Single-family dwellings make a significant contribution to carbon emissions in Canada. The National Energy Code for Buildings (NECB) emphasizes reducing the operational carbon consumption of buildings. Using thermal insulation material in constructing building envelopes plays a crucial role in decreasing a building's operational carbon. However, since insulation materials have embodied carbon, therefore, for optimal building performance and design, designers should take into account both the operational and embodied carbon of insulation materials. This paper compares the embodied carbon and operational energy savings resulting from the use of thermal insulation material. It also presents Carbon Payback Period (CPP) values of different thermal insulation materials in various Canadian cities representing different climate zones. A model is created using the Athena Impact Estimator (AIE) tool, based on a three-bedroom single-family home with a wood-frame structure. Three insulation materials, namely Batts Fiberglass, Blown Cellulose and Mineral Wool, are evaluated in three different cities, namely Vancouver, Toronto and Calgary, representing three climate zones (zones 4, 5 and 7a). The HOT2000 energy simulator calculates operational carbon consumption using the energy mix comprising electricity and natural gas. The CPPs for selected materials were calculated using operational and embodied carbon data. A comparison of the Whole Building Life Cycle Analysis (WBLCA) Global Warming Potential (GWP) between the National Building Code (NBC) 1995 and 2020 versions revealed an average 25% decrease in Operational Carbon and an average 6% increase in Embodied Carbon. This compromise showed a shift towards standardizing energy-efficient buildings and selecting sustainable thermal insulation materials for construction. Identifying and using less carbon footprint materials can help reduce embodied carbon. In Calgary, the CPP for Blown Cellulose, Batts Fiberglass and Mineral Wool insulation were calculated to be 0.92, 0.94 and 1.09 years, respectively. In Toronto, the CPP for Blown Cellulose, Batts Fiberglass and Mineral Wool is 1.15, 1.17 and 1.39 years, respectively. Vancouver has longer CPP for Batts Fiberglass, Blown Cellulose and Mineral Wool with 2.66, 2.64, and 2.69 years, respectively. This indicates that as the heating degree days (HDD) increases, the CPP shortens. Graphing the CPP vs HDD can help designers and contractors make more informed decisions regarding the available choices of thermal insulations.