How Much Does an HVAC Replacement Cost?

The cost of replacing an HVAC system typically ranges from $6,224 to $11,434, depending on your home’s size, the system type, and installation requirements. This estimate includes both a central air conditioning unit and a gas furnace, along with standard labor costs. For homes requiring ductwork replacement, additional costs of $2,100 to $4,000 may apply for a 2,000 sq. ft. home.

Average Cost of a New HVAC System for 2025

For a 2,000 to 2,500 sq. ft. home, the average cost of a new HVAC system is $8,829, covering a combined air conditioning and gas furnace setup. This combination is the most common type of HVAC system found across homes in the U.S. 

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

HVAC Replacement Cost by Unit Type

As we noted above, our average estimates assume you are replacing the most common system type, which is 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.

Central Air Conditioning/AC

A central AC unit is connected to your home’s ductwork and uses forced air to cool down the home’s temperature. 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 is responsible for cooling that room only. Window AC units are most commonly used in bedrooms in homes that do not have ductwork or in homes that only need cooling for a short period of time each year. They range in price from about $150 for units for small rooms to $600 for units for large rooms. 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 then 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.

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Gas Furnace

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

Oil Furnace

Oil furnaces work much like gas ones, but they tend to be most popular in the northeast region of the U.S. where temperatures remain cold for a much longer period of the year. Oil furnaces are quieter and cheaper to run than gas furnaces. They can also run either only on oil or as a hybrid system that uses a heat pump to also provide home 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, any eco-conscious homeowners, or any homeowner who would have cheaper monthly utility bills using electric instead of gas. Installing or replacing an electric furnace is a simpler (and thus cheaper) process with a gas one since they don’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 furnace type in more detail.

Heat Pump

Heat pump systems are a very energy-efficient alternative to an AC/furnace combo. They move heat outside the home during warmer months and extract heat from the ground or air to bring indoors during cooler months. There are three heat pump types to choose, 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 all the types of heat pumps and their costs by visiting 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 that are 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 can tell you everything you need to know.

Radiator

Radiators are used in conjunction with boilers (see above) to heat homes. There are four kinds of radiators you can choose from for both your home aesthetics as well as for how you want your heat distributed: cast iron radiators, baseboard radiators, column radiators, and panel radiators. 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

Depending on where in the U.S. your home is located, your region’s climate can change what kind of HVAC system you need or what size system you need dramatically. For example, a home located in the south would need an AC unit with a size capable of cooling the home during high temperature summers. A home in the northern part of the U.S., on the other hand, would need a much larger heating capacity, which will affect costs.

Do You Need Ductwork Replacement?

Ductwork delivers the conditioned air from your HVAC system throughout your home through vents often found in your home’s attic. However, ductwork can lose its efficiency over time or may need to be altered to work with your new AC system. New ductwork installation can tack on an additional cost anywhere from $2,100 to $4,000 depending on the level of complexity to install or alter. Plan to add a few days of labor to your HVAC replacement project if you do need ductwork replacement.

Home Age and Construction

The ability to cool and heat your home at maximum efficiency will depends on how well insulated your home is in addition to the size of your home. 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 impact 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 air flow 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 been reading above, the size unit you need will have a large 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 local, trusted HVAC professional will be able to tell you best what features you may need or want for your home’s system. Higher priced HVAC systems will come with higher energy efficiency levels, known as the SEER rating. Where you live, the system type you want, and the size of your home will all impact your energy efficiency requirements.

Additional HVAC Installation Costs

There may also be some costs that are not included in the initial HVAC replacement estimate but that you’ll still want to consider. Be sure to 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? We have a blog post you can read on whether a permit is needed for an air conditioning replacement if you want more information on that particular system type.
• Inspections. Does the unit also require an inspection by a representative of the building department 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 that has asbestos or lead paint, there may be an additional cost to test, remove, or replace the material.
• Insulation. Do you need to replace or add any insulation to your home to ensure your unit works efficiently? If you are going to have an AC unit in the attic, should additional attic insulation be considered?

How To Calculate HVAC Installation Cost?

To calculate HVAC installation cost for your home, you need to consider the cost of HVAC unit and your local labor charges. HVAC unit cost will account for your home area in sq. ft., type of unit you need and it’s heating/cooling capacity, cost of ductwork if needed, and project management cost (labor, transport, disposal, etc.)

Our HVAC cost estimator provides a quick and tailored quote for your home. Simply input the following:

• 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 you have with your HVAC is able to be repaired? Plan to call a tech for a repair in these circumstances:

• If your pilot light won’t stay lit.
• If 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.

If you encounter a problem like your AC is running but not cooling or your furnace is running but not heating, then you might be able to repair it, or you might be looking at a situation where your system needs to be replaced. If your unit is having problems and is more than 10 years old, then we recommend pricing out the repair plus any future, similar repairs vs the cost of replacing the unit.

Benefits of a New HVAC System

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

• Energy Savings: Modern units with ENERGY STAR ratings 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 lots of HVAC maintenance you can DIY, installing a new unit is a job best left to the pros. As a general rule of thumb, when a project requires work with electrical systems, plumbing, or gas lines, you should not attempt the job yourself. Installing your own HVAC unit not only comes with physical dangers but also the risk of installing it incorrectly and paying much higher monthly utility bills due to the system running inefficiently.

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

How to Find the Right HVAC Professional?

We advise you to get between three and four local price quotes from different qualified HVAC contractors in order 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 to see 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.

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

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Frequently Asked Questions