Heat Pump Replacement Cost 2025

The cost of replacing a residential heat pump is a big investment and it depends on the type of system, its efficiency and other factors. U.S. homeowners should be prepared to pay between a couple of thousand dollars to more than 20,000 dollars to install a new heat pump.

The price varies depending on whether it is an air-source, ductless, or geothermal unit, brand and efficiency ratings, size of the home and local labor rates. The following is a brief description of the average cost of replacing a heat pump and the main factors which influence the price.

Heat Pump Type	Average Installed Cost Range	Key Details
Air-Source (Central)	$8,000 – $15,000	Standard efficiency, ducted system for whole-home heating & cooling
Air-Source (High Efficiency)	$12,000 – $20,000	Premium SEER/HSPF model (variable-speed); higher upfront cost
Ductless Mini-Split (single zone)	$1,500 – $5,000	One indoor unit; ideal for a single room or open area
Ductless Mini-Split (multi-zone)	$5,000 – $15,000+	Multiple indoor units; cost rises with each added zone
Ground-Source (Geothermal)	$12,000 – $30,000+	Highest upfront cost; requires underground loop installation

Average Heat Pump Replacement Costs by Type

One of the largest factors of replacement cost is heat pump type. There are three broad types of residential heat pumps: air-source (including central ducted systems and ductless mini-splits), and ground-source (geothermal) systems. Air-source heat pumps (ASHP) exchange heat with the outside air and geothermal heat pumps (also known as ground-source, or GSHP) exchange heat with the ground. The cost profile of each type in terms of equipment and installation is different:

Air-Source Heat Pumps (Central Ducted)

The most widespread type of air-source heat pumps in the U.S. homes is central. These systems are based on the existing ductwork to circulate heating and cooling inside the house. The average cost of a typical central heat pump is approximately between 8000 to 15000 dollars in an average house. This price is inclusive of the outdoor unit, an indoor air handler or coil and the installation labor. Units with larger capacity to suit large houses or cold regions will be on the top of this range. Also, the cost can be increased by choosing a high-end model with more features or efficiency, a high-end variable-speed heat pump can cost $12,000 to $20,000 installed on a whole-home system . These high-end systems are more efficient (higher SEER/HSPF ratings) and usually are of the best brands such as Carrier or Trane, but they require a larger initial investment.

A number of factors may determine the position of a central heat pump replacement within the range. It is easy to install a heat pump in a house that already has usable duct work, but in a house with leaky or inadequate ducts, there may be some additional expenses to repair or replace the ducts. Overall, however, a 3-ton mid-range air-source heat pump replacement (which is usually required in a ~1,500-2,000 sq. ft. home) costs something like $9,000-13,000 installed . This makes air-source heat pumps a desirable and a relatively cheap alternative to geothermal systems. It is notable that in very cold areas some homeowners choose a dual-fuel (hybrid) heat pump which combines the electric heat pump with a gas furnace as a backup heat source. A hybrid system is a good source of reliable heat in sub-freezing conditions, but it will cost you about an extra 3,000 or more on the project as you are basically installing a furnace in addition to the heat pump .

Ductless Mini-Split Heat Pumps

Ductless mini-split heat pumps are also air-source, however, they circulate the air through one or more wall-mounted indoor units rather than ducts. They are perfect in a house that does not have ductwork or in the case of adding zones to a single room. A ductless heat pump may cost between 1,500 dollars (single-zone system) and 10,000 dollars (multi-zone system) or more. The cost of a single-zone (one indoor unit and one outdoor compressor) mini-split installation is usually between $1,500 to 5,000 installed, so it is a relatively cheap way to heat and cool a particular space such as a new addition or studio. In case you require the conditioning of more than a single room, then you require a multi-zone mini-split system. Multi-zone systems have a single large outdoor unit that is linked to multiple indoor units (or heads). Additional zones add both the cost of equipment and labor. As an example, a two-zone ductless system may cost about 3,500-7,000, three-zone system 5,500-8,500, and four-zone system may cost 6,700-14,000 or even more . Setups of very large scale (five or more zones) can cost more than 15,000 installed, particularly when two outdoor units are required.

