Furnace Installation Cost & Other Factors Affecting the Final Price
Furnace replacement cost varies by make and model. Different brands and their individual models, efficiency ratings, and size/BTU output will vary in price.
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 the insurance, licensing, their vehicle, and so on.
Frequently Asked Question: What if I buy the unit separately or buy a used furnace? How much will that cost?
This is a question we get fairly often. Someone wants to know if they can hire a contractor to install a 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 they 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.
Adding it all up
Expect to pay about $2500 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 $3000 and $5000 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), if you live further from a large city, and factoring in other costs like financing interest over a period of many years.
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 be installing used or refurbished units or second hand components. In many cases these are not established businesses and you may 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.
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 the homeowner never has to pay 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.
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 labour 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.
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 a free quote from a trusted local company in your area today!