How Much Does a New HVAC System Cost?

The average cost to replace an HVAC system ranges from $11,590 to $14,100 as of 2026. This is based on 56,000 real homeowner projects over the past 6 months with Modernize and includes central air conditioning, furnace, and heat pump replacement plus labor costs. HVAC replacement cost depends on your home’s size, the system type, and installation requirements. Ductwork replacement for a 2,000 sq. ft. home, in addition to the HVAC replacement, adds about $2,100 to $4,000. Use our HVAC cost calculator above to estimate the cost of a new system.

Average Cost of an HVAC Replacement in 2026

For a 2,000 to 2,500-square-foot home, the average cost of a new HVAC system is about $13,430 for a combined air-conditioning and gas-furnace setup. This combination is the most common type of HVAC system found in homes across the U.S.

In areas with low labor costs, an HVAC replacement for a home under 1,500 sq. ft. could cost as little as $5,000. For a home over 3,000 sq. ft. in a higher-cost-of-living area, a new AC and furnace could cost more than $20,000.

For a home of 1,500 square feet (or smaller) in a low-labor-cost area, a full HVAC replacement could start at around $5,000, depending on the system type and installation requirements. In higher-cost-of-living areas, an AC and furnace for a home larger than 3,000 square feet could cost more than $20,000.

Average HVAC System Costs by Home Size

Home Size (Square Feet)	HVAC System Only (AC + Furnace/Heat Pump)	HVAC System With Ductwork
1,000	$4,500 to $7,500	$6,600 to $11,500
1,500	$5,000 to $8,500	$7,100 to $12,500
2,000	About $13,430	$15,500 to $17,400
2,500	About $13,430	$15,500 to $17,400
3,000	$15,000 to $20,000+	$17,100 to $23,000+

Notes:

• Ductwork costs typically add $2,100 to $4,000 for a standard installation in a 2,000-square-foot home. Larger homes scale higher.

• Actual costs vary based on system efficiency, equipment brand, local labor rates, and whether the home has existing ductwork that can be reused.

Material costs aren’t always predictable, and tariffs are one factor that can drive prices higher. While not all materials are affected, tariffs can lead to noticeable price changes in home renovation projects. If you’re budgeting for a home project, Modernize recommends asking your contractor if recent tariffs will impact your project’s material costs.

HVAC Replacement Cost by Unit Type

As noted above, our average estimates assume you are replacing the most common system type: an AC unit with a gas furnace. However, there are many types of HVAC systems. Let’s take a look at HVAC replacement costs for each unit type, and then we will walk through what each does.

HVAC Unit Installation Costs	Low Cost	High Cost
Central Air Conditioner	$6,465	$11,877
Ductless Split AC	$2,142	$3,936
Electric Furnace	$767	$3,523
Gas Furnace	$956	$3,870
Oil Furnaces	$3,325	$8,222
Heat Pump	$2,905	$7,449
Geothermal Heat Pumps	$15,000	$38,000

Central Air Conditioning/AC

A central AC unit is connected to your home’s ductwork and uses forced air to cool the home. It is typically paired with a heating system like a furnace. A central AC system includes a condenser, a compressor, and an evaporator. Costs for both the system and the labor to install it range from $6,465 to $11,877. You can visit our central AC installation guide for more information.

Window AC

Unlike central air, which cools your entire home, a window AC unit is installed in one room and cools only that room. Window AC units are most commonly used in bedrooms in homes without ductwork or in homes that only need cooling for a short period each year. They range in price from about $150 for small-room units to $600 for large-room units. Our guide to AC window unit costs can tell you more.

Ductless Split AC

Also called a mini-split, these cooling systems are excellent for homes without ductwork. A mini-split unit is mounted on the wall in each room you want cooled, and it is connected to a compressor outside your home. They are simpler to install than a central AC system. The average cost of a ductless split AC system ranges from $2,142 to $3,936. You can learn more about mini-split AC units by reading our guide.

Gas Furnace

Gas furnaces are the most common type of furnace, and they are often combined with central AC. This is because, like central air conditioning, they connect to your home’s ductwork and use forced air to heat your home. Furnaces usually come with a blower to distribute the heated air throughout your home. A gas furnace can cost between $956 and $3,870. We have more information on gas furnace installation cost and how to choose one available in our buying guide.