Cost per zone is useful to consider when assessing ductless heat pump prices. The cost of a second zone is not twice the cost of a single zone system, there are certain efficiencies when a single outdoor unit is used to drive multiple indoor heads. According to the information on the marketplace, the cost per zone is likely to fall at three to four zones (approximately, $4,000 5,000 per zone), but after that, it may increase again because of the necessity to purchase more equipment. Concisely, ductless mini-splits are flexible and highly efficient, yet the initial cost of ductless mini-split per BTU is usually higher than the central system. Mini-splits are frequently used by homeowners who want to heat/cool a specific area or where it would be impractical or cost-prohibitive to install ductwork.

Ground-Source (Geothermal) Heat Pumps

The most costly and yet the most efficient in use is the geothermal heat pump which is used in the residential sector. These systems employ the use of buried ground loops to transfer heat with the earth which is relatively constant in temperature throughout the year. The geothermal heat pump is a big project- it requires drilling or excavation to install piping underground- hence the costs are significantly more than the air-source units. The average cost of replacing a geothermal heat pump is approximately 12000-25000 dollars on an average house and may go up to 30000 dollars on a bigger house or more extensive loop system . As an example, a small 2-3 ton geothermal system may be in the 12k-25k range (including the ground loop installation) but a larger 5-ton system may be 30k or more. These costs are the heat pump unit and the ground loop excavation.

GSHPs are expensive because of the labour and materials of ground heat exchange loops (vertical boreholes or horizontal trenching). Although geothermal systems have a high initial cost, they are extremely efficient (usually 40-70 percent less energy consumption to heat than a conventional system) and can reduce monthly bills by a significant margin. The long term pay off is what many homeowners who decide to go geothermal are considering: the energy savings and possible incentives can pay off the initial cost over time . Nevertheless, the first obstacle is great. Geothermal heat pump projects also tend to need more planning and the drilling may necessitate more stringent permit requirements. Due to this complexity, it is important to seek quotes of contractors who have experience in geothermal installations in case one wishes to use this option.

Heat Pump Replacement Costs by Brand

The heat pump brand also contributes to the pricing. All manufacturers have a variety of models, with the low-end economy models to the top-end bells-and-whistles models, and the prices vary accordingly. High-end brands such as Trane, Lennox and Carrier are more expensive, particularly on their premium models, whereas brands such as Goodman or Ruud are more value-oriented at a lower price. It is necessary to mention that retail prices are not normally posted on the websites of manufacturers. Nevertheless, it is possible to estimate the standard price ranges (the equipment only, without installation):

Brand	Average Unit Cost (No Installation)
Amana	$3,600 – $11,000
American Standard	$3,500 – $10,900
Carrier	$3,000 – $15,000
Goodman	$2,000 – $8,000
Lennox	$3,100 – $15,000
Rheem	$3,100 – $6,100
Ruud	$3,000 – $6,100
Trane	$3,500 – $15,600
York	$4,000 – $10,000

Average cost of 2-5 ton central heat pump (equipment only) . Prices actually depend on the model and efficiency.

The ranges provide an indication of the comparative price of various brands. As an example, Goodman, which is a low-end brand, has units that begin at about 2,000 dollars in the smaller sizes, compared to a high-end Lennox or Trane unit that can cost more than 10,000 dollars on a high capacity, high efficiency unit. Remember that these are the figures of the heat pump unit only. There will be extra cost of installation (usually a few thousand dollars, as will be discussed below). Brands such as Carrier, Lennox and Trane tend to be on the higher end of the price spectrum since they have ultra-efficient, variable-speed systems that are sold at a premium. Conversely, middle-range brands like Rheem, Ruud and American Standard may have a smaller price range, with emphasis on good performance at a reasonable price. It is also interesting to mention that most brands are manufactured by the same companies or have the same parent company (Trane and American Standard are basically the same equipment internally, as are Goodman and Amana) . This implies that a value-based brand may occasionally provide comparable performance to a high-end brand at a reduced price, although usually with less features or shorter warranties.

