If you’re planning to replace your furnace, one of the first questions you’re likely asking is: how much does a furnace cost?
Across Canada, furnace prices vary based on fuel type, efficiency, and system design. While every home is different, most homeowners will see furnace costs fall within a predictable range once these factors are considered.
This guide explains how much it costs to replace a furnace with Reliance, breaks down pricing by furnace type, and outlines what can influence the final installed price.
Average Furnace Cost
The cost of a new furnace typically ranges from $4,500 to $8,400+ installed. Most households installing a gas furnace fall into the $5,000 to $7,500 range, depending on the system selected and installation needs.
Broadly, furnace pricing breaks down as follows:
- Lower‑cost systems: $4,500–$6,000
- Mid‑range systems: $6,000–$8,000
- High‑end systems: $8,400+
These ranges reflect installed pricing, not just the furnace unit itself.
Furnace Cost by Type
The type of furnace you choose is the biggest factor affecting price. The table below shows common furnace types, who they’re best suited for, and typical price ranges to buy or rent.
| Furnace Type | Best For… | Range to Buy (Installed) | Range to Rent (Monthly) |
|---|---|---|---|
| Single-Stage Gas | Budget-conscious owners | $4,500–$6,000 | $75–$90 |
| Two-Stage Gas | Most Canadian homes; balances comfort and cost | $6,000–$8,000 | $90–$130 |
| Modulating Gas | Maximum comfort and high-end temperature control | $8,400+ | $115–$140 |
| Electric Furnace | Homes without gas infrastructure | $6,000–$7,500 | $90–$110 |
| Propane | Rural properties without natural gas lines | $6,000–$8,000 | $90–$130 |
Gas Furnace Costs Explained
Single‑Stage Gas Furnaces
Single‑stage gas furnaces operate at one fixed heat output. When the furnace turns on, it runs at full capacity until the thermostat reaches the set temperature.
Installed cost: $4,500–$6,000
Monthly rental: $75–$90
These systems represent the lowest‑priced gas furnace option and are often used where upfront cost may be a top priority.
Two‑Stage Gas Furnaces
Two‑stage gas furnaces operate on a low setting for most heating needs and switch to a higher output during colder weather.
Installed cost: $6,000–$8,000
Monthly rental: $90–$130
Because they offer improved temperature consistency without a significant price jump, two‑stage furnaces are the most common choice in Canadian homes.
Modulating Gas Furnaces
Modulating furnaces adjust heat output continuously in small increments to match your home’s heating demand.
Installed cost: $8,400+
Monthly rental: $115–$140
These systems sit at the top end of furnace pricing and are chosen for their comfort, quiet operation, and efficient heating.
Electric Furnace Costs
Electric furnaces are commonly used in homes without access to natural gas.
Installed cost: $6,000–$7,500
Monthly rental: $90–$110
They typically cost less to install than gas systems, although ongoing energy costs vary depending on electricity rates and home efficiency.
Propane Furnace Costs
Propane furnaces are often installed in rural or remote properties without natural gas service.
Installed cost: $6,000–$8,000
Monthly rental: $90–$130
What Factors Affect Furnace Pricing?
Even within the same furnace category, costs can vary based on:
- Furnace size and heating capacity
- Efficiency rating
- Home layout and installation complexity
- Electrical, venting, or gas line upgrades
- Optional additions such as thermostats or air quality systems
An in‑home assessment is the best way to determine where your home fits within these price ranges.
Furnace Cost Summary
- Lowest installed furnace costs: around $4,500
- Most common furnace price range: $5,000–$7,500
- High‑efficiency systems: $8,400+
- Monthly rental range: approximately $70–$140
Understanding these ranges can help set realistic expectations and make it easier to compare furnace options for your home.
The Sizing Myth: Why Square Footage is Not Enough
A common mistake homeowners make is assuming that the size of their home determines the size of their furnace. This is incorrect.
To ensure maximum efficiency and equipment longevity, Reliance performs a Heat Loss/Gain Calculation. Simply matching a furnace to your home’s square footage often leads to “over‑sizing,” which causes the unit to “short‑cycle” (turning on and off too frequently), potentially leading to premature mechanical failure.
What other factors contribute to determining your furnace size?
- Insulation Levels: The R‑value of your walls and attic.
- Window Quality and Quantity: The amount of heat lost through glass and seals.
- Home Orientation: How much natural solar gain your home receives.
- Air Leakage: The tightness of your home’s “envelope.”
- Ceiling Height: The total volume of air that needs to be heated.
Frequently Asked Questions About Furnace Costs
The cost to replace a furnace with Reliance typically ranges from $4,500 to $8,400+ installed, depending on the furnace type, efficiency level, and installation requirements. Most homeowners fall in the $5,000–$7,500 range.
Single‑stage gas furnaces are usually the least expensive to install, with prices starting around $4,500 installed.
Furnace prices vary based on:
- Fuel type (gas, electric, propane, or oil)
- Furnace technology (single‑stage, two‑stage, modulating)
- Efficiency ratings
- Installation complexity
Homes with unique layouts or upgrade requirements may fall toward the higher end of the range.
Yes. Larger homes require higher‑capacity furnaces, which typically cost more. Proper sizing is important for both comfort and efficiency.
Most furnace price ranges are quoted as installed pricing, including standard labour. Additional upgrades or modifications may affect the final cost.
Furnace rental prices typically range from $70 to $140+ per month, depending on the type of furnace and system complexity. Renting means you get repairs and annual maintenance included.
Higher-end furnaces cost more upfront but provide improved comfort and quieter operation. Whether they’re worth it depends on your home, heating needs, and long‑term plans.
If you’d like to explore furnace options in more detail, you can visit our main Furnaces page to see the systems we offer, or continue learning in our Ultimate Furnace Guide, which covers efficiency ratings, furnace types, sizing considerations, and other factors that can help you narrow down the right option for your home.
Yes. The propane furnace pricing shown in this guide is based on the cost of a 2‑stage furnace. We do not offer propane‑only furnace models. Instead, our furnaces are designed for natural gas and can be converted to propane using a manufacturer‑approved propane conversion kit.
The 2‑stage furnace is the most common setup used with propane conversion kits, which is why propane pricing is represented at this level. No oil conversion kits are offered.
If you’re deciding whether to buy or rent a furnace, understanding the full cost picture is important. Some homeowners prefer buying outright and pairing their system with a protection plan for added peace of mind. Reliance’s protection plans can help cover unexpected repair costs and include ongoing furnace maintenance, which many homeowners find valuable once installation is complete. Exploring both options can help you choose the setup that best fits your budget, comfort goals, and long‑term plans.
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