New HVAC System Cost — What It Really Costs to Replace Your Heating & Cooling

If you’re a homeowner staring down rising energy bills or dealing with an old, unreliable heating and cooling setup, you’re probably wondering about the new HVAC system cost. You’re not alone millions of U.S. homeowners search for this every year, especially when summer heat waves or winter chills expose the weaknesses in their current systems. This guide is designed to give you a clear, straightforward breakdown so you can make an informed decision without feeling overwhelmed.

Quick overview — the short answer

If you’re asking “new HVAC system cost?” expect a broad range because every home is different. Nationally, a full HVAC replacement (furnace + central AC or equivalent) most commonly lands between $5,000 and $12,500, with an average often cited near $7,500 for a standard single-family home and higher if you add ductwork, electrical upgrades, high-efficiency gear, or choose a heat pump.

A standalone central AC install averages around $4,000–$7,000 depending on size and SEER, while heat pump systems and high-end whole-home installs can exceed $12,000–$20,000 (or more). These averages come from aggregating industry cost guides and real homeowner projects as of January 2026.

What this guide covers (and how to use it)

This longform, homeowner-friendly guide explains:

• The real cost ranges for common system types (central split systems, heat pumps, packaged systems, ductless mini-splits).
• What drives price (equipment, labor, home size, ducts, permits, region).
• A transparent methodology for how those cost ranges were estimated (sources and date stamp).
• Financing, rebates, and typical monthly payment examples.
• A repair vs. replace checklist with real scenarios.
• A contractor script and quote checklist so you know what to ask.
  

Quick cost summary at a glance (callout)

• Typical full HVAC replacement (furnace + central AC / standard 1–2 story home): $5,000–$12,500 (average ≈ $7,500).
• Central AC (replace only): $3,500–$8,000 (unit + install).
• Heat pump systems (air-source/ducted): $6,000–$25,000 depending on type and scope; many installs cluster in $8k–16k.
• Ductless mini-splits (per zone): $2,000–$6,000 each, with whole-home setups scaling higher.
• Packaged system: $6,000–$15,000 depending on capacity and features.
• Hidden/upgrade costs (ductwork, electrical service, permitting): $500–$10,000+ depending on extent.

How we got those numbers — methodology

To create realistic ranges I averaged publicly reported national and industry cost guides and project data from reputable U.S. sources (cost aggregator sites, manufacturer guidance, and federal energy info). Key inputs included industry cost surveys and large homeowner project datasets, and manufacturer pricing guidance. I adjusted ranges to show low/typical/high scenarios and separated equipment vs labor/installation where possible.

Important: regional labor rates, house size, duct condition, code requirements, and choice of equipment (brand, SEER/HSPF ratings) cause wide variation. All cost ranges above are national-level estimates and should be validated with 2–3 local quotes. Sources consulted (sample): Angi/HomeAdvisor, Modernize, EnergySage, Carrier, U.S. Department of Energy, ENERGY STAR, and IRS guidance (see citations throughout). Data date-stamped January 2026.

READ MORE: Ducted Air Conditioning: Complete Guide for U.S. Homeowners

What affects the cost of a new HVAC system (labor, equipment, home details)

Understanding the cost drivers helps you compare quotes and spot upsells.

1. Equipment type & efficiency

• Higher SEER/HSPF or variable-speed equipment costs more up front but can cut bills and often carry longer warranties.
• Heat pumps typically cost more than a basic gas furnace + AC combo but can provide long-term energy savings and eligibility for efficiency tax credits.

2. Labor & installer skill

• Labor is roughly 30–50% of the total price on typical installs. Specialist teams (HVAC contractors with NATE-certified techs) charge a premium for quality and warranty compliance. Expect higher labor costs in urban areas and high-cost states.
  

3. Existing ductwork & home layout

• If your ducts are leaky, undersized, or absent, expect major extra costs. Duct repair or replacement can add $1,000–$10,000+ depending on condition and access.
• Multi-story homes and homes with complex layouts cost more to balance and zone.
  

4. Permits & code upgrades

• Local permits, final inspections, and required safety upgrades can add several hundred to a few thousand dollars.
  

5. Electrical upgrades

• Switching to an all-electric heat pump or adding high-efficiency equipment may require a service panel upgrade (200A, new breakers), which can add $1,000–$5,000.
  

6. Removal & disposal

• Hauling away old equipment and refrigerant recovery (required) is a small but necessary line-item.
  

7. Region & timing

• Material and labor costs vary widely by state and season. Summer is busy for AC work; winter can be busy for heating that affects scheduling and sometimes price.
  

