What is the Average Cost of Furnace Replacement?


Unless you’re a polar bear, your furnace is one of the most important parts of your home. If you have a faulty furnace heading into the winter season, you’re looking for trouble. Unfortunately, furnaces aren’t cheap. And if your current furnace isn’t working up to par, you need to have it replaced.

Unlike basic plumbing services like drain cleaning, there is no set number when it comes to the cost of furnace replacement. Prices can fluctuate greatly depending on several factors. In today’s hot article, we break down how much is the average cost of furnace replacement.

What Factors Affect the Cost?


Unfortunately, if you live in a rural area, you’re likely going to have to spend more money on furnace installation than what people pay in a more urban location. A furnace installation can cost more in rural areas for several reasons. The biggest one being there is much less competition, making it easier for companies servicing those areas to charge high rates. When there’s no cheaper alternative, people don’t have much choice in the matter.

However, there are other more reasonable reasons for the rural price spike. The pure distance from distribution channels alone costs companies more money to just get the furnace to your door. Drain cleaning might not cost more in a rural area because plumbers don’t need to order a huge piece of expensive equipment from 100 km away. It also just costs more for companies to operate in rural areas because customers tend to be spaced much further apart, making servicing those customers more time-consuming and costly in general.

Size and BTU Output

Like most consumer goods, the cost depends on which make and model you decide to purchase. Depending on the size of your home, you may need to install a more expensive furnace that has more BTU (British Thermal Unit) output. The bigger the furnace and the more BTU output, the higher the cost.

Service Man Working on Furnace

Installation and Labour

Replacing a furnace is no small feat, and it takes a lot of time and effort to get it right. This isn’t a quick job like drain cleaning, and you’re going to have to pay for good quality service. The labour costs alone can cost up to $1000 dollars because of wages, insurance, licensing, and equipment.

In addition to labour costs, there are several other factors that affect installation costs, such as:

  • Location of the furnace
  • Venting upgrades
  • Modern safety codes
  • Extras (chimney liners/condensation draining)
  • Conversions

To get an accurate estimate on furnace installation costs, speak directly with a local contractor like Calgary Plumber and Drains. They will be able to give you a detailed estimate and why they landed on the number they did.

Average Cost Including Installation

Let’s take a look at what you can get for the average cost of furnace installation in Canada.

Less Than $2500

This is the lowest tier of furnace installation pricing. It’s possible you can get a good furnace for your needs and a good installation at this price, but it’s not recommended. These prices are below-market, which usually means you get below-market results. The less you spend, the more likely you will receive a sloppy installation, limited warranty or support, or low-end parts.

$3000 to $5500

This is the average cost range for a good high-efficiency furnace installed by a fully insured, licensed contractor. Price varies due to brand, locations and the other factors we discussed earlier.

Above $5500

Now you’re getting into the highest price range on the market. If you’re paying this much for a furnace installation, it’s for one of two reasons. The first is that you’ve splurged for a top-of-the-line or premium brand. The second is you have a more complicated installation that jacks up the labour costs.

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