New Furnace and AC Cost Guide

Replacing HVAC systems is one of the largest home maintenance expenses homeowners face. This guide explains typical new furnace and AC cost ranges, factors that drive price, options for efficiency, installation considerations, and tips to get accurate estimates.

Component	Typical Cost Range (Installed)	Notes
Furnace (Gas, Mid-Efficiency)	$2,500 – $5,000	AFUE ~80–90%
Furnace (High-Efficiency Gas)	$3,500 – $7,500	AFUE 92–98%
Heat Pump (Air Source)	$4,000 – $10,000	Replaces furnace + AC in some climates
Central Air Conditioner	$3,000 – $7,500	SEER 13–20+
Full HVAC System (Furnace + AC)	$6,000 – $20,000+	Depends on efficiency, home size, complexity

How Searchers Use The Term “New Furnace And AC Cost”

Search queries for new furnace and AC cost often come from homeowners planning replacements, comparing quotes, evaluating energy savings, or researching financing. Users expect clear price ranges, explanations of efficiency ratings, and guidance on what affects installation costs.

Key Factors That Determine New Furnace And AC Cost

Several variables influence final pricing for a new furnace and AC. Understanding these factors helps homeowners evaluate quotes and avoid unexpected expenses.

Equipment Type And Efficiency

Higher-efficiency units cost more upfront. Furnace efficiency is measured by AFUE (Annual Fuel Utilization Efficiency); typical ranges are 80%–98%. AC efficiency is measured by SEER (Seasonal Energy Efficiency Ratio); modern units range from SEER 13 to 26+. Higher AFUE/SEER yields lower operating costs but higher purchase price.

Home Size And Load Requirements

System sizing affects cost. Contractors perform Manual J load calculations to determine required capacity in BTUs or tons. Oversized or undersized equipment wastes money and reduces comfort, so accurate sizing often increases initial cost but improves long-term value.

Installation Complexity

Installation labor varies by complexity. Ductwork repairs, new line sets, changes in venting for high-efficiency furnaces, electrical upgrades, or difficult access increase labor costs. Replacing both furnace and AC simultaneously may reduce overall labor per unit compared to separate installations.

Ductwork Condition

Old or leaky ducts reduce system efficiency and may require sealing, insulation, or replacement. Duct repairs can add several hundred to several thousand dollars to the project but typically pay back via improved efficiency and comfort.

Local Labor And Market Rates

Labor rates and permit fees vary regionally. Urban areas or high-cost states often have higher contractor rates. Local competition, seasonal demand, and supply chain conditions also affect quotes.

Brand, Warranty, And Features

Premium brands and extended warranties raise costs. Variable-speed blowers, multi-stage compressors, smart thermostats, and integrated zoning systems add features but increase price, while delivering improved comfort and efficiency.

Price Breakdown: Typical Costs For Components

This section outlines typical installed cost ranges for major components when replacing or installing a new furnace and AC.

Furnace Costs

Basic mid-efficiency gas furnace typically costs $2,500–$5,000 installed. High-efficiency condensing furnaces with AFUE 95%+ usually fall between $3,500–$7,500. Oil furnaces, electric furnaces, and specialized units differ in price. Heat pumps can replace a furnace and AC in many homes and are priced differently.

Central Air Conditioner Costs

Central AC installed costs typically range from $3,000–$7,500 depending on SEER rating and tonnage. Higher-SEER models cost more but may qualify for rebates and reduce electricity bills.

Heat Pumps And Ductless Systems

Air-source heat pumps installed costs range widely: $4,000–$10,000+ depending on capacity and features. Ductless mini-split systems cost roughly $2,500–$8,000 per zone installed. Heat pumps provide efficient heating and cooling in suitable climates and may replace both furnace and AC.

Ductwork, Thermostats, And Accessories

Duct sealing or replacement typically costs $500–$5,000 based on extent. Smart thermostats cost $150–$400 plus installation. Zoning systems, UV lights, air purifiers, and humidifiers add variable costs but improve indoor air quality and comfort.

Energy Savings And Payback Considerations

Higher upfront costs for efficient furnace and AC systems can yield lower monthly utility bills. Calculating simple payback helps determine if higher-efficiency equipment is economical for a specific household.

Estimating Annual Savings

Annual savings depend on local energy prices, climate, and usage. Upgrading from SEER 13 to SEER 18 can reduce cooling energy use by up to 28% in some climates. Replacing a low-AFUE furnace with a high-efficiency model may save 10%–30% of heating fuel annually.

