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In 2025, The cost to replace a furnace and air conditioner at the same time typically ranges from $5,000 to $12,500, with an average cost around $7,500. The lowest possible cost is usually around $5,000, the mid-range cost is about $7,000, and the highest possible cost can reach $12,500.
Note: The average cost depends on several factors, including the size of your home, the brand of units, the type of HVAC system, and the installation labor charges from different companies.
| Price Range | Estimated Cost |
|---|---|
| Low | $5,000 |
| Mid-Range | $7,000 |
| High | $12,500 |
The Furnace and AC Replacement Cost Calculator is a tool. It estimates replacement costs. These costs depend on system type, home size, efficiency level, and location.
It allows homeowners and contractors to quickly calculate price ranges. They can do this without reaching out to multiple HVAC companies. This tool takes historical pricing data, local labor rates, energy ratings, and equipment specs. It helps provide accurate cost projections. By inputting a few home and system details, users get real-time cost insights.
To use the cost calculator, input your home’s square footage, select the HVAC type, set your zip code, and choose efficiency preferences.
Once those are entered, the tool processes your entries using cost estimation algorithms. These algorithms look at the system type, energy efficiency (like SEER and AFUE), and local labor costs. It displays estimated ranges for equipment, labor, permits, and additional material costs.
In 2025, the average cost to replace a furnace and AC system ranges between $7,500 and $12,500, depending on equipment type, labor, and home characteristics.
The U.S. national average HVAC replacement cost is approximately $7, 500 in 2025.
This includes both equipment and professional installation. High-efficiency systems or premium brands raise the average by 18-24%.
Minimum costs start around $5,000 while premium installations may exceed $15,000.
Lower-end setups usually have 13 SEER AC units and 80% AFUE furnaces. These are often found in smaller homes. High-end jobs include 20+ SEER, variable-speed units, or multi-stage systems with advanced zoning.
Minimum costs start around $5,000 while premium installations may exceed $15,000.
Lower-end installations typically use 13 SEER AC units and 80% AFUE furnaces, often installed in smaller homes. High-end jobs include 20+ SEER, variable-speed units, or multi-stage systems with advanced zoning.
Every HVAC system has unique installation needs, efficiency ratings, and price ranges. Choosing the right one depends on your climate, home layout, and energy goals.
A central air conditioner cools the entire home by pushing chilled air through built-in ducts. This type of system is often matched with a gas furnace for year-round indoor comfort.
It has three main parts: an outdoor condenser, a compressor, and an evaporator coil. The evaporator coil is inside the air handler or furnace cabinet. Each piece works together to pull heat from indoor air and move it outdoors.
Total replacement cost usually lands between $5,000 and $12,000. This range includes the unit itself and full professional installation. Pricing is based on three things: cooling power (in tons), energy efficiency (SEER rating), and any needed ductwork changes.
A higher-efficiency model, such as SEER 18 or above, may cost 15% to 25% more at first. However, it can save you hundreds on electricity bills each year. Larger homes usually require systems of 3.5 tons or more. This raises both equipment and labor costs. In some homes, adding a concrete pad, line set, or new wiring can add another $1,500 to $2,500.
Central AC systems are still the most common residential cooling option in the U.S., especially in hot states like Texas, Arizona, and Florida. Research from the Department of Energy’s Building Technologies Office (2024) shows that over 67% of U.S. homes use central air units. They are popular due to their effective coverage, comfort, and reliability.
Expect to spend around $3,000 to $6,000 for a new heat pump system.
Heat pumps handle both cooling and heating. Their cost increases with dual-fuel capability or inverter compressor features. The U.S. Department of Energy (2024) reports that modern heat pumps in moderate climates reduce heating energy use by almost 40%. Added zoning and backup strips raise the overall price. Heat pump systems are energy-efficient alternative to an AC/furnace combo.
Gas furnace installation ranges from $29,00 to $12,000. It depends on factors like your home’s size, the furnace type, and if you need new ductwork or a gas line.
Higher AFUE-rated models with variable-speed fans and sealed combustion cost more upfront but save energy long-term. A 96% AFUE furnace reduces fuel waste compared to a basic 80% unit. Adding venting or replacing rusted flue pipes increases final installation pricing.
