Over 80 percent of homes in Alberta use forced-air furnaces as their primary heating system, much higher than the national average of 51 percent.
Though modern furnaces can easily last 15-20 years or more, a new furnace may be necessary if frequent repairs are required, the system is aging, home comfort is compromised, or energy bills start to increase without a good reason.
The average cost of a furnace in Calgary varies from $5,000 to $11,000, including installation, depending on furnace size, efficiency, brand, warranty, and more. It’s one of the “big ticket” items to consider for your home—and a decision not to be rushed.
Let’s look at furnace prices in Calgary for various types and models, considering the main factors that impact furnace cost and answering the most common questions…
How Much Does a Furnace Cost in Calgary?
The average cost of a furnace in Calgary varies from $5,000 to $11,000, including installation. Furnace costs vary greatly depending on furnace size, efficiency, brand, warranty, installation complexity, supplier, add-ons, and more.
The following table breaks down the Calgary furnace prices, including installation:

All furnaces sold in Canada must meet certain efficiency requirements (more about this below) but expect to pay considerably more for the highest-efficiency furnaces, which can offer significant energy savings.
MAKE THE RIGHT HEATING & COOLING DECISIONS…
Furnace pricing must be tailored to the requirements of each home. For over two decades, Alberta Mountain Air has helped Calgarians solve heating and cooling problems and maintain ideal comfort levels. Get in touch online for a quote.
Why Do Furnace Prices in Calgary Vary by Thousands of Dollars?
The huge range of furnace prices in Calgary can be confusing—until we start considering the factors that impact cost, from furnace efficiency to the HVAC contractor you choose to install it.
Understanding the following factors is an important starting place…
Furnace Size
Furnace sizes range from small 30,000–40,000 BTU units to huge 200,000 BTU units. There is no one-size-fits-all option.
BTU stands for British Thermal Unit, originally defined as the amount of heat required to raise the temperature of one pound of water by one degree Fahrenheit. In HVAC, BTUs—usually expressed as BTU/hr—are the standard way to measure a furnace’s heating capacity.
Generally speaking, the larger the home, the higher the BTU required, if all other factors remain the same. However, BTU can also vary with building type, construction, age, and layout, as well as the insulation efficiency in the home. If heat escapes through poor insulation or construction, addressing this before installing a new furnace can save you money in the long run and may help reduce the size of the furnace your home needs.
Older homes generally need more heating capacity than similarly sized but better-insulated modern homes.
The average Calgary home is sized at just under 1,200 square feet and requires a furnace of between 70,000-80,000 BTU. The following is a good guideline for sizing furnaces in Calgary:
A furnace that’s too large for the home could result in “short cycling” and uneven temperature distribution. It can also shorten its lifespan.
Conversely, a furnace that’s too small will need to run more frequently for longer to keep your home warm, raising energy bills and asking your furnace to work too hard. This could shorten its life and lead to extra furnace repair costs or early replacement.
Choosing the right size furnace is easier with a professional load calculation performed by an experienced technician from Alberta Mountain Air. Contact us for a heating assessment and furnace estimate for your home.
Furnace Type/Efficiency
The type/efficiency of the unit also has a major impact on furnace cost in Calgary.
Since 2019, most residential gas furnaces sold in Canada must have a minimum efficiency level of 95 percent— up from the previous 90 percent requirement. This basically means that 95 percent of a furnace’s energy usage must produce heat, i.e., for every $1 spent on fuel, roughly 95 cents heats the home while about 5 cents is lost through exhaust and other inefficiencies.
An old, inefficient furnace should generally be upgraded at the earliest opportunity. The best high-efficiency furnaces offer advanced features that may cost more than simpler, single-stage furnaces but the higher upfront costs are offset by significant savings on monthly energy bills.
An average high-efficiency furnace can save 10.34 KJ of energy per year, according to the Clean Energy Improvement Program of Alberta. This translates to hundreds of dollars of savings on energy bills every year and many thousands during its lifetime.
A furnace’s AFUE rating (Annual Fuel Utilization Efficiency) measures its efficiency. The highest-efficiency furnaces have an AFUE of 96 percent or higher (up to 99 percent efficiency). Let’s consider the main furnace types available in Calgary:
- Single-stage furnaces: the least expensive option, suitable for homes with open floor plans and townhomes.
- A fixed-speed electronically commutated motor (ECM motor) blows air at one speed and heating output depending on thermostat settings.
- The furnace shuts off when the thermostat temperature is reached.
- Consumes 20-40 percent less gas than an old furnace, improving efficiency and lowering heating costs.
- Fully installed furnace cost in Calgary: $5,000-$5,500.
- Two-stage furnaces: suitable for two-story homes because they can heat multiple levels consistently.
