Installing a new gas furnace in your home is a big deal and can have major cost implications, but it will pay for itself in increased home comfort, less energy consumption, and lower heating bills. If you’re thinking about getting a new gas furnace, you’ve come to the right place! We’ve written the perfect guide for you to understand the furnace installation costs in Canada, with a focus on your specific city.

Additionally, it is important to know what elements will affect the overall cost – and that’s what we’ll go into detail in this article.

Key Factors that determine the Gas Furnace cost

The cost to replace a gas furnace goes far beyond the cost of the appliance itself. From initial setup difficulties to continuing operating costs, there are several variables that homeowners must account for when estimating the final price.

Initial Costs

Purchase of the Furnace

There is more than just the initial cost to think about when budgeting for a new gas furnace. It’s important to know how much something will cost before you buy it. Factors like efficiency, model, BTU capacity, and brand all make a big difference. Here’s a look into how each factor can impact your budget:

Efficiency Ratings and Costs

The Annual Fuel Utilization Efficiency (AFUE) rating is a way to quantify a gas furnace’s efficiency. This percentage shows the amount of gas that is transformed into heat that can be used. Almost all of the energy goes toward heating in more efficient models, which can achieve an AFUE rating of up to 98.5%.

Although high-efficiency furnaces are more expensive initially, they end up saving you a ton of money on energy costs because they use less fuel. Homeowners should weigh the upfront cost against the possibility of future energy savings, taking into account the weather and heating demands in their area.

BTU Capacities and Price Implications

British Thermal Units (BTUs) are the standard unit of measurement for a furnace’s heating power. A furnace that is either too big or too small for your home can cause inefficiencies and higher operating expenses, so it’s important to get the BTU capacity right.

Furnaces are designed to accommodate larger or more demanding environments, and their cost grows with their BTU capacity. To get the most value for the price paid, have an HVAC professional do a Manual J calculation to calculate your home’s dimensions and insulation levels, and then pick a furnace accordingly.

Model Variations and Their Impact on Cost

Depending on your needs and budget, you can choose from a variety of gas furnace models, including modulating, two-stage, and single-stage:

  • Though they’re the cheapest option, single-stage furnaces run at full blast when turned on, which increases the risk of moderate overheating and reduces combustion efficiency.

  • While two-stage furnaces are more expensive up front, they offer more efficiency and comfort control by adjusting their output to two levels.

  • While modulating furnaces are the most efficient, they also require the most upfront cost because they adjust their heat output to meet your home’s specific temperature needs.

Brand Influence on Pricing

The price of the furnace is greatly influenced by its brand. Name brands with a solid reputation for quality, dependability, and cutting-edge features, such as Trane, Carrier, and Lennox, tend to charge more. On the other hand, you might find more affordable choices that nonetheless fulfill the required efficiency and reliability standards from names like Goodman and Bryant. You can save money in the long run by choosing a brand that lasts and requires less maintenance.

Note: Be sure to read the warranty details and dealer support before making a final decision.

Installation Complexity and Labor Costs

Most of the time, the complexity of the installation is what drives up the labor prices. It may not be too difficult to replace a furnace if the new one is an exact furnace size and model match for the old one. Changing from one model to another, such as a one-stage furnace to a two-stage one, or making changes to the current ducting or venting systems makes the installation more complicated and time-consuming.

Furthermore, the placement of your furnace might have a substantial impact on the final price tag. It is usually more cost-effective to put a furnace in an easily accessible location, such as a basement or a separate utility room, rather than in a tight crawl space or an attic.


Technicians’ hourly wages can change depending on factors like seasonality, the installer’s level of experience, and the cost of labor in their area. In the spring and early winter, when heating and cooling systems are most in demand, HVAC providers may charge more for installation and repair services. Installations can take anything from four to eight hours, depending on the complexity, and homeowners should anticipate paying an average of $75 to $150 per hour for expert work.

Note icon | Comfort Union

Why Choose Us?

For starters, we will show up on time with a fully stocked service van, eager to resolve your heating, cooling, plumbing or electrical problem.

Secondary Costs

Ductwork Modifications

Changing out the furnace often necessitates reworking the ducting system. If you’re upgrading from an older, less efficient system, you may need to seal and repair the ducts or rearrange them entirely to fit the new furnace model.

Removal and Disposal of the Old Unit

The final cost can rise due to the added expense of properly removing and disposing of the old furnace. There may be environmental fees associated with certain areas’ particular demands for the disposal of HVAC equipment.

Permits and Inspection

First things first: find out if you need any permits before you start installing. To make sure the installation is safe according to local regulations, these are typically required. To ensure the work is up to par and in compliance with local codes, inspections may be necessary after installation.


Ongoing Costs

Keeping a furnace in top operating condition requires regular maintenance. The device can last longer and save money on repairs with the help of yearly inspections and servicing. A service plan or yearly maintenance contract can help you keep these costs in check.

Your new gas furnace’s efficiency level will have a direct effect on your energy costs. Furnaces with a higher AFUE rating save money in the long run because they use less fuel to generate the same amount of heat as older or less efficient ones.