Installation prices do not usually change significantly depending on the brand, a good HVAC installer will charge the same amount of labor to install a Goodman or a Carrier, etc. The distinction is mainly in the price of the equipment and brand-related needs or extras. Comparing quotes, it is a good idea to consider the total installed price. There are also cases when a more expensive brand may have a longer warranty or more efficiency that is worth a little more money. However, when two quotes are very different, it usually boils down to the cost of equipment as displayed above. To observe these differences, homeowners ought to request quotations of similar models in two brands. In most situations, the overall installed cost of a mid-range 3-ton Lennox vs. Carrier unit may turn out to be quite similar (e.g. approximately between $6,000 and $13,000 total, depending on the analysis ). On the one hand, Lennox units may be slightly more expensive, but on the other hand, the installation cost of Carrier may be slightly different, so at the end of the day, both brands are relatively similar in terms of overall price when installation is considered .

Installation Labor Costs and Regional Price Variations

In addition to the heat pump unit itself, homeowners should factor in the cost of labor and other material associated with the installation. The labor and overhead may comprise a large percentage of the total bill – frequently more than half of the total replacement cost is labor and related business overhead, not the heat pump hardware itself The average cost of labor to install HVAC is between $1,000 and $3,000 in most of the country to replace a simple heat pump. This is typically an hourly rate of about 75-150 dollars an hour of the HVAC technicians and a typical installation can take one to two days to complete. The labor cost will entail the following activities, the removal of the old unit, installation of the new heat pump, connecting the refrigerant lines, electrical wiring, testing the system and any adjustments required to the air distribution system.

The installation may be complex and thus labor costs may go up. As an example, when new ductwork is necessary or the old ducts must be changed substantially, this takes time and materials. The cost of new duct installation may be approximately 2000-3000 dollars per ton of cooling capacity in additional cost, doubling the total cost of the project in homes that require a full ductwork retrofit. Likewise, a challenging installation, e.g. a cramped attic or crawlspace installation, or a concrete pad installation of the outdoor unit on an uneven surface, may result in increased labor charges. Installers will also add extra costs to add-ons such as high-end thermostats, upgrading circuit breakers or wiring to the heat pump or adding auxiliary heat strips.

The price variation between regions is quite real in the installation of heat pumps. The amount that a homeowner is paying in one region of the country can be very different in another region. Some of the factors that affect the variation of the costs in a region are the cost of living in the region, climate requirements, and state or local requirements. In the regions where the cost of living is high and the labor rates are higher, e.g., large coastal cities or states such as California and New York, equipment and labor are priced on the higher side. In comparison, prices may be more reasonable in areas where the labor rates are lower or there is a lot of competition between HVAC installers. Climate also has its part: in colder areas, more powerful (and consequently more costly) heat pump systems with greater capacity or additional heating are usually needed. As an example, in 2023, the median cost of projects installed using heat pumps was approximately $15,854 in Massachusetts (a colder climate state) and $16,589 in Colorado (a colder climate state), compared to approximately $8,700 in Florida (a warm climate state) . In California, it was even higher, about $21,649, which could be explained by both the increased labor prices and the fact that a lot of homeowners chose the most expensive systems. Some of the regional differences of a national energy marketplace are shown in the table below:

Region/State	Median Installed Cost
Florida (Warm Climate)	$8,700
Massachusetts (Cold Climate)	$15,854
Colorado (Cold Climate)	$16,589
California (Mild Climate)	$21,649

2023 median heat pump installation costs, post incentives by state. Warm states (e.g., FL) are cheaper, whereas cold or expensive states (MA, CA) are more expensive.

