How Much to Expect to Pay for a New Furnace and Air Conditioner

Replacing a furnace and air conditioner is a major home expense. This guide explains typical cost ranges, the factors that drive price, how to compare quotes, and ways to save through efficiency, incentives, and proper sizing. The goal is to help homeowners make informed decisions when budgeting for a full HVAC replacement.

Component	Typical U.S. Cost Range	Notes
Furnace (installed)	$2,000 – $7,000	Depends on fuel type, AFUE rating, and capacity
Air Conditioner (installed)	$3,000 – $8,500	Depends on SEER rating, tonnage, and system type
Full HVAC System (both)	$5,000 – $15,000+	Includes labor, ductwork, and permits; high-efficiency systems cost more
Minor Duct Repairs	$300 – $1,500	Sealing and small fixes
Major Duct Replacement	$2,000 – $10,000+	Depends on home size and layout

Typical Price Ranges For Furnaces And Air Conditioners

National averages provide a starting point for budgeting. A mid-efficiency gas furnace typically costs between $2,500 and $5,500 installed. High-efficiency units with variable-speed blowers and modulating burners can exceed $6,000. Central air conditioners average $3,500 to $6,500 installed for a single-stage 2–5 ton unit, while high-SEER or multi-stage systems can push costs above $8,000.

Combined furnace and AC replacements for an average U.S. home usually fall between $6,000 and $12,000. Luxury or large-home installations with custom ductwork and premium equipment may reach $15,000 to $20,000 or more.

Key Factors That Affect Total Cost

Equipment Type And Fuel

Gas furnaces, electric furnaces, and heat pumps have different price points. Gas furnaces are common in colder regions and typically cost more than basic electric furnaces but may save on fuel. Heat pumps (air-source or geothermal) combine heating and cooling functions and can reduce total equipment cost when replacing both, but ground-source systems have high upfront costs.

Efficiency Ratings

Higher AFUE (furnace) and SEER (AC) ratings increase equipment prices but reduce operating costs. Cost premiums for high efficiency are justified by long-term savings in many climates. Homeowners should compare lifecycle costs, not just purchase price.

Capacity And Home Size

Equipment capacity is measured in BTUs for furnaces and tons for AC. Undersized or oversized systems lead to inefficiency, comfort issues, and higher operating costs. Proper sizing through Manual J load calculations is essential and can influence equipment selection and cost.

Ductwork Condition

Existing ducts in good shape reduce replacement costs. Leaky, poorly insulated, or undersized ducts require sealing, modification, or full replacement. Duct repairs can range from a few hundred dollars to several thousand for full rework.

Installation Complexity

Installation labor varies by region and job complexity. Factors include access to equipment locations, need for new venting, condenser pad or platform work, electrical upgrades, and removal/disposal of old units. Multi-story homes and tight mechanical rooms increase labor time and cost.

Permits, Inspections, And Local Codes

Permit fees, energy code requirements, and required inspections add to total cost. Some local jurisdictions require higher-efficiency minimums or specific venting and combustion air provisions, which can increase project scope.

How To Get Accurate Estimates

Request Detailed Written Quotes

Homeowners should obtain at least three written estimates that include equipment model numbers, efficiency ratings, capacity, labor, warranty coverage, permit costs, and any additional work like duct repairs. Avoid vague quotes that list only an overall price.

Verify Load Calculations

A credible contractor will perform a Manual J load calculation and document results. This ensures the proposed equipment is properly sized and reduces the risk of oversizing or undersizing, which can affect cost and comfort.

Check Contractor Credentials

Verify licenses, insurance, and local references. Memberships in trade organizations or manufacturer certifications provide additional assurance of professionalism. Ask for past project photos and references for similar homes.

Breakdown Of Typical Cost Components

Cost Component	Approximate Share	Typical Amount
Equipment	40% – 60%	$2,500 – $10,000+
Labor/Installation	20% – 40%	$1,200 – $4,500
Ductwork/Modifications	0% – 30%	$0 – $10,000+
Permits/Testing	1% – 5%	$100 – $800
Removal/Disposal	0% – 3%	$100 – $500

Costs By Scenario

Simple Like-For-Like Replacement

Replacing an existing gas furnace with a similar efficiency furnace and swapping out the AC condenser typically represents the lowest cost scenario. Expect mid-range equipment and minimal ductwork changes. Average cost: $5,500–$9,000.

