How Much Does a New HVAC Unit Cost?

Overview of HVAC Unit Costs

On average, you can expect to pay $8,829 for an AC and furnace combination, which is the most common type of HVAC system, if you live in an area with a moderate cost-of living and your home is around 2,000 to 2,500 square feet in size. The average cost for installation of an AC unit without a furnace can be between $6,465 and $11,877, and it can cost anywhere from $767 to $11,000 to install a furnace or boiler. Smaller homes can see prices as low as $5,000 for a new HVAC system, while larger homes in more expensive locations can cost $20,000 or more. These costs vary depending on unit type and size, home size, the complexity of installation, labor costs, and the price of installation. Below, we have detailed the price of a new HVAC system by system type, features, and brand.

Average HVAC System Cost by Unit Type

HVAC systems consist of three elements: heating, ventilation, and air conditioning. The price of HVAC installation depends largely on the type of unit you purchase and which of these elements is included in your HVAC system.

Below are prices you can expect to pay based on HVAC system type:

• Window Air Conditioner Units: $150 to $600
• Central Air Conditioner: $6,465 to $11,877
• Ductless Split Air Conditioner: $2,142 to $3,936
• Electric Furnace: $767 to $3,523
• Gas Furnace: $956 to $3,870
• Oil Furnaces: $3,325 to $8,222
• Heat Pumps: $2,905 to $7,449
• Geothermal Heat Pumps: $15,000 to $38,000

Labor Costs for HVAC Unit Installation 

HVAC installation usually costs between $3,500 and $7,525, based on many factors such as local labor fees, the size of your home, the size of the HVAC unit, your climate, and difficulty of installation. Some contractors will allow you to negotiate installation costs, and it is always a good idea to compare costs from multiple local contractors to get the best deal.

Other Cost and Savings Considerations for HVAC Unit Replacement

There are many factors that can raise or lower your HVAC system installation costs, including your location, square footage of your home, rebates, and energy savings after installing an efficient HVAC system.

Here are some ways you can save money with HVAC installation:

• Tax rebates for energy efficiency
• Brand coupons and rebates
• Reduced energy costs after buying an energy-efficient unit
• Comparing prices from local contractors

Factors Affecting Cost

HVAC systems can cost more or less depending on your location, home size and age, as well as additional HVAC unit features.

Location

Your location and climate will determine what type and size of HVAC system your home needs. In the U.S., northern states will need more heating capacity while southern states require more cooling capacity, especially during the heat of summer.

Home Size and Age

Larger homes usually need larger HVAC systems that can heat and/or cool the entire house, costing you more in the process. Your home’s age can also affect costs, as an older home without new insulation or windows is less energy efficient and requires larger HVAC systems.

HVAC System Features

Additional features such as energy efficiency (SEER), unit size, and smart thermostat features can add to your HVAC installation costs as well.

HVAC Unit and Installation Costs by Brand

When searching for a new HVAC unit for your home, top brands like Carrier, All Year Cooling, and Goodman Manufacturing will offer many units of various prices depending on factors like unit size and difficulty of installation. Below, we’ve broken down costs by these brands.

Carrier

Carrier is a trusted U.S. brand that has been making air conditioners since 1902. Today, the company offers various heating and cooling units as well as smart thermostats. Carrier air conditioners usually cost between $3,000 and $15,000 or more, and furnaces cost from $3,000 to $10,000 plus local labor depending on installation costs and unit type. Factors that affect how much you will pay for a Carrier HVAC unit include installation, modifications to existing ductwork, type of HVAC system, home and unit size, and energy efficiency. Customers can expect to pay $3,000 to $15,000 for a central air conditioning unit, $2,000 to $10,500 for a ductless mini split, and $12,000 to $45,000 for a geothermal unit through Carrier. Before installation and additional costs, Carrier oil furnaces cost from $6,750 to $10,000, while gas units can cost from $3,800 to $10,000, and electric furnaces from Carrier will run you $2,000 and up. Benefits include parts coverage, warranties, and energy efficiency. Costs can increase if your current ductwork needs modifications or if the installation is complicated.

Explore reviews from real homeowners on Carrier's services.

All Year Cooling

All Year Cooling has been operating out of Florida, which is its current service area, since 1973 and currently installs and services many top HVAC brands, including Carrier, Amana, Daikin, LG, and Trane. While All Year Cooling does not offer pricing estimates without assessing your home’s current HVAC system, the company states that the national average for installing a new central air conditioning system is $6,000. Customers can expect benefits such as warranties, a 100% satisfaction guarantee, military discounts, HVAC servicing any day of the year, free estimates, and financing options.

Explore reviews from real homeowners on All Year Cooling's services.

Goodman Manufacturing

Goodman Manufacturing is an affordable HVAC company that has been in business since 1975 and is now a part of Daikin group. Air conditioner costs range from $3,188 to $4,275, including the price of installation, depending on unit size, SEER rating, noise reduction, and energy efficiency. The average cost of a Goodman gas furnace is $1,900 to $5,700 with installation, depending on unit size and AFUE level. A Goodman GMVM97 unit costs $2,275 with installation fees of $3,250, while the Goodman GCVC8 is $1,115 with installation costs of $ $2,205. Customers can expect benefits such as a 10-year limited warranty for parts, a lifetime heat exchanger limited warranty, and a 10-year replacement limited warranty on some furnaces.

Explore reviews from real homeowners on Goodman Manufacturing's services.

The Bottom Line

Purchasing a new HVAC system is often an unavoidable expense that homeowners must replace in order to keep their home comfortable in hot or cold temperatures. When searching for a new HVAC unit, take your home’s size, age, and energy efficiency into consideration in order to get the right unit. Expect to pay for the new HVAC unit, installation, local labor costs, energy efficiency, and other added features.