Electric furnaces usually cost $2,500 and $4,500 to install ,depend up on these factors Unit Size and Efficiency, Installation Complexity, Labor Costs, Permits and Disposal Fees, Additional Components.
These systems are less expensive at buy but cost more to run in colder zones. Households in states with low electricity rates, such as Idaho or Louisiana, benefit more. As per research from the U.S. Energy Information Administration (2023), electric heating consumes more kilowatt-hours than gas in the same square footage.
Replacing an oil-fired furnace typically costs between $2,500 and $10,000, with most homeowners paying around $5,000 on average. The final price depends on several factors, including how efficient the furnace is, the brand you choose, and whether additional work is needed such as duct updates or permit approvals.
Fuel storage and chimney exhaust systems make oil furnaces more complex to install. According to a 2024 study by Penn State’s Earth and Mineral Sciences Department, oil heating systems have higher 10-year maintenance costs and release more particulate matter than gas options. Condensing oil units are cleaner but increase both equipment and labor expenses.
Dual-fuel HVAC systems typically fall in the $5,000 to $15,000 range.
These units switch between gas and electric depending on outdoor conditions. They’re ideal for areas with mixed seasonal temperatures. Smart thermostats determine when to use each fuel source. Zoning controls, outdoor sensors, and upgraded wiring are usually needed for full performance.
1,000 sq.ft. 1.5 – 2 tons $1,500 – $3,500
1,500 sq.ft. 2.5 – 3 tons $2,500 – $5,500
2,000 sq.ft. 3 – 3.5 tons $3,000 – $8,000
2,500 sq.ft. 4 – 5 tons $4,000 – $10,000
The cost to replace a boiler ranges from $3,500 to $10,000, including installation. Replacing radiators costs between $500 and $2,500 per unit, with smaller models costing less. The total price depends on several factors, such as the boiler’s size, brand, system efficiency, and installation complexity. On average, the combined cost to install a new boiler and radiators typically falls between $4,000 and $12,000.
This heating method circulates hot water through pipes and metal radiators. According to the University of Illinois Engineering Department (2022), switching to a condensing boiler can improve thermal efficiency by up to 18%. Replacing older pipes and valves adds labor time and may increase the total cost by $2,000 to $4,000.
Installing a new ductless mini-split system costs about $2,000 to $14,500 per zone. Replacing a ductless heat pump averages around $10,000, with labor costs to install a new mini-split system at approximately $900. The total cost depends on several factors. Consider the duct size and type of the ductless system. Also, think about installation complexity, the number of zones, labor rates, and brand.
These systems are ideal for homes without central ductwork or as add-ons for new spaces. Each indoor unit connects to a single outdoor condenser. Multi-zone setups with three or more heads often exceed $10,000. According to DOE testing, these systems reduce energy loss from ducts by up to 30%. Here’s a list of typical prices by zone:
Single-Zone System: $2,500 – $6,500
Dual-Zone System: $5,000 – $9,000
Multi-Zone System: $5,800 – $11,000
12,000 BTU Unit: Around $3,000 for equipment and labor
Labor for Existing Installation: $500 – $2,000
Labor for New Installation: Around $900
Hybrid heating and cooling systems generally cost between $2,500 and $15,000.
These systems use a heat pump during mild weather and switch to a gas furnace during colder periods. This dual approach helps reduce energy consumption and lower utility costs. According to the University of Michigan’s Sustainability Institute (2023), hybrid systems reduce emissions and enhance comfort in regions with significant temperature variations.
New Hybrid System Installation:
Complete System: $2,500 – $10,000
Adding a heat pump to an existing furnace: $2,500 – $6,000
Replacing an existing heat pump system:
Average Cost: $6,000 – $25,000
Energy-efficient HVAC systems have a higher initial cost. However, they cut energy waste and lower utility bills over time. Newer units use technology that impacts pricing and future savings. This is important when comparing ratings like SEER and AFUE.
SEER and AFUE measure energy usage in cooling and heating systems. SEER stands for Seasonal Energy Efficiency Ratio and applies to ACs and heat pumps. AFUE, or Annual Fuel Utilization Efficiency, applies to gas, oil, and electric furnaces.
You calculate SEER by dividing cooling output by total electrical input. Higher SEER ratings reflect more efficient air conditioning. In 2025, most systems range from 13 to 21 SEER.
