Furnaces are condensing units (95% AFUE is the federal minimum for most new gas furnaces) and add venting work. A heat pump also provides cooling, so choosing one sets Cooling to Not Needed.
💰 Total Project Cost
🔧 Combined Labour Savings
Project Breakdown
Full Cost Table
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How to Use the HVAC Replacement Cost Calculator
Choose a code-minimum or high-efficiency furnace, or a standard or cold-climate rated heat pump.
Choose whether central air conditioning is included, and its efficiency tier, or skip if the heat pump already provides cooling.
Choose whether existing ductwork can be reused as-is, needs partial work, or needs full replacement.
Click Calculate Total Project Cost to see the combined estimate across all selected components.
Why a Combined Replacement Often Costs Less Than Two Separate Projects
Replacing a furnace and air conditioner, or moving to a heat pump system, at the same time typically shares fixed costs, like a single service call, one round of permit and inspection work where applicable, and often a contractor discount for bundling both jobs together. Doing the same two replacements separately, months or years apart, usually means paying for two entirely separate visits, each with its own fixed overhead. In this calculator bundling a furnace and air conditioner saves $800 of labour, so a code-minimum furnace and standard AC with reusable ducts comes to $10,700 together against $11,500 as two separate projects.
Choosing the Heating System
Since July 3, 2019, gas furnaces made for the Canadian market must reach 95 percent AFUE, so even the code-minimum furnace here is a condensing unit and carries $700 of venting work. The high-efficiency option steps up to 98 percent and costs $5,320 in equipment instead of $3,800. A heat pump replaces both the heating and cooling function in one piece of equipment, with a cold-climate rated model at $9,180 against $6,800 for a standard one, maintaining performance much further into freezing temperatures. See the heat pump vs furnace cost calculator for a detailed side-by-side comparison specific to your climate.
When Cooling Isn't Needed
A heat pump already handles both heating and cooling, so choosing one switches the cooling selection to Not Needed, since a heat pump doesn't need a separate air conditioner alongside it. On its own a heat pump project comes to $8,400 for a standard model and $10,780 for a cold-climate rated one. Because the one unit has to cover both seasons, it should be sized for the larger of the heating and cooling loads, and the heat pump sizing calculator helps check that. The same selection also applies to a heating-only project for some other reason.
Why Ductwork Condition Matters So Much
Existing ductwork that's properly sized and in good condition can often connect directly to new equipment without any changes, keeping the project cost close to just the equipment and labour. Ductwork that's undersized, damaged, or poorly sealed adds real cost, $1,500 for a partial repair or resize and $5,500 for full replacement in this calculator. Confirm actual duct condition with a technician before assuming it's reusable, since guessing wrong here is one of the most common sources of budget surprises, and the duct leakage calculator shows how much air existing ducts may be losing.
Financing and Rebates for the Combined Project
A full replacement is often the largest single HVAC expense a homeowner faces, which makes checking financing options and available rebates especially worthwhile. For homes heating with oil, Natural Resources Canada lists the Oil to Heat Pump Affordability program, with up to $10,000, on its Canada Greener Homes Initiative page, which also shows the Greener Homes Grant as closed. See the HVAC financing calculator and the utility rebate calculator before finalizing a budget for this project.
Frequently Asked Questions
Based on this calculator's pricing, a code-minimum furnace and standard air conditioner with reusable ductwork comes to about $10,700 installed, and a high-efficiency furnace with a high-efficiency air conditioner to about $13,600. A heat pump alone, which also cools, comes to about $8,400 for a standard model and $10,780 for a cold-climate rated one. Full ductwork replacement adds $5,500 to any of these, so get a written quote before committing.
Often yes, since a combined project shares one service call, one round of ductwork and electrical work if needed, and sometimes a contractor discount for bundling both jobs, compared to paying for two entirely separate installation visits at different times. This is one reason many homeowners choose to replace both pieces of equipment together even if only one has actually failed. In this calculator the bundling saving is $800 of labour.
Not necessarily. Existing ductwork in good condition and properly sized for the new equipment's airflow can often be reused without any changes. Ductwork typically only needs partial or full replacement if it's undersized for the new system, damaged, poorly sealed, or if the project involves adding central air to a home that never had it.
A full replacement project is a natural point to consider a heat pump, since it eliminates the need for separate heating and cooling equipment. Whether it makes sense financially depends heavily on local climate severity and utility rates, which the heat pump vs furnace cost calculator is built specifically to compare. Choosing a heat pump in this calculator sets cooling to Not Needed automatically, since the heat pump already cools.