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How Much Does an HVAC Replacement Cost?

HVAC replacement cost ranges from a minimum average of $6,224 to a maximum average of $11,434, which includes installation of both a new central AC unit and gas furnace combo, along with the typical labor work needed to get the new unit(s) installed. If you need to replace ductwork as well, you can expect to pay an additional $2,100 for a single story 2,000 sq. ft home.

However, where you end up in the price range (or if you wind up below or above the average) depends on what system type you need, what size your home is, what the climate is like in your area, and more. Let’s take a look at how these costs break down.

Average Cost of a New HVAC System for 2024

The average HVAC system cost is $8,829 for an air conditioning system combined with a gas furnace. This cost assumes you live in an average-sized home that is between 2,000 and 2,500 square feet in an area where cost-of-living is moderate.

We calculated this average for the AC and furnace combo specifically because it is the most common type of HVAC system found across homes in the U.S.

Clean AC unit outside with pink flowers

However, it is possible that in an area with low labor costs and for a house under 1,500 sq. ft. an HVAC replacement could cost as little as $5,000. For a home more than 3,000 sq. ft. in a higher cost-of-living area, a new AC and furnace could cost more than $20,000.

Home size and location play a large role in your final project cost. There are also many homes that use other types of HVAC systems. To account for all those factors, let’s look past averages and dig into specifics.

What is an HVAC System?

An HVAC system – which stands for Heating, Ventilation, and Air Conditioning – is a technology designed to keep indoor spaces comfortable by regulating the temperature, humidity, and air quality.

Think of an HVAC system like the body’s respiratory system but for your home. Just as your lungs take in fresh air and expel unwanted air to keep your body comfortable and healthy, an HVAC system brings in clean air, regulates temperature, and keeps the environment inside your home comfortable and safe, no matter what the weather is like outside.

Whatever is keeping your home a comfortable temperature is your HVAC system, whether that’s central air conditioning, a heat pump, a mini-split system, or something else entirely.

HVAC Components

Here’s a simple breakdown of HVAC components to help you determine which system types you may need to include in your replacement cost.

  • Heating. This part of the system keeps your home warm during the colder months. It can include furnaces or heat pumps that generate heat.
  • Ventilation. Ventilation helps to keep the air in your home fresh by exchanging indoor air with outdoor air. It removes unwanted smells, moisture, and pollutants, ensuring the air inside your home is clean. Ventilation is a built-in component of all HVAC systems.
  • Air conditioning. This part cools down your home when it’s hot outside. It works by removing heat and moisture from the indoor air to lower the temperature.

HVAC Replacement Cost Calculator

At the top of this page, you’ll find our HVAC cost calculator. To use this tool, first select which component needs to be replaced: your home’s heating system, your home’s cooling system, or both. Then, answer questions about your specific house, including what system type it has, how many square feet your home has, and whether the HVAC system you’re replacing heats/cools all of your home or just part of it. We have also built “I’m not sure” answers into each part of our calculations since some homeowners may not know the details of their specific system. Finally, fill in your zip code so we can best estimate labor costs in your area. Our estimate for your HVAC replacement cost will take of these details into account.

HVAC Replacement Cost by Unit Type

As we noted above, our average estimates assume you are replacing the most common system type, which is an AC unit with a gas furnace. However, there are many types of HVAC systems. Let’s take a look at HVAC replacement costs for each unit type, and then we will walk through what each does.

HVAC Costs by Combo System Type
HVAC Unit Installation CostsLow CostHigh 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

Central Air Conditioning/AC

A central AC unit is connected to your home’s ductwork and uses forced air to cool down the home’s temperature. It is typically paired with a heating system like a furnace. A central AC system includes a condenser, a compressor, and an evaporator. Costs for both the system and the labor to install it range from $6,465 to $11,877. You can visit our central AC installation guide for more information.

Window AC

Unlike central air, which cools your entire home, a window AC unit is installed in one room and is responsible for cooling that room only. Window AC units are most commonly used in bedrooms in homes that do not have ductwork or in homes that only need cooling for a short period of time each year. They range in price from about $150 for units for small rooms to $600 for units for large rooms. Our guide to AC window unit costs can tell you more.

Ductless Split AC

Also called a mini-split, these cooling systems are excellent for homes without ductwork. A mini-split unit is mounted on the wall in each room you want cooled and then connected to a compressor outside your home. They are simpler to install than a central AC system. The average cost of a ductless split AC system ranges from $2,142 to $3,936. You can learn more about mini-split AC units by reading our guide.

Gas Furnace

Gas furnaces are the most common type of furnaces, and they are often combined with central AC. This is because, like central air conditioning, they are connected to your home’s ductwork and use forced air to heat it. Furnaces usually come with a blower to distribute the heated air throughout your home. A gas furnace can range in price from $956 to $3,870. We have more information on gas furnace installation cost and how to choose one available over at our buying guide.

