The real question you’re trying to answer
You’re not just buying a box that makes heat, you're choosing what you’ll pay for years. I’ve helped plenty of neighbors make this call, and the same worry pops up: “Is the cheaper install going to cost me more every winter?” This guide lays out actual ranges for upfront, yearly operating, maintenance, and lifetime costs so you can see the whole story, not just the price tag on day one. We’ll talk like we’re standing by your old furnace, flashlight in hand, working through options together. If you want product browsing or a quick quote later, keep these handy: our Furnaces and Photo Quote tool (send pics here).
What you pay on day one (equipment + install)
Gas furnace: Equipment $2,500–$6,000; installation $1,500–$3,000. Expect $4,000–$8,000. Costs are higher because you need gas line work, proper venting, and combustion safety components.
Electric furnace: Equipment $2,000–$4,500; installation $500–$1,500. Expect $2,500–$6,000 thanks to a simpler setup no gas lines and no complex flue.
Why it matters: Electricity can feel like the budget win on day one. But total ownership cost flips the script for many homes once we add fuel bills.
-
Want choices? Browse Furnaces.
-
Need breathing room? See HVAC Financing.
Efficiency labels vs. your actual bill
Electric furnaces are 100% efficient at turning electricity into heat. Gas furnaces run ~90–98% AFUE in modern high-efficiency models. Sounds like electricity should win, right? Not so fast. Efficiency doesn’t include fuel price. In most markets, natural gas delivers heat cheaper per BTU than grid electricity. That gap is what drives long-term math.
Plain English: Think of AFUE like how well your truck uses gas. Great mileage helps—but the price at the pump still decides the bill. We’ll use the operating-cost section next to show how this shakes out in dollars.
-
Have questions while you compare? Our Help Center is a good place to start.
Your yearly bill (the silent budget buster)
Gas furnace operating cost: Typically $500–$700/year for many homes (often around $540–$602 with efficient equipment and typical use).
Electric furnace operating cost: Typically $900–$2,500/year (many households land near ~$1,054 per winter under common rates).
Why the gap? Electricity usually costs more per unit of heat than natural gas, so even with perfect electric resistance efficiency, the bill runs higher.
Quick ways to trim either bill:
-
Tighten the ductwork (leaks are money leaks).
-
Swap filters regularly (cheap and effective).
-
Right-size the furnace oversizing short-cycles and wastes energy.
Pair your new furnace with a properly matched coil and line set if you’re also cooling. See Coils.
Maintenance: what you’ll actually spend to keep it healthy
Gas furnace maintenance: $150–$300/year. Combustion adds complexity—burners, heat exchanger checks, gas pressure, ignition, and safety controls. Plan for a tune-up before the heating season and expect more repairs as the unit ages.
Electric furnace maintenance: $85–$200/year. No combustion and fewer moving parts. You’re mainly looking at filters, blower cleaning, and electrical checks.
Owner checklist (both types):
-
Change filters every 1–3 months.
-
Keep return grills clear.
If a tech ever flags a heat exchanger crack (gas), that’s serious. Don’t ignore it. It affects safety and can force an early replacement plan the budget accordingly.
Lifespan: how long they last and why it changes the math
Gas furnaces: ~15–20 years. Combustion heat and thermal cycling create more component wear.
Electric furnaces: ~20–30 years. No flame, fewer parts, so longer life is common.
But here’s the twist: Even when we model a full gas replacement at year 15, the long-term operating savings often keep gas ahead on total cost over 20 years. We’ll show those numbers next.
-
Bargain hunting? Check our Scratch & Dent page.
-
Want help planning the swap? The Design Center can map out duct, venting, and accessory needs.
If your ducts are old and leaky, fixing ductwork can add more comfort and savings than jumping from 92% to 96% AFUE.
The lifetime cost story (15–20 year totals)
Let’s stack everything initial + operating + maintenance—so you can see who really wins:
15-Year View (typical gas lifespan)
-
Gas total: $18,375 (initial $6,000 + operating $9,000 + maintenance $3,375)
-
Electric total: $31,880 (initial $4,250 + operating $25,500 + maintenance $2,130)
-
Gas saves: $13,505 over 15 years
20-Year View (electric’s longer life doesn’t flip it)
-
Gas total: $28,500 (includes a replacement after year 15)
-
Electric total: $41,090
-
Gas still saves: $12,590 over 20 years
Use these as ballpark planning numbers. If your electricity is unusually cheap or gas is unusually high, electricity may tighten the gap—see the next section.
When electric can be the right call
Electric furnaces shine in a few situations:
-
No gas line available and adding one is costly.
-
Low electricity rates or special winter pricing in your area.
-
You already have an air handler and just need heat strips and controls.
Want electric options that also cool efficiently? Consider heat pumps they move heat rather than making it with resistance coils, so the operating cost drops in moderate climates. Browse Heat Pump Systems or DIY Ductless Mini-Splits.
When gas is the smart money
Gas tends to be the winner when:
-
You already have a gas line and venting path.
-
Winters are long and cold bigger heat loads favor gas fuel costs.
-
You want fast heat with lower winter bills in typical U.S. markets.
If you like all-in-one rooftops/ground pads, check Packaged Units.
Regional reality check (rates move, math changes)
Energy prices vary a lot. Some areas have cheap electricity or pricier gas, which can tilt the decision toward electric. Others are the opposite. That’s why I always run numbers with your rates, not national averages.
Your mini-audit (10 minutes):
-
Grab a recent gas and electric bill.
-
Note $ per therm and $ per kWh.
-
Use the ranges in this guide to model your 15- and 20-year totals.
Installer shortcuts that keep costs down (without cutting corners)
Straight from the jobsite:
-
Right-size first. Oversized furnaces short-cycle, burn more fuel, and wear out faster.
-
Reuse ducts carefully. If static pressure is high, add/resize returns. A quiet, efficient system starts with airflow.
-
Seal the duct system. Tape and mastic leaks cheap, big payoff.
-
Match components. If you’re adding cooling or a coil, pair with the correct refrigerant gear and Line Sets.
-
Plan venting & drains (gas). Avoid traps in condensate unless specified; use proper slope and a condensate safety switch.
Snap photos and use our Quote by Photo. We’ll spot code items and tell you what’s truly necessary vs. “nice to have.”
A simple, no-stress plan for your home
-
Check your rates. Write down $ per therm and $ per kWh.
-
Look at your house. Age of ducts? Any hot/cold rooms? Note them.
-
Run the math. Use the 15- and 20-year totals here as your template.
-
Get options. Compare a gas furnace vs. electric (and maybe a heat pump).
-
Plan the install. Venting, electrical, condensate, and airflow tweaks.
-
Decide financing. If useful, explore HVAC Financing.
-
Lock the size and model. Browse Furnaces.
