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Furnace Prices in Canada in 2021

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Welcome to our definitive guide to furnace prices in Canada in 2021. This guide will look at the cost of a new forced-air furnace, with an eye on the best brands and manufacturers. Additionally, we’ll examine how much it costs to replace an old central heating system, including the price of a furnace installation.

Our guide examines the various factors that determine the final price, from furnace installation costs, unit size, BTU output, manufacturer and model, efficiency rating, and a lot more.

So, let’s get into our guide to furnace prices in Canada in 2021.

An Overview of Canadian Furnace Prices

The prices contained in this guide are designed to give you a rough idea of the cost of buying or replacing a furnace. Several factors can affect unit costs and installation. Price variation is influenced by region, local competition, retailer’s business models, and the complexity of each furnace installation.

The Canadian government mandates that the minimum efficiency rating for any new furnace is 92% AFUE. This AFUE ratio stands for Annualized Fuel Utilization Efficiency, which represents the season-long efficiency of a furnace. Simply put, an AFUE is the percentage measure of how much heat you get for your dollar.

Furnaces with an AFUE of 80-90% are considered ‘mid-efficient.’ If you are browsing a manufacturer’s website and see models with ratings like this, it’s worth remembering that they are targeted at the American market. Due to its hotter climate, less efficient central heating systems are permissible.

But in Canada, you’ll need a model that is at least 92%. Furnaces in this range are considered “moderately efficient.” However, if you have an extra few hundred dollars, we’d highly recommend that you consider a model of at least 95-95% AFUE. There are two significant benefits here. Firstly, your fuel will go further. Secondly, you may be able to apply for government rebates depending on your location.

Furnaces with an AFUE rating of 97-98.7% are considered “ultra-high-efficiency.” Models in this range cost an extra $500 to $1000 more.

Other factors that you’ll need to think about are the size of your home, alongside the BTU of a new forced-air furnace. BTU output measures the amount of energy required to heat a pound of water by 1°F.

The prices listed in this guide include furnace installation costs. However, these can fluctuate depending on local labour costs and the difficulty of installation.

For comparison, propane and natural gas furnaces prices are roughly similar.

Furnace Prices: Brand or Manufacturer

Furnace prices can vary based on the brand or manufacturer. At entry-level, you can expect to pay around $3000. However, some brands offer high-end models that can cost $7,500 or more.

Below is a list of the various brands of manufacturers on the market. Remember, these costs include furnace installation.

Furnace Brand or Manufacturer Entry-level Model Cost High-end Model Costs
Amana $3500 $6500+
American Standard $3500 $6750+
Armstrong $3000 $5500+
Bryant $3500 $6000+
Carrier $3500 $7500+
Coleman $3250 $5500+
Comfortmaker $3000 $5500+
Daikin $3500 $6000+
Goodman $3000 $5500+
Heil $3250 $5500+
KeepRite $3000  $5500+
Lennox $3500 $7500+
Luxaire $3250  $5500+
Napoleon $3500 $6000+
Payne $3250 $5500+
Rheem $3500 $6750+
Ruud $3500 $6000+
Tempstar $3500 $6000+
Trane $3500 $7000+
York $3000 $5500+


Furnace Prices: Size & BTU Output

Furnace size and BTU Output are two of the biggest factors that affect the price. Some things you’ll need to consider when deciding on furnace size are:

  • Square footage of your home
  • Layout, for example, is it a townhouse, a bungalow, semi-detached, fully detached and so on
  • Your region and the local climate
  • The number of windows and doors in your house
  • The number of exterior walls
  • How well insulated your home is

The chart below shows the guideline price for a new forced-air gas furnace via size or BTU output. Again, furnace installation costs are included.

It’s worth remembering that these prices are based on averages. The exact price is dependent on the factors listed above (square footage, layout, etc.)

If you need to get an accurate estimate, consult an HVAC specialist. They can evaluate the specifics of your property and recommend the appropriate furnace size you need for your property.


Furnace Size or BTU Output Average Cost (including Furnace Installation) – Entry- to Mid Level Brand or Model Average Cost (including Furnace Installation) – Entry- to Mid Level Brand or Model
40,000 BTU $3250 $3750
60,000 BTU $3500 $4250
80,000 BTU $3750 $4750
100,000 BTU $4000 $5000+


Furnace Prices: Efficiency AFUE

As mentioned earlier, Annual Fuel Utilization Efficiency (AFUE) measures the energy efficiency rating of a furnace. Higher-efficiency models tend to cost more because they use more high-end parts and technology.

While highly efficient AFUE systems cost more money, you can also think of them as an investment. These models cost less to run. For example, a 92% vs. 97% model should translate into 5% energy savings over the course of a year. If your heating costs are around $2000 per year, this 5% could represent savings of $100 per year. Over the course of your furnace’s life, these savings could stack up. If your current furnace is an older, less efficient model, the difference could be quite dramatic.

The below chart shows the cost differences in entry-level and high-end furnaces when categorized by AFUE efficiency rating. As always, furnace installation costs are included.

