A complete in-depth breakdown of high-efficiency gas furnace prices in Canada. We look at how much a new forced-air furnace costs and the price of replacing an old heating system. We compare the factors that affect the final price, including installation costs, unit size & BTU output, brand or manufacturer, model and efficiency rating, and more.
We asked Canadians who requested a quote through FurnacePrices.ca how much they paid for their new furnace in 2022.
The average cost of a new furnace in Canada is between $4,000 and $6,000 including installation, varying depending on the brand and model, among other factors, which we explore below.
See our Best Furnaces compared here >>
Higher than average
Slightly above-average price range, which may be due to factors like a more complicated installation, or purchasing a top-of-the-line unit or premium brand.
Typical price range: $4000 – $6000
The average price range for a typical high-efficiency unit with a typical installation from an established, fully licensed & insured local HVAC contractor. Prices will vary within this range based on installation factors, brand & model, unit size/BTU output & efficiency, among other things.
Lower than average
Below-market pricing; be careful if the price is exceptionally low. The lower the price is below average, the higher likelihood that you may receive a more hastily done installation, low-end or used components, limited labour warranty coverage & ongoing support, or the company may be less established or lacking in insurance and/or licensing & certification.
Table of contents
- New Furnace Cost Calculator
- Factors Affecting Furnace Prices
- Furnace Prices by Brand/Manufacturer
- Furnace Prices by Size & BTU Output
- Furnace Prices by Efficiency (AFUE)
- Furnace Prices by Region
- Furnace Installation Cost & Other Important Factors
- Buying Tips & Things to Watch Out For
- Frequently Asked Questions
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Factors Affecting Furnace Prices
These prices are meant as a general guideline only. Every home and installation is different and like any home improvement project, various factors can impact the final price.
In Canada, the minimum efficiency rating that any new furnace can have is 95% AFUE, as mandated by Natural Resources Canada. Any ‘mid-efficient’ furnaces (80 – 90 % AFUE) you see advertised on manufacturer websites are mostly aimed at Americans where less efficient models can be sold due to the generally milder climate in much of the country.
We also recommend opting for an ENERGY STAR® model if possible. Not only will you be sure it meets a high standard of efficiency, meaning it’s better for the environment, and will cost less to operate. Furthermore in order to qualify for any available government rebates, installing an ENERGY STAR model is typically a requirement.
Basic Furnaces vs More Advanced Models
For top of the line furnaces in the 98 – 99 % AFUE range, expect to pay at least $500 -$1000 more than midrange models. However the best furnace models also tend to have additional features that improve comfort, help maintain a more consistent indoor temperature, operate more quietly, and have better warranty coverage.
Size of Your Home & BTU Output
These prices will also vary a bit depending on the size of your home and the required furnace size and BTU output of your new forced-air furnace.
Region & Market Factors
In addition to the brand and model you choose, prices can vary from one region to another, from one company to another, based on local competition, supply chain effects, surges in demand, how complicated of an install is required, and many other factors.
Replacing Old Furnaces & Modern Building Codes
Prices are including installation, though again, that will vary considerably from one home to the next. For instance, if your current furnace is very old, significant upgrades to venting may be required to meet modern building codes. We cover this in more detail later in the article.
Natural gas and propane furnace prices are generally similar, however because propane furnaces are often installed in more rural areas, prices may be somewhat higher.
Furnace Prices by Brand/Manufacturer
|Furnace Brand/Manufacturer||Average Price Range (including install)|
|Goodman||$3500 – $5500+|
|York||$3500 – $5500+|
|KeepRite||$3500 – $5500+|
|Armstrong||$3250 – $5500+|
|Comfortmaker||$3500 – $5500+|
|Coleman||$3250 – $5500+|
|Heil||$3250 – $5500+|
|Luxaire||$3250 – $5500+|
|Payne||$3250 – $5500+|
|Tempstar||$3500 – $6000+|
|Napoleon||$4500 – $6500+|
|Bryant||$3500 – $5500+|
|Amana||$4500 – $6000+|
|Rheem||$4500 – $5750+|
|Ruud||$4750 – $6500+|
|Daikin||$5000 – $6500+|
|Lennox||$4500 – $7500+|
|Carrier||$4500 – $7500+|
|Trane||$5000 – $7000+|
|American Standard||$5000 – $7000+|
Furnace Prices by Size & BTU Output
The chart below shows example prices for a new forced-air gas furnace, including installation and how these prices might vary by the size of the unit.
