Cost To Replace AC Unit And Furnace: Comprehensive Guide On HVAC Replacement Expenses In 2025

Replacing both your AC unit and furnace can be a major investment, but understanding the cost to replace an AC unit and furnace is crucial for American homeowners seeking efficient comfort. This detailed guide breaks down average prices, cost factors, and money-saving strategies in 2025, empowering you to make informed HVAC decisions.

Item	Average Cost (Installed)	Cost Range
AC Unit (Central)	$3,800	$2,500 – $7,500
Furnace (Gas Furnace)	$4,500	$3,000 – $7,000
Both (Package)	$8,300	$5,500 – $13,000
Labor (Total)	$2,500	$1,500 – $4,000

Factors Affecting The Cost To Replace AC Unit And Furnace

The total cost to replace an AC unit and furnace isn’t fixed. Several factors can increase or decrease your final price. Being aware of these details helps with budgeting and decision-making.

System Size And Capacity

Larger homes require larger, more powerful HVAC units. The capacity is measured in tons for AC and BTUs for furnaces. Proper sizing is essential for comfort and energy efficiency. An undersized system will run constantly, while oversized units may waste energy and wear out faster.

System Efficiency Ratings

Higher SEER (Seasonal Energy Efficiency Ratio) on AC units and AFUE (Annual Fuel Utilization Efficiency) ratings on furnaces mean better energy savings but often come at a higher upfront cost. Homeowners can balance initial investment with long-term utility bill reductions.

Brand And Model

Leading HVAC brands like Carrier, Trane, Lennox, and American Standard typically charge more for reliability and advanced features. Budget brands can reduce the initial expense but may offer fewer features or warranties.

Installation Complexity

Challenging installations, accessibility issues, or additional ductwork can significantly raise labor costs. If system locations need relocation or modifications, expect additional charges.

Location And Regional Costs

Your region affects both equipment prices and labor rates. Urban areas and regions with harsher climates, like the Northeast or Midwest, can see higher costs than southern states with mild winters. Permitting fees may also vary.

Additional Upgrades And Work

If existing ductwork is damaged, poorly insulated, or needs upgrading, this can add $2,000 or more. Add-ons like smart thermostats, zoning, air quality equipment, or humidifiers increase costs but may enhance comfort and efficiency.

Average Cost To Replace AC Unit And Furnace In The U.S. (2025)

The systems most commonly replaced together are central AC units paired with gas furnaces. The table below summarizes typical costs homeowners may encounter in 2025:

System Type	Average Installed Cost	Common Cost Range
AC Unit Only	$3,800	$2,500 – $7,500
Furnace Only	$4,500	$3,000 – $7,000
Both (Combo Deal)	$8,300	$5,500 – $13,000

Package deals or bundled system replacements often reduce the per-system cost compared to replacing each separately.

Itemized HVAC Replacement Cost Breakdown

A closer look at what goes into the cost to replace AC unit and furnace helps homeowners plan accurately:

Cost Category	Low-End	High-End	Average
Central AC Unit	$2,500	$7,500	$3,800
Furnace (Gas or Electric)	$3,000	$7,000	$4,500
Installation Labor	$1,500	$4,000	$2,500
Ductwork Replacement (optional)	$2,000	$5,000	$3,000
Add-ons (Thermostats, Zoning)	$300	$2,000+	$800

Replacing ductwork or adding smart controls increases project scope, but may boost comfort and long-term performance.

How System Type Impacts Replacement Cost

The specific type of AC and furnace system you select greatly affects your replacement expenses. Below is an overview of typical options and their pricing considerations:

Central Air Conditioner With Gas Furnace

This is the most common combo in the U.S. and typically balances cost, availability, and performance. Average cost: $8,000–$13,000 installed for both units.

Heat Pump Systems

Heat pumps can both heat and cool, sometimes replacing the need for a separate furnace. Costs range from $7,500-$14,000, but you may save on long-term utility bills, especially in milder climates.

High-Efficiency Models

Top-end systems with SEER21+ or AFUE95%+ ratings are more expensive upfront (sometimes $10,000–$15,000 total) but may qualify for rebates and lower energy bills significantly over time.

Variable-Speed & Zoned HVAC

Advanced features like variable-speed blowers or multi-zone controls add $2,000–$5,000 to the project, enhancing comfort and efficiency.

AC Unit And Furnace Replacement Cost By Home Size

The size of your home determines the scale of your HVAC equipment, impacting costs directly. The following table highlights typical ranges:

Home Size (sq. ft.)	AC Unit Size (Tons)	Furnace Size (BTUs/hr)	Total Installed Cost
1,000 – 1,500	1.5 – 2.0	45,000 – 60,000	$6,000 – $8,500
1,501 – 2,000	2.0 – 2.5	60,000 – 75,000	$7,500 – $10,000
2,001 – 2,500	2.5 – 3.5	75,000 – 90,000	$8,500 – $12,500
2,501 – 3,500	3.5 – 5.0	90,000 – 120,000	$10,000 – $16,000

Accurate sizing requires a professional load calculation to account for insulation, windows, and layout.

Cost To Replace Different Types Of Furnaces

The type of furnace you choose impacts system expense:

• Gas Furnace: $3,000–$7,000 installed. Highly efficient, most popular in colder regions.
• Electric Furnace: $2,000–$5,500 installed. Lower upfront, but costlier to operate in cold climates unless combined with a heat pump.
• Oil Furnace: $4,000–$7,500 installed. Less common, more expensive to operate but sometimes necessary in rural areas.

