Average Cost of Furnace and Air Conditioner Replacement 2025

The price of putting a new furnace and central air conditioner in a house is an enormous one. This paper explains the average cost of furnace and AC replacement in the country, the cost of equipment and installation.

The American homeowner will be informed about the fact that the price may vary depending on the size of the home (the size of the HVAC equipment needed), the brand of the HVAC equipment and the energy efficiency rating of the units.

All the above costs are installed averages in their entirety and you can be aware of how much a full furnace and AC upgrade would cost in different scenarios.

The total cost of replacing HVAC system is approximately 7,000 to 12,000 dollars on the average house in the country, though your cost can be less or more than this amount depending on the following primary factors.

Average Cost by Home Size or Tonnage

The size of your home (and thus size or capacity of HVAC units needed) is one of the biggest determinants that will drive the replacement cost. The larger the house the greater the heating capacity of the furnace (in BTUs) and cooling capacity of the air conditioner (in tons with 1 ton = 12,000 BTU/hr of cooling). Equipment cost and labour cost also rise with capacity.

The cost of replacing a complete HVAC (furnace + AC) is about 3-6 dollars per square foot of the house area. To illustrate, it may cost about 6,000 to 12,000 dollars to replace a system in a 2,000 sq. ft. house, whereas the 1,200 sq. ft. house may be as close as 3,600 to 7,200 dollars.

Table 1 below shows the average ranges of installed costs by size of home. These estimates will be furnace and central AC of standard efficiency, and a properly-sized furnace and central AC, and installation:

Home Size (square feet)	Average Installed Cost Range
1,000 sq. ft.	$3,000 – $6,000
1,200 sq. ft.	$3,600 – $7,200
1,600 sq. ft.	$4,800 – $9,600
2,000 sq. ft.	$6,000 – $12,000
2,500 sq. ft.	$7,500 – $15,000
3,000 sq. ft.	$9,000 – $18,000

*Source: National averages for full HVAC (furnace + AC) replacement.*

HVAC is a short name of heating, ventilating and air-conditioning. Sizing an HVAC system means what size of the HVAC system you need based on the size of your home. The cost of installing a central AC of 1.5 ton (average size of 800-1,000 sq. ft.) may be 2,000 to 5,000 dollars.

A large central AC, 5 ton (2,500+ sq. ft.), can consume 4,000 to 8,000 installed.

Furnaces are computed in BTUs. An 80,000 BTU furnace (suitable to a normal house) can be installed at an average cost of 2,100 to 5,200 dollars. The bigger 120,000 BTU furnace can be fitted at the top end of 5,700 dollars.

In most cases, the bigger the furnace and AC the more expensive it is. Make sure that your installer does a correct load calculation so that you can buy the size unit. Oversized systems are a waste of money and may short-cycle and under-sized systems will not heat or cool well.

Average Cost by Brand

Brand determines price. Such brands as Trane, Carrier, and Lennox are high-end brands and they charge more on their equipment because of the high technology, longer warranties or greater efficiencies. The less expensive brands like Goodman and Payne have units that are cheaper and more focused on reliability and easy functionality.

The price difference between a premium brand and a value brand in a similar system is normally at least 1,000 dollars.

To give an example, a mid-sized high-efficiency furnace of Lennox or Bryant (sister brand of Carrier) can cost up to 7,500 dollars just on the unit, whereas a Goodman furnace of the same capacity can cost 3,000 dollars on the unit.

An example of this is in the air conditioners where a central AC of Carrier can cost an average of 4,700-8,700 installed and a Goodman of the same size can cost an average of 3,200-5,000 installed. These differences are compounding: one of the comparisons showed that a 3-ton, 14 SEER replacement (AC + furnace) by Lennox was about 9,300 installed versus about 7,700 installed of a Goodman system of the same size.

In other words, you can pay 15–20 percent more on the system of a luxury brand. Installation labor cost is pretty much the same, brand-independent (usually between 1,000 and 3,000 dollars of the total), so the majority of the price difference is in the equipment.

The table 1 below is a comparison of average range of installed costs of popular brands of HVAC in the U.S. These prices are an addition of the cost of equipment and installation of a common central AC or gas furnace replacement. The high end brands tend to be on the upper side and the low end brands on the lower side:

HVAC Brand	Central AC (Installed)	Gas Furnace (Installed)
Trane	$4,000 – $9,000	$2,100 – $6,000
Carrier	$4,700 – $8,700	$1,900 – $5,800
Lennox	$5,300 – $9,000	$2,300 – $10,500
American Standard	$3,800 – $8,000	$1,750 – $6,000
Bryant	$2,500 – $6,800	$1,700 – $6,400
Goodman	$3,200 – $5,000	$1,500 – $6,200
Payne	$2,500 – $3,900	$1,700 – $4,000 (est.)

*AC installed cost ranges from HomeGuide (national data). Furnace installed ranges derived from equipment prices by brand plus typical labor ${900}–$3,000. Payne furnace estimate based on similar budget-brand pricing.*

The table below shows the prices of the well known brands of heat-pumps. Both Lennox and Trane are expensive; their high-efficiency models can cost more than 18,000 dollars. Payne is the other way round; it only offers basic efficiency models.

These two extremes are the midrange brands, Rheem-Ruud, York and Amana (not in the table). A premium brand can add 10-20 percent on the price of the project.

