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Heat Pump vs Furnace Cost Comparison Toronto 2026 — Full Installation & Operating Cost Breakdown
Installation Cost Comparison (Toronto/GTA 2026)
| System | Install Cost | After Ontario Rebate |
|---|---|---|
| Gas Furnace (96% AFUE) | $3,500–$5,500 | $3,500–$5,500 |
| Cold-Climate Heat Pump | $5,000–$9,000 | $3,000–$6,500 |
| Dual-Fuel (Heat Pump + Gas Furnace) | $7,000–$12,000 | $4,500–$9,000 |
Annual Operating Cost in Toronto (Average Home)
- Gas Furnace (96% AFUE) — $1,200–$1,800/year heating
- Cold-Climate Heat Pump — $800–$1,400/year heating + cooling combined (electricity)
- Dual-Fuel System — $900–$1,400/year (uses gas only when below -15°C)
Is a heat pump cheaper than a gas furnace in Toronto?
After Ontario rebates (up to $5,000+), a cold-climate heat pump costs approximately the same to install as a high-efficiency gas furnace. Operating costs favour the heat pump by $300–$600/year due to electricity being cheaper than gas per unit of heat delivered at efficiency ratios of 2.5:1 to 3:1. Call Madina Mechanical at (416) 424-4328 for a heat pump vs furnace assessment.
🔗 Heat Pump Installation Toronto | Furnace Installation Scarborough
Free Heat Pump vs Furnace Assessment: (416) 424-4328

