Furnace Prices in Canada (Updated for 2024)

We asked Canadians who requested a quote through FurnacePrices.ca how much they paid for their new furnace in 2023 and into 2024.

The consensus? The average cost of a new natural gas furnace in Canada is between $4,000 and $6,500, including installation.

Of course you could end up paying more or less than that, as each home and situation is different.

A basic entry-level natural gas furnace model with a simple installation in a major metropolitan area may cost as little as $3,000 – $3,500 from some providers, for example. A higher-end model, more complex installation, and many other factors can cause the final price to rise well above that.

Actual furnace prices in Canada will depend on factors like:

• the size of your home
• the furnace brand and model you choose
• the efficiency rating, among other factors
• where you live, as prices tend to vary quite a bit by region

This guide will give you a complete breakdown of high-efficiency natural gas furnace prices in Canada. We’ll talk about actual furnace costs, what you’ll pay to replace an older system, furnace installation costs, and more. 

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and our Complete Furnace Buying Guide here >>

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[Video] Furnace Prices In Canada

Factors Impacting Furnace Prices in Canada

The prices we talk about in this article are just a general estimate. Every home and installation is different. Like any home improvement project, various factors can impact the final price. 

Local furnace companies that are licensed and experienced can help you understand the following factors that affect furnace prices in Canada:

• Size of your home & BTU output: A larger home will require a larger furnace size/output with a higher heating capacity (BTU output) will cost more than a smaller furnace
• Region & market factors: Local competition, supply chain effects, surges in demand, and many other factors will impact cost from region to region
• Replacing an old furnace & modern building codes: Installation costs will be higher if you have to upgrade your ventilation or existing ductwork, for example
• Natural gas vs. propane furnace: Natural gas and propane furnace prices are generally similar, but propane forced-air furnaces might be pricier because they’re often installed in more rural areas
• Furnace efficiency: The best furnaces tend to cost more as they have additional technology which makes them more efficient, like variable-speed motors and modulating burners. A 98.9% AFUE (annualized fuel utilization efficiency) rated furnace, which is about as efficient as you can currently buy, will likely cost about $1000 – $2000 more than a 95% AFUE furnace on average (including installation). This means a higher cost upfront but somewhat lower energy consumption and operating costs.

Is it worth the extra cost for a higher-efficiency furnace?

The increase in efficiency won’t necessarily have a dramatic impact on heating bills, but the features that make top of the line furnaces more efficient also usually make them quieter and better at maintaining consistent indoor temperatures. They also tend to have the best warranty coverage. 

How Furnace Prices Vary by Region: Prices Are Higher in Rural Areas

The average price of a new high-efficiency propane or natural gas furnace is mostly consistent across Canada, usually in the $4000 – $6500 range, including installation. 

But prices will vary from one home to the next and one region to another, especially when it comes to rural areas. Rural areas tend to have higher prices, because:

• There’s less competition among HVAC contractors
• There are fewer customers, so contractors must charge more to cover operating costs
• Equipment must also be shipped farther for distribution
• If they’re offering you a labour warranty, then they’ll factor in the cost of service calls
• Customers tend to be farther apart, making service more time-consuming and costly

We can’t give exact numbers, but here are some estimates about how prices may vary depending on your location:

• Expect to pay 20 to 40% more for a furnace if you’re roughly 1 hour+ from the nearest city
• Expect to pay 50 to 60%+ more for a furnace if you’re 2 to 3 hours+ away from the nearest city (especially for a large home or complicated job)

Based on these numbers, you can expect to pay between $4,800 and $9,600 for a new forced air furnace in a rural area, depending on how far out you are from the nearest city.

Rural Versus Metropolitan Areas

By contrast, large metropolitan areas like the Greater Toronto Area or the Greater Vancouver Area tend to have a dense collection of HVAC contractors and customers, and the competition helps to lower prices a bit. 

At the same time, certain regions may also have different regulations or require additional licensing, which may add to the cost of delivering the service.

However, established, dependable companies will typically charge prices roughly inline with the average across Canada. It’s usually the smaller and less-established vendors or contractors who offer lower prices. 

We would generally advise some caution when going with the lowest price you can find. Lower prices can mean the company has a lack of support staff, insurance, warranty coverage, and other important things you get from more established providers.

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. When you need a new furnace, call a verified professional!

According to real Canadians, you can expect excellent service, fair pricing, knowledgeable staff, and punctuality when you work with one of our Certified partners.

Furnace Prices by Brand/Manufacturer

Furnace Prices by Size & BTU Output

Furnace size will depend on the square footage of your house, the layout (e.g. townhouse/townhome, semi-detached, fully detached, bungalow, etc.), your climate, insulation, and how new your home is. An HVAC specialist can give you an accurate sizing estimate. 