The majority of the homeowners are ready to pay extra to receive a better quality, less noise, or dealer support of the most popular brands. Goodman and Payne are also good; they also meet the federal standards and can be a good selection of a person who is ready to save on the initial expenses.

Average Cost by Efficiency

Energy efficiency is one of the best factors that determine the cost of a new furnace or air conditioner. The more efficient units cost more to buy, but they use less energy and can save money in utility bills in the long term.

With air conditioners, the efficiency is given by Seasonal Energy Efficiency Ratio (SEER) – or the new SEER2 – which is the number of BTUs of cooling the unit delivers per watt of power it consumes. With furnaces, efficiency is given as a percentage of the Annual Fuel Utilization Efficiency (AFUE) – the percentage of the fuel that is turned into heat in the house.

The average AC today could be 14 SEER and the average gas furnace 80 percent AFUE. The high efficiency models are as high as 20+ SEER and 95-98 percent AFUE. The efficiency improvement is also associated with more sophisticated components (two-stage or variable-speed compressors and blowers, secondary heat exchangers, etc.), which raise the price of production and installation of the units.

The upfront cost will increase with the increase in efficiency. A SEER air conditioner can cost several hundred or several thousand dollars over a basic one. On the same note, a high-AFUE condensing furnace (90%+ AFUE) will be 30-50 percent more expensive to install compared to an 80 percent furnace.

The following tables indicate the rise of average costs as efficiency rises. All prices have fully installed units (cooling system: the outside condensing unit, the indoor coil and basic installation; furnace: the unit and the basic installation):

Central Air Conditioner Cost by SEER Rating

SEER Rating	Efficiency Tier	AC Unit Price	Total Cost Installed
13–14 SEER	Standard	$1,000 – $4,200	$2,500 – $6,000
15–16 SEER	High Efficiency	$1,500 – $5,700	$3,000 – $7,500
17–18 SEER	High Efficiency	$1,800 – $6,100	$3,500 – $8,600
19–21 SEER	Very High	$2,500 – $7,500	$4,000 – $10,000
22–26 SEER	Maximum Efficiency	$3,700 – $8,500	$6,000 – $11,000

*Source: Average central AC costs by efficiency.*

The 14 SEER central air system is estimated to cost 2,500-6,000 dollars installed as the minimum. A super-efficient 20+ SEER system may cost up to 6,000-11,000 dollars and even more. Tiered regulations exist to set the upper limit: Department of Energy requires a minimum of ~14 SEER (or 13.4 SEER2) in the north and 15 SEER (14.5 SEER2) in the south.

In such a way, new systems have the highest probability to be of the standard or high efficiency level by default, and the very high one is a possibility of upgrade. Higher SEER air conditioners have two-stage or variable-speed compressors and better indoor coils, which raise efficiency at the expense of higher price.

They can save money long term on cooling, and have a better chance of having a more comfortable home (less temperature fluctuation), but the payback period of the energy savings has to be considered. An example would be that an upgrade to 18 SEER may cost a few thousand dollars up front, but may save a fortune in electricity over the life of the unit, especially in hot weather.

Gas Furnace Cost by AFUE Rating

AFUE Rating	Efficiency Tier	Furnace Unit Price	Total Replacement Cost
80% – 89% AFUE	Standard Efficiency	$600 – $1,900	$2,000 – $5,200
90% – 99% AFUE	High Efficiency	$900 – $3,300	$3,300 – $6,900

*Source: Average gas furnace costs by efficiency.*

The installation cost of a 80 percent AFUE furnace (non-condensing model) is 2000 to 5200 dollars and a 95 percent AFUE high-efficiency furnace may cost 3300 to 6900 dollars to install. The 95 percent furnace is more expensive because it has a secondary heat exchanger and typically more complex burners and fans.

It also vents differently (usually in PVC pipes as opposed to a chimney) and may be more labor intensive to install, which adds to the cost.

But these furnaces use much less fuel: a 95 % AFUE furnace only loses 5 % of its heat up the flue, and an 80 % furnace loses 20 %. In replacing an 80 percent furnace with a 95 percent furnace, you may save approximately 15 percent of your winter heating bill (approximately 20 dollars on every 150 dollars in each month gas bill).

Such energy savings can over a period of time cover the extra expense fully or to a great extent. The majority of high efficiency models also come with incentives- e.g. a federal tax credit of up to $300 can be claimed on Energy Star certified furnaces, and local utility rebates can further lower net cost.

The main aspect that should be considered is that the more efficient HVAC systems cost more to purchase but save you money in monthly energy costs. The cost of purchasing a furnace and an air conditioner should not be the only consideration when budgeting on the replacement of the two.

High efficiency is typically more cost effective to invest in in extreme temperature climates (very hot summers or very cold winters). A typical efficiency model can be more cost effective in less harsh climates or when there is a small budget. Take the initial cost and add potential energy savings and investigate the rebates or credits that can be obtained in your area to finance high-energy-efficiency upgrades.

The understanding of the effect of the size of a house, brand and efficiency of furnaces and air conditioners on the prices of the equipment will help homeowners make better decisions and choose an HVAC option that will suit their budgets and needs.

The figures above provide the national averages; actual quotes will vary. Home owners are encouraged to obtain several quotes by licensed contractors to obtain the best prices.