| Square Footage | Furnace BTU |
|---|---|
| 1,000-1,200 sq. ft. Home | 40,000 - 60,000 BTU |
| 1,200-1,500 sq. ft. Home | 60,000 BTU |
| 1,500-1,800 sq. ft. Home | 60,000 - 80,000 BTU |
| 1,800-2,500 sq. ft. Home | 80,000 - 100,000 BTU |
| 2,500-3,500 sq. ft. Home | 100,000 to 120,000 BTU |
Understanding furnace cost in Canada is one of the most important steps for homeowners planning a new heating system, upgrading an old furnace, or comparing long-term heating expenses. Whether you are installing a furnace for the first time, replacing an aging unit, or simply budgeting for future repairs and energy costs, knowing the real numbers helps you avoid surprises.
Furnace pricing in Canada varies widely due to climate, fuel type, home size, efficiency ratings, and installation complexity. Many homeowners only look at the upfront purchase price, but installation costs, replacement labor, and ongoing operating expenses often make up a significant portion of total ownership cost.
This guide provides a complete, transparent breakdown of furnace costs in Canada—covering installation, replacement, operating expenses, and smart ways to reduce overall costs.
Before diving deeper, here is a realistic snapshot of what most Canadian homeowners can expect:
| Cost Type | Typical Range (CAD) |
| Average furnace price (unit only) | $2,500 – $6,500 |
| Furnace installation cost | $1,500–$4,500 |
| Furnace replacement cost (all-in) | $4,000 – $10,500 |
| Annual operating cost | $700–$2,000 |
These ranges depend heavily on furnace type, efficiency, and regional labor rates.
Gas furnaces are the most common heating systems in Canadian homes due to their balance of affordability and efficiency.
High-efficiency gas furnaces (95%–98% AFUE) cost more upfront but significantly reduce heating bills in cold provinces.
Electric furnaces are simpler and cheaper to install, but often cost more to operate.
Electric furnaces are often chosen where gas is unavailable, but electricity rates make them less economical for large homes.
Oil furnaces are common in rural areas without gas service.
Oil furnaces deliver strong heat output but have higher fuel and maintenance costs.
Propane furnaces are an alternative where natural gas is unavailable.
Operating costs depend heavily on propane pricing and delivery schedules.
Furnace installation cost goes beyond placing the unit in your basement. Here’s what typically impacts pricing:
Homes requiring ductwork changes or venting upgrades often see higher installation costs.
Replacing an old furnace usually costs more than a first-time install due to removal, disposal, and system compatibility.
If repair costs exceed 30–40% of replacement cost, replacement is usually the smarter option.
| Fuel Type | Annual Cost Range |
| Natural Gas | $700–$1,500 |
| Electric | $1,200–$2,000 |
| Oil | $1,500–$2,500 |
| Propane | $1,400–$2,300 |
Colder provinces experience higher usage, but high-efficiency furnaces significantly reduce annual costs.
AFUE (Annual Fuel Utilization Efficiency) measures how efficiently a furnace converts fuel into heat.
Upgrading from an 80% to a 96% AFUE furnace can save $300–$600 annually, depending on usage and gas prices.
According to Natural Resources Canada, upgrading to a high-efficiency furnace can significantly reduce household heating costs.
Several hidden factors can push costs higher:
A proper load calculation prevents unnecessary overspending.
Government rebates for energy-efficient furnaces can reduce upfront costs by $500–$2,500, depending on the province.
Many homeowners now compare furnace costs with heat pumps.
Furnaces
Heat Pumps
In colder regions, furnaces or hybrid systems remain the most cost-effective option.
Most homeowners spend $4,000 to $10,000, depending on efficiency and installation complexity.
The average furnace price ranges from $2,500 to $6,500.
If repairs exceed $1,500 or occur frequently, replacement usually offers better long-term value.
Most furnaces last 15–20 years with proper maintenance.
Yes. While upfront costs are higher, long-term fuel savings often offset the difference within 5–8 years.
A furnace is a long-term investment, not just a purchase. While upfront furnace installation or replacement costs in Canada may seem high, choosing the right system dramatically reduces operating costs and improves home comfort for decades.
FurnacePrices.com offers expert guides and access to certified local contractors. Visit our site to compare furnace options or request a free, no-obligation quote for your home.
At FurnacePrices.com, we bridge the gap between homeowners and reliable, vetted HVAC contractors—whether you’re installing a new furnace, upgrading your air conditioner, or replacing your full home comfort system.
Tell us your installation timeline, and we’ll match you with the most suitable HVAC professionals in your area:
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FurnacePrices.com helps homeowners across Ontario compare heating and cooling systems, estimate installation costs, and connect with trustworthy contractors.
Frequently supported service areas include:
Our network covers most major and mid-sized regions in Ontario, ensuring expert assistance whether you’re replacing an older furnace/AC or upgrading to a high-efficiency model.
👉 See the full list of Ontario service regions
Many companies in our contractor network are active members of respected national and provincial HVAC organisations, such as:
These affiliations indicate strong training standards, code compliance, and reliable installation practices.
Installation costs vary depending on:
Understanding these factors helps you plan your installation budget more accurately.
Compare furnace or AC quotes from trusted, local HVAC professionals—quick, easy, and with zero pressure.
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