Installing a new furnace and air conditioning (AC) unit is one of the most significant investments homeowners can make to improve comfort and energy efficiency. This guide explores average prices, cost breakdowns, key factors affecting total expense, and recommendations to help American homeowners budget and plan effectively for their HVAC upgrade in 2025.
| HVAC System Type | Average Installed Cost (USD) | Key Cost Influencers |
|---|---|---|
| Furnace Only | $2,500 – $7,000 | Fuel Type, Size, Efficiency, Region |
| AC Unit Only | $3,500 – $7,500 | Capacity, SEER Rating, Brand |
| Furnace + AC Combo | $5,500 – $13,000+ | System Type, Brands, Ductwork Needs |
Factors That Affect New Furnace And AC Unit Cost
Multiple elements contribute to the overall installation cost of a furnace and AC upgrade. Knowing these helps homeowners estimate expenses more accurately and make informed choices.
System Size And Capacity
The size (BTUs for furnaces and tons for ACs) must match your home’s square footage. Undersized systems fail to maintain comfort, while oversized units waste energy and money.
Energy Efficiency Ratings
Higher efficiency models have better AFUE for furnaces and SEER for AC units. Though initial costs are higher, these units save money by using less energy in the long term.
Brand And Model
Well-known brands like Trane, Lennox, Carrier, Bryant, and Rheem often cost more upfront. Premium brands offer enhanced reliability, warranties, and advanced features, adding to the total expense.
Type Of System
- Gas Furnace & Traditional AC: Most common, suitable for most regions.
- Electric Furnace: Cheaper to install, but often more costly to run.
- Dual Fuel & Heat Pump Combos: High efficiency, especially in moderate climates.
Installation Labor And Complexity
Labor charges depend on location, system size, and retrofit requirements. Complex installations—such as upgrading ductwork, installing new lines, or dealing with tight spaces—raise labor costs.
Ductwork And Home Modifications
If your existing ductwork is outdated or incompatible, modification or full replacement can add $2,000 to $7,000 or more to the total project cost. Homes without ducts must consider ductless or mini-split systems.
Geographic Location
Regional considerations matter. Installation costs are generally higher in urban areas and states with stricter codes, as well as regions with extreme climates.
Average Cost To Replace Furnace And AC Together
Combined furnace and AC installations typically save on labor and materials compared to separate replacements. The national average for a new furnace and air conditioner combo ranges from $5,500 to $13,000, depending on brands, efficiency, and project scope.
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Entry-Level Systems
Basic models paired together (standard efficiency gas furnace and 13-14 SEER AC) typically cost $5,500 to $8,000 installed. This includes removal of old equipment and basic duct connection.
Mid-Range Upgrades
Popular among homeowners are mid-range options: $8,000 to $11,000 for a variable-speed furnace and 16-18 SEER AC unit, with improved warranties, comfort features, and moderate energy savings.
High-Efficiency & Premium Systems
For state-of-the-art two-stage or modulating furnaces paired with 20+ SEER variable-speed ACs—especially from top brands—expect to pay $11,000 to $18,000 or more including labor and upgraded controls.
Table: Sample Installed Costs By Home Size
| Home Size (sq. ft.) | System Size (BTU/Tons) | Installed Cost (Combo) |
|---|---|---|
| 1,000 – 1,500 | 36,000/2.0 | $6,000 – $8,500 |
| 1,500 – 2,000 | 45,000/2.5 – 3.0 | $7,000 – $10,000 |
| 2,000 – 2,500 | 60,000/3.0 – 3.5 | $8,500 – $12,000 |
| 2,500 – 3,000+ | 80,000+/4.0+ | $10,000 – $16,000 |
Cost Breakdown: Parts And Labor
Homeowners should budget for two primary expenses: equipment costs and installation labor.
- Furnace Equipment: $1,200 – $4,500, based on type and efficiency.
- AC Unit Equipment: $1,500 – $5,500, depending on tonnage and SEER.
- Thermostat Upgrade (Optional): $100 – $650 for smart or Wi-Fi models.
- Labor: $2,000 – $4,000+ for removal of existing systems, new installation, and minor duct adjustments.
- Permits & Inspections: $200 – $800, varying by municipality.
Additional Potential Costs
- Ductwork Upgrades: $2,000 – $7,000 depending on scope of modification or replacement.
- Electrical Upgrades: $300 – $2,000 if new circuits, panels, or wiring are necessary.
- Asbestos Abatement: $300 – $3,000 if old systems contain hazardous materials.
- Removal/Disposal: Usually included; if not, $100 – $500 extra.