Oil Furnace

Oil furnaces work much like gas furnaces, but they tend to be popular in the Northeast U.S., where temperatures remain cold longer. They are quieter and cheaper to run than gas furnaces and can run on oil alone or as a hybrid system that uses a heat pump to provide cooling. However, they cost more upfront than gas furnaces, with an average price range of $3,325 to $8,222. You can learn more about oil furnace costs and considerations by reading our guide.

Electric Furnace

An electric furnace is perfect for homeowners without a natural gas line, eco-conscious homeowners, or homeowners who would have lower monthly utility bills using electricity instead of gas. Installing or replacing an electric furnace is a simpler (and thus cheaper) process than installing or replacing a gas furnace, since it doesn’t have to be vented. They are also much quieter than gas furnaces. Average costs to buy and install an electric furnace range from $767 to $3,523. Our guide to electric furnace costs covers this type of furnace in more detail.

Heat Pump

Heat pump systems are an energy-efficient alternative to an AC/furnace combo. When looking at HVAC replacement costs for heat pumps, there are three types to choose from, with the least expensive ranging from $2,799 to $7,449 to install and the most expensive (a geothermal heat pump) costing upwards of $20,000. Learn all about the types of heat pumps and their costs in our guide.

Boiler

Like furnaces, boilers can be electric-, gas-, or oil-powered. However, instead of using forced air the way a furnace does, a boiler uses either hot water or steam. That water/steam then travels through pipes connected to radiators throughout the home. Boilers start at around $4,000, and depending on the size and type you choose, can cost upwards of $11,000. Our guide to boiler costs and installation covers everything you need to know.

Radiator

Radiators are used in conjunction with boilers (see above) to heat homes. There are four types of radiators to choose from for both your home aesthetics and how you want your heat distributed: cast iron, baseboard, column, and panel. You can find out more about each by reading our guide to radiators.

There are even more HVAC system types you can explore. Check out our buying guide to types of HVAC systems to see all your options.

What Factors Affect HVAC Replacement Cost?

HVAC installation costs can vary depending on a few factors that are specific to your home and location. Here are the main things that your professional air conditioning contractor will assess in order to give you a total price quote for your replacement HVAC system:

• Local climate conditions
• Current ductwork conditions
• Home age and construction
• HVAC unit features, such as size, brand, and energy efficiency (SEER)
• Top air conditioner brands and associated installation costs

Local Climate Conditions

Your home’s location and regional climate can have a major impact on the type and size of HVAC system you need. For example, a home in the southern U.S. often requires an air conditioning unit with enough capacity to handle high summer temperatures. A home in the northern U.S. typically needs a system with greater heating power, which can increase overall costs.

Do You Need Ductwork Replacement?

Ductwork carries conditioned air from your HVAC system to different rooms through vents, often located in your attic. Over time, ductwork can lose efficiency or may need adjustments to work with a new AC system. Installing new ductwork can add $2,100 to $4,000 to your project cost, depending on how complex the installation or modifications are. If you need ductwork replacement, plan for a few extra days of labor as part of your overall HVAC project timeline.

Home Age and Construction

Your home’s size and insulation affect how efficiently it can be cooled and heated. As you might expect, a 3,000-square-foot home will need a much larger AC unit than a 1,500-square-foot home, which will affect installation costs. However, older windows and insulation can mean your unit needs to be larger, too. A house with energy-efficient windows that are well insulated and sealed with no cracks for airflow will require far less AC capacity to keep temperatures comfortable.

Other factors that can affect your system size include the insulation in the foundation, roof, attics, basements, flooring, and more.

HVAC Unit Size

As you’ve read above, the size of the unit you need will have a significant impact on your project cost. Homes that are larger, home that are more likely to use their heating/cooling systems daily (or nearly daily) because of the climate, or homes that have older insulation and windows will need to budget more for a larger unit size.

See the chart below for the average central air conditioner replacement cost by tons to get a sense of how prices can change based on system size.

Don’t know what size unit you need? You can use our furnace size calculator and our AC size calculator to find out.