Furnace AFUE Entry-Level Cost High-End Costs
90% AFUE $2800 – $3250 $3250
92% AFUE $3000 – $3500 $3500
95% AFUE $3500 – $4000 $4000
96% AFUE $3750 – $4250 $4250
97% AFUE $4000 – $5000 $5000
>98% AFUE $5000+ $5000+


Furnace Prices: Region

A new high-efficiency propane or natural gas furnace in Canada will typically cost somewhere around $3500 to $5500. Prices vary a little from region to region, but your home will be a bigger determining factor. As outlined above, things like insulation quality, the number of exterior walls, home size, the number of windows and doors, difficulty of furnace installation, etc., will have a larger bearing on the final price.

However, some of the factors that do affect prices by region in Canada are as follows.

Rural Areas

Furnace prices in rural areas are typically more expensive. Some of the reasons for this are:

  • Fewer furnace companies serve these regions, leading to less competition
  • Rural areas are thinly populated, which means there is less incentive for furnace companies to operate in these areas
  • Furnace equipment shipping to rural areas involves great distances
  • Labour warranties are more costly to upkeep in these areas due to further distances
  • Because rural areas are less dense than urban environments, the customers are more spaced out. This fact makes servicing these areas most cost and time-intensive


Specific regions have different regulations and rules for furnace installation. Some areasmandate additional licenses that can add to the cost of service.

Urban Areas

The cost of furnace installation in areas like the Greater Vancouver Area or Greater Toronto Area can be more competitive. Because these areas have more people and a larger amount of HVAC contractors, competition leads to lower prices.

But, this mainly affects the lower or entry-level end of the market. More established, well-known furnace services tend to charge a cost in line with Canadian furnace pricing averages.

Larger metro areas like Great Toronto have several smaller vendors that are just starting out. These businesses often incentivize customers with lower prices to win their custom.

However, the lowest price isn’t always the best bargain. Many smaller companies can offer knock-down prices because they don’t have insurance, warranty cover, support staff, and some of the other essential furnace installation criteria you get from more established providers.

Furnace Installation Price & Other Essential Factors

We have included furnace installation costs in our price guides so far. However, let’s break down the costs involved in installing a new heating system.

Furnace installation costs are typically around $1000 to $1200+. However, estimates depend on several factors like area, the difficulty of install, and the local labour market. Again, expect some variance here depending on specific vendors and circumstances. 

Installation & Labour Cost

While $1000 to $1200 might seem like a lot, it makes sense when you break down the costs.

Typically, these costs will need to pay for the furnace installation technician and their helper. Additionally, contractors have built-in business overheads like an office lease, staff, insurance, licensing, plus the vehicles and gas required to reach your home.

Factors That Affect Furnace Installation Costs

The furnace itself plays the most prominent role in the final costs. However, installation is the other significant factor to consider. It’s difficult to put an exact price on installation costs because of the many variables that are involved. If you need an accurate price, it’s best to request a quote.

Some of the factors that determine furnace installation costs are:

Furnace Location

Furnace installation prices are affected by where the furnace is located in the house. Some homes have conveniently located furnaces, while others are tucked away in a crawlspace. If a furnace is harder to reach or in a confined space, it can take far longer to remove the old system and install the new one. This scenario results in increased labour costs.

Venting Upgrades

Newer furnaces tend to be more compact units. However, if you are replacing an older system, the ductwork (metal or synthetic tubes) that connect with the furnace needs to be retrofitted to ensure compatibility.

Safety Codes

Safety codes and regulations have changed over the decades. As a result, older systems may require alterations to meet these standards. These codes can affect venting, piping, electrics, etc. Additional work requires additional labour and time.


Depending on the current system you have in place, some conversions may be required. For example, significant alterations may be required if you are moving from oil or electric to a propane or natural gas system. These conversions are complex and call for additional labour.


Again, depending on your particular scenario, extras like condensation draining or chimney liners can add to total furnace installation costs.

Adding Up the Costs of Furnace Installation

When it comes to the total price, you should expect to pay — at minimum — $3000 for a new furnace in Canada.

Of course, two-stage, high-efficiency furnaces will cost a bit more, and depending on models and brands, may cost in the region of $3500 to $5500 once the furnace installation is complete.

At the highest end of the scale, prices can go up to $7500 to $8000. These costs will cover a high-end furnace, a complex furnace installation (i.e. conversion from oil to gas or propane). Additionally, this cost would cover being in a rural area and taking out finance repayments over the course of a few years.

Buying Tips & What to Watch Out For

The cost of a furnace and furnace installation costs somewhere between $3000 and $8000 or more. For most people, this is a significant outlay. However, it’s possible to get the most out of your money by following these tips:

Look Out for Current Deals and Promotions

One of the best ways to get a new furnace at a bargain price is to look out for discounts or special offers. Occasionally local HVAC contractors have deals or offer reductions on older models.

Research Any Government Rebates You Might Qualify For

Local, provincial, and federal governments want to incentivize Canadians to upgrade to more energy-efficient heating solutions. These rebates, credits, grants, and loan programs can help offset the costs of furnace installation and purchase.

Rebates are one of the best options here and can save you hundreds or thousands of pounds on a furnace installation.