AFUE shows how much fuel turns into heat. A 96% AFUE furnace converts 96% of its fuel to indoor warmth. Low-end models run at 80%, losing more energy during use.
SEER and AFUE measure energy usage in cooling and heating systems. SEER stands for Seasonal Energy Efficiency Ratio and applies to ACs and heat pumps. AFUE, or Annual Fuel Utilization Efficiency, applies to gas, oil, and electric furnaces.
You calculate SEER by dividing cooling output by total electrical input. Higher SEER ratings reflect more efficient air conditioning. In 2025, most systems range from 13 to 21 SEER.
AFUE shows how much fuel turns into heat. A 96% AFUE furnace converts 96% of its fuel to indoor warmth. Low-end models run at 80%, losing more energy during use.
Efficient systems lower energy use by 20% to 40% depending on setup and location. High-performance HVAC units have a higher installation cost. However, they usually pay for themselves in 6 to 9 years by lowering bills.
For example, a family in Phoenix using a 20-SEER AC instead of a 14-SEER unit may save $320–$470 annually. Over a 12-year lifespan, this equals $3,800 in savings, based on Department of Energy modeling.
“Your region’s climate affects the size, type, and cost of your HVAC system. Homes in warm or cold areas need stronger equipment. They also require better efficiency ratings to stay comfortable.”
The U.S. is divided into 8 climate zones based on heating and cooling needs. These zones affect how large your HVAC system must be and what features are required.
Northern states fall into Zones 5–8 and demand high-efficiency heating systems. Southern and coastal states (Zones 1–3) need more cooling and less heating. Zone 4 is mixed and often needs hybrid systems.
Energy modeling from the U.S. Building America Program shows that HVAC systems adapted to the climate lower energy use by 18% on average. This is compared to non-zoned setups.
You size HVAC systems using BTUs (British Thermal Units) based on your region’s weather load. Warmer climates require more cooling BTUs, colder climates demand more heating BTUs.
A 2,000 sq. ft. home in Minnesota may need 60,000+ BTUs for heat. The same home in Georgia may only require 36,000 BTUs for cooling. Undersized or oversized systems increase operating costs and reduce lifespan.
Accurate load sizing using Manual J calculations is essential. Mismatched sizing leads to short cycling, uncomfortable temperature swings, and energy waste.
Cold climates need stronger heating systems, while warm climates rely on efficient cooling. Gas furnaces with 95%+ AFUE and dual-fuel setups are preferred in northern states.
Heat pumps that have high SEER ratings and inverter compressors are effective in southern and coastal areas. In Zone 4 homes, hybrid systems save money by switching between electric and gas heat. They adjust based on temperature, ensuring comfort all year long.
Labor and installation usually make up 10% to 30% of HVAC replacement costs. Installing an HVAC system can cost between $1,000 and $3,000 for labor. This depends on factors like system type, size, local labor rates, installation complexity, and company pricing. The price covers setup, old unit removal, ductwork adjustments, and safety inspections.
Average labor costs are usually $75 to $150 per hour. However, these rates can change based on location, demand, and contractor availability. High-cost regions like California and New York may charge $150 to $220 per hour for licensed HVAC work.
In mid-sized cities or rural areas, rates average $75 to $125 per hour. Urban areas with high seasonal demand often have higher prices. This happens because there are fewer contractors available during extreme weather months.
In 2025, the national average labor cost to replace an HVAC system ranges from $2,300 to $5,100, depending on system type and installation complexity.
Contractor labor costs can vary significantly based on project size, type, and complexity, while subcontractors tend to have more consistent hourly rates.
Hiring licensed contractors ensures code compliance, warranties, and insurance coverage. Subcontractors may offer lower quotes but often skip permits or rush the installation.
Most areas require HVAC technicians to be state-certified for electrical, refrigerant, and gas work. Choosing the lowest bid can lead to rework costs and system failures.
Homeowners should request proof of licensing, liability insurance, and past installation references before signing a labor agreement.
Permits and inspections are mandatory for HVAC work in most U.S. cities. Costs range from $150 to $600 depending on the local building department.
Inspections ensure the unit is correctly installed, wired, and vented. Failure to pull a permit may lead to fines or insurance claims denial if damage occurs.
According to the International Code Council’s 2024 guidelines, all HVAC installs must follow NFPA electrical standards and EPA refrigerant handling rules.
