Furnace Replacement Cost in Canada in 2026 (Gas, Electric and Dual-Fuel)
What it costs to replace a furnace in Canada in 2026 by type and efficiency, what drives installed price, and how HVAC contractors should quote it.
When a furnace dies in January, a homeowner needs a price fast. Installers who respond with a clear, itemized quote the same day win these jobs. Here are typical 2026 ranges for homeowners and the quote structure for contractors.
Typical installed cost
- Mid-efficiency gas furnace: about $3,500–$5,500
- High-efficiency gas furnace (condensing, 95%+ AFUE): about $4,500–$8,000
- Electric furnace: about $3,000–$6,000
- Dual-fuel (heat pump plus gas furnace): about $10,000–$20,000
What affects the price
Efficiency and staging
Two-stage and variable-speed models cost more but run quieter and use less energy. Modern condensing furnaces also need PVC venting and a condensate drain, which adds labour when converting from an old chimney vent.
Size
Correct sizing needs a proper heat-loss calculation, not simply matching the old unit. Oversized furnaces cycle often and wear out.
Chimney and venting
Switching to a high-efficiency unit often means lining or capping an unused chimney, which can add several hundred dollars or more.
Ductwork and accessories
Thermostats, humidifiers, air cleaners and duct repairs are common add-ons that should be separate lines.
Rental vs buying
In some markets homeowners rent equipment. Rentals have low upfront cost but can cost far more over time. Show the comparison clearly when quoting.
How to quote
Offer a good-better-best option set, each with brand, model, efficiency rating, installation details, permit, disposal and warranty. Giving three options increases the average sale and lowers price shopping. HVAC contractors can build these options quickly with quoting software for HVAC. If the home is also a candidate for a heat pump, point to our heat pump cost guide.