- How much does a new furnace cost in Ontario in 2026?
- Custom Contracting publishes $3,500 to $5,000 installed for a single-stage 80% AFUE furnace, $4,500 to $7,000 for a two-stage 92 to 95% model and $6,000 to $10,000 for a modulating 96 to 98% one, all including equipment, labour, permits and removal of the old unit. The Heating Guide, compiling four Ontario sources, lands within a few hundred dollars at every tier and puts the provincial average near $6,800 before tax. Both are Ontario-wide rather than Ottawa-specific.
- Is a high-efficiency furnace worth the extra cost?
- The source's own answer is yes in most cases. It puts a 96% AFUE furnace at $1,500 to $3,000 more upfront than an 80% model, saving $300 to $600 a year on gas in Ontario's climate, with payback typically four to seven years. The same page states $400 to $600 a year in a second place, so read the saving as a band rather than a figure. Rebates, where they are open, can cover most of the premium.
- Does the price include the permit?
- On this source's figures, yes. It states that all prices include equipment, labour, permits and removal of your old furnace, which is why this calculator adds no permit line. That is not universal: The Heating Guide lists municipal permits in Ontario at $200 to $500 as a separate item. Ask each bidder in writing whether the permit is inside their number.
- Should I replace the furnace and the air conditioner at the same time?
- The source says replacing both together saves 15 to 25 per cent on labour against doing them separately, and puts a combined furnace and air conditioner replacement in Ontario at $8,000 to $18,000 depending on efficiency and brand. That combined figure is not a multiple of the furnace tiers above, so this calculator does not offer it as an option.
- Is this an estimate or a quote?
- An estimate, and an Ontario one. It multiplies a published installed range by the number of furnaces you are replacing. Get the real number from a licensed contractor who has run a load calculation on your house rather than matched the BTU number on your old unit, and start with the companies listed below.