HVAC Comparison table — common systems & cost ranges

Choosing the right HVAC type depends on your home’s layout, climate, and budget. Here’s a side-by-side comparison of common options, with cost ranges based on national data as of January 2026. These include equipment and basic installation for a typical 2,000–2,500 sq ft home.

These costs assume standard efficiency; add 10–20% for high-efficiency models. For example, a heat pump in a moderate climate could pay for itself faster through lower bills.

READ MORE: Air Conditioning Companies — Compare, Costs & How to Choose

In-depth cost breakdown of HVAC by system type

1. Central air + furnace (split system)

Typical installed cost: $5,000–$12,000 for most homes; high-efficiency models or difficult installs push higher. Typical split systems include an outdoor condenser (AC) and indoor furnace or air handler.

Where the money goes:

• Equipment: 40–60% (compressor/condenser, furnace, coil).
• Labor & setup: 30–50% (remove old, mount new, refrigerant lines, electrical).
• Extras (ducting, thermostat, permits): variable.
  

Real-world example: Replacing a 15-year old 2-ton system in a 1,800 ft² home might cost $7,000–$10,000 including a mid-range 16 SEER condenser and a 95% AFUE furnace.

2. Heat pump systems

Typical installed cost: $8,000–$20,000 for air-source units; geothermal is much higher. EnergySage and major manufacturers report broad ranges because heat pumps can be single-zone ductless systems or whole-home ducted replacements.

Why heat pumps can cost more: they combine heating and cooling functions, often use inverter/variable-speed technology, and may require electrical upgrades. But the DOE notes heat pumps can dramatically reduce electric heating consumption (compared to resistance) and offer year-round efficiency improvements.

Incentives: Many heat pump installs are currently eligible for federal energy credits (see Financing section) that can cut net cost.

3. Packaged systems

Packaged rooftop or ground-mounted systems put all components in one cabinet. These commonly cost $6,000–$15,000 installed and are used where indoor space is limited.

4. Ductless mini-split

Typical cost per zone: $2,000–$6,000. A whole-home multi-zone setup (3–5 heads) can be $8,000–$20,000 depending on capacity and features. Best for room additions, older homes without ducts, or targeted comfort control.

Installation and hidden costs you must budget for

Even a straightforward equipment swap can carry adders:

• Duct repair or replacement: small repairs $300–$1,000; full replacement $3,000–$10,000+.
• Electrical panel upgrade: $1,000–$4,000+ if required.
• Refrigerant retrofit (if old refrigerant is phased out): $500–$2,000.
• Insulation/air-sealing needed for high-efficiency systems: $500–$5,000 depending on scope.
• Balance & commissioning (airflow testing): $150–$800 — important for performance.
• Permit & inspection fees: varies; commonly $100–$500.
• Contingency for surprises: add 10–15% to the contractor estimate.
  

Ask contractors to itemize each of these so you can compare apples to apples.

Financing, rebates & ways to save

Federal tax credits and utility rebates

Through 2025 many energy-efficient HVAC upgrades (including qualifying heat pumps and central AC) are eligible for federal credits commonly 30% of qualifying costs up to certain item caps (e.g., up to $2,000 for a qualifying heat pump under parts of the Energy Efficient Home Improvement Credit) subject to rules and deadline dates. Check current IRS guidance when planning.

Utilities and state programs frequently offer rebates that vary by state and utility; always check your local utility’s incentives page or ask your contractor to help find local rebates.

Typical financing routes

• Personal/home improvement loan (unsecured) — fixed monthly payments, moderate interest.
• Home equity loan or HELOC — lower rates but secured by home.
• Manufacturer or dealer financing — sometimes 0% for promotional periods but read the fine print.
• Energy efficiency loan programs — offered by states, utilities, or local governments.
  

Monthly payment examples (sample calculations)

Assume 6% APR (illustrative), fixed payments.

• Finance $7,500 over 10 years → ≈ $83 / month.
• Finance $7,500 over 5 years → ≈ $145 / month.
• Finance $12,000 over 10 years → ≈ $133 / month.
• Finance $12,000 over 5 years → ≈ $232 / month.
• Finance $20,000 over 10 years → ≈ $222 / month.
• Finance $20,000 over 5 years → ≈ $387 / month.
  

(These examples are illustrative your offered APR and term will determine your payment.)

How to reduce the net cost: stack incentives (utility rebate + federal tax credit + manufacturer rebate) where allowed, choose a modestly efficient but properly sized system, negotiate labor items that can be removed without affecting performance, and consider timing (off-season discounts).