- Similar AFUE to single-stage furnaces but can operate at two speeds, matching heating power and energy output to demand.
- Lower speed on milder days or when the house is already warmed, saving energy,
- Less wear and tear of parts and quieter operation, as they start and stop less frequently.
- Uses 30 percent less gas and 33 percent less electricity than a new single-stage furnace.
- Fully installed furnace cost in Calgary: $6,500-$8,500.
- Variable/modulating furnaces: the undisputed “king of efficiency” when it comes to furnaces, suitable for all types of homes.
- A variable-speed blower and modulating gas valve adjust heating output from 30-100 percent, according to demand.
- Operate at up to 99 percent AFUE and run very quietly and efficiently.
- Use around 10 percent less gas than a two-stage furnace.
- Work with smart thermostats to maintain a consistent home temperature.
- Fully installed furnace cost in Calgary: $8,500-$11,000.
Furnace Warranty
Furnaces from the most reliable and established brands, such as Lennox, are built to a high standard and back their production quality with excellent warranties.
The Lennox warranty typically includes the following:
- 5-10 years on covered components
- 20 years or Limited Lifetime on the heat exchanger (depending on the model)
Warranties vary according to particular product collections as well as manufacturers. Furnace costs in Calgary—even a single-stage model—run to many thousands of dollars, so the warranty can provide peace of mind when making the considerable investment in a new model.
Selecting a less-established product with a shorter warranty may save costs upfront but expensive furnace repairs or replacement parts add up and significantly increase the cost of ownership.
Furnace Brand
The same brands appear again and again when researching furnace prices in Calgary. Most HVAC brands provide a wide range of heating and cooling equipment, including furnaces, heat pumps, and air conditioners.
The most established furnace brands in Calgary are:
- Lennox
- Trane
- Goodman
- Carrier
These brands offer premium-quality, high-efficiency furnaces with a long lifespan and a generous warranty for competitive prices. Some offer special discounts that can save hundreds, if not thousands, of dollars, so you should spend some time comparing furnaces before committing.
Installation Complexity
The installation complexity also affects the cost of a furnace in Calgary. This is largely determined by the location of the furnace and the design features of your home.
Importantly, if a home fails to meet the code requirements of Alberta homes, has complex venting or ductwork requirements, and/or the new furnace must be relocated, hundreds or even thousands of dollars can be added to the cost of a furnace replacement.
Consider each of the following when gathering quotes for your new furnace installation:
- Electrical complications: New, high-efficiency furnaces usually require updated thermostats with new wiring.
- Furnace location: New furnaces are generally much more compact than old furnaces and may be better located in a different area of the home. Small stairwells, crawl spaces or certain basement configurations can complicate the installation and increase costs.
- Customized or extra ductwork: sometimes, customized or additional ductwork is required for a new furnace to connect to (or replace) the existing ductwork.
- Building code compliance (venting): In Calgary, gas-venting rules require that side-wall furnace vent pipes maintain a minimum clearance of about 1.2 metres (4 ft) from the house foundation to the property line, which can make venting high-efficiency furnaces challenging on narrow lots and may require routing the vent to another side of the home.
- Other permit and building code requirements: you need a permit for a replacement gas furnace and the cost of acquiring this from the City of Calgary should be part of the overall furnace price included in your quote. Some older homes may require asbestos removal first.
- Older hot water tanks: Some hot water tanks in older homes create complications when new high-efficiency furnaces are installed because of their venting setups. If the old hot-water tank is not removed at the same time, extra chimney work may be required.
- Drainage requirements: When new, high-efficiency furnaces run, they produce condensate. You may need to install a hard-pipe drain line from the furnace to the nearest floor drain or install a pump to remove the condensate to another existing drain.
HVAC Installation Company
The HVAC company you choose affects the cost of a furnace in Calgary, too. Each HVAC company has its profit margins and overheads to bear, which will affect the price they charge for installations.
By selecting a local, established HVAC installation company with a large number of glowing customer reviews and a workmanship warranty (in addition to the product warranty), you are more likely to get the quality—and value—you want.
Note that City of Calgary regulations specify that furnace installation can only be performed by a certified Journeyman Gas Fitter, Plumber, or Sheet Metal Worker. Provincial trade certification is required and the City’s permit system enforces those trade qualifications.
Remember, your furnace is a long-term investment. Cutting corners with an unprofessional, sub-standard installation may affect the furnace’s safety, longevity, and reliability—essentially, a “false economy”.
At Alberta Mountain Air, our licensed technicians won’t let you down. If necessary, we will conduct a home visit before quoting—and the price of your furnace will include installation and no hidden costs.
Furnace Add-Ons/Options
Modern furnaces come with a variety of optional add-ons and extra equipment to consider at the time of installation, which add to the cost of a furnace in Calgary. These include:
- A whole-home humidifier to improve indoor air quality and combat the generally dry Alberta climate.
