How Much Does a Forced-Air Outdoor Wood Furnace Cost?

By Sarah Stasik

November 09, 2025

Humans have burned wood and other things to help warm themselves and their homes for more than a million years. In modern homes, burning wood for warmth is often relegated to rooms with fireplaces. Installing a forced-air wood furnace outside your home, however, can let you burn wood for warmth inside your house or in buildings like garages and pole barns.

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What Is an Outdoor Forced-Air Wood Furnace?

An outdoor forced-air wood furnace is a heating method that uses the temperature created by burning wood to warm your home. It works like this:

  • You burn wood. You create a fire in a large firebox, which is an exterior unit. The firebox is typically lined to help increase heat inside it; depending on the setup, a firebox might be lined with cast iron or brick.

  • Air is heated. The firebox is surrounded by a larger box or container. Between those outer walls and the firebox, an empty space allows air to pool. As the fire burns, the heat from the firebox heats the air in the surrounding cavity.

  • Hot air is pushed into the ductwork. A fan blows this hot air into the interior of the home, where it travels through ductwork and is dispersed throughout the home.

  • Cool air from inside the home is cycled through the process. Cooler air from inside the home is pulled into this system, where it cycles through to be heated by the outdoor furnace and reintroduced into the home.

Potential benefits of this type of heating include:

  • A reduced reliance on potentially more expensive and less renewable options like electric or propane heat

  • Wood heating that can be convenient for property owners with access to their own supply of wood

  • Ability to burn wood for heating while keeping ash, smoke and other less-attractive elements outside the home

How Much Does It Cost to Install One?

The average cost to install an outdoor wood-burning furnace is $2,000 to $5,400 (CAD 2,800 to CAD 7,561). That cost includes:

  • A new outdoor furnace unit

  • Installation labor

  • Supplies and materials required to integrate the wood-burning furnace with an existing forced-air heating system for the home

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What Are the Cost Factors?

Outdoor wood furnace pricing and installation costs vary widely depending on factors like size, existing setup and whether tax credits help offset the expense. Common factors for pricing include:

  • The brand and model. Some outdoor wood furnace brands and models cost much more than others. Consider discussing your options with a heating, ventilation and air conditioning (HVAC) professional and asking for recommendations at various price points and whether more expensive units offer specific benefits.

  • Your heating needs. The size of the firebox and how much heating power a wood furnace has impact pricing. More powerful units typically cost more.

  • Whether you need new ductwork or a concrete slab. If your home has never had an outdoor forced-air furnace, you'll need a concrete slab for the firebox and potentially, new ductwork and other components to support functionality.

  • Removal of old units. Many professionals will handle removal of old fireboxes or other components when installing new equipment. However, you may need to pay an additional fee.

  • Savings options. Promotions, financing offers and federal tax credits related to installing more efficient appliances could help reduce the overall cost of a wood furnace.

As with any HVAC installation choice, you should also consider the long-term cost of ownership of a wood-burning furnace. You'll need to source wood for burning, and many homeowners have to purchase that wood. Budget for regular cleaning and maintenance to support the unit's longevity.

How Does the Price Differ From Outdoor Wood Boilers?

Boilers are typically more expensive, in part because they require more complex parts and plumbing.

An outdoor wood boiler leverages the heat from burning wood to raise the temperature of water — in some cases, going so far as to convert it to steam. The hot water or steam is pushed through pipes to components like radiators to warm the air inside a home.

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