Buying a New Furnace: Gas, Electric or Oil Installed Costs
What a new gas, electric or oil furnace costs installed in Canada, and how venting, ductwork and access change the price.
A new furnace typically costs $5,500 installed, with most jobs landing between $4,300 – $7,200 before GST/HST. Basic work starts around $5,150, and a premium job (modulating gas, ductwork changes, awkward access) reaches $9,650.
Those are whole-job figures. The furnace itself is only part of the bill, so the real decision is which type you buy and what your house needs around it. This guide compares the options. For the basic project breakdown, see our Furnace replacement guide.
Price by furnace type
We build each estimate from labour hours × local rates plus materials, checked against market prices and real quotes. Here is how the type of furnace changes a typical mid-range job:
- Gas, 95–96% AFUE, single-stage: $5,500
- Gas, 96%, two-stage with variable-speed blower: $6,850
- Gas, 97–98%, modulating: $9,050
- Electric furnace: $5,000
- Oil, 85–87% AFUE: $7,050
The full table, with usual ranges and lifespans, is here:
| Material | Typical | Usual range | Lifespan |
|---|---|---|---|
| Electric furnace | $5,000 | $3,900 – $6,550 | 20-30 years |
| Gas, 95-96% AFUE, single-stage | $5,500 | $4,300 – $7,200 | 15-20 years |
| Gas, 96% AFUE, two-stage, variable-speed blower | $6,850 | $5,350 – $8,900 | 15-20 years |
| Oil furnace, 85-87% AFUE | $7,050 | $5,500 – $9,150 | 15-20 years |
| Gas, 97-98% AFUE, modulating | $9,050 | $7,050 – $11,700 | 15-20 years |
Why there is no cheap 80% gas option
Under the federal Energy Efficiency Regulations, gas furnaces manufactured on or after July 3, 2019 must have a minimum AFUE of 95%. There are narrow exceptions (through-the-wall units, and non-condensing replacement furnaces for manufactured homes), but for a normal Canadian house, 80% furnaces are off the table. Any gas quote you receive should be for a condensing, high-efficiency unit.
That has a knock-on effect on cost, covered next.
Venting: the add-on people miss
A condensing furnace produces cool exhaust and condensate, so it vents through PVC and needs a drain. If your old furnace was an 80% unit venting into a chimney, expect new PVC venting and a condensate drain on top of the unit. We price the venting as a separate option:
- Reuse existing venting: $5,500
- New PVC venting and condensate drain: $6,850
- PVC venting plus a chimney liner for the water heater: $7,650
The liner line catches many people out. If the water heater shares the old chimney, removing the furnace can leave the water heater venting badly, so the chimney often needs lining or the water heater needs its own vent. Ask any installer whether their quote covers it. If you are replacing the water heater soon too, our Water heater replacement guide shows what that costs.
Ductwork and access
Two more items move the price:
- Duct changes. A new furnace is often a different size from the old one, so the plenum and transitions may need altering and sealing. Partial duct replacement costs more. Compare quotes: one that says "no duct changes" on a house with leaky or undersized ducts may just be deferring the bill.
- Access. A furnace in a basement, garage or closet is straightforward. One in an attic or crawlspace takes longer to install and costs more.
Here is a mid-range example of how these add up, using our live model:
| Choice | Typical cost |
|---|---|
| Gas 95–96%, reuse venting | $5,500 |
| Gas 95–96%, new PVC venting | $6,850 |
| Minor duct changes | $6,100 |
| Partial duct replacement | $7,550 |
| Attic or crawlspace access | $6,050 |
Each row shows the mid-range job with that single choice changed, not an extra on top of the base. Several together will push you toward the upper end of the range.
Gas, electric or oil: how to choose
- Gas is the default where a gas line exists. It costs more upfront than electric, but is usually the sensible choice for a house already connected.
- Electric furnaces are simple and cheap to install. The trade-off is running cost, which depends on your local electricity price and is usually higher than gas for heating.
- Oil units are less efficient (85–87% AFUE) and tied to a tank and fuel deliveries. If your home is oil-heated, the federal Oil to Heat Pump Affordability program offers up to $10,000, or up to $25,000 where co-delivered with the province, but applications closed 31 Jul 2026 in AB, MB, NWT, QC and SK. In Ontario, a cold-climate heat pump can attract up to $7,500 through Home Renovation Savings (pre-approval and a participating contractor required).
If you are weighing a heat pump against a new furnace, see our Heat pump installation guide. A dual-fuel hybrid keeps a gas furnace as backup, so it is worth pricing both ways.
Before you sign
- Get at least three quotes, each stating the furnace model, AFUE, venting, duct work and permit.
- Gas work needs licensed trades and usually a permit. Do not hire anyone who suggests skipping it.
- Our figures are before GST/HST (13% HST in Ontario, 5% GST in Alberta), so add tax when comparing to your quotes.
- Paste your numbers into our "is my quote fair" tool to see how your quote compares with the live model for your region.
A furnace typically lasts many years, so the cheapest quote is not always the best one. Pay for the right venting and a clean, sealed install, and choose the efficiency level your climate and budget justify.