Oil Furnace

Oil furnaces work much like gas ones, but they tend to be most popular in the northeast region of the U.S. where temperatures remain cold for a much longer period of the year. Oil furnaces are quieter and cheaper to run than gas furnaces. They can also run either only on oil or as a hybrid system that uses a heat pump to also provide home cooling. However, they cost more upfront than gas furnaces, with an average price range of $3,325 to $8,222. You can learn more about oil furnace costs and considerations by reading our guide.

Electric Furnace

An electric furnace is perfect for homeowners without a natural gas line, any eco-conscious homeowners, or any homeowner who would have cheaper monthly utility bills using electric instead of gas. Installing or replacing an electric furnace is a simpler (and thus cheaper) process with a gas one since they don’t have to be vented. They are also much quieter than gas furnaces. Average costs to buy and install an electric furnace range from $767 to $3,523. Our guide to electric furnace costs covers this furnace type in more detail.

Heat Pump

Heat pump systems are a very energy-efficient alternative to an AC/furnace combo. They move heat outside the home during warmer months and extract heat from the ground or air to bring indoors during cooler months. There are three heat pump types to choose, with the least expensive ranging from $2,799 to $7,449 to install and the most expensive (a geothermal heat pump) costing upwards of $20,000. Learn all about all the types of heat pumps and their costs by visiting our guide.

Boiler

Like furnaces, boilers can be electric-, gas-, or oil-powered. However, instead of using forced air the way a furnace does, a boiler uses either hot water or steam. That water/steam then travels through pipes that are connected to radiators throughout the home. Boilers start at around $4,000, and depending on the size and type you choose, can cost upwards of $11,000. Our guide to boiler costs and installation can tell you everything you need to know.

Radiator

Radiators are used in conjunction with boilers (see above) to heat homes. There are four kinds of radiators you can choose from for both your home aesthetics as well as for how you want your heat distributed: cast iron radiators, baseboard radiators, column radiators, and panel radiators. You can find out more about each by reading our guide to radiators.

There are even more HVAC system types you can explore. Check out our buying guide to types of HVAC systems to see all your options.

What Factors Affect HVAC Replacement Cost?

AC unit outside next to a fence

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, your region’s climate can change what kind of HVAC system you need or what size system you need dramatically. For example, a home located in the south would need an AC unit with a size capable of cooling the home during high temperature summers. A home in the northern part of the U.S., on the other hand, would need a much larger heating capacity, which will affect costs.

Do You Need Ductwork Replacement?

Ductwork delivers the conditioned air from your HVAC system throughout your home through vents often found in your home’s attic. However, ductwork can lose its efficiency over time 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 in addition to the size of your home. As you might expect, a 3,000 square foot home will need a much larger AC unit than a 1,500 square foot home, which will impact installation costs. However, older windows and insulation can mean your unit needs to be larger, too. A house with energy efficient windows that are well insulated and sealed with no cracks for air flow will require far less AC capacity to keep temperatures comfortable.

Other factors that can affect your system size include the insulation in the foundation, roof, attics, basements, flooring, and more.

HVAC Unit Size

As you’ve been reading above, the size unit you need will have a large impact on your project cost. Homes that are larger, home that are more likely to use their heating/cooling systems daily (or nearly daily) because of the climate, or homes that have older insulation and windows will need to budget more for a larger unit size.

See the chart below for the average central air conditioner replacement cost by tons to get a sense of how prices can change based on system size.

AC Unit Costs by Size - Tons
Central Air Conditioner SizeAC Unit BTUAC Unit Only
1.5 Tons18,000 BTU$1,986
2 Tons24,000 BTU$2,117
2.5 Tons30000 BTU$2,352
3 Tons36000 BTU$2,920
3.5 Tons42000 BTU$3,550
4 Tons48000 BTU$3,650
5 Tons60000 BTU$3,690

Don’t know what size unit you need? You can use our furnace size calculator and our AC size calculator to find out.

Brand

The HVAC brand you choose will impact total installation costs. You can check out our picks for best AC brands, best furnace brands, and best heat pump brands to get familiar with the bigger names on the market.

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. You can read all about how to calculate the ROI of your HVAC replacement over on our blog.

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 HVAC systems will come with higher energy efficiency levels, known as the SEER rating. Where you live, the system type you want, and the size of your home will all impact your energy efficiency requirements.

