For a standard-efficiency air conditioner and furnace with a simple duct layout, you can expect an average HVAC installation cost of around $10,000–$15,000. However, if you own a larger home and want premium-efficiency equipment, total project costs can exceed $20,000.
An HVAC or heating, ventilation, and air conditioning system helps maintain the temperature and air quality in your home using several components, including a furnace, ductwork, and air conditioning. HVAC installation costs can vary depending on factors such as the equipment types, home size, and project complexity. In this article, we review the typical costs of various HVAC systems commonly installed in residential homes.
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HVAC Installation Cost by Unit Type
Residential HVAC systems typically use a central air conditioner and furnace, paired with a duct system to distribute cool or warm air throughout your home. However, homeowners can also opt for heat pumps, a modern, energy-efficient alternative that can provide both heating and cooling. In regions with milder climates, a heat pump is usually enough for your heating and cooling needs all year long. However, if you live in a cold-climate region, a heat pump may require a backup furnace during the coldest days of winter.
The following chart shows typical price ranges with installation for three HVAC equipment types—an air conditioner, heat pump, and furnace—excluding the cost of ductwork. If you also need a new duct system, the average cost is around $2,000–$5,000 for a 2,000-square-foot home, but this figure can vary depending on the project complexity.
| HVAC Unit | Average Price Range* |
|---|---|
| Air conditioner | $3,500–$8,500 |
| Heat pump | $4,000–$10,000 |
| Furnace | $3,000–$6,500 |
How Much Does Air Conditioning Installation Cost?
The cost of an air conditioner largely depends on its type and efficiency. Most homes in the U.S. use central air conditioners with ductwork, but ductless mini-splits and window air conditioners are also common options for cooling individual rooms. Below are the average installed prices of these three air conditioner types, but keep in mind these figures can vary depending on brand, equipment size, and local labor costs.
| Air Conditioner Unit Type | Average Cost |
|---|---|
| Window unit | $200–$800 |
| Ductless mini-split air conditioner | $1,500–$4,000 |
| Central air conditioner | $3,500–$8,500 |
Here’s a brief description of the three main types of air conditioners:
- Window unit ($200–$800): Window air conditioners are the most affordable option, but also the least efficient. Compared with a mini-split air conditioner of the same cooling capacity, a window unit typically consumes 2–3 times more electricity. A window unit can cover an external shed or an interior room that needs occasional cooling, but it is not the best option for long-term use because of its high electricity consumption.
- Ductless mini-split air conditioner ($1,500–$4,000): Mini-splits cool individual rooms in your home without using ductwork, offering an alternative to central air conditioning. Mini-splits consist of an external condenser connected to one or more indoor evaporators with refrigerant lines, with the evaporator cooling and recirculating indoor air directly. Mini-splits can offer an ideal option if your home lacks ductwork or if you need to cool a specific area. However, since mini-splits don’t provide ventilation, you may require a separate system to meet some building codes.
- Central air conditioner ($3,500–$8,500): Central air conditioning systems are the most popular cooling option in the U.S., used in 66% of homes according to the Energy Information Administration (EIA). These air conditioners provide cooling for your entire home by distributing cooled air through a duct system. Central cooling units with high efficiency ratings are more expensive, but can help homeowners save on electricity costs compared with old and inefficient systems.
Note: The cost data included in this guide was sourced from HomeAdvisor and research into local contractor estimates.
How Much Does Heat Pump Installation Cost?
A type of home heating system, you can classify most heat pumps into air-source heat pumps (ASHP) and ground-source heat pumps (GSHP), also known as geothermal heat pumps. Similar to air conditioners, ASHPs come in both central and mini-split versions. Geothermal heat pumps are usually central systems, since installing multiple small units on the same property can result in prohibitive costs.
The table below compares typical price ranges for these three types of heat pumps, based on our market research.
| Heat Pump Type | Average Cost |
|---|---|
| Ductless mini-split heat pump | $2,000–$5,000 |
| Central air-source heat pump | $4,000–$10,000 |
| Geothermal heat pump | $10,000–$30,000 |
Here we compare the three main types of heat pumps used in homes:
- Ductless mini-split heat pump ($2,000–$5,000): These heat pumps are physically very similar to mini-split air conditioners, but capable of providing both heating and cooling. Since mini-split heat pumps don’t require air ducts, they are ideal for home additions or single rooms. However, note that ductless mini-split systems provide no ventilation since they constantly recirculate indoor air.