READ MORE: HVAC Near Me

Should you repair or replace? A decision checklist + real scenarios

Quick rule of thumb (the 50%/age rule)

• If your system is past 12–15 years and repair costs exceed 50% of a fair replacement estimate, replacement is usually the smarter financial choice.
• If the unit fails in the off-season and has many prior major repairs, plan to replace.
  

Decision checklist

1. Age of system: <8 yrs → lean repair; 10–15 yrs → weigh replacement.
2. Annual repair costs: multiple repairs >$500/year → replacement likely.
3. Comfort & efficiency: persistent hot/cold spots or rising bills → replacement can help.
4. Safety: cracked heat exchangers or carbon monoxide concerns → immediate replacement/repair by a professional.
5. Efficiency incentives: if large rebates or tax credits are available now, that may tip to replacement.
   

Real scenarios

• Scenario A: 14-year-old furnace, single expensive repair quoted at $2,200. Replacement estimate $6,500. Recommendation: Replace you avoid another big repair and gain improved efficiency and warranty.
• Scenario B: 6-year-old AC with failed compressor; repair $2,800 vs. replacement $7,500. Recommendation: Repair if the unit has been reliable and warranty exists; otherwise consider replacement if you plan to stay long-term or want better efficiency.
  

How to get accurate quotes & what to ask contractors

How many quotes?

Get 3 written quotes from licensed HVAC contractors within your area include at least one dealer for the brand you prefer and one independent contractor.

Quote checklist (what should be on the estimate)

• Detailed equipment make/model and efficiency ratings (SEER, HSPF, AFUE).
• Exact scope (what’s included: condensers, compressors, coils, thermostats, cords).
• Line-item labor breakdown (hours, rates).
• Ductwork scope (seal/repair/replace).
• Permits & inspection costs.
• Removal and disposal of old equipment (including refrigerant recovery).
• Warranty details: equipment vs labor vs manufacturer.
• Commissioning and balancing included? (Important for comfort.)
• Payment schedule and financing options.
  

Ask for a Manual J load calculation — it ensures the system is sized correctly. If a contractor refuses, that’s a red flag.

Maintenance & long-term costs (warranties, lifetime, replacement schedule)

• Typical lifetimes: central AC 12–15 years, gas furnace 15–20 years, modern heat pumps 15–20+ years (geothermal longer). Service life depends on maintenance and operating load.
• Annual maintenance cost: plan $100–$300/year for professional tune-ups (cleaning, refrigerant check, safety checks).
• Warranties: manufacturer parts warranty often 5–10 years; extended warranties and labor warranties vary get them in writing.
• Total cost of ownership: include energy use (kWh or therms), maintenance, and expected replacement when calculating lifetime cost.
  

Conclusion

Replacing your HVAC is a smart investment for comfort and savings. With costs from $7,000–$15,000, factor in rebates to ease the hit. Contact local pros today get multiple quotes, schedule a survey, and breathe easier.

5 FAQs

1. How much does a new HVAC system cost?

A new HVAC system typically costs $5,000–$12,500 for a standard single-family home, with variations based on system type, home size, ductwork condition, and region. High-efficiency heat pumps or systems that require new ductwork can push costs higher. Figures are national estimates as of January 2026; get 2–3 local quotes to confirm.

2. What is the cost to replace HVAC (furnace and AC together)?

Replacing both a furnace and central AC commonly ranges $7,000–$12,500, depending on equipment quality and installation complexity. Bundling both often saves on labor and components versus separate replacements.

3. How much does a heat pump cost?

Whole-home ducted air-source heat pump installs generally fall between $8,000 and $20,000; small or single-zone ductless models can be much less. Incentives and rebates often lower net cost.

4. What financing options exist for HVAC replacement?

Options include home improvement loans, HELOCs, dealer financing, and energy efficiency loans; federal tax credits and local utility rebates can reduce the net cost use combined savings to lower monthly payments.

5. Repair or replace — how do I decide?

If a system is 12–15 years old, or repairs exceed about 50% of a replacement estimate, replacement is usually the financially sound option. Consider efficiency gains, reliability, and available incentives in the decision.

Final notes, sources & caveats

• Date stamp: All cost figures and tax-credit descriptions are current as of January 25, 2026. Incentives and tax credits can change check the IRS and ENERGY STAR or ask your contractor for up-to-date incentive help.
• Top sources consulted (examples): national cost aggregators and manufacturer guidance (Angi/HomeAdvisor/Modernize/EnergySage/Carrier), U.S. Department of Energy and ENERGY STAR, and IRS guidance on energy tax credits.