Incentives, Rebates, And Tax Credits

Federal, state, and utility rebates can significantly reduce net cost. For example, federal tax credits and utility rebates sometimes apply to high-efficiency heat pumps and furnaces. Homeowners should consult local utility programs and federal incentives to lower upfront expenses.

Choosing Between Replacing Both Systems Or Upgrading One

Decisions depend on system age, compatibility, and desired efficiency. Replacing both furnace and AC at once can ensure matched components and modern efficiency across the entire HVAC system.

Pros Of Replacing Both

• Guaranteed compatibility and balanced performance.
• Potentially lower combined labor cost than two separate projects.
• Opportunity to install matched efficiencies and advanced controls.

When To Replace Only One

When one system is relatively new, it may be sensible to replace only the failed component. However, mismatched efficiencies can limit overall performance and savings, so this decision requires a careful cost-benefit analysis.

How To Get Accurate New Furnace And AC Cost Estimates

Accurate estimates require detailed onsite evaluation and load calculations. Homeowners should request multiple written quotes and ask specific questions to compare apples-to-apples.

Questions To Ask Contractors

1. Does the quote include labor, permits, and disposal of the old equipment?
2. Will a Manual J load calculation be performed?
3. What are the exact model numbers and efficiency ratings (AFUE/SEER)?
4. Is ductwork inspection and sealing included or quoted separately?
5. What warranty coverage is provided for parts and labor?
6. Are any rebates, incentives, or financing options available?

Comparing Quotes Effectively

Ensure each quote lists the same scope: brand/model, efficiency ratings, coil compatibility, thermostat type, labor hours, permit fees, and warranty. Lower bids may omit necessary upgrades or use lower-quality components.

Financing Options And Budget Strategies

Many homeowners finance new furnace and AC installations. Options include home equity loans, personal loans, credit cards, HVAC company financing, and utility-sponsored programs.

Common Financing Routes

• Manufacturer or contractor financing with promotional APR offers.
• Home equity or HELOC for potentially lower rates and tax-deductible interest in some cases.
• Energy-efficiency loans and on-bill financing tied to utility programs.

Choosing financing depends on credit, interest rates, available rebates, and desired monthly payments. Homeowners should compare total interest costs and prepayment penalties before committing.

Installation Best Practices And Avoiding Common Pitfalls

Proper installation is as important as equipment selection. Incorrect installation can reduce efficiency, increase service calls, and void warranties.

Hire Licensed, Insured Contractors

Verify licensing, insurance, and local references. Licensed HVAC contractors follow local codes and obtain required permits, ensuring the work meets standards and warranties remain valid.

Insist On Load Calculations And Proper Ductwork Evaluation

Manual J load calculations and duct system assessments ensure the new furnace and AC are sized correctly. Ask contractors to include these diagnostics in the written estimate.

Check For Manufacturer Certification

Manufacturer-certified installers may offer extended warranties and are trained on specific equipment installation procedures. This can improve reliability and support future warranty claims.

Maintenance Tips To Prolong System Life And Reduce Costs

Routine maintenance reduces downtime and improves efficiency. Annual or biannual inspections by a professional can catch issues early and preserve warranty coverage.

Recommended Maintenance Tasks

• Change air filters every 1–3 months depending on usage and filter type.
• Schedule annual furnace tune-ups and spring AC checkups.
• Keep outdoor units free of debris and maintain proper airflow.
• Inspect and seal ductwork, especially in unconditioned spaces.

How Weather And Regional Factors Affect New Furnace And AC Cost

Climate affects equipment choice and operating costs. Cold northern climates prioritize high-AFUE furnaces or cold-climate heat pumps, while hotter regions prioritize higher-SEER ACs. Local utility rates and climate patterns influence payback timelines for efficiency upgrades.

Resources For Further Research

Homeowners should consult the Department Of Energy, local utility efficiency programs, and manufacturer websites for up-to-date efficiency ratings, rebates, and technical guidance. Seeking multiple professional bids and reading consumer reviews helps select a reliable contractor and appropriate equipment.

Key Takeaway: New furnace and AC cost varies widely based on equipment efficiency, home size, installation complexity, and regional factors. Accurate quotes require load calculations, duct evaluations, and clear scope definitions. Considering incentives, financing, and maintenance can improve long-term value and comfort.