Every HVAC replacement job has hidden charges that may not appear in the initial quote. These extra costs vary by home layout, utility setup, and disposal requirements.
Old HVAC units must be properly removed, transported, and scrapped. This isn’t just tossing a box in the trash — these systems contain metal, chemicals, and refrigerants. Most contractors charge $150–$400 depending on size, type, and disposal regulations.
Larger systems with refrigerant lines or rooftop units may require special permits. Washington State University’s Mechanical Engineering Department (2023) states that improper HVAC disposal causes environmental leaks. So, safe handling is a must.
Upgrading power or fuel lines is often necessary when replacing older systems. If the amperage doesn’t match or the gas line diameter is too narrow, it must be updated. Electric panel upgrades start around $600, and gas line changes range from $450–$1,200 depending on distance and wall access.
Colorado State University’s Energy Institute (2022) discovered that 28% of retrofits must have electrical adjustments to meet new system standards. This cost is not typically included in base estimates.
If your system is installed in hard-to-reach places, expect access fees. Tighter crawlspaces, attics without walkways, or rooftop units increase the labor burden. Installers may need to bring ladders, harnesses, or remove panels.
Fees usually range from $200–$700 depending on complexity. Homes built before 1980 often face these costs because of structural limitations.
HVAC prices shift depending on where you live. Regional wages, utility codes, and climate affect the total cost. This is true even if you buy the same brand and system size.
States with extreme temperatures usually have higher HVAC replacement costs. That’s due to larger equipment needs and tougher code requirements. For example:
California: $11,300 average – due to Title 24 building standards
Texas: $10,250 average – higher tonnage systems for longer cooling seasons
New York: $9,800 average – complex permitting and union labor
Florida: $10,000 average – high humidity systems with dehumidifiers
Illinois: $9,200 average – venting requirements and insulation needs
Arizona: $9,900 average – oversized heat pumps for desert climate
Colorado: $8,700 average – energy-efficiency zones
Washington: $8,500 average – added rain shielding for rooftop units
Georgia: $9,600 average – variable-speed AC to manage humidity
Nevada: $9,100 average – dual-fuel setups in mountain areas
Your ZIP code directly affects HVAC pricing. Cities with older homes, labor shortages, or tough building codes have higher install rates.
For example, ZIP code 94110 (San Francisco) averages 17% more than the national cost due to permit wait times and local union rates. ZIP 75052 in Grand Prairie, TX, has lower costs. This is because of newer buildings and easier access.
Energy codes in tightly regulated areas slow down installation times. They often need on-site inspections, which can add $500 to $1,300 per job.
Your total HVAC replacement cost isn’t just about the unit itself. Upgrades in materials, electronics, and features can cost thousands, based on your choices.
HVAC brands fall into three pricing categories: entry-level, mid-range, and premium. Each tier affects reliability, efficiency, and how long the system lasts. Budget-friendly units cost around $5,000 to $7,000. In contrast, high-end models, which have quieter compressors and better parts, start at $10,000.
HVAC brands fall into three pricing categories: entry-level, mid-range, and premium. Each tier affects reliability, efficiency, and how long the system lasts. Budget-friendly units cost around $5,000 to $7,000. In contrast, high-end models, which have quieter compressors and better parts, start at $10,000.
Extended warranties may raise the upfront price but reduce risk over time. Most manufacturers offer 5 to 10 years, but some premium warranties cover parts and labor for up to 12 years.
Bundling a labor protection plan costs $300–$800. But it can protect you from future repair bills. It’s also key to check transfer policies if you plan to sell the home.
Modern HVAC systems allow for more than just temperature control. Many offer smart thermostats, air purifiers, zoning panels, and humidity sensors.
Installing these features adds $900–$2,400, depending on how advanced the setup is. The University of Nebraska Building Systems Lab (2023) found that smart zoning controls in homes reduce energy use by an average of 14% each year.
Beyond the system price and install fee, several less-visible charges can appear on your invoice.
Old units must be hauled away, drained, and processed according to EPA rules. Most jobs include this cost, but not always.
Expect $120–$400 depending on unit type, distance to the landfill, and the local disposal laws. Larger multi-stage systems or oil furnaces cost more due to extra material handling.
Choosing the right pro can protect your investment. A system is only as good as the team that installs it.
