Propane furnace cost
A standard propane furnace costs $2,200 to $5,700 installed, about $3,900 on average. A high-efficiency propane furnace costs $3,500 to $7,400. If you need a propane tank, add $1,700 to $4,300 to buy one or $50 to $200 a year to rent.
Quick answer
$2,200 – $5,700standard efficiency, installed
Expect $2,200 to $5,700 for a standard propane furnace installed. Simple swaps start near $1,800; high-efficiency units reach $7,400, before any tank costs.
Cost by home size
| Home size (sq ft) | Unit | Installed |
|---|---|---|
| 1,300 – 1,600 | $600 – $2,200 | $2,000 – $5,700 |
| 1,600 – 1,900 | $650 – $2,400 | $2,050 – $5,900 |
| 1,900 – 2,200 | $700 – $2,500 | $2,100 – $6,000 |
| 2,200 – 2,600 | $800 – $2,700 | $2,200 – $6,200 |
| 2,600 – 3,200 | $900 – $2,800 | $2,300 – $6,300 |
- Propane furnace$600–$3,30038%
- Labor$1,000–$3,10040%
- Permits and removal$400–$1,90022%
Share of a typical project, using the middle of each range.
Propane tank costs
| Tank size (gallons) | Installed | Lease per year |
|---|---|---|
| 250 | $1,700 – $3,500 | $50 – $75 |
| 500 | $2,100 – $4,300 | $60 – $180 |
| 1,000 | $3,000 – $6,000 | $90 – $200 |
Leasing is cheaper up front but usually locks you into buying propane from the tank owner. Buying lets you shop for fuel.
Heating costs
| Period | Typical cost |
|---|---|
| Per day (winter) | $3 – $7 |
| Per month (winter) | $90 – $200 |
| Per year | $1,000 – $2,500 |
Converting between gas and propane
Most gas furnaces can run on propane with a manufacturer conversion kit ($150 to $500 with labor). Converting from oil to propane costs $4,000 to $13,300 including tank removal and a new propane tank.
How to get a fair quote
- Get at least three written quotes that list the brand, model number, size (tons or BTU) and efficiency rating.
- Ask whether the price includes permits, removal of the old unit, refrigerant, a new thermostat and any duct or electrical work.
- Ask for a load calculation (Manual J) instead of matching the old unit's size by default.
- Compare labor warranties (1 to 10 years) as well as the manufacturer's parts warranty, and register the equipment.
- Schedule non-urgent work in spring or fall, when contractors are less busy and more willing to discount.
Frequently asked questions
How much does a propane furnace cost installed?
About $2,200 to $5,700 for standard efficiency, or $3,500 to $7,400 for a high-efficiency model.
How much does it cost to heat a house with propane?
Typically $1,000 to $2,500 a year, or $90 to $200 a month in winter, depending on climate, home size and propane prices.
Can I use my natural gas furnace with propane?
Usually yes with the manufacturer's conversion kit installed by a pro, at about $150 to $500.
Sources
Prices are national averages and typical ranges from published cost data. Your price depends on your home, region, equipment and contractor, so get several written quotes. Heat & Air Costs is not an HVAC contractor; read our disclaimer.