- A heat pump or air conditioner upgrade.
- A hot water tank or a tankless water heater.
- UV lights, which help to keep your system clean by killing bacteria, mold, and mildew.
- Special filters to remove allergens, such as pollen and household dust, and maintain optimal airflow in your home.
How Do You Know When You Need a New Furnace?
It should be obvious that you need a new furnace if it’s 25-30 years old and you’re spending a lot of money on regular repairs because it’s no longer heating properly or you’re regularly hearing strange noises coming from it.
Other, more subtle signs that your furnace needs replacing include:
- Monthly energy bills are increasing without a good explanation: the unit costs and your standard energy requirements are the same but bills are rising.
- Your furnace never heats the home evenly: if certain areas of your home are nearly always colder than others, something could be wrong with your furnace.
- Poor air quality: toward the end of a furnace’s life, the air quality in your home can deteriorate, with more dust and unwanted particles circulating.
Most furnaces older than 15 years will need some attention from time to time but if the cost of furnace maintenance and repairs gets excessive, it might be best to bite the bullet and buy a new one.
Don’t Pay Over the Odds: Furnace Buying Tips…
If you’ve decided to buy a new furnace and want the best possible deal, a few tips will help you get the best furnace price in Calgary…
Do Your Research
Research furnace makes, models, suppliers, and installation companies using the many online resources available at your fingertips.
Check Testimonials
Customer testimonials and reviews tell you a lot about whether HVAC companies live up to their bold claims. Do customer comments reflect the excellence you expect? Do most customers give 4- or 5-star reviews?
Hunt For Bargains in the Summer
Excessively low furnace costs may indicate out-of-date, low-quality products, short warranties or unprofessional installation processes. However, during spring and summer, you may be lucky enough to snag a bargain on a model that HVAC companies want to clear.
Check Warranties
Research the warranties on any recommended products, as these may vary considerably. For such a significant investment, you want the peace of mind that your high-efficiency furnace will last 15-20 years, at least.
Ask If Anyone Visits Your Home
Will the HVAC company you’re talking to assess your heating requirements in detail before providing the quote—with a full home assessment—or just fire off a standard templated quote that may not apply to your property?
Furnace services should be tailored to the unique needs of your home or they may be unreliable.
Get Several Quotations
It’s common practice to get three quotes from suppliers, which will help you compare different brands, models, and services/costs.
Quotes from most established furnace companies in Calgary should be trustworthy but make sure that the total guaranteed pricing is confirmed in writing and you compare “like with like” before committing to a deal. Hidden costs can be very frustrating for homeowners.
Each quote should include:
- The result of the home assessment (if applicable).
- The brand and precise furnace model recommended.
- The ducting and thermostat(s) required.
- Carbon-monoxide detector pricing.
- Installation services.
- Disposal fees, taxes, and permit costs.
- Warranty details.
- The total price.
- Financing terms (if applicable).
- The cost of removing the old unit (if applicable).
If a walk-through of your home is conducted before quoting, all potential issues should be covered in the quote. However, check what happens if the HVAC professional encounters an unforeseen issue during installation, as does happen from time to time.
Ask About Rebates and Incentives
Ask your HVAC company about any rebates or incentives that can reduce the upfront furnace cost in Calgary. You may be able to benefit from provincial or federal programs that reward you for upgrading from an old, inefficient furnace to a high-efficiency model.
Look for Financing Plans
A financing plan can help you manage the significant cost of a furnace in Calgary by spreading the upfront costs out over monthly payments. Most financing plans include at least three payments and some offer this arrangement at no interest.
At Alberta Mountain Air, we can offer furnace financing plans with no payments and no interest for six months.
Who Will Remove My Old Unit?
With replacement furnace installations, the old furnace must be removed and recycled according to local regulations. This may involve a marginal extra flat rate cost. Quotations for replacements should include this in the overall price of the furnace but it’s best to check this with your Calgary HVAC company to prevent surprises.
At Alberta Mountain Air, new furnace installations in Calgary include the costs of removing the old unit.
Replace Your Furnace with Calgary’s Established Heating Pros…
When you wake to -30 temperatures this winter, you’ll quietly thank yourself that you chose the right furnace.
The above information should help you choose a new high-efficiency furnace at the right price by balancing the efficiency, size, warranty, and brand to suit your home’s heating requirements—which should be assessed by established professionals before committing.
You’ll get the most out of your new furnace and maintain a warm home this winter by working with the team at Alberta Mountain Air. All our Lennox furnaces come with industry-leading warranties and are installed by experienced, licensed technicians. So, if you’re in Calgary and looking to replace your furnace, contact us today.






