How To Estimate Your Home’s Furnace And AC Needs
Proper system sizing is critical for efficiency and comfort. Factors include square footage, climate zone, insulation quality, and ceiling height. HVAC contractors use Manual J load calculations to recommend the right size—avoid rule-of-thumb sizing.
DIY Sizing Formula Estimate (Very Rough Guide)
- Furnace: 30–60 BTU/hour per sq. ft. (varies by region)
- AC: 20–30 BTU/hour per sq. ft. (~1 ton/400-700 sq. ft.)
It’s always best to have a professional assessment rather than guessing BTUs or tonnage.
Signs You Should Replace Your Furnace And AC Together
Replacing both systems simultaneously often maximizes efficiency, savings, and reliability, especially in certain scenarios:
- Both units are 10–15+ years old
- Frequent repairs and rising energy costs
- Desire for improved comfort and smart controls
- Major home remodeling or addition planned
- Qualifying for bundled rebates or incentives
Popular Furnace And AC Brands In The U.S.
Several major manufacturers dominate the American market, offering competitive warranties and service networks.
| Brand | Furnace AFUE Range | AC SEER Range | Warranty |
|---|---|---|---|
| Trane | 80% – 97% | 14 – 22 | 10–12 years (parts) |
| Carrier | 80% – 98.5% | 13 – 26 | 10 years (parts) |
| Lennox | 80% – 99% | 13 – 28 | 10 years (parts) |
| American Standard | 80% – 97.3% | 14 – 22 | 10 years (parts) |
| Rheem/Ruud | 80% – 98% | 13 – 20 | 10 years (parts) |
Saving Money: Rebates, Incentives, And Financing
Many homeowners qualify for rebates and incentives when upgrading to high-efficiency HVAC systems. Programs may be available from:
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- Federal Tax Credits: Up to $3,200 under the Inflation Reduction Act for energy-efficient upgrades.
- State And Local Utilities: Rebates vary, often $200–$1,200 for qualifying systems.
- Manufacturer Promotions: Seasonal discounts or extended warranties.
- Financing: 0% interest for 12-36 months is common through HVAC dealers or credit cards.
Check EnergyStar Rebate Finder for offers near you.
What To Expect During Installation
A complete furnace and AC installation typically takes 1–3 days, depending on home complexity and system type.
- Removal of old units (safe refrigerant recovery, disposal)
- New equipment installation (furnace, AC, coil, lines)
- Electrical and controls hookup
- Duct connection or modification
- System testing and balancing
- Final inspection and homeowner orientation
Always request a detailed, itemized quote and verify proper permits are obtained before work begins.
Choosing The Right Contractor For Your HVAC Upgrade
Install quality directly affects system lifespan, efficiency, and warranty coverage. Choose an EPA-certified, licensed, and insured HVAC contractor. Verify installer experience, reviews, certifications (such as NATE), and ask for references.
What To Ask Before Signing
- Is a load calculation included in the estimate?
- What warranties and guarantees do you offer?
- Are all permits and inspections included?
- What is the timeline for the project?
- Do you remove and dispose of old equipment?
- How will ductwork be handled?
Common Mistakes To Avoid When Buying New Systems
Costly errors can undermine the value of your new investment. Common pitfalls include:
- Choosing solely by lowest upfront price
- Neglecting right-sizing for your home
- Overlooking installation quality and experience
- Ignoring available rebates and incentives
- Failing to register equipment for warranty coverage
Research, compare multiple estimates, and prioritize both efficiency and installation excellence to get the best value.
New Furnace And AC Unit Cost: FAQ
A quick reference for the most frequent questions from American homeowners in 2025:
| Question | Quick Answer |
|---|---|
| How Often Should I Replace My Furnace And AC? | Typically 12–20 years, depending on use, maintenance, and brand. |
| Can I Replace Just One Unit? | Yes, but replacing both can improve efficiency and compatibility, especially if both are aging. |
| Are High-Efficiency Systems Worth The Cost? | Over time, energy savings offset higher initial investment, especially in extreme climates. |
| How Can I Lower My Upfront Cost? | Seek manufacturer rebates, utility incentives, and consider financing plans. |
| Is Price Negotiable With Contractors? | Often yes. Obtain quotes from at least three providers and negotiate. |
Key Takeaways For Homeowners
- The average cost to install a new furnace and AC unit together in 2025 is $5,500–$13,000, but varies by system type, home size, and region.
- Factor in possible upgrades for ductwork, electrical, and smart thermostats in your budget.
- Choosing experienced, reputable installers and right-sizing the system for your home are critical for long-term savings and performance.
- Maximize rebates and incentives before signing contracts—these may significantly offset total cost.
Stay proactive by replacing aging furnace and AC units before failure, and start gathering quotes from qualified local contractors to ensure maximum comfort, efficiency, and value.