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How Much Does HVAC Installation Cost? 

If you are wanting to figure out the cost of an HVAC system per square foot of your home’s area needing heating and cooling, you can use this example to get an estimate of your HVAC installation costs:

  • Installation of a new HVAC system in a 1000 square foot home with a combination of a new central air conditioner unit, a new gas furnace, and the ductwork labor for your home, you could expect to pay in between $6,000 to $12,000 in total HVAC installation costs. If this is new construction, on a 1,200 to 2,400 sq. ft home it can cost between $1,200 to $4,200 extra in ductwork installation alone. Use our cost calculator above for accurate local pricing.

hvac installation costs

Average HVAC System Costs

The average costs for different HVAC installation types vary depending on brand, SEER rating, and much more. A local heating and cooling contractor near you will be able to give you an exact price quote or see our full guide on the cost to install the most common central air conditioner unit.

New HVAC systems vary in cost depending on brand costs, your home’s heating and cooling needs, more. However, average HVAC installation costs will usually be priced around:

  • Central Air Conditioner Installation: $3,500 to $7,600
  • Ductless AC Installation: $3,000 to $5,000
  • Heat Pump Installation: $5,000 to $6,500
  • Gas Furnace Installation: $4,000 to $6,500
  • See all installation costs on HVAC systems below

types of central air conditioners

HVAC Installation CostsLow CostHigh Cost
Central Air Conditioner$3,500$7,600
Ductless HVAC$3,000 $5,000
Electric Furnace$1,500$2,500
Gas Furnace$4,000 $5,000
Oil Furnaces$5,500$6,500
Heat Pump$5,000$6,500
Geothermal Heat Pumps$20,000$27,000

Additional HVAC System Costs

There are also HVAC costs that most likely are not included in the initial HVAC installation estimate but you will want to factor in, if applicable for your local installation prices. These are the things you should ask the HVAC contractor about and whether or not the cost is included in the initial estimate they’re providing. These include:

  • If a permit is required from your local city or county building department. The unit will also require an inspection by a representative of the building department to ensure the system is up to code.
  • If you live in an older home that has asbestos or lead paint, there may be an additional cost to test, remove, or replace the material.
  • If any of the following requires additional work involved with the installation process – plumbing, electrical work, removal of an existing system, installing the HVAC system at a new location, modifying the framing or surfacing of the home, or bringing any systems up to code – it will also factor into the cost estimate for your home’s new HVAC installation.

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How to Evaluate HVAC Price Quotes

There are a quite a few factors to consider when determining what could effect the cost of a new HVAC system installation price quote. Some factors may cause your initial cost estimate to be higher or lower. It is advised to get at least four local price quotes from different qualified HVAC contractors. Let Modernize help connect you to reliable local contractors.

High Priced Bid Factors:

  • HVAC installation and replacements can vary drastically in price. These disparities could be due to the type of HVAC unit—how quiet an air conditioning system is, for example. We encourage homeowners to research their desired HVAC system and make sure it is the best suited for their homes and needs.
  • HVAC units can also vary in total cost depending on hardware other than the main units themselves. The increasingly popular smart thermostat is often paired with a new residential HVAC unit, which could cost as little as $30 or as much as $300.
  • High-end heating and cooling contractors will likely have more equipment and overhead, which may be seen in your price quote.
  • HVAC unit warranties will also impact your total installation costs. Most HVAC installers offer manufacturer’s warranties that protect you from faulty system equipment. Some might offer additional guarantees for the total HVAC installation as well, covering potential damage to your roof (if applicable.)
  • Research and be aware of potential hidden HVAC costs— like needing permits and potential fines for your installation. Your heating and cooling quote should include a proper breakdown of how local or federal regulation applies to you and what your HVAC contractor will or will not do in that regard.
    • For example, if your installed HVAC unit’s Seasonal Energy Efficiency Ratio (SEER) rating is lower than 13, the Department of Energy might flag your HVAC contractor for selling it.
    • An HVAC system having an average SEER rating of 16 could mean saving upward of $400 annually in comparison to other lower efficiency options.Expect an analysis of what your bills should look like after your new HVAC installation, and how you should expect these heating and cooling energy costs to change in upcoming years.

Low Priced Bid Factors:

  • If an HVAC contractor does not have proper insurance, they will often provide a lower bid. This may leave the homeowner responsible for HVAC laborer injuries or damages that occur. We recommend that homeowners always select a licensed HVAC contractor for their heating and cooling replacement projects.
  • If a contractor doesn’t have a solid grasp of local policies or applicable local, regional, and federal incentives—like the ones found at the Database of State Incentives for Renewables and Efficiency, they may leave that to you and subsequently lower their fees since they have less paperwork to worry about. While a contractor may charge you for help navigating the bureaucracy of air conditioning regulation, a good contractor will assure your energy compliance in your area and maximize your return on investment utilizing expertise you may lack.
  • Extremely low bidders may also be desperate for a new HVAC job lead, which is never a reassuring sign. Be sure to always vet your HVAC contractor before hiring for the job.

For any bid you receive you should always double check your final HVAC installation quotes for possible pricing errors. Errors can happen when trying to determine your full HVAC system installation costs. Communicate any and all questions and concerns with your air conditioning installer before you sign off on any contracts.

For a full list of price evaluation tips see our  homeowner’s guide to evaluating your HVAC cost estimates.

Ductless AC Costs

  • Ductless HVAC systems, often called mini-split systems, are convenient to install and are a very energy efficient heating & cooling system option. Ductless mini split system costs range from $3,000 to $5,000 for the average sized home. It could be up to $9,500 for large whole house systems. Ductless HVAC installation usually includes one outside system & multiple indoor units for each room where cooling is needed. A ductless unit’s SEER rating will also determine total costs (available from 16 SEER to 30 SEER.) Use our ductless AC contractors near me comparison page or let Modernize get you an exact price below. Let us get you exact & local prices:


Heat Pump Installation Costs

  • There are different kinds of heat pump installations to consider, the most common ductless air source heat pump installation will cost $3,500 to $6,500 total per indoor unit installed. However, a central air heat pump system will cost more ranging from $12,500 and $20,000.


Electric Furnace Costs 

  • Electric furnaces are HVAC units that push air through your home’s air ducts with an electric blower. The average electric furnace installation cost for a replacement unit is about $1,500 to $2,500. Electric furnaces are usually used in areas with a warm climate that central heating is not needed. You will pay more or less depending on the size needed for your home, the blower’s speed, and whether or not the motor is energy efficient or not (ECM vs. PCM.) Let us get you exact & local prices:


Gas Furnace Costs

  • Gas furnaces are the most common type of furnaces installed and offer a high energy efficiency. The average cost for a gas furnace installation is anywhere from $2,500 to $5,000 depending on size and energy efficiency. Let us get you exact & local prices:


Oil Furnace Installation Costs

  • Oil furnaces are the least common type of furnace, and most homeowners would want to opt for a natural gas or propane burning furnace. However, if oil furnaces are your only option, the average installation cost for an oil furnace runs anywhere from $5,500 to $6,500. Let us get you exact & local prices:

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