If you’re asking, how much is a new furnace and AC unit installed, you’re likely considering a major upgrade for your home’s comfort and efficiency. This detailed guide breaks down the average costs, key factors, what influences installation pricing, and tips to get the best value in the U.S. market in 2025.
| System Type | Installation Cost Range | Typical Lifespan | Annual Maintenance Cost |
|---|---|---|---|
| Furnace (Gas or Electric) | $2,500 – $7,500 | 15-20 years | $75 – $200 |
| Central AC Unit | $3,500 – $8,500 | 12-17 years | $100 – $300 |
| Combined (Furnace + AC) | $5,000 – $13,500 | 15-20 years | $175 – $400 |
Average Cost Of Installing A New Furnace And AC Unit
The average cost to install a new furnace and AC unit together in the United States ranges from $5,000 to $13,500. This price includes both equipment and labor. Nationally, most homeowners spend between $7,500 and $10,000 for a standard system replacement in a typical 2,000 square foot home.
Major factors contributing to your total cost include the brand, unit efficiency, size of the home, type of gas or electric system, and complexity of the installation. High-efficiency or variable-speed systems cost more upfront but can lead to future energy savings.
Factors That Affect Installation Cost
1. Home Size And System Capacity
Larger homes require bigger, often more powerful HVAC systems (measured in BTUs or tons for AC). Expect higher costs for homes over 2,500 square feet or those with multi-zone requirements.
2. System Type And Fuel Source
The cost varies if you opt for a gas furnace vs. electric furnace. Gas furnaces tend to cost a bit more to install and require venting, but typically deliver lower ongoing heating costs in colder climates.
3. Energy Efficiency Ratings
AFUE (Annual Fuel Utilization Efficiency) for furnaces and SEER (Seasonal Energy Efficiency Ratio) for AC units greatly impact price. Higher efficiency units (95% AFUE, 16+ SEER) can add $1,000–$3,000 or more to total costs.
4. Ductwork Repairs Or Replacement
If your home’s existing ductwork is old, leaky, or poorly configured, repairing or replacing ducts can add $2,000–$5,000 to your bill. New installations or major modifications are most expensive.
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5. Labor And Regional Pricing Differences
Labor rates vary sharply between regions — expect to pay more in urban areas or where HVAC contractors are in high demand. In some rural areas, fewer licensed techs can also drive prices higher.
Cost Breakdown: Furnace And AC Components
| Component | Average Cost | Details |
|---|---|---|
| Furnace (Gas or Electric) | $1,800 – $6,000 | Depends on brand, efficiency, size |
| Central Air Conditioner | $2,500 – $7,000 | 2 – 5 ton units, higher SEER costs more |
| Thermostat (Optional Upgrade) | $150 – $500 | Smart thermostats offer added convenience and energy savings |
| Labor & Installation | $2,000 – $5,000 | Includes removal of old system, electrical, gas lines, permits |
| Ductwork (if needed) | $2,000 – $5,000 | Only if ducts are replaced or significantly modified |
Popular Brands And Their Pricing
The brand you choose can impact cost, warranties, and long-term reliability. Some of the most trusted furnace and AC manufacturers in America include:
- Trane – Premium products, typically $8,000-$14,000 installed for combo systems
- Lennox – Known for high efficiency, $7,500-$12,000 for mid to top-tier models
- Carrier & Bryant – Widely available, $7,000-$12,000 depending on efficiency and features
- Rheem & Ruud – Value-oriented, durable, $6,000-$11,000 per system installed
- Goodman & Amana – Budget-friendly, typically $5,000-$10,000 for basic installations
Premium brand systems tend to have longer warranties and better energy ratings, but even budget brands can provide excellent comfort and value with correct installation.
Should You Replace Furnace And AC Together?
Although it’s possible to replace only one component, upgrading your furnace and AC at the same time can improve system efficiency, reduce labor costs, and simplify future maintenance. Most experts recommend this approach if both systems are 10+ years old or if you face major repairs.
- Lower combined labor costs compared to separate jobs
- Improved energy savings with matching, properly sized equipment
- Streamlined future repairs and warranty coverage
However, if only one component is failing and the other is relatively new, replacing both may not be necessary.
Installation Process: What To Expect
A standard furnace and AC installation usually takes 1-3 days, depending on complexity. Here’s a typical breakdown:
- Assessment and estimate (in-home evaluation, load calculation)
- Removal of existing furnace and condenser unit
- Installation of new furnace, AC coil, and outdoor condenser
- Modification or repair of ductwork if required
- Electrical, gas, or refrigerant line hookups
- System testing, calibration, and thermostat setup
- Cleanup and final walkthrough
It’s crucial to use a licensed, insured HVAC contractor to ensure full warranty coverage and safe, code-compliant installation.
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How To Get The Best Price On A New Furnace And AC Unit
Shop around and get at least three written estimates from reputable contractors. Compare brands, warranty terms, included features, and installation scope—not just the sticker price.
- Ask about utility rebates or manufacturer promotions (can save $300-$1,000+)
- Consider financing options or 0% interest promotional offers
- Negotiate—some companies have flexibility on labor or extended warranties
- Read reviews and verify licenses/certifications (NATE, EPA, etc.)
Some states and utilities provide ENERGY STAR rebates and incentives for high-efficiency installations.
Questions To Ask Your HVAC Installer
Before signing a contract, clarify these critical questions:
- Is the quoted price all-inclusive? (permits, removal, hookup, taxes)
- Is my home’s ductwork and electrical adequate for the new units?
- What warranties and maintenance plans are available?
- Will the new units be properly sized for my home’s load and insulation?
- Are all permits and inspections handled by the contractor?
Clear communication helps avoid unwelcome surprises and ensures your investment delivers year-round comfort.
Maintenance And Long-Term Value
Regular maintenance is vital for maximizing the lifespan of your new system. Budget $175–$400 per year for annual tune-ups, filter changes, and minor repairs.
Well-maintained systems tend to last longer, run more efficiently, and break down less often. Some installers offer discounted service plans for customers who purchase new equipment.