In addition to climate, local code and permitting may affect regional costs (see below on permit fees). Depending on the city, an upgrade such as electrical subpanel to the heat pump or higher amperage circuit may be necessary, which increases labor and materials. In short, the Southeast homeowner may be quoted between $6,000 and $10,000 on a mid-sized replacement, but the Northeast or West Coast homeowner may be quoted between $10,000 and $18,000 on a comparable system because of regional differences. It is worthwhile to obtain several quotes and make sure that each of the contractors is quoting similar equipment, so that you can compare the effects of labor rates and other local variables accurately. Also, enquire with installers whether there are any climate-specific features: in extremely cold climates, some air-source heat pumps are so-called cold climate models with more powerful compressors, which may be more expensive initially but guarantee the heat pump will operate effectively in extremely cold weather and may save on backup heating expenses.

Efficiency Ratings (SEER & HSPF) and Their Impact on Cost

When you go to buy a heat pump you will see efficiency ratings such as SEER, SEER2, HSPF, or HSPF2 in the specifications. These ratings are the efficiency of the unit in cooling or heating your house. The cooling efficiency rating (the higher the SEER the more cooling per watt of electricity) is called the Seasonal Energy Efficiency Ratio (SEER) and the heating efficiency rating (the higher the HSPF the more heating per watt of electricity) is called the Heating Seasonal Performance Factor (HSPF). As a rule, the greater these figures the more efficient, and more costly, the heat pump. The more efficient models have more efficient compressors, variable speed fans and more efficient heat exchangers, which makes them more expensive. A high-efficiency heat pump with ENERGY STAR certification will typically be more expensive to purchase than a simple one that only meets the minimum requirements . The issue of homeowners is how these efficiency upgrades can be converted to costs and savings.

Generally speaking, each increase in SEER or HSPF can cause a significant increment in the cost. As an example, upgrading a minimum efficiency (approximately 14 SEER, or approximately the current federal minimum in most areas) to mid-efficiency ~16 SEER unit may add approximately 10 percent to the equipment cost. Moving up to ultra-high efficiencies (20+ SEER with variable-speed technology) can be very expensive, sometimes by 50-100 percent or more, compared to a base model. According to one pricing guide, the difference between a basic 14 SEER heat pump and the most efficient model on the market may increase the price by twofold . To illustrate, the top-of-the-line heat pump (approximately 20 SEER, 10 HSPF variable speed) manufactured by Trane costs approximately $10,000 installed, but the entry-level 14 SEER model costs approximately $5,200 installed . This difference shows the amount of premium that one can be willing to pay to achieve maximum efficiency.

Alternative way of thinking about it: a standard 3 ton, 14.3 SEER2 (approximately 15 SEER) heat pump may be installed at a cost of 9k-13k as mentioned above. When you bump that up to a 17 SEER unit, you may be looking at an additional cost of perhaps $1,500 to 3,000 to the price of the higher efficiency . Another few thousand on top of that may be added by going to a 20 SEER unit. Efficiency is also likely to be accompanied by more advanced features such as two-stage or inverter-driven compressors, which are not only energy-saving, but also more comfortable (more even temperatures and less noise). Homeowners should also compare the long-term savings on energy (less money spent on utilities every month) with the increased initial cost when deciding whether to upgrade. In most applications, when you operate your heat pump extensively (particularly in heating a moderate to cold climate or cooling a very hot climate), the energy savings of a high-SEER/HSPF unit can be substantial over the life of the unit. Moreover, the high-efficiency models are frequently eligible to rebates or tax credits, which can cover part of the price (such as a 30 percent federal tax credit up to 2,000 dollars on qualifying high-efficiency heat pumps, as explained in the following). Nevertheless, based on the pure sticker-price, a basic efficiency heat pump will be the cheapest option. Most of the homeowners choose something between the two extremes, neither the cheapest model, nor the top-of-line one, to strike a balance between the initial price and efficiency.

• 14 SEER (8.2 HSPF) Base Efficiency: These are the lowest cost entry level units. A mid-sized heat pump will cost about 5,000 8,000 installed depending on size and brand of a basic 14 SEER system. They are at the minimum standards and employ simpler single stage compressors.
• 1618 SEER (910 HSPF) Mid-High Efficiency: The price is 1030 percent more than base models. This may be equivalent to approximately $6,000 to 12,000 installed of the same mid-sized system. They tend to have two-stage or improved compressors. Based on industry statistics, the upgrade of 14 to 16 SEER could cost an additional ~10 percent .
• 20+ SEER (10+ HSPF) – Premium Efficiency: These variable-speed, super-efficient heat pumps are a premium product, usually costing 50-100 percent more than the base model. The high-capacity, 20 SEER system is not unusual to be installed at the cost of $12,000 to $20,000. In one case, a high-end model was approximately 10k as compared to 5k of the base model of the same brand.