The chart below shows example prices (just a guideline!) for a new forced air gas furnace (including installation) to show how prices might vary by heating capacity, assuming we’re talking about the same brand and model across all sizes.

Furnace Prices by Efficiency (AFUE)

Annual Fuel Utilization Efficiency is the energy efficiency rating of a furnace. More efficient furnaces will cost more, but they’ll also save more on energy bills. 

AFUE used to be more important, but now the Canadian government has mandated a minimum efficiency rating of 95% in most cases (with certain limited exceptions). As such, all new high-efficiency furnaces will generate similar savings and lower energy bills. 

That being said, it is still worth opting for a higher end model with additional efficiency features like a variable-speed/ECM motor and optionally a modulating burner. These units tend to be quieter and provide increased comfort and more consistent indoor temperatures.

ENERGY STAR® certification is a guarantee of efficiency and performance and usually a requirement for government rebates. We recommend an ENERGY STAR® model if possible.

See how much you might save on operating costs with our New Furnace Savings Calculator

(Note that generally furnaces below 95% AFUE aren’t available in Canada anymore.)

Furnace Prices by Fuel Type

Note that these prices include a typical installation.

• Natural Gas Furnaces – $4,000 – $6,500+
• Propane Furnaces – $5,000 – $7,500+ (typically in more rural areas, which increases average costs)
• Electric Furnaces – $3,000 – $5,500+
• Oil Furnaces – $3,000 – $5,500+

Learn more about converting from oil or electric to propane or natural gas.

Furnace Installation Cost & Other Important Factors

Installation & Labour Cost

Labour and installation usually cost around $1000 – $1200+. This is just a general estimate, of course.

Why so much? 

Installation costs cover hours of labour from the main technician and possibly a helper, as well as built-in costs like business expenses, staff, office/warehouse lease, company insurance, licensing, vehicles and gas, and beyond.

Related Article:

The Truth About Furnace (and A/C) Pricing – by Simon Bernath, founder of FurnacePrices.ca

Factors That Can Affect Installation Cost

For a more accurate estimate about furnace installation costs, 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 labour needed:

• Location of the furnace – e.g. is it easily accessible versus in a crawlspace? 
• Venting upgrades – older furnaces tended to be larger than newer models, meaning you’ll have to retrofit the existing ductwork, e.g. the plenum (the ductwork connecting to the furnace) 
• Modern safety codes – new safety codes can require upgrades to venting and piping, electrical wiring, and so on
• Other extras – things like chimney liners, condensation draining, and so on 
• Conversions – converting an oil furnace or electric furnace to natural gas or propane makes the installation more complex  

Adding it all up

Expect to pay about $3000 – $3500 at the minimum for a new furnace, including installation. 

For a high-efficiency furnace with at least two stages, most homeowners in Canada will pay an average of $4000 to $6500+. 

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 farther from a large city, or if there are added other costs like financing interest over a period of many years.

Money-Saving Buying Tips 

• Take advantage of current deals & promotions from local HVAC contractors: Check out our Current Deals page for the latest offers from our local Certified Partner Contractors.
• Save money through manufacturer promotions and rebates: HVAC manufacturers offer rebates and deals on certain models from time to time.
• See if you qualify for any government rebates: Check out our Current Government HVAC Rebates page to learn more and see what is available.
• Look for additional rebates: Other local organizations like your local utility company may also be offering grants, rebates, and incentives for energy efficient heating systems. 

Rebates vary by region and can change at any time. You’ll also need to register or apply before you buy.

Watch Out for Prices That Seem Too Good to Be True

We’ve seen people online advertising prices as low as $1500 – $2000 for a new forced air heating system, but in most cases, these advertised prices don’t reflect the actual final price because:

• Various “extras” get added on which inflate the final cost, or
• The company installs refurbished units or second-hand components, or
• The company isn’t established and doesn’t offer warranty coverage 

Carefully research 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 quality parts & 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. 

Companies offering prices that are significantly lower than the average market rate don’t always buy each furnace unit directly from the manufacturer. In those cases, the manufacturer may not 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. Instead, you pay a flat monthly rate instead. 

These programs generally come with an included “protection plan.” In theory, this means the homeowner never has to pay out of pocket for repairs or furnace maintenance. 

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 for 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.

In Summary

Ultimately, expect to pay between $4,000 and $6,500 on average for a new furnace in Canada, but don’t forget about the many factors affecting the final price. 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 that verifies their licenses, insurance, track record, and more!

Get free estimates from Certified local contractors in your area today!

Frequently Asked Questions