Propane Furnace REAL Cost [Breakdown]

Dominic Mitton
By Dominic  • Reviewed by Ben  • Updated:   October 19, 2023
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If you have been thinking about installing a propane furnace, this guide will help you make the right decision and reveal to you the real cost – most companies are sugarcoating it.

Propane furnaces are cheap compared to other types of furnaces, but they still require some investment.

Let’s first talk about the propane furnace itself and we will then jump into the precise cost breakdown.

What Is a Propane Furnace?

Propane furnaces are different because they burn propane to heat air.

Once the air is heated, it will move from the outside tank into the rooms of your home.

It’s popular due to its high efficiency and low running costs, but let’s talk about the real cost of propane furnaces.

Propane Furnace Cost by BTU

The size of the furnace and the power of the furnace is measured in BTUs (British Thermal Units).

In most cases, houses have furnaces from 40,000 BTU up to 150,000 BTUs.

The furnace size and power depend on your home’s square footage.

You don’t want to make the mistake of buying too powerful or too weak furnaces for your household.

Here’s a breakdown of the cost based on the size:

Square footageBTUs neededCost
700 – 1,00040,000 – 60,000 BTU$1,800 – $3,000
1,400-3,00080,000 – 100,000 BTU$2,500 – $4,300
1,700 – 4,200100,000 – 120,000 BTU$3,000 – $4,800
2,000 – 5,000125,000 – 150,000 BTU$3,500 – $6,500

You should consider a bit more BTUs if you live in a very cold climate, or even a bit less if you live in a warmer area.

Propane Furnace Cost Compared To Others

Propane furnaces are cheaper compared to other types of furnaces such as electric, natural gas, oil, etc.

The installation of a propane furnace is from $3,000 up to $6,000.

However, you have to consider that you might need to install a propane tank as well, which adds another $1,000-$4,000 to the overall cost.

On the other hand, you could expect to pay up to $7,000 for an electric furnace, and up to $10,000 for natural gas and oil furnace replacement.

Propane Furnace Cost Breakdown

There are a couple of different factors that affect the overall cost of propane furnaces, so let’s break it down.


The furnace is usually from $700 up to $4,000, depending on the efficiency of your furnace.

We have to add the costs of extra materials such as pipes, insulation, and propane tank here – which can add up to 40% to your material cost.


In most cases, labor costs will end up being between $1,000 to $3,000.

Some companies are more expensive than others, so we recommend you find an affordable and reliable HVAC technician (submit the form here).

From my own research, it shouldn’t take them more than 15 hours to complete the whole installation.

New ductwork

If you don’t have an old furnace inside of your home and this is the first time installing a furnace, you could spend up to $10,000 to get everything done completely.

You probably had an older furnace and you’re replacing it with a newer model, so you don’t have to worry about extra ductwork cost.


To be honest, maintenance on the new furnace should be close to zero.

I would still recommend you hire a professional for an annual inspection to make sure there are no serious issues with your furnace.

This usually costs around $200 and it’s a great investment because you can find the smaller problem before it affects larger parts of your unit.

Regular maintenance will have a huge impact on how long your furnace will last.

Hey there! I am Benas, the founder and content editor at Home Caprice. Thanks for reading the article. I hope you were able to find what you were looking for. I and my team are here to simplify heating and cooling for everyone. Please have a look at the About page for more details about our website and feel free to check out our editorial process.