Factors affecting the size of furnace need include: the square footage of your house, the layout (i.e. townhouse/townhome, semi-detached, fully detached, bungalow, etc), where you live and the climate, and how new your home is and how well-insulated it is.
Keep in mind that the prices below are meant simply as a guideline. Assume that the same brand & model is being installed at each size & BTU output.
In other words, pay more attention to how the prices differ, rather than the exact prices themselves. Many other factors will affect the actual total cost you pay when replacing your furnace.
It’s best to have an HVAC specialist do an in-home consultation and estimate to get an accurate recommendation of furnace size for you house.
|Furnace Size/BTU Output||Average Price Range (including install) - Low or Mid Range Brand/Model||Average Price Range (including install) - High End Brand/Model|
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Furnace Prices by Efficiency (AFUE)
The energy efficiency rating of a furnace, otherwise known as the AFUE or Annual Fuel Utilization Efficiency is another important factor in the overall price of a new forced-air furnace.
The higher the efficiency rating, the more expensive the furnace will typically be. However, more efficient furnaces also cost less to run and may save you money over time, especially if your current furnace is older and less efficient.
>> See how much you might save on operating costs with our New Furnace Savings Calculator
Manufacturers typically include the best features, like noise-reducing technology, and the best warranty coverage on their most efficient top-of-the-line models.
This chart shows the typical price range of a new furnace depending on the efficiency rating or AFUE you choose.
|Furnace Efficiency Rating (AFUE)||Average Furnace Price Range|
|90% AFUE||$3000 - $4000+|
|92% AFUE||$3500 - $4500+|
|95% AFUE||$4000 - $5000+|
|96% AFUE||$4500 - $5500+|
|97% AFUE||$5000 - $6500+|
|>98% AFUE||$5500 - $7000+|
Furnace Prices by Region
The average price of a new high-efficiency propane or natural gas furnace is mostly consistent across Canada, usually in the $4000 – $6000 range including installation.
There are some variations between regions of course, however there is likely to be larger differences from one home to the next, given that every home is different and there are a variety of individual factors that will affect what you pay vs. what your neighbour down the street pays. (more on those factors in the next section)
When looking at average furnace prices in Canada, there are some general patterns.
Rural areas tend to have higher prices, because:
- There tends to be fewer companies servicing those areas and therefore less competition.
- There are also fewer customers to service meaning a company has fewer customers with which to recoup operating costs.
- Equipment must also be shipped further for distribution.
- In addition, if they’re offering you a labour warranty, the potential cost of driving back out for service calls must be factored into their costs.
- And finally, customers tend to be further apart, making servicing more time-consuming and costly.
Certain regions may also have different regulations, or require additional licensing, which may add to the cost of delivering the service.
Finally, large metropolitan areas like the Greater Toronto Area or the Greater Vancouver Area tend to have a dense collection of HVAC contractors, and a huge dense pool of customers, leading to somewhat lower prices due to increased competition.
However, it’s important to note that this mainly affects the lower end of the market. Established, dependable companies will typically charge prices roughly inline with the average across Canada.
In other words, larger metropolitan areas (in particular the GTA) may feature more smaller less-established vendors or individual contractors offering lower prices in order to compete.
We would generally advise some caution when going with the lowest price you can find. The reason these companies are typically able to offer lower prices is because they often lack the same support staff, insurance, warranty coverage, and other important things you get from more established providers.
That’s why FurnacePrices.ca has developed our own independent Certification program to help Canadian homeowners find trusted and reliable contractors that have verified licenses, insurance, and a good reputation.
Furnace Installation Cost & Other Important Factors
Installation & Labour Cost
The actual labour and installation portion is likely to cost in the $1000 – $1200+ range. This is just a general estimate of course, so it could be a bit less or quite a bit more.
Why so much?
This must not only cover hours of labour from the main technician but also likely a helper, as well as many built-in costs that the contractor must cover like business expenses, staff, office/warehouse lease, company insurance, licensing, vehicles and gas, and so on.
