How Much Does It Cost for a New Furnace and Air Conditioner?
Replacing both a furnace and air conditioner is one of the most significant investments homeowners make to maintain comfort year-round. The combined cost depends on factors like the size of your home, the efficiency ratings of the equipment, installation complexity, and regional labor expenses. Understanding these costs helps homeowners budget effectively and choose the right system for their needs.
| Component | Typical Cost Range | Factors Affecting Cost |
|---|---|---|
| Furnace | $2,500 – $7,500 | Fuel type, efficiency (AFUE rating), size, brand, installation complexity |
| Air Conditioner | $3,000 – $7,000 | Type (central or split), SEER rating, size, brand, installation complexity |
| Combined Installation | $5,500 – $14,000+ | System compatibility, ductwork modification, geographic area, labor costs |
Factors Driving Furnace Replacement Costs
The cost to install a new furnace varies greatly based on furnace type, energy source, and efficiency ratings. Gas furnaces are common in most American homes, but electric and oil furnaces are used in certain areas also.
- Fuel Type: Natural gas furnaces tend to be more cost-effective upfront and in operation compared to electric or oil models.
- Efficiency Rating (AFUE): The Annual Fuel Utilization Efficiency (AFUE) measures how efficiently a furnace converts fuel into heat. Higher AFUE ratings (90% to 98%) come with higher upfront costs but lower energy bills.
- Size and Capacity: Proper sizing is essential for efficiency. Larger homes require furnaces with more BTUs, increasing cost.
- Installation Complexity: Systems requiring new ductwork, venting, or conversions from older equipment increase labor costs.
- Brand and Warranty: Well-known brands with longer warranties usually cost more but offer greater reliability and service.
Cost Considerations for a New Air Conditioner
Installing an air conditioning unit involves several factors impacting total cost. Central air conditioners are typical for larger homes, while ductless mini-splits offer flexibility for smaller spaces or additions.
- Cooling Capacity (Tons): AC units are rated by tons, reflecting their cooling power. Common residential units range from 1.5 to 5 tons depending on square footage.
- Energy Efficiency (SEER): Seasonal Energy Efficiency Ratio (SEER) measures cooling performance. Units with SEER ratings from 14 to 26 affect purchase price and energy bills.
- Type of System: Traditional central air conditioners are prevalent, but heat pumps with AC function can be dual purpose, often reducing the need for separate systems.
- Installation and Ductwork: Ensuring ducts are properly sealed and sized is vital. New construction or older homes may require duct replacement or sealing.
Combined Furnace and Air Conditioner Installation Costs
Many HVAC contractors offer package pricing for installing both furnace and AC together, which can be more cost-effective than installing each separately.
| Cost Element | Estimated Price Range |
|---|---|
| Equipment Cost (Furnace + AC) | $4,000 – $10,000 |
| Labor and Installation | $1,500 – $4,000 |
| Ductwork Modifications | $500 – $3,000 (if needed) |
| Permits and Inspection Fees | $100 – $500 |
Package deals can reduce overall expenses by bundling equipment warranties and labor. However, buyers should verify all details about replacement parts and service after installation.
Additional Costs to Consider
Beyond the basic costs of furnace and AC units, some additional expenses can affect the total price.
- Duct Cleaning and Repairs: Dirty or leaky ducts reduce efficiency and indoor air quality, sometimes needing cleaning or repairs before new equipment installation.
- Thermostat Upgrades: Installing programmable or smart thermostats can improve system control and energy savings.
- Energy Efficiency Rebates and Tax Credits: Federal, state, and local government incentives may reduce net costs for high-efficiency systems.
- Disposal Fees: Removal and disposal of old equipment may be included or charged separately.
Regional Pricing Variations Across the United States
Labor costs and equipment prices vary widely by region, influenced by local regulations, climate, and market competition.
| Region | Typical Range for Furnace + AC Installation | Notes |
|---|---|---|
| Midwest | $5,000 – $10,000 | Generally moderate labor prices and supply costs; cold winters necessitate durable furnaces |
| South | $5,500 – $12,000 | Higher AC demand raises average cost; milder winters lessen furnace usage |
| Northeast | $6,000 – $13,000 | Colder climate and higher labor costs increase furnace prices |
| West Coast | $6,000 – $14,000+ | Higher labor costs and stricter energy codes drive up prices |
Choosing the Right Furnace and Air Conditioner for Your Home
To select the best system for budget and comfort, consider the following:
- Home Size and Insulation: Proper equipment sizing prevents inefficiency and premature wear.
- Climate Considerations: Homes in colder regions benefit from high-efficiency furnaces, while those in warm areas focus on cooling capacity and AC efficiency.
- Energy Costs: Fuel and electricity rates in your area influence operating costs more than equipment prices.
- Reputation and Support: Choosing brands with local service support and good warranties reduces long-term risks.
Obtaining multiple quotes and certifications such as ENERGY STAR can help identify quality and value.