To summarize, there is an obvious cost implication of efficiency: the higher the HSPF/SEER rating, the more costly the unit will be, but the lower the operating costs. The homeowners are advised to take into consideration the duration that they intend to remain in the house and the local energy rates. Where electricity is very expensive or the heat pump is going to be used extensively (e.g. to provide year round heating and cooling), the extra cost of higher efficiency can be recouped over time. In other situations, moderate efficiency model could be the golden mean. Either way, any new heat pump now will probably be more efficient than a system that was installed 10-15 years ago, so even a conventional efficiency replacement can save energy (as we will explain in the energy savings section).

Size and Capacity Considerations (BTUs per Square Foot)

The cooling and heating capacity of a heat pump which is usually expressed in tons or BTUs should be equivalent to the size and design of your home. The size of capacity directly affects the cost: the bigger the heat pump (the higher the BTU output) the more expensive it is compared to the smaller one. The heat pump capacity is usually expressed in tons with 1 ton = 12,000 BTUs per hour of cooling. Residential heat pumps normally vary between 1.5 tons (18,000 BTU) of small houses or condominiums to 5 tons (60,000 BTU) of large houses. As a rule of thumb, a well-insulated house in moderate climate may require about 25-30 BTUs per square foot of heating/cooling capacity . This amounts to about 1 ton per 500-600 square feet of living area. Where the climate is warmer or the house is less well insulated, the need may be nearer 40+ BTUs per sq ft, and in extreme cold climates the heating demand may be 4050 BTUs per sq ft or more, but in such cases a backup heat source is usually used.

As an example, the following are typical ranges of installed costs by size of heat pump of a standard-efficiency unit (assuming that existing ducts are in place):

Heat Pump Capacity	Approx. Home Area Served	Installed Cost Range*
2-ton (24,000 BTU)	~800–1,200 sq. ft.	$7,000 – $11,000
3-ton (36,000 BTU)	~1,200–1,800 sq. ft.	$9,000 – $13,000
4-ton (48,000 BTU)	~1,600–2,400 sq. ft.	$10,000 – $14,000
5-ton (60,000 BTU)	~2,000–3,000 sq. ft.	$12,000 – $16,000

^*Assumes a basic 14 SEER2 heat pump with existing ductwork. Higher efficiency models or difficult installations will increase costs.

These rates are comparable to those that contractors normally charge. To give an example, a 3-ton heat pump (a typical size of an average home) was observed to be approximately $9,00013,000 installed on a baseline efficient model . Moving to a 4-ton will cost you maybe a thousand to two thousand dollars more. A move up to a 5-ton (the biggest single residential unit) could go into the mid-teens ($15k+). When a home needs over 5 tons of capacity, then generally more than one heat pump system is installed (e.g. a large 6-ton system may be two 3-ton systems). When that happens, the costs are not linear: two units imply essentially twice the equipment cost and a bit more labor (but there are some economies of doing two at a time). Industry statistics prove that when you go beyond the 5-ton per unit mark, the price can “skyrocket” since you are doubling up systems.

Sizing is very important in terms of comfort and cost. A heat pump that is too small will not be able to keep up with the temperature on the hottest days and an oversized unit will short-cycle, wasting energy and possibly reducing its life. This is why HVAC technicians do a load calculation (sometimes referred to as a Manual J calculation) to find the correct size of your particular house based on square footage, insulation, ceiling height, window count, local climate, etc. Cost wise, you would like to have a unit that is large enough to get the job done, but not so large that you overpaid. When you are replacing an existing heat pump, the size of the old one is a starting point, but when you have added insulation or an addition to the house, you may have to make some adjustments. The positive aspect is that newer heat pumps, even with the same capacity as older ones, tend to perform and be more efficient in cold weather. When you are replacing a unit, ask your contractor whether your existing unit was correctly sized. In case it was undersized, you might have to increase to the next tonnage (with the increase in cost). You may be able to use a smaller (and slightly cheaper) unit, in case it was oversized, or in case you have made your home more efficient.

