HVAC replacement cost can range from a minimum $6,224 to a maximum of $11,434, which would include installation of both a new central AC unit and gas furnace combo, along with the labor work. If you need to replace ductwork as well, you can expect an additional $2,100 for a single story 2,000 sq. ft home.
| National Average Cost | $8,829 |
| Minimum Cost | $6,224 |
| Maximum Cost | $11,434 |
| Average Price Range with Ductwork | $6,465 - $11,877 |
HVAC Unit Costs by Type
Most homeowners who are looking to replace their HVAC system can simply check what their old heating and cooling unit type was to make a decision on which HVAC unit works best for their home. However, there are many combinations of heating units and cooling units that you can choose from, depending on your local climate and home size needs. We have broken out below the average HVAC replacement costs for each different type of unit in order to give you the best estimate on pricing:
| HVAC Unit Installation Costs | Low Cost | High Cost |
|---|---|---|
| Central Air Conditioner | $6,465 | $11,877 |
| Ductless Split AC | $2,142 | $3,936 |
| Electric Furnace | $767 | $3,523 |
| Gas Furnace | $956 | $3,870 |
| Oil Furnaces | $3,325 | $8,222 |
| Heat Pump | $2,905 | $7,449 |
| Geothermal Heat Pumps | $15,000 | $38,000 |
If you are not sure which type of HVAC unit is best for your home, or what type of heating and cooling system you currently have and need to replace, your best bet is to speak with a licensed HVAC contractor for their recommendation based on your budget.
What Factors Affect HVAC Replacement Cost?
HVAC installation costs can vary depending on a few factors that are specific to your home and location. Here are the main things that your professional air conditioning contractor will assess in order to give you a total price quote for your replacement HVAC system:
- Local climate conditions
- Current ductwork conditions
- Home age and construction
- HVAC unit features, such as size, brand, and energy efficiency (SEER)
- Top air conditioner brands and associated installation costs
Local Climate Conditions
Depending on where in the U.S. your home is located, the local region’s climate can change dramatically. A home located in the South would need an AC unit with a size capable of cooling your home during high temperature summers. A home in the Northern part of the U.S. would need a much larger heating capacity, which will affect costs. See the chart below for the average central air conditioner replacement costs by TONS.
| Central Air Conditioner Size | AC Unit BTU | AC Unit Only |
|---|---|---|
| 1.5 Tons | 18,000 BTU | $1,986 |
| 2 Tons | 24,000 BTU | $2,117 |
| 2.5 Tons | 30000 BTU | $2,352 |
| 3 Tons | 36000 BTU | $2,920 |
| 3.5 Tons | 42000 BTU | $3,550 |
| 4 Tons | 48000 BTU | $3,650 |
| 5 Tons | 60000 BTU | $3,690 |
Do You Need Ductwork Replacement?
If you are replacing your current air conditioning system, it’s safe to assume that you already have ductwork installed. Ductwork delivers the conditioned air from your HVAC system throughout your home through vents often found in your home’s attic. However, with time ductwork can lose its efficiency or may need to be altered to work with your new AC system. New ductwork installation can tack on an additional cost anywhere from $2,100 to $4,000, depending on the level of complexity to install or alter. Plan to add a few days of labor to your HVAC replacement project if you do need ductwork replacement.
Home Age and Construction
The ability to cool and heat your home at maximum efficiency will depends on how well insulated your home is currently and the size of your home. A 2,000 square foot home will need a much larger AC unit than a smaller home, which will impact installation costs. Also, a house with energy efficient windows that are well insulated and sealed well with no cracks for air flow will require far less AC capacity to keep temperatures comfortable. Other factors that can affect this include the insulation elsewhere such as the foundation, roof, attics, basements, flooring, and more.
HVAC Unit Size, Brand, and Energy Efficiency
A local, trusted HVAC professional will be able to tell you best what features you may need or want for your home’s system. Higher priced AC unit costs will come with higher energy efficiency levels, known as the SEER rating. The size of the unit will also make a difference in AC unit prices.