- Central air-source heat pump ($4,000–$10,000): A central heat pump combines the functions of an air conditioner and furnace. In warm and moderate climates, a heat pump can usually provide heating and cooling all year long. However, in colder climates, you may require a backup furnace for the coldest days, since ASHPs lose effectiveness when temperatures drop below 0 F.
- Geothermal Heat Pump ($10,000–$30,000): Unlike ASHPs, which exchange heat with outdoor air, GSHPs exchange heat with the ground at a depth of several feet. Since the underground has more stable temperatures than outdoor air, geothermal heat pumps can operate efficiently all year long. However, these systems require a water piping loop to exchange heat with the ground, which results in a higher upfront cost than other options.
How Much Does Furnace Installation Cost?
You can usually classify furnaces by the main heat source. The three most common types found in homes include gas furnaces, oil furnaces, and electric furnaces. You may also find furnaces that use other fuels such as propane or wood pellets, but these are less common. Below we compare the average price to install common furnace types.
| Furnace Type | Average Cost |
|---|---|
| Electric furnace | $2,000–$7,000 |
| Gas furnace | $4,000–$10,000 |
| Oil furnace | $6,000–$10,000 |
Each type of furnace has benefits and drawbacks. The best option for your home will vary depending on local fuel costs and climate conditions. Here are more details about the main types of furnace costs:
- Electric furnace ($2,000–$8,000): Electric furnaces are usually the most affordable option since they don’t require a fuel supply line and exhaust system. However, these furnaces use resistance heating, consuming 2–4 times more electricity than a heat pump of the same capacity. Electric furnaces are best suited for moderate climate zones with minimal heating needs, or as backup for a more efficient heat pump.
- Gas furnace ($4,000–$10,000): These furnaces connect to the local gas distribution system, eliminating the need for regular fuel deliveries. Gas furnaces have lower operating costs than electric furnaces in most U.S. regions, based on our research. However, they generate combustion gases that must get properly vented to ensure safety.
- Oil furnaces ($6,000–$10,000): Oil furnaces operate by burning heating oil instead of natural gas, which can prove cost-effective in regions such as the Northeast. However, these furnaces rely on oil deliveries, which is less convenient than using a utility service such as gas or electricity. Also, an oil furnace generates more carbon pollution than a gas furnace of the same capacity.
Furnace Costs by Brand
Our team conducted an in-depth assessment of various furnace manufacturers. Based on our review methodology, we compiled the following list of the top five furnace brands nationwide and typical prices.
| Furnace Brand | Average Price Range |
|---|---|
| Carrier | $3,000–$15,000 |
| Lennox | $3,100–$10,000 |
| Bryant | $3,500–$6,000 |
| Trane | $3,500–$15,600 |
| Amana | $3,600–$11,000 |
How Much Does Unit Size Affect HVAC Costs?
Larger HVAC units typically cost more than smaller ones. A larger unit requires more manufacturing materials and labor to ship, move, and install. Other factors, such as the corresponding thermostat, the number of heating and cooling units, and the ductwork labor, also impact HVAC costs. For example, installing an HVAC unit in a 3,000-square-foot home costs between $3,000 and $6,000 for the ductwork alone. In contrast, this same ductwork project would cost around $1,500–$3,000 for a 1,500-square-foot home.
The following table shows the average project cost for HVAC installation based on home size. Keep in mind that this average cost is comprehensive and includes materials, ductwork, thermostat installation, and more.
| HVAC Size | Home Size | Average Cost |
|---|---|---|
| 2.5 tons | 1,500 square feet | $8,241 |
| 3.5 tons | 2,000 square feet | $8,344 |
| 4 tons | 2,500 square feet | $12,670 |
| 5 tons | 3,000 square feet | $17,099 |
What Factors Affect HVAC Installation Cost?
In the previous sections, we discussed the average cost ranges for common types of HVAC equipment. However, actual installation costs can vary widely based on factors such as home size, equipment efficiency, and ductwork requirements. Local building codes and permitting requirements can also influence HVAC installation costs. Learn more in the following sections.
Equipment Capacity
The two main factors that determine the required capacity of your HVAC equipment are your home size and local climate conditions. According to the U.S. Department of Energy (DOE), residential homes require a cooling capacity of at least 20 British Thermal Units per hour (BTU/h) per square foot. Residential heating needs are usually higher, ranging from 30–50 BTU/h per square foot depending on the climate. Based on these figures, a 2,000-square-foot home would require a cooling capacity of at least 40,000 BTU/h and a heating capacity of at least 60,000 BTU/h.
Keep in mind these figures represent estimates calculated by our team. Professional HVAC installers use the Air Conditioning Contractors of America (ACCA) Manual J: Residential Load Calculation to determine the exact heating and cooling requirements of homes and other residential buildings.
