# Converting to a Gas Furnace from an Oil Furnace Costs a Bundle Up Front, Saves Money Each Month

Converting from an oil furnace to a gas furnace will cost you a bundle to install, but will save you real money each month.

Now that you’ve made the psychological leap from an oil furnace to a gas furnace, grab your calculator and crunch the numbers. When you’ve recovered from sticker shock, subtract the tax credit the feds will give you until the end of 2010--up to \$1,500--and remember the \$1,120 off your yearly energy bill that the oil-to-gas leap typically reaps, and the upfront costs don't look so bad.

## Calculate cost of gas furnace equipment

• Mid-efficiency (73-83%) gas furnace, installed: Average: about \$2,800; High end: \$10,000
• High-efficiency (90-97%) gas furnace, installed: Typically \$2,500 to \$6,000; possibly \$7,000 to \$10,000
• 50-gallon hot water heater: \$600

## Calculate cost of gas furnace hookup

• Dig a trench from main gas line to your house: \$1,000 to \$1,500, depending on distance. (Sometimes the utility company will wave or reduce that charge, helping to cement a relationship with a new customer.)
• Piping from meter to gas furnace: \$500 to \$1,000

## Calculate cost of everything else

• Line your chimney to protect against moisture in gas furnace exhaust: \$750 to \$2,000 (not needed with high-efficiency systems)
• Remove above ground oil tank: \$750
• Remove underground oil tank: \$3,000

## Total cost of converting to a gas furnace

• It you figure the cost of installing a gas heating system, subtract the perks the feds will give you and annual energy savings, the conversion from oil to heat costs roughly \$4,900.
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Oliver Marks

Oliver Marks A former carpenter and newspaper reporter, Oliver Marks has been writing about home improvements for 16 years. He's currently restoring his second fixer-upper with a mix of big hired projects and small do-it-himself jobs.