A new furnace installed in Ontario in 2026 typically costs between $3,500 and $8,000, with most homeowners landing around $4,500 to $7,000. Where you fall in that range comes down to the furnace's efficiency, the size your home needs, your fuel type, and whether any ductwork or venting changes are required.
Here's an honest breakdown of what drives the price, what you can expect to pay, and how to make sure you're not overpaying, before heating season hits.
The efficiency rating (AFUE — the percentage of fuel converted to heat) is the biggest single factor in furnace price. Higher efficiency costs more up front but less to run every winter.
| Furnace Type | Efficiency (AFUE) | Typical Installed Cost |
|---|---|---|
| Single-stage, standard efficiency | 80% | $3,500 – $5,500 |
| Two-stage, high efficiency | 92–96% | $4,500 – $7,000 |
| Modulating, variable-speed | 96–98% | $6,000 – $9,000+ |
A basic single-stage unit runs at full blast whenever it's on, cheaper to buy, a bit louder, and less efficient. A modulating variable-speed furnace adjusts its output to match demand, running quieter and using less gas, which is why it costs more up front but often pays back over the life of the system.
Bigger homes need more heating capacity (measured in BTUs), which affects the price:
| Home Size | Furnace Output | Typical Installed Cost |
|---|---|---|
| Under 1,200 sq ft | 40,000–60,000 BTU | $3,500 – $5,500 |
| 1,200 – 2,000 sq ft | 60,000–80,000 BTU | $4,500 – $7,000 |
| 2,000 – 2,800 sq ft | 80,000–100,000 BTU | $5,500 – $8,000 |
| 2,800 sq ft+ | 100,000+ BTU | $7,000 – $10,000+ |
Getting the size right matters as much as the price. An oversized furnace short-cycles, wastes energy, and wears out faster; an undersized one can't keep up on the coldest nights. That's why we size every furnace to your specific home rather than guessing from square footage.
A furnace installation quote should cover more than just the unit. A proper installed price typically includes:
When comparing quotes, make sure you're comparing the full installed price, not just the equipment, since a low "furnace price" can hide add-on labour and disposal costs.
A few things can move your price toward the higher end:
A new high-efficiency furnace may qualify for 2026 rebate programs, which can meaningfully reduce what you pay out of pocket. The main program is now the Home Renovation Savings Program (through Enbridge Gas and Save on Energy). Note that some older programs homeowners still ask about, like the Canada Greener Homes Grant, have closed.
Because rebate programs and amounts change frequently, the smartest move is to confirm current eligibility before you buy. We keep on top of what's available and help you claim what you qualify for, see our full breakdown in our guide to heat pump and heating rebates in Simcoe Muskoka, and our financing options to spread the remaining cost into manageable payments.
If your furnace is under about 15 years old and the problem is a specific fault, a repair is often the smarter spend. If it's older, needing frequent repairs, or losing efficiency, replacement usually saves money over time. If you're weighing it, our furnace replacement service across Barrie and the surrounding area includes an honest in-home assessment, we'll tell you straight which option genuinely makes sense for your home.
How much does a new furnace cost in Ontario in 2026? A new furnace installed in Ontario typically costs $3,500–$8,000, with most homeowners paying $4,500–$7,000. The exact price depends on efficiency, home size, fuel type, and installation complexity.
How much does a high-efficiency furnace cost? A high-efficiency (96–98% AFUE) modulating furnace typically runs $6,000–$9,000+ installed. It costs more up front than a standard unit but uses less gas, lowering your heating bills over the life of the system.
Does the price include installation? A proper installed quote should include the unit, labour, removal and disposal of the old furnace, permits, and venting. Always confirm what's included, since a low equipment price can hide installation costs.
Are there rebates for a new furnace in Ontario? A new high-efficiency furnace may qualify for 2026 rebates through the Home Renovation Savings Program. Amounts and eligibility change, so it's worth confirming before you buy, we help homeowners figure out exactly what they qualify for.
What size furnace do I need? Furnace sizing depends on your home's square footage, insulation, windows, and layout, not just a rule of thumb. We do a full in-home assessment to recommend the correctly sized system, since the wrong size wastes energy and wears out early.
How long does a furnace last? Most furnaces last 15–20 years. Beyond 15, if it's needing repairs or losing efficiency, replacement usually becomes the smarter investment. Regularly scheduled duct cleaning can improve the longevity of your furnace.
The best way to know what a new furnace will actually cost for your home is a proper in-home assessment, not a generic online figure. Simcoe Muskoka Home Comfort provides honest, upfront furnace pricing with no surprises, correct sizing, available rebates, and financing options.
Contact SMHC today for a free in-home assessment and quote.
