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How much does a propane furnace cost?

When considering a propane furnace for your home, it's essential to understand the costs involved. Each aspect plays a role in your decision-making process, from the furnace itself to installation and long-term heating costs. In this article, we'll explore the various factors that contribute to the overall cost of a propane furnace, helping you make an informed choice.

Signs you should replace your propane furnace

It's crucial to recognize when it's time to replace your current propane furnace. Here are a few signs to look out for when debating if your furnace is due for an upgrade: 

  • Age: As furnaces age, they’re likely less efficient or not as cost-effective as newer models. If your furnace is over 15 years old, it's wise to start planning for a replacement now so you’re prepared when the time comes.  

  • Frequent Repairs: Constant repairs can add up. Investing in a new furnace might be more sensible, and may help you save money in the long run.  

  • Rising Energy Bills: A sudden increase in your heating bills could mean your furnace isn’t as efficient as it used to be.  

  • Yellow Flame: A yellow flame may indicate carbon monoxide emissions in propane or natural gas furnaces.    

  • Noise: Have you noticed your furnace banging, popping, or rattling? As furnaces age, they tend to make more noise. You may also notice your blower turning on and off more frequently.  

With routine service visits, a qualified technician should be able to properly assess the condition of your furnace and make repair or replacement recommendations as needed.  

Propane Furnace Cost by House Size

The size of your home plays a significant role in determining the appropriate furnace size and associated costs. To get you started, here’s a rough estimate of propane furnace costs plus installation based on house size:

Home size (Square feet) 

Unit cost 

Total replacement cost 

Under 2,000  

$600 - $2,400 

$2,000 - $6,000 

2,000 - 3,500 

$700 - $2,700 

$2,100 - $6,200 

Over 3,500 square feet 



*Prices exclude the cost of a propane tank and installation.  

Naturally, the brand of furnace you purchase, its efficiency, and who you hire to install it will influence pricing. You can always reach out to our team of Customer Service Professionals if you have any questions about propane tank and installation pricing for your home. They’ll gladly answer any propane-related questions you may have and can provide you with more localized information. 

Propane Furnace Cost by Efficiency

Furnace efficiency impacts both initial costs and long-term savings. Before we jump into potential benefits, let’s take a look at the breakdown of costs by efficiency:

Propane furnace efficiency model 

Annual fuel utilization efficiency 

Average cost 

Standard efficiency 

80 - 90% 

$1,600 - $5,000 

High efficiency 

90 - 99% 

$1,900 - $6,400 

Now, you may be looking at these percentages and prices and wondering how much of a difference could there really be in choosing a higher-efficiency model. On average, high-efficiency models use less fuel, resulting in lower heating bills and fewer greenhouse gas emissions, and include features that can extend their lifetime. These factors are all major long-term wins, but every homeowner has their own budget and needs. We recommend consulting with an HVAC professional to find the right fit for you. 

Propane Furnace Cost by Brand

Various brands offer propane furnaces with varying features and price points. While prices can differ based on features and brand reputation, a mid-range propane furnace might cost between $3,000 and $6,000.  

Propane Furnace Installation Costs

Installation costs depend on factors like location, complexity, and whether any ductwork needs modification. On average, installation can range from $1,500 to $5,000 or more, and you can usually expect labor to account for 30-50% of that cost. Additional materials like ductwork, drain lines, and more can tack on an extra 25-50%, so it’s wise to pad your budget with extra cash just in case. Check with a qualified furnace installer in your area for firm details. 

Cost to Heat a Home with Propane

There are many factors that play a role in how much heating your home with propane may cost. It depends on the furnace's efficiency, local propane prices, and your home's insulation.  
Whether you’re looking to heat an entire home or just a workspace, there are ways to calculate the amount of propane you would need to get the job done. However, your best bet is to check with your propane provider, like Ferrellgas, to get an accurate estimate.

Cost to Convert to Propane Heat

If you're switching from another heating source to propane, there might be additional costs for equipment, installation, and propane tank rental. Conversion costs can vary widely but usually range from $1,000 to $5,000.  

Here’s a rough estimate of conversion cost based on differing energy sources:

Conversion type 

Average cost  

with tank rental 

Average cost  

with tank purchase 

Electric to propane  


$2,000 – $5,700  

$3,700 – $9,800 


Natural gas to propane  

$275 – $800 

$1,900 – $4,900 

Fuel oil to propane  

$2,400 – $9,200 

$4,000 – $13,300 

Check with your propane provider and a qualified furnace company for specific details on your situation.  

Benefits of Switching to a Propane Furnace

Despite the initial investment, switching to a propane furnace offers plenty of benefits to offset the cost, including higher efficiency, reduced environmental impact, and the flexibility of a clean-burning fuel source. 

 With convenient auto-fill services and our nationwide supply capabilities, you can count on Ferrellgas for your propane needs. If you’re ready to make the switch, give us a call or chat with us at to get started. 

2023 Propane Furnace Cost | Install, Replace & Convert Prices 
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