Of course, these grants and programs can be different depending on your region. Additionally, they are subject to change. It’s worth noting that to qualify, you may need to (a) satisfy several criteria (b) apply before you purchase your furnace.

Check with your local HVAC contractor to see if they have any deals or promotions. Climate Experts has a section for deals, promotions, and rebates on our website.

Beware of Deals That Seem Too Good to Be True

The internet is full of ‘great’ deals on furnaces. Some websites have offers that promise a new furnace for between $1500 to $1800. You might think, “surely, that’s too good to be true?” and unfortunately, you’d be right.

Deals like this start out cheap but have a habit of costing more as expensive extras are mysteriously added on. For example, these prices may not include furnace installation. Or worse still, the units could be used or refurbished. In the most unfortunate case, these businesses are fly-by-night operators who are nowhere to be found when you try to exercise the warranty on the second-hand boiler they installed.

Additionally, it’s not always clear if these companies are buying directly from the manufacturer, which might cause a problem down the line if you need to avail of a warranty. 

While using more reputable, established companies might mean you have to pay a little extra, this money goes to a better service. That includes better quality work, the best parts and components, and a servicing warranty.

When evaluating vendors, look for one that stands behind their products and services. For example, some of the better vendors offer a 1-year warranty on labour and furnace installation, on top of the manufacturer’s warranty.

What About Rent-to-Own Furnaces?

There are several furnace rental options. These programs allow you to replace your furnace without paying upfront costs. Instead, you pay a flat monthly rate.

While these programs can seem like a low-cost, money-saving idea, in practice, they have several drawbacks. For starters, they work out more expensive than buying a furnace. Secondly, the rent-to-own furnace sector has a shady reputation, with contracts that are difficult to get out of and unfavourable interest rates very common. So watch out.


There are a lot of things to consider when shopping for a new furnace. Brands, furnace size and output, conversions, and even your location and home layout can all dramatically affect the price. While the prices we’ve provided are up-to-date and accurate, ultimately, the final price rests on your circumstances and requirements.

To get a definitive quote on replacing or installing a new furnace, contact Climate Experts today.


Can You Install a Furnace I’ve Purchased Independently?

Furnace contracts are often asked if they can install a furnace that has been bought independently. Often, these units are older, second-hand units. For most contractors, this will not be possible as they can’t guarantee the quality or origin of the furnace.

If you want a warranty and assurance that your furnace is fit for purpose, use an established HVAC contractor.

What is the Cost of a Furnace Without Installation?

The prices we quote above are inclusive of furnace installation. Typically, HVAC vendors don’t sell a furnace directly to the public.

However, to answer the question, a furnace without installation can cost between $1000 to $3000 depending on make, model, output, and AFUE.

How Much Does a Furnace Quote Cost?

In general, a furnace quote is free. An over-the-phone quote is a rough guess, so if you’re pricing a new furnace, call up Climate Experts, and we can set up an in-house consultation.

How Much Does a Furnace Cost To Run Per Month?

Heating costs can vary wildly based on energy efficiency and the size of the property that is being heated. In general, the average homeowner pays between $50 to $150 per month to heat a home. This figure works out to $800 – $1500 annually.

If you have a furnace, the bulk of these outgoings is spent on propane or natural gas. Of course, the summer and winter months will have different requirements. Depending on the layout and insulation quality of your home, fuel prices might be lower than average.

Is an Electric or Oil Furnace Cheaper Than a Gas Furnace?

The cost of an electric or oil furnace unit is roughly similar to a gas furnace. Each option is unusually in the region of $3500 to $5500, depending on circumstances.

However, electricity and heating oil furnaces are more expensive to run than natural gas furnaces, so these future costs should be taken into account when deciding which furnace is right for you.

How Much Does Furnace Ductwork Cost?

New furnace ductwork installation is an intricate and time-consuming job. It can take many days of planning and labour, with costs running into the thousands. Often walls and ceilings need to be ripped up to facilitate these installations. Thankfully, most Canadian homes already have forced-air heating and existing ductwork.

What is the Cost of a Furnace Dehumidifier?

Whole-home humidifiers that are attached to your furnace generally cost between $300 to $600. It’s best to install these units when you are replacing your furnace rather than as a standalone job.

What is the Cost of a New Furnace and New Air Conditioner?

When people do home refurbs of older properties, they may choose to install a new furnace and air conditioner at the same time. Sometimes this is advantageous as you can secure a discount for both units. The general cost for both, including installation, will be between $5000 to $10,000. Of course, much depends on the brand, model, and so forth.

What is the Cost of Moving a Furnace?

Moving a furnace is a complex and costly job. In general, we’d only recommend it if you are doing extensive basement renovations. If you have your heart set on moving a furnace, bear in mind that exterior venting and ductwork will likely need to be entirely reconfigured. This process can cost up to $10,000.

Additionally, the majority of HVAC contracts won’t move and reinstall an old furnace. Instead, they will recommend that you install a new one instead, with the assurance of a warranty. Moving a furnace puts a contractor in the awkward position of signing off on a piece of equipment whose history they don’t know.


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