Equipment Efficiency
HVAC equipment is available in various efficiency tiers. The most efficient equipment is usually the most expensive upfront, but has the lowest operating costs over time. In other words, you may spend several thousand more on an energy-efficient HVAC system, but doing so can save you hundreds of dollars in utility costs each year, helping you recoup the higher upfront cost over time.
Each type of HVAC equipment uses a different efficiency metric:
AFUE
Standard furnaces have an Annual Fuel Utilization Efficiency (AFUE) of 80%, which means they convert 80% of fuel energy into effective heating. The most efficient furnaces achieve AFUE ratings of 95%–98%.
SEER
Air conditioners and air-source heat pumps in cooling mode use an efficiency metric called the Seasonal Energy Efficiency Ratio (SEER), which is similar to the gas mileage value of a vehicle. For example, a 20 SEER rating indicates that an air conditioner delivers 20,000 BTU of cooling per every kilowatt-hour of electricity consumed.
The newest SEER rating is SEER2, which typically has a range of 13.4–23.6 compared to previous models that fell between 8–10. Looking for more efficient SEER2 models can help save you more money. While a higher SEER model costs more out-of-pocket, you can achieve greater energy bill savings over time. Our research shows that an HVAC model in a 2,300-square-foot home with a SEER rating of 13 costs an average of $13,126, but investing in a higher performing model with a SEER rating of 17 costs around $19,557. While this is a price difference of around $6,000, the 17 SEER model is far more efficient and expected to save you hundreds of dollars—likely around $1,500 in cooling costs over 10 years.
HSPF
Heat pumps in heating mode use the Heating Seasonal Performance Factor (HSPF), which is similar to the SEER but for heat, rather than air conditioning. The higher the HSPF rating, the better, as this indicates a more efficient system that keeps your home warm by transferring warm air from the outside to indoors.
ENERGY STAR
While these metrics can seem confusing at first, there’s a simpler way to identify high-efficiency equipment. You can look for the ENERGY STAR label, which certifies that a product has been successfully tested for efficiency, meeting the requirements of the Environmental Protection Agency (EPA).
Ductwork Requirements
Central air conditioners, heat pumps, and furnaces depend on ductwork to distribute cool or warm air throughout your home. The cost of a new duct system can range from less than $2,000–$10,000 or more, depending on factors such as your home size, duct material, and system complexity. If you need a duct replacement along with your new HVAC unit, it can significantly increase your total project cost.
Permits
Permits give contractors and homeowners permission to alter and add permanent structures on a property. Obtaining a permit for residential HVAC work is typically required by law regardless of your location.
A reputable contractor should obtain a permit before starting work on your HVAC installation. The permit process comes with an inspection by a third party, which protects you and ensures the installation is up to code. However, permits add a small cost to your overall project. The average price of a permit for HVAC installation is between $250–$400, depending on your local municipality.
How To Save on HVAC Installation Costs
To save on HVAC installation costs, we recommend comparing project quotes from multiple installers. There are many HVAC options with different features and efficiency ratings and settling for the first quote could result in missing out on better options. When requesting quotes from HVAC installers, ask for a detailed breakdown with itemized prices so you know exactly what you’re purchasing.
ENERGY STAR-certified HVAC units are more expensive, but often qualify for federal and state incentives, including a federal tax credit. Additionally, efficient heating and cooling equipment can save you thousands of dollars in energy bills over time, offsetting the higher upfront cost. The ENERGY STAR program provides a detailed guide covering federal incentives for efficient HVAC equipment, including a federal tax credit of up to $2,000 for heat pumps and up to $1,200 for furnaces and air conditioners.
Depending on your location, you may have access to additional incentives from local governments or utility companies. For state-specific HVAC incentives, you can search the Database of State Incentives for Renewables and Efficiency (DSIRE).
When Should You Repair or Replace Your HVAC System?
Like any piece of mechanical equipment, HVAC systems can suffer performance issues or breakdowns, especially without receiving proper maintenance over time. While you can often fix minor problems with repairs, a complete replacement may present a better option if your equipment shows severe damage or frequent malfunctions. If your heating or cooling system is giving you trouble, a qualified HVAC technician can assess the situation and recommend the best course of action.
Signs You Should Repair Your HVAC System
Central air conditioners and heat pumps have a typical lifespan of 10–15 years, while furnaces can last for around 15–20 years. Considering this longer lifespan, repairs are viable if your HVAC unit is relatively new and only experiencing minor issues. Here are some examples of minor HVAC issues that homeowners can usually get repaired:
- Minor loss of heating or cooling capacity: If you start noticing lukewarm or barely cool air coming from your HVAC system, you may have a failing compressor, defective ignition system, or issues with a refrigerant leak or flame sensor. Have your system checked out and repaired to address these minor issues.