Upgrade To High Efficiency or Two-Stage Systems

Upgrading to high-AFUE furnaces or 16+ SEER AC units increases equipment costs but improves comfort and lowers bills. Budget an extra $1,000–$3,500 depending on options like variable-speed blowers or communicating controls.

Convert From Electric To Gas Or Vice Versa

Converting fuel types adds cost for new gas lines, vents, or electrical upgrades. This can add $500–$4,000 depending on the scope and whether the home already has necessary utilities.

Full System Replacement With Ductwork

Homes with outdated or damaged ducts may require partial or full replacement. This is one of the largest variables and can add $2,000–$10,000+. Historic homes or complex layouts cost more.

Financing, Rebates, And Incentives

Many homeowners finance HVAC projects through dealer financing, home equity loans, personal loans, or PACE programs. Interest rates and terms vary, so comparative shopping is important. Manufacturer rebates, state energy incentives, and utility rebates often target high-efficiency equipment and can reduce net cost.

Federal tax credits for heat pumps or energy-efficient equipment periodically change. Homeowners should check current IRS guidance, state energy office websites, and utility rebate portals before purchase.

Warranty And Maintenance Considerations

Warranties cover parts and sometimes labor. Extended warranties or contractor-provided maintenance agreements increase upfront cost but can lower long-term repair expenses. Verify what voids a warranty, such as lack of annual maintenance.

Regular maintenance—annual tune-ups, filter changes, and duct inspections—prolongs system life and maintains efficiency. Budget for routine maintenance costs of $100–$300 per year.

Ways To Reduce Total Cost Without Sacrificing Quality

• Shop Multiple Bids: Compare detailed proposals from at least three reputable contractors.
• Consider Package Deals: Buying furnace and AC as a matched system can lower parts and labor costs.
• Take Advantage Of Rebates: Research utility and manufacturer rebates before purchasing.
• Improve Home Envelope: Insulation and sealing reduce required capacity and operating costs.
• Schedule Replacements Off-Season: Contractors may offer discounts in spring or fall.

Red Flags To Watch For In Quotes

Be cautious if a quote lacks equipment model numbers, omits a Manual J calculation, or offers a price far below competitors without explanation. High-pressure sales tactics, long unexplained warranties, or requests for full payment up front are warning signs. A transparent contractor will explain all line items and answer questions clearly.

How Long Should The System Last And Return On Investment

Average lifespans: gas furnaces 15–20 years, central AC 12–15 years, heat pumps 10–15 years. High-efficiency systems with proper maintenance can exceed these ranges. Return on investment depends on energy prices, local climate, usage patterns, and incentive availability. Many homeowners recoup higher efficiency costs through lower utility bills within 5–10 years, but this varies considerably.

Sample Cost Comparison Table

Scenario	Estimated Cost	Notes
Basic Like-For-Like	$5,000 – $8,000	Standard efficiency furnace and 13–14 SEER AC
Mid-Efficiency Upgrade	$7,000 – $12,000	Higher AFUE furnace, 15–16 SEER AC, minor duct sealing
High-Efficiency/Heat Pump	$9,000 – $15,000	Heat pump system, higher SEER, energy rebates possible
Full Duct Replacement	$10,000 – $20,000+	Custom ducts, large home, or extensive remodeling

Final Tips For Homeowners Planning A Replacement

• Prioritize Proper Sizing: Ask for Manual J documentation and matching equipment to the home’s load.
• Evaluate Long-Term Costs: Compare lifecycle energy savings, not just upfront price.
• Ask About Installation Details: Confirm thermostat compatibility, refrigerant type, and any necessary electrical upgrades.
• Maintain Records: Keep manuals, receipts, and maintenance logs for warranty and resale value.
• Negotiate: There is often some flexibility on labor, disposal fees, or equipment add-ons.

Understanding typical costs, the major variables, and ways to evaluate contractors helps homeowners budget realistically and select systems that balance comfort, efficiency, and long-term value. Accurate quotes, proper sizing, and attention to ductwork and installation quality are the most reliable ways to avoid unexpected expenses and maximize system performance.