Sometimes, even the most dependable furnaces might need to be serviced. Think about the possible parts and labor costs. You can reduce some of these expenses by purchasing a furnace with a solid warranty, but the length and scope of these guarantees can differ greatly.

Maximizing the Costs of Your Furnace

Before you install an energy-efficient furnace, find out whether there are any rebates or incentives offered by your local, state, or federal government. You may lessen the financial burden of your new furnace by taking advantage of these, which can offer substantial discounts.

If you want to sell your home in the future, installing a new furnace can raise its value and make it more appealing to potential purchasers. Plus, a more recent system that has been around for a while, has all the latest features and is reliable might be a huge selling factor.

Braeden RigbyBraeden Rigby
19:47 25 May 24
Comfort Union should be your first choice for all your HVAC needs. Amazing family run business with a people first approach that is difficult to find. Highly recommended for anyone that values quality work !
premnath parthibanpremnath parthiban
14:52 23 May 24
I spent almost one year to find the best HVaC replacement company and finally landed with Comfort union .I initially thought it was a small job but then realized the magnitude of work and effort it goes into it ..Asif initially came to my house , explained to me everything in detail including what is code of guidelines expected by city of Calgary , that showed his knowledge on the whole process ..Then came his brother Moore for installation - you will never find such a wonderful person who knows in and out of the HVAC and moreover the most patient person I have ever seen .. he did the whole installation with absolute craftsmanship and love for the work he did .. the best part was his perfectness and every work he did was so perfect and tidy !Finally, came Khan ji - to do the final inspection to add perfectness over the perfectness carried by Moore .. He did inspection and made sure everything was 200% correct ..Overall , I would recommend comfort union over any other service provider …Replaced my furnace , water tank and my humidifier …
JJ YanJJ Yan
02:22 22 May 24
Muhamad and Darryl did an excellent job on installation of our new Bradford White 75 gallon water heater. Extremely professional and hard working. They not only just did the work, but also explained the procedure thoroughly and maintenance focus points. Kept the work place tidy and in order. Highly recommended to everyone. JJ
mr2008 2.0mr2008 2.0
04:08 12 May 24
excellent carrier furnace and air conditioner installation, highly recommend to others
20:52 06 May 24
It was great to see a father and son team work so professionally in the delivery and installation of our new Bradford White water heater. Thanks team for a wonderful job.
Arman GillArman Gill
03:21 30 Apr 24
Friendly staff and did amazing work with carrier hvac
Inderpal SinghInderpal Singh
02:59 30 Apr 24
Amazing work. Good work on AC installation. Competive rates
Fast response due to the urgent occasions. The team is very experienced. Highly recommended!
Tushar AroraTushar Arora
23:04 06 Apr 24
Comfort union offers top notch furnace and hot water tank replacement services - contact the best furnace company in Calgary for all your needs. Highly recommended!!
Dipendra SitaulaDipendra Sitaula
18:28 02 Apr 24
Great and reliable service.
sunny Maharjansunny Maharjan
10:11 01 Apr 24
Best reasonable and quick in their response.
E TanE Tan
01:45 31 Mar 24
I recently hired Comfort Union to install a new hot water tank in my home, and I couldn't be more pleased with the results. They went above and beyond to ensure that the installation process was smooth and hassle-free from start to finish.Daryl's expertise and professionalism were evident from the moment he arrived at my home. He took the time to assess the layout of the space and discuss the best options for the installation, providing valuable insights and recommendations along the way. His attention to detail and commitment to quality craftsmanship were truly commendable.Throughout the installation process, Daryl and Mo worked efficiently and diligently, ensuring that everything was installed correctly and functioning optimally. They were respectful of my home, taking care to clean up any messes and leaving the work area spotless once the job was complete.I would like to extend my sincerest thanks to the entire team at Comfort Union for their outstanding service. Thanks to their expertise and dedication, I now have a reliable water heater that meets my needs perfectly. I would highly recommend Comfort Union to anyone in need of plumbing services – their professionalism and quality workmanship truly set them apart.
Ayaan DawoodAyaan Dawood
06:38 10 Mar 24
Imran Ahmed KhanImran Ahmed Khan
06:04 10 Mar 24
Maggie VaccaroMaggie Vaccaro
21:26 05 Mar 24
Quick response for appt. Came over and got all work done.Will call them again and will recommend them to others. Thanks!
Ashirul PatelAshirul Patel
22:57 26 Feb 24
We had great experience. They work out an efficient way to solve our furnace issues while maintaining the minimum cost.
Rakesh SachdevaRakesh Sachdeva
04:44 10 Feb 24
Muhammad is very professional and very cooperative. He has completed the work as explained. Everything was completed on same day we had issue. Very responsive.
Kly ClackKly Clack
22:28 08 Feb 24
Team at comfort union made me feel very comfortable about my purchases explained everything clearly and concisely so I could be confident in my decisions I would recommend them to anyone who asks.
Bhattarai AnuragBhattarai Anurag
02:33 07 Feb 24
Good service 👍🏽
Matt MelliesMatt Mellies
21:21 22 Jan 24
I had an issue with my furnace, went to reset my main breaker to power cycle trying to troubleshoot it... Breaker crapped out so I was sitting on an electrical, and furnace problem.Gave these guys a call and they were able to come out within 2 hours. Required a full main breaker replacement, and new gas valve on my furnace. They diagnosed it in only a couple hours, and fixed everything the same day.Had a great experience, the technicians that showed up were professional, and very knowledgeable. I'll definitely be using these guys when I eventually have replace my aging furnace.
Sharif ZayedSharif Zayed
00:15 22 Jan 24
Khan was so kind and considerate to help me during the -45 C calgary weather. We decided to replace our old furnace with newer and advance features choosing Carrier Furnace. We received the quote from Comfort Union which was competitively priced and the job was completed next day. Thanks.
Syed Zaigham RizviSyed Zaigham Rizvi
05:29 18 Jan 24
Had a bit of a crisis with rental property heating system in Calgary, our Goodman furnace gave out and had countless furnace repairs over the years. They got a new Carrier furnace installed quickly and very competitively priced compared to other carrier dealers. Wasn't expecting such quick service in the cold months. Definite recommend!
Mohammed SiddiqiMohammed Siddiqi
00:23 06 Jan 24
Absolutely stellar service from this HVAC company! The team was prompt, professional, and incredibly knowledgeable. They swiftly diagnosed and fixed our heating issue with precision. Their attention to detail and commitment to customer satisfaction truly set them apart. A 5-star experience – our go-to HVAC experts!
Agit KokuAgit Koku
21:40 13 Apr 23
I recently had Comfort Union come to my home to fix an issue with my hot water tank's pilot issue. Not only did the technician promptly fix the issue, but they also took the time to clean out my drain as a courtesy. I was impressed by their attention to detail and their commitment to providing excellent customer service.I would highly recommend Comfort Union for anyone in need of plumbing services.