Brand

The HVAC brand you choose will impact total installation costs. You can check out our picks for best AC brands, best furnace brands, and best heat pump brands to get familiar with the bigger names on the market.

Higher-end central AC units will cost more upfront. However, better brands usually come with a longer lifespan and ROI, better warranties, and smarter technology built in to fully control your home’s temperature. You can read all about how to calculate the ROI of your HVAC replacement over on our blog.

Energy Efficiency

A trusted HVAC professional can help you decide which features your home needs. Higher priced HVAC systems will come with higher energy efficiency levels, also known as the SEER rating. Where you live, the type of system you want, and the size of your home will all affect your energy efficiency requirements.

Additional HVAC Installation Costs

There may also be costs not included in the initial HVAC replacement estimate that you’ll still want to consider. Ask your contractor if the following costs are included in the initial quote they provide:

• Permits: Is a permit required from your local city or county building department? Read this post on whether a permit is needed for an air conditioning replacement.
• Inspections: Does the unit also require an inspection by a building department representative to ensure the system is up to code?
• Labor Costs: Are there any potential labor or disposal costs involved? For instance, if you live in an older home with asbestos or lead-based paint, there may be an additional cost to test, remove, or replace the material.
• Insulation: Do you need to replace or add insulation in your home to ensure your unit operates efficiently? If you are going to have an AC unit in the attic, should you consider additional attic insulation?

How to Calculate HVAC Installation Costs

To calculate HVAC installation cost for your home, you need to consider the price of the HVAC unit and your local labor charges. Unit costs depend on your home’s square footage, the type of system you need, and its heating and cooling capacity. You should also factor in the cost of ductwork if your home requires it, as well as project management expenses such as labor, transportation, and disposal.

How to Use This HVAC Cost Calculator

Our HVAC cost estimator provides a quick and tailored quote for your home. Simply enter the following, and we’ll provide an immediate cost estimate — no email address or personal information needed!

• System type (heating, cooling, or both).
• Square footage of your home.
• ZIP Code for labor cost adjustments.

This tool considers labor, materials, and location-specific factors to give you an accurate price range.

Should You Repair or Replace Your HVAC System?

If your HVAC unit can be repaired, that will almost certainly be more cost-efficient than buying a new unit. So how do you know if the problem with your HVAC can be repaired? Plan to call a tech for a repair in these circumstances:

• If your pilot light won’t stay lit.
• Your unit has a leak.
• If the unit’s fan won’t stop running or if your system gets “stuck” in one mode.
• Your system is over 10 years old and has recurring issues.
• High utility bills suggest your system is not operating efficiently.
• Repair costs are approaching or exceeding 50% of replacement costs.

You can check out our blog post on why your HVAC system isn’t working for more information on when to call in the pros.

You may encounter a problem like your AC is running but not cooling or your furnace is running but not heating. If that’s the case, you might be able to repair it. Or, you might be looking at a situation where your system needs to be replaced. Also, we recommend replacing systems older than 10 years if they’re having problems.

Benefits of a New HVAC System

Installing a new HVAC system comes with a set of benefits:

• Energy Savings: Modern ENERGY STAR-rated units reduce utility bills.
• Improved Comfort: Enhanced temperature control and quieter operation.
• Higher Home Value: Increases market appeal and resale value.

DIY HVAC Installation vs Hiring a Pro

While there is some HVAC maintenance you can DIY, installing a new unit is best left to the pros. When a project requires work with electrical systems, plumbing, or gas lines, you should not attempt the job yourself. Installing an HVAC unit yourself is risky and can lead to mistakes that cause higher utility bills.

You can read our guide on what to expect during an HVAC replacement to learn more about the installation process.

How to Find the Right HVAC Professional

We advise you to get three to four local price quotes from qualified HVAC contractors to find the best professional and the best price for the replacement. Here are a few next steps you can take:

1. Explore our page on all things HVAC for brands, pricing, and more as you budget for your project.
2. Start asking neighbors, friends, and family for recommendations on HVAC installers.
3. Browse our contractor directory to see which pros are available in your area to provide free quotes for HVAC replacement costs.

If you’d like us to do the research for you, click below and answer a few questions about your project. We’ll match you with up to four pre-vetted contractors.