under the auspices of local laws and regulations.
  • You may find that an inspection of the new installation, ductwork, and insulation is appropriate, too.

Check out our guide if you need a loan for your home improvement project.

DIY considerations

  • By no means is a propane furnace installation a DIY activity. Removing the outdated equipment is not for the homeowner, either. The entire project is best left in the hands of professionals who understand how to deal with existing lines, tanks, and gear.


  • Craftsman Estimator Costbook, complete series year 2019.
  • Latest prices found on Home Depot and other vendor Web sites.
  • Literature review of DIY Web sites.
How much does it cost to install a propane furnace in your city?
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Cost by city

  • New York, NY$6,731
  • Bronx, NY$5,531
  • Brooklyn, NY$4,610
  • Philadelphia, PA$5,751
  • Washington, DC$4,990
  • Atlanta, GA$4,515
  • Miami, FL$4,106
  • Fort Lauderdale, FL$4,301
  • Minneapolis, MN$5,046
  • Chicago, IL$5,879
  • Houston, TX$6,064
  • San Antonio, TX$4,071
  • Austin, TX$4,609
  • Denver, CO$3,894
  • Phoenix, AZ$4,109
  • Las Vegas, NV$4,509
  • Los Angeles, CA$5,081
  • San Diego, CA$4,611
  • San Jose, CA$5,569
  • Seattle, WA$4,077

Local costs have been calculated by accounting for labor and material cost differences across different cities. To get accurate cost estimates, indicate yours: