Gas vs. Electric Furnace Guide: A Quick Overview for Smart Homeowners

The quick map of your choices (gas vs. electric)

If you just want the  gas vs electric furnace guide 01 quick overview, here it is: electric furnaces are cheaper to buy and simpler to install, while gas furnaces cost more up front but usually cost less to run. Electric hits 100% AFUE (every bit of electricity becomes heat). Gas typically lands 80–98% AFUE but wins on fuel price in most markets. Electric installs in roughly 4–6 hours with no venting. Gas takes 6–8 hours, needs venting, clearances, and permits. Maintenance is lighter for electric, heavier for gas. If you’re in a mild climate or have no gas line, electricity is easy. In a cold climate, gas often pays off.

• Want product options? Browse our furnaces catalog.

• Not sure on size? Try the sizing guide.

Upfront costs: what you’ll spend on day one

Let’s talk about purchase + install. Electric furnaces typically cost $850–$2,500 for the unit and $2,000–$4,500 installed lower because there’s no venting or gas line. Gas furnaces usually run $1,825–$3,000 for the unit and $4,000–$8,000 installed. If you’re switching from electric to gas, add $200–$500 for a new gas line. That’s why many first-time installs go electric: simpler scope, fewer line items.
Pro tips from installs:

• Check your electrical panel. If it’s older, an upgrade might be needed for electric (60–80A circuits).

• If you already have a gas line and venting, gas install costs often tighten up.

• On a budget? See our scratch & dent deals.

Operating costs: what you’ll pay each winter

Here’s where the script flips. In many areas, natural gas is cheaper per unit of heat (about 9¢/kWh-equivalent) than electricity (around 20¢/kWh in 2025). Annual estimates: gas ~$550–$602, electric can exceed ~$1,200. In very cold months, we’ve seen peak electric bills approach ~$1,054 for heating. That’s why cold-climate homes often choose gas: lower fuel cost + strong output.
Rules of thumb:

1. Colder climate = more runtime → gas advantage grows.

2. Mild climate/short season → electric can be perfectly sensible.

3. Local rates matter. If your electricity is inexpensive (or you’ve got solar), the math changes.

Need help running the numbers? Our team is happy to sanity-check estimates—start with a quote by photo.

Efficiency ratings: what “100% AFUE” really means

Electric furnaces = 100% AFUE. That means every watt you buy turns into heat. But AFUE doesn’t factor fuel price—so 100% isn’t always cheapest to run. Gas furnaces = 80–98% AFUE. High-efficiency units (90%+) reduce waste gases and pull more heat out of combustion. Even with that slight loss, gas frequently wins on operating cost because the fuel is cheaper.
Simple way to think about it:

• Efficiency = “How much of the energy becomes heat?”

• Operating cost = “What do you pay for that energy?”

• You want both good efficiency and affordable energy.

If you plan to stay long-term in a cold region, consider a high-efficiency gas furnace. If you’re in a mild region or prefer simpler upkeep, electricity is great.

Installation: electric furnaces (fast and straightforward)

Electric installs are mostly electrical work: a dedicated 60–80A circuit, appropriate wire gauge, breaker, and proper clearances. There’s no venting, no combustion air, and no gas line which is why many jobs finish in 4–6 hours and often the same day.
Checklist we use on site:

• Verify panel capacity; upgrade if needed.

• Confirm duct sizing and static pressure to avoid noisy airflow.

• Ensure return air is adequate to protect the heat elements.

• Add/replace a filter rack that’s easy for you to service.

Compare electric-friendly systems like air handlers if you want matched cooling now or later.

Installation: gas furnaces (safe and thorough)

Gas installs take 6–8 hours because there’s more to do: gas line hookup, venting, clearances from combustibles, and often permits (gas, mechanical, electrical). A professional install is mandatory combustion appliances must be set up and tested correctly.
What we check every time:

• Gas pressure and leak test before firing.

• Combustion analysis and draft/venting verification.

• Condensate management on high-efficiency units.