Average costs of Natural gas furnace Replacement in Canada

One of the main things to think about when planning to replace a gas furnace is the price difference that can occur depending on factors like local weather, labor rates, and economic situations in the area. To give you an idea of the range of prices that homeowners may face, we’ve compiled a comprehensive comparison of these costs across major Canadian cities.

In Toronto, the cost of a new furnace can range anywhere between $2,900 to $6,400 CAD, with an average cost of around $3,900 for a home between 1500-2,000 square foot. The extreme cold winters in Toronto necessitate different furnace efficiency requirements, and the high demand for HVAC services in a densely populated location can lead to increased labor expenses, thus increasing the overall gas furnace costs. Given Toronto’s extended heating season, high-efficiency models are more sought after here, which is driving up the cost projections.

Since Vancouver’s weather is milder than the rest of Canada, factors like furnace efficiency and type may be more important to consider. Basic models could be enough in milder climates, but many homeowners choose mid-range or high-efficiency units for better comfort and lower energy bills. Due to the greater overall cost of living affecting service and labor charges, the gas furnace installation cost in Vancouver tends to average higher, similar to Toronto, even though the heating requirements are less stringent.

Furnaces with high efficiency and capacity are a typical choice in Calgary and Edmonton due to the colder weather, which requires more robust heating solutions. In these cities, you can expect to pay between $3,000 and $6,000. The price tag could vary depending on factors including your home’s size and insulation level. Homeowners in Alberta often opt for more expensive options due to the increasing demand for efficient heating systems that can withstand the cold winters. Typically, electric furnaces, oil furnaces, and propane furnaces aren’t very commonplace in Alberta due to this reason.

Expenses in Montreal are comparable to those in Toronto, with the added variable of the region’s bilingualism influencing both the availability and selection of contractors. The average cost to build a gas furnace is around $3,900, but the price can go as high as $6,400. While severe winters do play a role in driving demand for high-efficiency furnaces, cultural and regulatory factors can alter the dynamics of the market.

Why should you only hire experts for your gas furnace replacement and installation?

To guarantee efficiency, safety, and long-term dependability when installing or replacing a gas furnace, it is essential to choose only trained and experienced HVAC experts. If you want your furnace installation to go off without any problems, from choosing the correct model to making all the necessary changes and testing, it’s best to hire professionals.

Professional HVAC technicians from Comfort Union not only have extensive experience in the field, but they also keep up with all the newest technological developments and government regulations to ensure a seamless installation process for your home. This degree of knowledge is useful for making sure your heating system works as efficiently as possible while still meeting all of the requirements set down by your city’s safety regulations.

At Comfort Union, we’re proud of our dedication to becoming Canada’s go-to HVAC service provider. With their extensive training and certification, our team of HVAC contractors can solve any HVAC problem with precision. Our professionals can install any type of high-efficiency furnace – giving you the choice of natural gas furnaces, electric furnace, oil furnace, or propane furnace – with new energy-efficient models to those that are decades old, with ease.

As a reliable companion in improving the coziness and energy efficiency of your house, we are well-versed in the complexities of modern gas furnaces, including the unique requirements of various climates and house designs. You can trust that the experienced technicians at Comfort Union will install your furnace to your complete satisfaction because we are always committed to providing exceptional service.

Want to get a custom furnace installation cost? Reach out to us to know all about it.

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