- Unusual noises: Most heating or cooling systems make minor noises, but if you hear bangs, grinding, grating, whistling, or thuds, these are signs your HVAC isn’t working properly.
- Frequent cycling: HVAC systems turn on and off throughout the day to keep your home at a comfortable temperature, but short-cycling isn’t normal. A short-cycle describes anytime your HVAC turns off before a cycle finishes, often indicating your system is pushing itself too hard.
- Thermostat malfunctions: Are you noticing your HVAC system doesn’t respond to your thermostat inputs? Your thermostat or HVAC system likely needs repairs.
- Reduced airflow: Weak air flow is often one of the first signs an HVAC system isn’t performing properly. If your HVAC system has to work double time to keep your home cool or warm, this will also raise your energy bills.
Signs You Should Replace Your HVAC System
If your HVAC units are very old or severely damaged, a replacement may end up being more cost-effective than attempting repairs. Also, a new HVAC system can improve your home’s comfort and energy efficiency. Here are some signs you may have to replace your air conditioner or space heater:
- Frequent breakdowns: If your HVAC system is constantly breaking down, it’s time to weigh whether or not the cost of repairs outweighs the cost of a complete replacement. A new energy-efficient model can save you money in energy costs and help you avoid costly repairs that might not hold up if your current model is too old.
- Severely damaged components: Sometimes, repairing a model isn’t worth the cost. If your HVAC system is outdated and requires hefty repairs, replacement may offer a better option.
- Major loss of heating or cooling capacity: If your HVAC system isn’t cooling or heating your home or you notice temperature fluctuations, this is a sign your system can’t properly distribute air evenly. This could suggest an issue with the ductwork or HVAC system that may require a full replacement.
- Excessively high energy bills: Multiple factors can cause sudden spikes in energy costs, including an inefficient HVAC system. If your system requires significant repairs to counteract high energy bills, it’s time to replace it with a more energy-efficient model.
- Old equipment: If your HVAC is over 15 years old, it’s time to look into a replacement. Older HVAC systems work less efficiently and may use coolants that possibly harm the environment, which is less cost-effective and potentially less desirable to homeowners.
Advice From a Homeowner
We talked to more than 20 homeowners and HVAC experts to gain an understanding of what you should know when hiring an HVAC company. We spoke with Don and Sharon Abshier from Nevada, both homeowners and strategic storytelling and marketing communications specialists. They shared insights from their experiences replacing HVAC units twice and learned that doing your homework makes all the difference.
The first time they hired an HVAC company, they focused on SEER ratings and brand reputation, but the second time, they adopted a much more strategic approach. In Southern Nevada, where the heat can be brutal, some A/C companies take advantage of desperate homeowners, so they made sure to dig deeper. They asked their neighbors for recommendations, checked BBB and Yelp reviews, interviewed multiple contractors (some of whom tried to lure them with free inspections), and even researched company owners for any red flags.
They shared that they paid $15,800 for two mid- to higher-grade units. They felt confident in their choice because the company was responsive, reliable, and honest. When one of their units had an issue three years later, right in the middle of summer and just out of warranty, the installer showed up within five hours. He reset the unit and didn’t charge them. That’s when they knew they had found a good one. Because of this security, the Abshiers recommend taking the time to find a reputable, licensed contractor to make the best investment you can make.
Are HVAC Installation Costs Worth It?
While the cost of installing an HVAC is expensive upfront, you can achieve multiple benefits from doing so. HVAC systems help provide a comfortable home environment and can protect you from extreme outdoor temperatures during severe weather conditions. If you have an old HVAC system that breaks down frequently, we recommend looking for a replacement before the next summer or winter season. HVAC technicians are often in high demand during these times, and an emergency replacement can end up costing much more than a planned upgrade.
A complete HVAC system can cost around $10,000–$15,000, or even more than $20,000 if you select premium-efficiency equipment. However, high-efficiency air conditioners and space heaters often qualify for federal and state incentives, which can help offset the upfront cost and offer utility savings over time. According to the Department of Energy, you can save 10%–30% on heating and cooling with ENERGY STAR-certified equipment. When replacing equipment that is very old or inefficient, you can achieve energy savings in the range of 50%–70%.
Note: The cost data included in this guide was sourced from HomeAdvisor and research into local contractor estimates.
