Home Efficiency Tools
Heat Pump vs Furnace Calculator Canada — Cost Comparison
Compare the annual heating cost of a heat pump vs a gas furnace for your Canadian home. Includes payback period, 20-year savings, and provincial energy rates.
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Common questions
Do heat pumps work in cold Canadian winters?
Modern cold-climate heat pumps are rated to operate efficiently down to −25°C and maintain a COP above 1.5 even at −15°C. Brands like Mitsubishi Hyper Heat, Bosch, and Daikin offer units specifically designed for Canadian winters. In extreme cold snaps, a backup electric element or gas furnace (dual-fuel system) handles the remainder.
How much does a heat pump cost to install in Canada?
A cold-climate air-source heat pump installed in Canada typically costs $6,000–$14,000, depending on capacity, brand, and whether your electrical panel needs upgrading. Ground-source (geothermal) systems cost $20,000–$40,000 but are more efficient. Ducted systems are generally less expensive than multi-zone ductless setups.
Is a heat pump cheaper to run than a gas furnace in Canada?
It depends on your province's electricity and gas rates. In provinces with low electricity rates (Quebec, Manitoba, BC), heat pumps are almost always cheaper to run. In provinces with high electricity rates and low gas prices (Alberta, Ontario at peak rates), a high-efficiency gas furnace may have lower operating costs. This calculator compares both for your province.
What government rebates are available for heat pumps in Canada?
The Canada Greener Homes Grant offers up to $5,000 for heat pump installations, plus up to $600 for an EnerGuide evaluation. Many provinces offer additional rebates: Ontario (Enbridge/Union Gas home efficiency rebates), BC (CleanBC up to $6,000–$9,000), Nova Scotia (Efficiency NS up to $4,000), and PEI (up to $10,000). Check the Canada Greener Homes portal for the full list.