Finally, the HVAC brand you choose will impact total installation costs. Higher end central AC units will cost more upfront. However, better brands usually come with a longer lifespan and ROI, better warranties, and smarter technology built in to fully control your home’s temperature. Your HVAC replacement cost will go a longer way when you choose a high quality system.
Hidden HVAC Installation Costs
There may also be some AC installation costs that are not included in the initial HVAC estimate, but you will want to consider just in case. Be sure to ask the air conditioning contractor if the following costs are included in the initial quote they provide.
- Is a permit required from your local city or county building department?
- Does the unit also require an inspection by a representative of the building department to ensure the system is up to code?
- Are there any potential labor or disposal costs involved? For instance, if you live in an older home that has asbestos or lead paint, there may be an additional cost to test, remove, or replace the material.
Keep in mind that if any of these situations require additional work during the installation process – plumbing, electrical work, removal of an existing system, installing the HVAC system at a new location, modifying the framing or surfacing of the home, or bringing any systems up to code – it will also factor into the cost estimate for your home’s new HVAC installation.
Evaluating Price Quotes for HVAC Installation
There are several factors to consider when determining what could affect the cost of a new HVAC system installation price quote. Some factors may cause your initial cost estimate to be higher or lower.
We advise you to get at least four local price quotes from different qualified HVAC contractors in order to find the best professional and price for the installation. When comparing quotes from HVAC professionals, here are a few reasons why you may see a higher or lower HVAC replacement cost than expected.
High Priced AC Installations:
- HVAC installations and replacements can vary drastically in price. These differences could be due to the type of HVAC unit— for example, how quiet an air conditioning system is. We encourage homeowners to research their desired HVAC system and make sure it is the best suited for their homes and needs.
- HVAC units can also vary in total cost depending on hardware other than the main units themselves. The increasingly popular smart thermostat is often paired with a new residential HVAC unit, which could cost as little as $30 or as much as $300.
- High-end heating and cooling companies will likely have more equipment and overhead, which may be seen in your price quote. However, it is always smart to choose the most qualified contractor for the job so you know it is being installed correctly.
- HVAC unit warranties will also impact your total installation costs. Most HVAC installers offer manufacturer’s warranties that protect you from faulty system equipment. Some might offer additional guarantees for the total HVAC installation as well, covering potential damage to your roof (if applicable).
- Research and be aware of potential hidden HVAC costs— like needing permits and potential fines for your installation. Your heating and cooling quote should include a proper breakdown of how local or federal regulation applies to you and what your HVAC contractor will or will not do in that regard.
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- For example, if your installed HVAC unit’s Seasonal Energy Efficiency Ratio (SEER) rating is lower than 13, the Department of Energy might flag your HVAC contractor for selling it.
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- An HVAC system having an average SEER rating of 16 could mean saving upward of $400 annually in comparison to other lower efficiency options. Expect an analysis of what your bills should look like after your new HVAC installation, and how you should expect these heating and cooling energy costs to change in upcoming years.
Low Priced AC Installations:
- If an HVAC contractor does not have proper insurance, they will often provide a lower bid. This may leave the homeowner responsible for HVAC laborer injuries or damages that occur. We recommend that homeowners always select a licensed HVAC contractor for their heating and cooling replacement projects.
- If a contractor doesn’t have a solid grasp of local policies or applicable local, regional, and federal incentives—like the ones found at the Database of State Incentives for Renewables and Efficiency, they may leave that to you and subsequently lower their fees since they have less paperwork to worry about. While a contractor may charge you for help navigating the bureaucracy of air conditioning regulation, a good contractor will assure your energy compliance in your area and maximize your return on investment utilizing expertise you may lack.
- Extremely low bidders may also be desperate for a new HVAC job leads, which is never a reassuring sign. Be sure to always vet your HVAC contractor before hiring for the job.
For any bid you receive, always double check your final HVAC installation quotes for possible pricing errors. Errors can happen when trying to determine your full HVAC system installation costs. Communicate any and all questions and concerns with your air conditioning installer before you sign off on any contracts. For a full list of price evaluation tips see our homeowner’s guide to evaluating your HVAC cost estimates.
