Replacing an AC and furnace as a combined HVAC system is a major home expense and investment in comfort and efficiency. This guide explains typical replacement costs, what drives price variation, and practical ways to estimate and reduce the overall expense for U.S. homeowners.
| Component | Typical Cost Range |
|---|---|
| AC Unit (central) | $3,000 – $7,500 |
| Furnace (gas/electric) | $2,000 – $6,000 |
| Combined System Installation | $6,000 – $15,000+ |
| Ductwork Replacement/Repair | $1,000 – $10,000+ |
| Permits/Thermostat/Extras | $200 – $1,500+ |
How Replacement Costs Are Calculated
Replacement cost for an AC and furnace combo depends on equipment prices, labor rates, system capacity, efficiency ratings, and the complexity of installation. Manufacturers, model features, and local market conditions influence base equipment pricing.
Key cost drivers include system size (tonnage and BTU), SEER and AFUE ratings, whether ductwork needs modification, and local labor and permit fees.
Average Cost Ranges By Equipment Type
Central Air Conditioner
Central AC pricing varies by unit capacity and efficiency. A basic 2–3 ton unit typically costs between $3,000 and $5,500 installed. High-efficiency models (16–20 SEER) increase costs to $5,000–$8,000 or more.
Gas Furnace
Gas furnaces commonly range from $2,000 to $6,000 installed. Entry-level furnaces with 80% AFUE fall near the low end, while high-efficiency condensing furnaces (90%+ AFUE) can cost $3,500–$6,000 or higher.
Electric Furnace And Heat Pump Options
Electric furnaces tend to be less expensive up front ($1,500–$3,000) but may have higher operational costs depending on electricity rates. Heat pumps, which provide both heating and cooling, typically cost $4,000–$10,000 installed depending on efficiency and climate suitability.
Complete Combo Replacement: Typical Total Costs
Combining AC and furnace replacement as a single project (matched system) raises the total price but improves energy efficiency and compatibility. Homeowners should expect $6,000–$15,000+ for a full replacement, with most U.S. installations falling in the $8,000–$12,000 range for mid-efficiency matched systems.
Breakdown Of Labor And Installation Costs
Labor generally accounts for 20–40% of the total bill. Labor rates vary by region and installer expertise. Typical labor components include removal of old equipment, refrigerant recovery, mounting and securing new units, electrical and gas hookups, startup, and safety testing.
Average labor cost ranges from $1,000 to $4,000 depending on project complexity, multi-tech crews required, and additional tasks like condensate handling and system balancing.
Additional Costs To Expect
Ductwork Repair Or Replacement
Ductwork condition dramatically affects cost: minor sealing and insulation may cost $200–$1,000, while full duct replacement can run $3,000–$10,000 or more in larger homes.
Permits And Inspection Fees
Local permits and inspections typically add $50–$500. Complex installations or work in historic districts or HOAs may incur extra fees or compliance costs.
Thermostats And Controls
Upgrading to a programmable or smart thermostat costs $100–$350 for the unit plus $75–$200 for installation. Zoning systems and advanced controls add more.
Refrigerant Upgrades
Newer AC units often use R-410A or newer refrigerants. Retrofit or special handling of older refrigerants can add costs, especially if recovery or conversion is required.
When To Replace Versus Repair
Deciding between replacement and repair depends on age, frequency of breakdowns, repair cost relative to replacement, and efficiency losses. Furnaces and AC units older than 10–15 years often justify replacement.
Rule of thumb: If repair costs exceed 50% of the value of a new system or the system is more than a decade old with declining performance, replacement is often the better long-term choice.
Estimating Costs For Your Home
To estimate an accurate replacement cost, gather: home square footage, current system age and capacity, duct condition, fuel type, and desired efficiency level. Use these to get multiple written quotes from licensed HVAC contractors.
Online cost calculators provide ballpark figures but local quotes are essential for final budgeting due to regional pricing differences.
Ways To Reduce Replacement Costs
- Shop For Rebates: Federal, state, and utility rebates exist for high-efficiency equipment and heat pumps.
- Seasonal Discounts: Off-season installation (spring or fall) can yield lower labor rates or promotional pricing.
- Bundle Work: Replacing both AC and furnace together may lower labor overhead compared to separate projects.
- Financing & Tax Credits: Many dealers offer financing; efficiency upgrades may qualify for tax credits or utility incentives.
Choosing The Right Efficiency Ratings
SEER (Seasonal Energy Efficiency Ratio) measures cooling efficiency; higher SEER reduces electric bills but costs more up front. AFUE (Annual Fuel Utilization Efficiency) measures furnace efficiency; higher AFUE improves heating cost-effectiveness.
For many U.S. climates, 14–16 SEER and 90%+ AFUE are balanced choices, but colder climates or higher energy prices may justify premium systems and heat pumps.
Finding And Vetting Contractors
Obtain at least three written estimates, verify licensing and insurance, check local reviews and references, and request itemized bids. Ask about warranties for equipment and labor, maintenance plans, and manufacturer certifications.
Essential questions include: Is the equipment properly sized? Are there load calculations (Manual J)? What warranties are included? Are permits included in the quote?
Installation Best Practices
A proper installation includes precise load calculations, correct refrigerant charge, proper duct sealing and insulation, accurate flue and venting setup, and post-installation performance testing and homeowner walkthrough.
Incorrect sizing or poor installation can reduce efficiency and lifespan, negating savings from a lower bid.
Maintenance To Protect Investment
Regular maintenance extends system life and preserves efficiency. Recommended tasks include annual furnace tune-ups, annual or biannual AC checks, filter replacement every 1–3 months, and duct inspections every few years.
Preventive care reduces emergency repairs, helps keep warranties valid, and improves indoor air quality.
Financing Options And Incentives
Homeowners can use personal savings, HVAC financing plans, home equity loans, or energy-efficient mortgages. Many utility companies and state programs provide rebates or on-bill financing for qualifying systems.
Check federal tax credits and state energy office resources to identify up-to-date incentives for heat pumps and high-efficiency HVAC equipment.
Common Upgrades To Consider
- Variable-speed blowers for quieter operation and better efficiency.
- Zoned thermostats for improved comfort and energy savings.
- High-efficiency air filtration and UV systems for improved air quality.
- Smart thermostats for remote control and energy tracking.
Frequently Asked Questions
How Long Does A Replacement Take?
Typical full AC and furnace replacement takes one to three days depending on complexity, permits, and whether ductwork or structural modifications are needed.
Is It Better To Replace Both Units At Once?
Replacing both together ensures matched components, improved efficiency, and often lower overall labor costs. Mismatched components can reduce system efficiency and performance.
What Warranties Should Be Expected?
Equipment warranties commonly include 5–10 year limited parts warranties and optional extended or labor warranties. Proper installation and registration may be required to keep warranties valid.
How To Avoid Scams?
Beware of unsolicited offers, high-pressure sales, or requests for full payment up front. Use licensed contractors, get itemized written estimates, and verify references and certifications.
Resources And Where To Get Quotes
Use manufacturer websites, state energy offices, and utility rebate pages for accurate efficiency and incentive information. Local HVAC associations and consumer review platforms help identify reputable contractors.
Request at least three detailed written quotes that include equipment model numbers, efficiency ratings, labor breakdown, permit costs, and warranty details for accurate comparison.
Key Takeaway: AC and furnace combo replacement costs vary widely based on equipment, efficiency, installation complexity, and regional labor rates; budgeting and contractor vetting are essential to get the best value and long-term performance.