Always check state licensing, customer reviews, and trade group memberships. A licensed technician should carry insurance, provide job references, and use proper permits. Ask if they belong to NATE, ACCA, or local trade groups.
A 2024 study by Virginia Tech showed that systems installed by NATE-certified contractors had 28% fewer repairs in the first three years.
Ask these 5 things before you sign:
What systems do you install most often?
Will a load calculation be done?
Are permits and inspections included?
What labor is covered under warranty?
Who will be doing the work—employees or subs?
Many HVAC replacements go wrong not because of the equipment, but because of the process.
Incorrect sizing leads to energy loss and breakdowns. Oversized systems cycle too fast, while undersized units never catch up.
Manual J load calculations are the only reliable method. If a contractor skips this, it’s a red flag.
A new system won’t work well with leaky ducts or poor attic insulation. Heat loss and airflow restrictions make even the best HVAC unit struggle.
Spending $1,000–$2,500 to seal ducts or insulate the attic could save more annually than a higher SEER rating.
Going with the cheapest bid often leads to regrets. Low prices may mean outdated units, reused parts, or unlicensed labor. Instead, compare based on what’s included, the install process, and long-term value.
If a crawlspace, attic, or panel box isn’t ready, the project gets more expensive fast. In homes built before 1985, this is common. You may need extra framing, rerouting the gas line, or updating the electric panel. These can cost between $600 and $2,000.
The cost of a new furnace for a 2,000-square-foot house typically ranges between $3,800 and $12,000. The exact price can change based on several key factors that affect installation costs.
For a 2,000 sq ft house, you’ll usually need between 80,000 and 100,000 BTUs. Some homes may require 60,000 to 120,000 BTUs instead.
Furnace Type: Gas furnaces are generally more expensive, ranging from $4,000 to $10,000.
Efficiency Rating: High-efficiency models often raise the price by $1,000 to $3,000.
Brand and Model: Well-known brands may cost between $5,000 and $12,000, while budget models range from $3,800 to $7,000.
Labor and Installation: Labor costs typically range from $500 to $2,000. This depends on how complex the job is.
Location: Prices can change based on where you are. They tend to be higher in colder areas or big cities.
Home Insulation and Ductwork: Bad insulation or old ductwork can cost you an extra $1,000 to $3,000.
Installing an air conditioning system in a 1,500 sq ft house typically costs between $2,700 and $6,500.
factors depends on cost:
AC Type: Central air conditioning systems usually cost $3,000 to $6,000. Ductless mini-split systems range from $2,700 to $5,500.
Efficiency Rating: Higher efficiency models can add $500 to $1,500 to the overall cost.
Brand and Model: Well-known brands may increase the price, with costs ranging from $3,500 to $6,500.
Labor and Installation: Installation costs vary from $500 to $2,000, depending on the complexity of the setup.
Location: Prices can change due to local climate and market demand, especially in warmer areas.
For a 1,500 sq ft house, the required AC capacity typically ranges from 18,000 – 30,000 BTU.
The cost of installing a furnace in a 1,500 sq ft home typically falls between $3,000 and $7,000, which covers both the furnace and installation. This price can change due to several factors. These include the furnace type, its efficiency, the brand, and extra work, like installing or upgrading ductwork.
Key Price Factors:
Furnace Type:
Gas Furnaces generally range from $3,800 to $10,000, including installation costs.
Electric Furnaces are more affordable, typically starting at $2,000 or higher.
Oil Furnaces are priced between $4,000 and $8,000.
Efficiency: High-efficiency models can increase the price but help save on energy bills long-term.
Brand: Different furnace brands have different prices. This often depends on how reliable and well-performing they are.
Installation Costs: Labor charges, ductwork upgrades, and necessary permits can add extra costs. These factors also depend on your home’s setup.
Location: Costs can change based on where you are. This is because labor rates and material prices differ by region.
Example Cost Ranges:
Basic Furnace: Expect to pay between $3,000 and $5,000 for a standard unit.
High-Efficiency Furnace: These typically range from $5,000 to $7,000 but offer greater energy savings over time.
Once you’ve estimated the cost of your HVAC system upgrade with the Furnace and AC Replacement Cost Calculator, use our HVAC Profit Margin Calculator to assess potential profits and ensure your project stays within budget
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