The Truth About Furnace (and A/C) Pricing – by Simon Bernath, founder of FurnacePrices.ca
Factors That Can Affect Installation Cost
Apart from the cost of the unit itself, the other major factor in the cost of a new furnace is the installation. There are many variables at play, so it is impossible to give an estimate here. The best thing is to request a quote from a local company. Here are just a few things that can affect the installation cost of a new furnace, usually due to the additional parts and labor needed:
- Location of the furnace – is it easily accessible, is it in a crawlspace, etc
- Venting upgrades – older furnaces tended to be larger than newer models, meaning the plenum (the ductwork connecting to the furnace) must be retrofitted
- Modern safety codes – new safety codes can require upgrades to venting and piping, electrical wiring and so on, which adds to the labour costs
- Other extras – things like chimney liners, condensation draining, and so on can add to the final cost
- Conversions from oil or electric heat to propane or natural gas are also a bit more complicated and costly than a simple natural gas to natural gas furnace replacement.
Adding it all up
Expect to pay about $3000 at the minimum for a new furnace including installation. However, on average, for a high-efficiency furnace with at least two stages, most homeowners in Canada will pay somewhere between $4000 and $6000+ when all is said and done.
Prices can stretch as high as $8000+ if it’s a top-of-the-line furnace, if it’s a complex installation (or conversion from say oil to propane), if you live further from a large city, and factoring in other costs like financing interest over a period of many years.
Buying Tips & Things to Watch Out For
Take Advantage of Current Deals & Promotions
A great way to save on a new furnace is by taking advantage of special offers and discounts from local HVAC contractors.
Check out our Current Deals page for the latest offers from our local Certified Partner Contractors.
See if You Qualify for Any Government Rebates
Another way to offset the cost of a new heating system is to register for any available government rebates you may qualify for. Other local organizations like your local utility company may also be offering grants, rebates, and incentives for upgrading your HVAC system.
Keep in mind that these vary by region and availability can change at any time. You may also need to meet a variety of criteria and often will need to register for the rebate and take steps BEFORE purchasing your new furnace.
Check out our Current Government HVAC Rebates page to learn more and see what is available.
Beware of Prices That Seem Too Good to Be True
We have seen people online advertising prices as low as $1500 – $1800, but in most cases these advertised prices do not reflect the actual final price. Often by the time the unit is installed, various “extras” get added on which inflate the final cost. Or these companies may be installing used or refurbished units or second-hand components. In many cases these are not established businesses and you may receive little warranty coverage and effectively be on your own after the install is complete.
We generally recommend carefully researching the company you deal with. Dependable established companies may charge a bit more, but they can also be counted on to do a better job, use good quality parts & secondary components, and be there in the event your system ever needs servicing.
Like any home contracting job, you often get what you pay for!
We always recommend buying from a company that offers at least a 1-year warranty on labour and installation, in addition to the manufacturer’s warranty. This is another concern if you buy from someone advertising significantly lower prices than the average market rate, it’s more difficult to know if those units were bought directly from the manufacturer and whether the manufacturer will even honour the warranty.
Are Rent-to-Own Furnaces a Good Idea?
Furnace rental or rent-to-own programs allow homeowners to replace their furnace without any upfront costs, and pay a flat monthly rate instead. These programs generally come with an included “protection plan” meaning in theory the homeowner never has to pay out of pocket for repairs or maintenance of the furnace.
This may be a good option for some people, however note that the total cost paid will generally be higher overall than if you simply purchase your system, and pay in full after installation. The rent-to-own HVAC industry also has a generally negative reputation as a result of high volumes of complaints, so be careful when going this route.
Ultimately there are many factors affecting the cost of a new furnace in Canada. We can do our best to provide estimates and price guidelines, but every home and situation is different, so the best thing to do is get an estimate from an experienced and established local HVAC contractor.
In order to help Canadians get reliable, high-quality, energy-efficient heating systems at a fair price, we’ve developed a rigorous certification program for local heating & cooling companies, which verifies their licenses, insurance, track record, and more!
Get free estimates from Certified local contractors in your area today!