• Code-compliant clearances and shutoff locations.

If you’re replacing an 80% unit with a 95%+, venting requirements can change (PVC vs. metal flue). Budget a little extra for vent re-routing. If you’re shopping, see our gas furnace selection.

Maintenance: electric furnaces (low touch)

Electric furnaces are easy to live with. The big one is filter changes every 1–3 months (more often if you have pets or dust). Plan an annual tune-up ($150–$300) to check elements, sequencers, blower motor, and electrical connections. With good care, expect ~20–30 years of service. There’s no combustion and no carbon monoxide risk from the unit itself.
Simple homeowner routine:

• Keep returns/grilles clear of furniture.

• Replace filters on schedule; consider a MERV rating your ductwork can handle.

• Listen for new noises (rattles or squeals) and call early it’s usually cheaper to fix.

Want quick answers any time? The Help Center pages have fast pointers.

Maintenance: gas furnaces (stay on schedule)

Gas units need a little more attention because they burn fuel. Book an annual inspection and cleaning to check burners, ignition, heat exchanger, flame signal, and venting. Install and maintain carbon monoxide (CO) detectors that’s standard safety. Expect ~10–20 years of life depending on use, model, and maintenance history.
What we look for on tune-ups:

• Heat exchanger cracks or hot spots.

• Proper combustion (CO/CO₂/O₂ readings) and steady flame.

• Clean burners and correct gas pressure.

• Draft and venting performance.

If your furnace is older than ~15 years, compare repair costs vs. efficiency gains of a new high-efficiency model. We can help you weigh it with a design consultation.

Lifespan, reliability, and safety basics

Electric lasts longer on average (20–30 years) because there’s no combustion. Gas typically runs 10–20 years, depending on maintenance and duty cycle. Safety-wise, electricity is simpler no CO risk. Gas is very safe when installed and maintained correctly, but CO monitoring is a must.
Reliability notes from the field:

• Most “no heat” calls are airflow or filter issues—cheap to prevent.

• Blower motors don’t care whether heat is gas or electric; treat them kindly with clean filters and correct static pressure.

• Thermostat settings (and setbacks) impact runtime more than people think.
  Considering alternatives? In many regions, heat pumps give you the best of both worlds.

Climate & home fit: which suits your situation?

Choose electric if you:

• Don’t have a gas line and want lower upfront costs.

• Prefer minimal maintenance and simple installs.

• Live in a mild climate (short heating season).

• Want a no-combustion option.
  Choose gas if you:

• Already has gas infrastructure.

• Want lower ongoing costs in cold climates.

• Need strong, consistent heat in long winters.

• Don’t mind annual combustion maintenance.

In very cold areas, a gas furnace or dual-fuel setup usually pencils out best. For flexible upgrades, browse packaged units.

Real-world scenarios (pro tips from installs)

Scenario A: All-electric home, mild winters. Electric furnace + air handler keeps install fast and costs low. Consider adding ductless mini-splits for zoned comfort and shoulder-season efficiency.
Scenario B: Existing gas line, cold winters. Upgrade to a 90%+ AFUE gas furnace. Verify venting path and condensate drain if going condensing.
Scenario C: Old panel, no gas line. Price a panel upgrade vs. running a gas line. If the upgrade is steep and winters are moderate, electric still wins.
Installer shortcuts:

• Right-size first (use our sizing guide).

• Protect airflow with a good filter rack and sealed duct connections.

• Replace worn line sets during AC changes: line sets.

Your next step: a clear, simple decision plan

1. Confirm your energy prices (gas vs. electric).

2. Map your climate (long/cold vs. short/mild winters).

3. Check your home’s infrastructure (gas line? panel capacity?).

4. Pick your priority: lower upfront (electric) or lower long-term (gas).

5. Get a quote you can trust to send photos for a fast start: Quote by Photo.

6. Consider future add-ons (AC, heat pump, or ductless).

If you want to compare specific models or sort by budget, browse all furnaces, check accessories, or chat with us via the Help Center.