If you've Googled "furnace cost Ontario" you've probably seen ranges anywhere from $3,000 to $12,000, which is so wide it's useless. Here's a more honest breakdown specific to homes in our SD&G service area, based on the installs we did in the past year.
The short answer
For a typical SD&G home (1,500-2,500 sq ft, replacing an existing furnace in a similar configuration):
- Mid-efficiency single-stage gas/propane furnace (80% AFUE): $3,200 to $4,200 installed
- High-efficiency single-stage gas/propane furnace (95%+ AFUE): $4,000 to $5,500 installed
- High-efficiency two-stage furnace (95%+ AFUE): $5,000 to $6,500 installed
- Variable-speed modulating furnace (96%+ AFUE): $6,500 to $8,500 installed
- Oil furnace (high efficiency): $5,500 to $7,500 installed
- High-efficiency boiler (residential): $7,000 to $11,000 installed
Those are total installed costs including equipment, materials, labor, and removal/disposal of the old unit.
Why the spread is real
The same furnace model can land in different places within those ranges depending on:
Equipment-side factors
- Brand (Goodman/Amana usually lowest, Lennox/Carrier higher, Bryant/Trane middle)
- Stage configuration (single, two-stage, modulating)
- Blower type (PSC, ECM, variable-speed ECM)
- Heat exchanger material and warranty terms
Installation-side factors
- Whether you're keeping the existing venting and gas line or running new
- Whether the existing ductwork needs modification (very common)
- Whether the unit is in a tight mechanical room (labour adder)
- Whether you need a new chimney liner or PVC venting modification
- Whether you're switching fuel type (oil to propane, propane to gas)
- Distance from our shop (no, we don't charge differently for towns inside SD&G, but quotes from Ottawa-based contractors often include a travel premium for our area)
What we include in our quotes
Every Alpine Air furnace quote includes:
- The new furnace itself
- All connection materials (gas line modifications, electrical, condensate drain, venting)
- Removal and disposal of the old furnace
- Permit fees
- Workmanship warranty (1 year on labour)
- Manufacturer warranty registration
- A post-install commissioning report
What's separately quoted (because not every job needs them):
- Smart thermostat ($300-$700)
- Whole-home humidifier ($600-$1,200)
- Ductwork modifications ($500-$3,000 depending on scope)
- New return air drop or extra supply runs
- Chimney liner replacement (oil-to-gas conversions only)
- Electrical panel upgrade (rare, but sometimes needed)
Why mid-efficiency is sometimes the right answer
The HVAC industry generally pushes 95%+ AFUE units because they're more expensive and have better margins. We don't always agree.
Mid-efficiency (80% AFUE) furnaces make sense when:
- You have an existing functional chimney that's already vented for an 80% unit (a 95% unit requires PVC venting modifications, which can add $500-$1,500)
- You're using the home seasonally (cottage, rental property)
- You're planning to move within 3-5 years (efficiency savings don't recoup the price premium fast enough)
- You're planning a heat pump conversion within the same window and want a cheap backup furnace
High-efficiency (95%+) makes sense for permanent residences where you're staying 5+ years. Over a 15-year furnace lifespan, the fuel savings substantially outweigh the upfront premium.
Modulating vs two-stage vs single-stage
The capacity-modulation step-up generally adds $1,000-$1,500 to the price each tier.
- Single-stage: Runs at 100% capacity or off. Cheapest, loudest, less even temperatures. Fine for tight, well-insulated homes where heat loss is uniform.
- Two-stage: Runs at about 65% capacity most of the time, kicks up to 100% only on the coldest days. Significantly quieter, more even heat. Better fit for the typical SD&G home.
- Modulating (variable-capacity): Continuously adjusts capacity from about 35% to 100%. Quietest, most consistent temperatures, best dehumidification (when paired with AC). Best for large homes, multi-zone homes, or anyone particularly comfort-sensitive.
For most homes in our service area we recommend a two-stage furnace. The modulating premium is real, and most homeowners don't notice the comfort difference enough to justify it.
Heat pump vs new furnace — quick note
If you're currently on propane or oil, you should at least get a cold-climate heat pump quote before committing to a new furnace. The heat pump system is more expensive upfront ($9,000-$13,000 before rebates) but the operating cost savings are dramatic, and rebates can knock 30-40% off the project. For homes already on natural gas, a high-efficiency furnace is usually still the better answer.
See our full piece on cold-climate heat pump math in Eastern Ontario for details.
What you should not pay extra for
A few line items we sometimes see on competitor quotes that we don't charge for separately because they're standard:
- Removal of the old furnace
- Permit fees (we pull and pay for permits ourselves)
- "Disposal fees" beyond the standard included disposal
- "Diagnostic fees" credited against the install
- Re-trim charges
If a quote itemizes any of those as line items, ask why.
How to get a real number for your home
Online calculators won't get you there. The variables that move the price are all home-specific — your existing setup, your ductwork condition, your venting, your electrical, your fuel preference, your timeline.
We do free in-home assessments. We take measurements, look at your existing system end-to-end, and give you a written quote within 48 hours with itemized line items. Call (613) 363-9011 or request a quote.
We won't pressure-sell you on a furnace if your existing one has good years left in it. Honest answer first, quote second.