AC And Furnace Replacement Cost? A Competitive Analysis

In this blog post, we will learn about the replacement cost range of various AC and furnaces in detail.

AC And Furnace Replacement Cost 

The cost of AC and Furnace replacement costs around $5000 – $10000 depending on the cost of its units, type, model, capacity, and region of installation.

AC And Furnace Replacement Cost

Factors that Affect the Cost of Replacing an AC and Furnace

To determine the total cost of replacing your AC and furnace, you must consider several factors. 

These factors contribute to the total price quoted by HVAC professionals or companies to replace your units. 

Size and Capacity of the HVAC System

When replacing an HVAC system, the size and capacity are must-know factors. The table below gives an idea of the average cost for different sizes and capacities.

Size and CapacityAverage Cost
Small (1-1.5 ton)$3,000 – $4,000
Medium (2-2.5 ton)$3,800 – $5,500
Large (3-5 ton)$4,500 – $7,500

Efficiency Rating of the HVAC System

When replacing your AC and furnace, the efficiency rating of your HVAC system matters. This rating shows how well it converts energy into heat or cool air. 

To help, a table has been created with columns for SEER, AFUE and HSPF. The higher the rating, the more efficient the system is.

SEEREnergy savings over time
AFUELess fuel consumed and lower costs
HSPFPuts less strain on the heating, prolonging its life

Type and Model of the HVAC Unit

Determining the cost of replacing an AC and furnace in your home requires you to consider the type and model of the HVAC unit. 

Remember that these costs are only averages and may vary due to factors like,

  • Location
  • Brand
  • Energy efficiency rating

Energy efficiency rating (EER) or seasonal energy efficiency ratio (SEER) is another factor to consider

Units with higher ratings cost more but offer long-term savings in energy costs.

There are many options available, each with its own features and specifications that can affect the cost. 

To help you, we’ve created a table with some common types and their associated costs:

TypeAverage Cost
Central AC and Furnace$7,000-$12,000
Ductless Mini-Split$3,000-$10,000
Window AC$150-$700

Ductwork installation or modification

When replacing an AC and furnace, ductwork installation or modification can really up the cost. 

To do it right, use this 4-step guide:

  1. Ask a pro to check the required duct sizing.
  2. Brainstorm design changes for extra ductwork parts.
  3. Install/modify with care.
  4. Test for proper airflow.

More efficiency means lower electricity bills. Structural changes could add more cost when modifying ductwork.

Check for incentives like tax credits and rebates from local energy companies too. 

Labor Costs

Labor costs are essential when it comes to replacing your AC and furnace. They are the fees charged by contractors for installation services and can be affected by factors like:

Size of the houseLarger homes can take longer to install, so you’ll need to pay more.
Type of systemComplex systems may require more skill and time, so they’re more expensive.
LocationIn places with higher living expenses, expect higher labor rates.

HVAC Unit Options and Their Costs

To understand your HVAC unit options and costs, let us see the efficiency rating, performance, and features of various HVAC units

Air Conditioner Unit Cost

Air conditioners are a must-have in today’s living spaces especially during the hot summer days.

Also, remember that energy efficiency ratings (SEER) may affect pricing. Plus, professional installation can add thousands more to these base costs.

We made a table that shows the most common air conditioners and their costs. The numbers below are based on average estimates from various sources

But remember, prices may change depending on location, brand, features, and installation fees.

AC Unit TypeCost
Window Units$150-$500
Portable Units$200-$800
Mini-Split Systems$1,000-$4,500
Central AC$2,500-$7,500

Furnace Unit Cost

When replacing or upgrading your HVAC system, the furnace unit cost is essential. 

Here’s a list of average costs for various furnace types:

Furnace TypeAverage Cost (Installed)
Natural Gas Furnace$2,500-$7,500
Oil Furnace$4,000-$5,800
Electric Furnace$1,500-$2,500
Propane Furnace$3,000-$10,000

Heat Pump Unit Cost

Heat pumps are a popular choice for HVAC units. But what about the cost? 

Let’s look at the size of heat pumps and the associated costs.

Size of Heat PumpCost Range
1.5 ton$2,000 – $3,000
2 ton$2,300 – $3,300
3 ton$3,000 – $4,500
4 ton$3,800 – $5,500

Dual Fuel System Unit Cost

A Dual Fuel System involves both a gas furnace and heat pump working together. Consequently, installation costs may differ depending on your place and house setup. 