Frequently Asked Questions
This is a question we get fairly often. Someone wants to know if they can hire a contractor to install a used furnace they got from someone else or bought on Craigslist, and how much it would cost just for the installation.
The fact is, very few contractors are going to want to install a furnace or A/C or other heating & cooling system that they didn’t supply themselves. This is because they do not want to be responsible for a unit that they don’t know the origin of, and potentially be on the hook if anything goes wrong with it a few months later.
If you do manage to even find someone willing to do this, it’s unlikely they’ll be willing to offer much of a labour warranty. And furthermore, it may be difficult getting the manufacturer to honour the parts warranty on the unit itself, given that it was not directly supplied and installed through an established distributor.
In the end, we strongly recommend buying your furnace from a trusted and established HVAC distributor, who will also do the installation, and provide a solid warranty on the installation.
The cost of repairing a furnace depends on what the cause or issue is. You have to factor in the initial cost of the service call if your furnace is no longer under warranty (~$100+), the cost of replacement parts (varies), and the labour costs to fix the unit or replace the broken component (~$75+/hr).
In all you may spend anywhere from a few hundred dollars to over $1000 if it is a major component like the heat exchanger which needs replacing. Depending on the age of your furnace, it may be worth simply replacing it with a new one. Check out our furnace repair section for more info.
The average cost of a furnace unit is typically in the $1200 – $3000 range depending on the brand, model, and efficiency rating. Note however that distributors and manufacturers do not generally sell furnaces directly to consumers. So you would need to purchase a furnace from local contractors who also provide the installation and servicing.
You may be able to get a deal or discount if you purchase a furnace and air conditioner together. The price for both a furnace and air conditioning system would typically be in the $5,000 – $10,000 range including installation, depending on a variety of factors like brand, model, and other considerations.
The cost of an electric furnace or oil furnace is usually fairly similar to the cost of a gas furnace, usually in the $3500 – $5500 range give or take, depending on your particular home and installation requirements. However given the usually higher cost of electricity or heating oil, natural gas furnaces tend to be cheaper to operate than oil and electric furnaces.
Installing new ductwork in a home is a complicated and costly job, usually costing many thousands of dollars and requiring extensive work. Walls and ceiling need to be torn up to install the ductwork. Most homes in Canada use forced-air heating and so will already have ductwork installed in the walls.
A whole-home humidifier attached to your furnace will typically cost $300 – $600. These are most easily installed at the same time as you are replacing your furnace with a new one.
Moving a furnace is a very costly project and should usually only be undertaken if you are renovating your entire basement. In addition to moving the furnace, much of the ductwork and exterior venting must also be reconfigured. Expect to spend several thousand dollars, and as much as $10,000 including rebuilding the ductwork. Most HVAC contractors may be reluctant to move and re-install the same furnace unit, and will often recommend simply installing a new unit.
Most local HVAC contractors are willing to provide free estimates. In most cases this will involve an in-home consultation as much of the final price will depend on the installation requirements and these are different for every home. Companies will usually only give very general quotes over the phone. Compare free quotes from our Certified local contractor partners here >>
Most homeowners will spend $100 – $300/mth on heating costs or an annual average of $800 – $1500, which is made up primarily of the cost of heating fuel like natural gas or propane. These costs will obviously rise during the colder winter months and decline to virtually zero during the summer, although some utility companies offer equalized billing for more predictable yearly and monthly budgeting. Factors like where you live and the local climate, and the size and insulation level of your home, will affect your operating costs, among many others.
Adding a furnace zone to your home depends on many factors, including whether ductwork is already installed or if it is a new addition. If you simply want to be able to control the temperature in an existing room or area, it may cost anywhere from several hundred dollars to a few thousand dollars to have advanced vent controllers installed.
Depending on the size of the home addition, you may need to upgrade your furnace or install a separate dedicated or supplementary heating system, like a ductless heat pump. It is best to consult an HVAC expert for a free estimate.
New furnaces should include some type of warranty coverage, though you may be able to purchase an extended warranty for a few hundred dollars. Keep in mind that there is a parts warranty offered by the manufacturer and a labour warranty which you may get from the contractor from whom you purchased the furnace and who did the installation. Most contractors will offer at least a 1-year labour warranty included with your purchase.