Additional HVAC Installation Costs

There may also be some costs that are not included in the initial HVAC replacement estimate but that you’ll still want to consider. Be sure to ask your contractor if the following costs are included in the initial quote they provide:

  • Permits. Is a permit required from your local city or county building department? We have a blog post you can read on whether a permit is needed for an air conditioning replacement if you want more information on that particular system type.
  • Inspections. Does the unit also require an inspection by a representative of the building department to ensure the system is up to code?
  • Labor costs. 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.
  • Insulation. Do you need to replace or add any insulation to your home to ensure your unit works efficiently? If you are going to have an AC unit in the attic, should additional attic insulation be considered?

Repair or Replace?

If your HVAC unit can be repaired, that will almost certainly be more cost-efficient than buying a new unit. So how do you know if the problem you have with your HVAC is able to be repaired? Plan to call a tech for a repair in these circumstances:

  • If your pilot light won’t stay lit.
  • If your unit has a leak.
  • If the unit’s fan won’t stop running or if your system gets “stuck” in one mode.

You can check out our blog post on why your HVAC system isn’t working for more information on when to call in the pros.

However, if you encounter a problem like your AC is running but not cooling or your furnace is running but not heating, then you might be able to repair it, or you might be looking at a situation where your system needs to be replaced. If your unit is having problems and is more than 10 years old, then we recommend pricing out the repair plus any future, similar repairs vs the cost of replacing the unit.

DIY HVAC Installation vs Hiring a Pro

While there is lots of HVAC maintenance you can DIY, installing a new unit is a job best left to the pros. As a general rule of thumb, when a project requires work with electrical systems, plumbing, or gas lines, you should not attempt the job yourself. Installing your own HVAC unit not only comes with physical dangers but also the risk of installing it incorrectly and paying much higher monthly utility bills due to the system running inefficiently.

You can read our guide on what to expect during an HVAC replacement to learn more about installation details.

How to Find a Professional

We advise you to get between three and four local price quotes from different qualified HVAC contractors in order to find the best professional and the best price for the replacement. Here are a few next steps you can take:

  1. Explore our page on all things HVAC to see brands, pricing, and more as you budget for your project.
  2. Start asking neighbors, friends, and family for recommendations on HVAC installers.
  3. Browse our contractor directory to see which pros are available in your area to provide free quotes.

If you’d like us to do the research for you, click below and answer a few questions about your project, and we’ll match you with up to four pre-vetted contractors.

Frequently Asked Questions

How much does it cost to install different heating and cooling systems?

The average costs for different heating and cooling systems will vary by the brands, energy efficiency level, size of the unit needed for your home, and also what the local labor rates are for installation.


You can use our HVAC Installation Cost Calculator to get an average price for installation in your area and then talk to reliable local contractors about your specific project afterwards if you’d like.



What are the top factors that affect the cost of your HVAC installation?

The major factors that will affect the total cost of your HVAC installation can include:



  1. Type of HVAC System Installed

  2. Size of Unit Needed

  3. Cooling – Heating Capacity Needed

  4. Energy Efficient Levels – SEER or AFUE Ratings

  5. Needing Ductwork Installation – Replacement

  6. Local Labor Costs – Varies by Region

  7. Seasonality – Local Climate Extremities


Read in depth about the details here on each of these cost factors and get an estimate on how much each HVAC system will cost to install in your area.


Can you negotiate HVAC Installation costs with contractors?

Negotiating the costs of your air conditioner installation with your contractor is definitely possible. You should always have backup resources to justify the local costs in your area for a new AC unit.


HVAC installation costs typically range from $3,500 to $7,525, but homeowners can reduce those costs by negotiating the contract price and terms with their contractor by getting multiple quotes from local contractors or using our cost calculator to get average local prices as a negotiating basepoint.


What are the top brands of HVAC systems?

When installing a new HVAC unit, brand and associated costs can be an important decision factor. A good HVAC brand can usually offer a price point to fit any budget from a low cost AC unit or furnace to top performing HVAC systems.


Some brands offer extensive warranties, boast incredible customer support teams, and offer smart home technology for your new air conditioner. It really depends on your budget and what you value the most in a new home heating or cooling unit and the brand of it. Like most things, you get what you pay for and should plan your budget accordingly when looking to install a new HVAC system in your home. See our review list of the the best air conditioner brands and top furnace brands.


How do you find a local reliable cooling and heating installer?

When you install a new home cooling or heating system, it can become an urgent situation if your home’s temperature starts to become extremely cold or unpleasantly warm. Finding a reliable local HVAC contractor fast is possible. The best strategy is to ask friends and family for recommendations first.


It is then smart to vet the recommended contractors by doing research and using a service like Modernize to instantly compare multiple quotes from the top HVAC contractors. We provide information on local service professionals along with their current Google business ratings, Better Business Bureau ratings, and even recent reviews from homeowners in your neighborhood who also completed HVAC projects with those same heating and cooling contractors.

You can also use our HVAC contractor checklist to make sure you hire the right person for efficient and smooth run for your home project.