Most U.S. homes replacing both units use either a gas or electric furnace, depending on the existing setup and energy prices in their region.

Cost To Replace Different Types Of AC Systems

• Central AC (Split System): $2,500–$7,500 installed. Most common in homes with existing ducts.
• Ductless Mini-Split: $3,500–$10,000 for multi-zone systems. Good for additions or homes without ducts.
• Heat Pump: $4,500–$8,000 as an AC replacement. Can serve as both a heater and cooler.

The initial cost may be higher for ductless or heat pump options, but they can offer efficiency benefits and supplemental heating in winter.

Labor Costs For HVAC Replacement

Labor generally accounts for 30%–40% of the total replacement cost for both an AC unit and furnace. Average installation charges are $1,500–$4,000. Skilled, licensed technicians will:

• Remove and dispose of old equipment
• Install new units and connect to ductwork
• Update wiring, thermostats, and safety switches
• Test systems and ensure efficient operation

Labor costs rise for difficult-to-access homes, historic houses, or projects requiring extensive code upgrades or new ductwork.

Additional Costs Homeowners Should Consider

Replacing an AC unit and furnace can include optional charges, such as:

• Duct replacement or repair: $2,000–$5,000
• Thermostat upgrades: $150–$500
• Adding zoning or smart controls: $1,000–$3,000
• Removing asbestos or old insulation: $1,000–$4,000
• Permits and inspections: $200–$600+

Understanding these potential extras can prevent surprise expenses and allow for a more accurate budget.

Energy Efficiency And Long-Term Savings

The most energy-efficient HVAC systems cost more upfront, but the returns through lowered utility bills and environmental impact can be significant. Modern AC units and furnaces may also qualify for federal tax credits or state rebates.

• High-SEER AC (16–21+) and high-AFUE furnace (95%+)
• Energy savings of 20–40% annual compared to models over 15 years old
• Potential federal tax credits of up to $2,000 under the Inflation Reduction Act

These incentives, paired with energy savings, often offset higher purchase prices for efficient models within several years.

When To Replace Both AC Unit And Furnace?

It is often more cost-effective to replace both the AC unit and furnace simultaneously when:

• Both are more than 10–15 years old
• Both units show signs of frequent breakdowns
• Your new AC and old furnace use incompatible refrigerants or controls
• You’re upgrading for efficiency or home value

Single replacements may seem cheaper upfront, but labor and efficiency mismatches often lead to higher long-term costs.

Financing Options For HVAC Replacement

Due to the major expense, many HVAC installers offer financing programs (0% APR promotional periods, personal loans, or lines of credit). Additionally, utility companies and government agencies occasionally provide incentive programs, rebates, or on-bill financing to reduce upfront costs.

Compare financing options and rebates before committing to ensure affordability and the best return on investment.

How To Save Money On AC Unit And Furnace Replacement

Homeowners can lessen the burden of the cost to replace AC unit and furnace through several strategies:

• Request multiple quotes from licensed, reputable contractors
• Explore available rebates, incentives, and tax credits
• Negotiate price, especially for bundled installations
• Choose the correct (not oversized) system for your home
• Consider installation timing—off-season replacements may be less costly

Discuss efficiency trade-offs with your HVAC professional to balance upfront price with long-term savings.

What To Look For In An HVAC Contractor

The quality of installation directly impacts equipment lifetime and operating cost. When choosing a professional for replacement:

• Verify state licensing and insurance
• Check for NATE (North American Technician Excellence) certification
• Request references and online reviews
• Ask for a detailed, written quote (equipment specs, labor, warranty, extras)
• Avoid unusually low bids—these may indicate shortcuts or inferior products

Reliable companies provide home load calculations, clear warranty info, and flexible payment options.

Warranties And Service Agreements

New HVAC equipment typically includes a manufacturer’s warranty for 5–10 years covering parts, with labor warranties ranging from 1–3 years. Extended warranties or service agreements for seasonal maintenance may be available at extra cost, offering peace of mind and reducing future repair risks.

Signs It’s Time To Replace Your AC And Furnace

Homeowners should consider system replacement if:

• Your AC or furnace is over 12–15 years old
• Frequent, costly repairs are necessary
• Utility bills are rising without changes in home usage
• System struggles to maintain comfort or humidity
• Obsolete refrigerants (like R-22/Freon) are used in the AC

Delaying necessary replacement can result in decreased comfort, increased repair costs, and potential safety hazards.

Frequently Asked Questions: AC And Furnace Replacement

Is It Cheaper To Replace The AC And Furnace At The Same Time?

Yes. Doing both units together often reduces labor and material costs, ensures system compatibility, and can qualify homeowners for additional discounts or incentives.

How Long Does Installation Take?

Typically 1–3 days, depending on system complexity and any ductwork or electrical upgrades required.

Should I Replace The Ductwork As Well?

If ducts are older than 15 years, damaged, leaky, or uninsulated, replacing them during HVAC replacement increases energy efficiency and air quality but adds to the overall project cost.

Can I Replace The AC Unit Or Furnace Separately?

It’s possible, but doing so may sacrifice system efficiency, compatibility, and long-term warranty protection.

What Brands Offer The Best Value?

Carrier, Trane, Lennox, Rheem, and American Standard are respected brands that offer a good balance of reliability and features at various price points. Budget options like Goodman or Amana may suffice for some needs.

References And Further Reading

U.S. Department of Energy: Home Heating Systems
ENERGY STAR: Heating & Cooling
Consumer Reports: Guide to Replacing Furnace and AC