Permit and Inspection Fees

In estimating the cost of replacing a heat pump, do not overlook the costs that are not visible such as permits and inspections. Almost everywhere, a permit is required to install or replace a central HVAC system (including heat pumps) with the city or county. The cost of permit to install a residential heat pump is usually between 100 and 300 dollars in most regions. This is usually a fixed charge of a mechanical permit. In other situations, there may be separate permits in the event that substantial electrical work is required (e.g. upgrading the circuit to the heat pump), but in most cases the mechanical permit is sufficient to cover the HVAC replacement. Your HVAC contractor typically does the work of pulling the permit, and will add the cost to their quote. These permits make sure that the installation is done in accordance to the building codes and safety standards. Following the installation, an inspector might come and inspect that the work was done correctly (inspection fee is usually included in the permit).

Although the cost of permits is a minor percentage of the total project, it is not worth overlooking. Failure to take permits (or unpermitted work) may result in fines and issues during the sale of the home. The permit and inspection safeguard the homeowner because a second pair of eyes is checking to make sure that the new heat pump is installed safely (e.g. wiring, handling of refrigerant, clearance to combustibles, etc.). An inspection is usually shortly after an installation is made, which your installer will arrange. The inspection is just a formality provided that everything is up to code.

In addition to the permits, a few other possible additional expenses in the process of a heat pump replacement are:

• Old Equipment Removal: The removal and disposal of the old heat pump (and perhaps an old furnace or air handler) may be charged. Most installers incorporate this into their work, although when there is an unusually large or complicated removal (an old oil furnace or underground oil tank), the price may increase. As an example, the cost of removing an old heat pump or furnace unit may be a few hundred dollars (or more, up to 500-1000+, in case of a large-scale dismantling). Decommissioning of an old oil storage tank, in case of switching to an electric heat pump instead of oil heat, may be significantly more ($1,000 to $4,500 in some cases) because of environmental safety considerations.
• Small Carpentry or Patching: In case the new heat pump air handler is a different size than the old one, or in case you are replacing an old through-wall AC or furnace flue, a little basic carpentry or drywall patching may be required. This is normally a small cost or included in the install labor, however, there are instances where you may require a different contractor to do the restoration work.
• Extended Warranties: Other homeowners will choose to buy an extended labor warranty or maintenance plan with the installer. This is not a required charge, but it is an optional charge that may be a couple of hundred dollars. It will not influence the installation process itself, but it is the part of the total cost consideration in case you select it.

All in all, the cost of permits and other extras normally represent a small percentage of the cost of the project. You may allocate a couple of hundred dollars on these (in addition to the equipment and core labor costs). Whenever you receive a quote, always ask your installer whether it is a turnkey quote, i.e. whether it includes the process of obtaining permits, the removal of the old unit, startup and any required inspections. These are some of the aspects that reputable HVAC companies will do on your behalf and incorporate them in the quoted price. When you get a suspiciously low quote, make sure that the quote includes permits and disposal and is not leaving it as a responsibility of the homeowner.

Energy Savings and Long-Term Cost Benefits

One of the key motivations for investing in a new heat pump – especially a more efficient or advanced model – is the potential for energy savings and long-term cost benefits. Modern heat pumps are dramatically more efficient than older heating systems. In heating mode, a heat pump doesn’t create heat by burning fuel; it moves heat, making it far more efficient. According to the U.S. Department of Energy, a heat pump can reduce electricity use for heating by around 50% compared to electric resistance heating (such as old baseboard heaters or electric furnaces) . If you’re replacing an old electric furnace or baseboard system, the drop in your winter electric bills can be substantial. Even against oil or gas furnaces, heat pumps can save money in many cases – a well-tuned heat pu