The following table provides the costs of different components:

Gas Furnace$1,500 – $3,000
Heat Pump$2,500 – $5,000
Installation$3,000 – $7,000

Installation Costs for Replacing an HVAC System

To get your new HVAC system installed with minimal installation costs, you can either hire HVAC professionals or opt for a DIY installation. 

Cost of HVAC Installation by HVAC Professionals

Replacing an HVAC system may seem like a challenge, but with the right pros and cash, it can be done smoothly. 

Here’s what to know about the cost of HVAC installation.

HVAC System TypeAverage Cost Range
Central Air$3,500 – $7,500
Heat Pump$5,000 – $8,500
Ductless Mini-Split$3,000 – $10,000

Cost Savings of DIY HVAC Installation

DIY HVAC installation can save money compared to a professional installation. Consider risks and pitfalls before attempting it.

Estimates on cost savings:

ItemProfessional CostDIY Cost
HVAC System$5,000 – $10,000+$2,500 – $6,000
Labor Costs$1,500 – $3,000+N/A
Total Cost$6,500 – $13,000+$2,500 – $6,000

Choosing the Right HVAC System Based on Climate Zones

To choose the right HVAC system based on climate zones, go for the top HVAC brands that cater to different regions. 

Top HVAC Brands for Different Climate Zones

Consider the climate of the region before buying a new HVAC system.Different regions call for different heating, ventilation, and air conditioning capabilities. 

For colder climates, Lennox and Carrier might be better. However, Trane and Rheem are great for those warmer regions. But many brands have hybrid systems that work well in both hot & cold areas.

When deciding, take note of the brand’s experience with similar temperatures and weather patterns. 

Plus, don’t forget about support & warranties. Technology in this industry is always advancing, so check recent reviews before committing to a brand

Efficiency ratings and cost-effectiveness are also important things to consider.

ClimatesTop HVAC Brands
Colder ClimatesLennox and Carrier
Warmer ClimatesTrane and Rheem

Types Of Furnaces for Different Climate Zones

Heating, Ventilation, and Air Conditioning (HVAC) systems differ depending on climate zones. Different furnaces work better in different places. 

It’s key to pick the right HVAC system for the zone for maximum efficiency and money-saving.

Single-stage furnaces 

Single-stage furnaces are great for hot and humid climates. They have an on/off switch that gives max cooling when needed. 

Two-stage furnaces

Two-stage furnaces suit milder climates as they can change heating output according to the temperature. 

Variable-stage furnaces 

Variable-stage furnaces are aces in colder climates with varying temperatures.

To get you started, here is a chart:

Climate ZoneIdeal Furnace Type
Hot & HumidSingle-Stage Furnace
MildTwo-Stage Furnace
ColdVariable-Stage Furnace

Best Heat Pumps for Different Climate Zones

When selecting an HVAC system, the climate zone you live in is key. Different heat pumps will work better in different zones. 

Here are the best heat pumps for various climates:

Climate ZoneRecommended Heat Pump ModelFeatures
Hot & HumidCarrier Infinity 20 Coastal Heat Pump with Greenspeed IntelligenceHigh efficiency & great dehumidifying.
ColdMitsubishi Electric Hyper-Heating H2i® MSZ-FH Ductless Mini-Split Heat Pump SystemAdvanced heating tech for temperatures as low as -13°F.
ModerateAmana AVXC20/ASXC18 Air Conditioner/Heat PumpDual-fuel & high seasonal efficiency ratings.

Additional Costs to Consider When Replacing an HVAC System

To consider the additional costs while replacing an HVAC system with factors like efficiency rating, unit size, system type, climate zone, and more.

New Ductwork Installation Costs

When it comes to replacing an HVAC system, the cost of new ductwork installation is an important factor. Good installation means better airflow and heating/cooling.

These are only average prices. It may be higher or lower depending on location, materials, and labor charges. The size and complexity of the HVAC system also affect the cost. 

Let’s check out these costs.

ItemsAverage Cost
New Ductwork Installation (1,500 sq.ft)$4,000 – $6,000
Addition of New Return Air Ducts$350 – $550 per unit
Expansion of Existing Ductwork System (1,500 sq.ft)$2,000 – $3,500

Upgrading to SEER Split System AC

Upgrading to a SEER Split System AC is a great way to cut down on those utility bills and increase your comfort. 

