2026 Pricing Guide
New Furnace Cost in Toronto (2026): $3,000 to $7,000 Installed
Most 1,500 to 2,500 sq ft Toronto homes pay $3,500 to $6,500 all-in for a new furnace. The full range is $3,000 to $7,000 installed, set mainly by furnace type (single-stage, two-stage or modulating), size, brand and any venting or ductwork changes. Prices below come from the crew that has installed furnaces in Toronto since 1999.
Quick Answer: Toronto Furnace Costs at a Glance
A new furnace in Toronto costs $3,000 to $7,000 installed in 2026. A furnace renovation or replacement project for a typical 1,500–2,500 sq ft Toronto home runs $3,500 to $6,500 all-in (equipment, labour, permits, and old unit removal). The price depends on furnace type — single-stage, two-stage, or modulating — plus brand and any ductwork modifications. Government furnace rebates ended in 2025. Ask about our in-house rebates at your quote, or the Enbridge Sustain lease-to-own program, which offers $0 down with maintenance included.
Prices include equipment and standard installation. Excludes ductwork modifications. Financing and Enbridge Sustain lease-to-own options available.
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Most Toronto furnace repairs run $150–$500 and we're same-day across the GTA. See same-day repair options → After hours? 24/7 emergency service →
New Furnace Cost by Furnace Type
The biggest factor in the cost of a new furnace is the type you choose. Each type offers a different balance of upfront cost, operating efficiency, and comfort. Here is how they compare for Toronto homeowners.
Single-Stage Furnace
- Lowest upfront cost
- Simple, reliable operation
- Easy to maintain
- Higher energy bills long-term
- Less consistent temperature
Two-Stage Furnace
- Better temperature consistency
- Quieter operation on low stage
- Moderate upfront investment
- Slightly more complex than single-stage
Modulating Furnace
- Precise temperature control
- Lowest energy bills
- Maximum long-term energy savings
- Whisper-quiet operation
- Highest upfront cost
- More complex repairs if needed
What Affects Your Furnace Installation Cost?
No two furnace installations are identical. These factors determine where your project falls within the price range.
Home Size
Larger homes need higher-capacity furnaces, which cost more. A 1,200 sq ft home may need 40,000-60,000 BTU, while a 3,000 sq ft home could require 100,000+ BTU.
AFUE Efficiency Rating
Higher AFUE ratings (96%+) cost more upfront but save significantly on monthly gas bills. The jump from 80% to 96% can save $300-500 annually in Toronto.
Ductwork Condition
If your existing ductwork is damaged, poorly sized, or needs modification, expect an additional $300-$1,500. Upgrading from a mid-efficiency to high-efficiency unit often requires venting changes.
Brand & Model
Premium modulating furnaces generally cost more than value-oriented models from Goodman or Ducane. Proper sizing and installation matter as much as the badge on the cabinet.
Furnace Brands: Price Comparison for Toronto
We install and service a wide range of supported furnace brands. As an Authorized Lennox Dealer, we offer competitive pricing on Lennox and Ducane equipment, with Goodman and Daikin options available to suit different needs and budgets.
| Brand | Price Range (Installed) | Warranty |
|---|---|---|
| Lennox | $4,500 - $6,800 | 10-year parts |
| Goodman | $3,500 - $5,800 | Varies by model and registration |
| Ducane | $3,200 - $5,000 | 10-year parts |
Total Furnace Installation Cost Breakdown
When a contractor quotes you a furnace price, make sure the quote includes all of these items. Reputable companies like Megacity HVAC provide all-inclusive pricing with no hidden fees. For what happens on the day, see how our furnace installation works.
Through the Enbridge Sustain program, you can lease-to-own a new furnace with $0 down and maintenance included. As an Enbridge Sustain Trusted Partner, we handle all the financing paperwork. Furnace replacements are not eligible for the Home Renovation Savings rebate. In-house rebates available — ask at your quote. We don't file government rebate paperwork for customers.
Rebate rules above come from the Ontario Home Renovation Savings program: homerenovationsavings.ca. Furnaces are not on the eligible-measure list; heat pumps, heat pump water heaters, insulation and smart thermostats are.
When Does Repair Make More Sense Than Replacement?
Not every furnace issue requires a full replacement. Use this guide to help decide.
Repair Makes Sense When:
- Furnace is under 10 years old
- Repair cost is less than 50% of replacement
- First-time breakdown with no history of issues
- Problem is minor (ignitor, blower motor, thermostat)
- Unit is still under manufacturer warranty
Replace Makes Sense When:
- Furnace is 15+ years old
- Repair cost exceeds 50% of a new unit
- Frequent breakdowns (2+ per heating season)
- Energy bills are rising despite maintenance
- Heat exchanger is cracked (safety hazard)
Leaning toward a repair? Our technicians cover the whole GTA, including furnace repair in Markham and furnace repair in Whitby. And if the furnace still runs fine, a $120–$180 furnace tune-up each fall is the cheapest way to put this whole decision off for another few years.
Is a High-Efficiency Furnace Worth It?
For most Toronto homeowners, the answer is yes. The math works out clearly when you factor in energy savings.
A standard 80% AFUE furnace sends 20 cents of every dollar you spend on gas straight up the flue pipe. A 96% AFUE furnace captures nearly all of that energy, wasting only 4 cents per dollar. On an average Toronto gas bill of $1,500-2,000 per heating season, that difference translates to $300-500 in annual savings.
The price difference between an 80% and 96% AFUE furnace is typically $1,500-2,500. With the Enbridge Sustain lease-to-own program, you can spread that cost over time with $0 down and maintenance included. At $300-500 per year in gas savings, the higher-efficiency unit typically pays back the difference in roughly 3 to 8 years, then keeps saving for the rest of its lifespan.
Over a 20-year lifespan, a high-efficiency furnace can save a Toronto homeowner $6,000-10,000 in energy costs compared to a standard-efficiency model. That does not account for the fact that natural gas prices in Ontario have been trending upward, which only increases the value of higher efficiency.
20-Year Cost Comparison: 80% vs. 96% AFUE
Furnace Cost FAQs
How much does a new furnace cost in Toronto?
How much is a new furnace for a 2,000 square foot home?
What makes a furnace installation cost more?
Are there rebates or programs to reduce the cost of a new furnace?
Should I repair or replace my furnace?
Get Your Free Furnace Estimate
We quote at your home with transparent, all-inclusive pricing and no pressure. As an Enbridge Sustain Trusted Partner, we will walk you through all available financing and lease-to-own options.
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