Here is how you can upgrade your HVAC system in five steps:

  1. Start by finding a licensed pro who knows all about HVAC systems. They can help you decide what SEER (Seasonal Energy Efficiency Ratio) is best for you.
  2. Pick the right size and type of equipment for your home. Look for ENERGY STAR certified products with features like scroll compressors, variable speed motors, and programmable thermostats.
  3. Get ready for installation by figuring out the best spot for the condenser unit, mounting brackets, pipes, wiring, and ductwork.
  4. After installation, make sure to schedule maintenance with a reliable service provider to keep everything running smoothly.
  5. Don’t forget to check for rebates and incentives from the government or your utility company to help with the cost.

NoVac Install Kit

Replace your HVAC system with the Bundle MRCOOL DIY Universal or MX System for a cheaper price than hiring a professional.

See the table below for the costs of each item included in the kit:

Line Set$100-$300
Electrical Wiring$100-$500
Drain Line$20-$50

Bundle MRCOOL DIY Universal or MX System

The Bundle MRCOOL DIY Universal or MX System could be a great choice! But, it’s important to think of any additional costs before installation. 

Here are some things to remember:

Additional CostsDescription
Permits and LicensesYou may need permits and licenses.
Installation labor costThe cost may depend on the job.
Ductwork modifications/repairsYour ductwork may need fixing.
New electrical circuit installationNew circuits may cost $400-$1,200.

Tips to Reduce the Cost of Replacing an HVAC System

To reduce the cost of replacing your HVAC system, you need to consider several factors to find the right solutions for maximizing energy efficiency.

Maximizing Energy Efficiency to Reduce Energy Usage

An HVAC system is key for any home. Replacing it is costly, so energy efficiency is the way to save money

To make it more efficient, upgrade or maintain it. Programmable thermostats can adjust the temperature automatically, saving energy when away. 

Sealing leaks and having proper insulation also help. Clean air filters, too. Ceiling fans circulate warm and cool air to reduce reliance on the heating/cooling system

For max energy efficiency, maintain, upgrade, insulate, program, filter, and fan! Electric furnaces may be efficient, but natural gas or propane are cozier.

Considering Natural Gas or Propane instead of Electric Furnaces

Natural gas and propane are great alternatives to electric furnaces. Let’s take a look at their benefits.

CriteriaNatural GasPropaneElectricity
Cost per Unit of Heat (BTU)$0.038$0.101$0.041
Efficiency Rating (AFUE)95%90%100%

Natural gas is cheaper than the other two options. Propane has higher efficiency. Converting an electric furnace can be costly and depends on your location.

Insulating Homes and Windows to Improve Performance

Insulating your home and windows boosts the efficiency of HVAC systems. It’s cost-effective and often overlooked. 

Here are tips to get you going:

WeatherstrippingSeal spaces around doors and windows to stop drafts.
InsulationKeep temperatures steady by preventing outside conditions from getting in.
Upgrade WindowsDouble-pane models or Low-E glass save on heating and cooling costs.

Properly Maintaining the HVAC System to Extend its Lifespan

Maintaining your HVAC system is key to extending its lifespan. To do this, replace air filters regularly, clean both internal and external components, ensure proper airflow by removing any blockages, and schedule regular maintenance checks with a professional technician.

Other details to consider are the thermostat settings. Setting it correctly prevents the system from overworking itself and leading to quicker wear and tear.

Importance of Replacing an HVAC System for Comfort and Energy Savings

Replacing an HVAC system is key for optimal comfort and energy savings. Upgrading to a high-efficiency rating system can improve the air conditioner and furnace’s performance, reducing energy usage and costs. 

Choosing the right unit size for one’s home ensures consistent heating or cooling. A new HVAC system installation may also require new ductwork, adding to the cost, but improving efficiency. 

Working with HVAC professionals is essential to get a personalized solution that fits unique needs, climate zone and budget constraints.

Factors such as brand reputation, equipment features and installation labor costs must be considered. 

A Lennox gas furnace or MRCOOL DIY Universal bundle could be popular choices, depending on region-specific conditions.

Replacing old HVAC systems (that are typically around 10 years old) produces up to 40% energy savings monthly (Pro Party Testing). 


Replacing an older heating system or air conditioning unit brings excellent results when it comes to comfortability, and substantially reduces energy consumption costs. Homeowners looking to reduce their carbon footprints can benefit from upgrading to high-efficiency rated models.