Key takeaways:
HVAC installation costs between $100 for a simple window AC unit and $35,000 for a complete system with heat pumps, with the average central HVAC system costing $10,000.
Ductless mini-splits, which can cost up to $20,000, are an excellent option if your home doesn’t have the ductwork needed for central air.
Brand, energy efficiency ratings and local labor costs affect the total installation cost.
A heating, ventilation and air conditioning (HVAC) system controls the flow of cool and hot air into your home and helps regulate indoor humidity. An old, rundown or broken HVAC system can lead to excessively high energy bills and make your home uncomfortable to live in.
HVAC installation cost by type
HVAC systems are understandably pricey because they keep your home warm in the winter and cool in the summer. The cost of your HVAC system depends on several factors, but system type plays the biggest role. Although some furnaces, air conditioners and heat pumps start around $1,000, the average homeowner pays about $10,000 for a new HVAC system and installation.
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Installation cost
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|---|---|
| Air conditioning system | $100 - $20,000 |
| Furnace | $1,600 - $20,500 |
| Heat pump | $1,300 - $35,000 |
Air conditioner installation costs
About 88% of U.S. homes use some form of air conditioning, and two-thirds of those homes have central air conditioning. Central air is the most common type of air conditioner and the most expensive for a single unit.
If your home doesn’t have the ductwork needed for central air, ductless mini-splits are a great option because they can cool larger homes. However, ductless mini-split systems can be expensive and, like central AC, require professional installation. Portable window units are the most budget-friendly air conditioners but are best used for single-room installations.
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Average cost
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|---|---|
| Portable AC | $100 - $500 |
| Window AC unit | $150 - $1,300 |
| Ductless mini-split | $600 - $20,000 |
| Central AC | $1,500 - $7,400 |
Furnace installation costs
Three types of furnaces differ based on their fuel source: oil, natural gas or electric. Natural gas furnaces are preferred in colder climates because they’re more powerful, have a range of cost options, and are more energy-efficient. Electric furnaces can be more affordable but can lead to more expensive energy bills. Oil furnaces, once standard, are much less common today because they cost more to run and are not environmentally friendly.
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Average cost
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|---|---|
| Electric | $1,600 - $20,500 |
| Natural gas | $3,500 - $10,000 |
| Oil | $6,000 - $10,000 |
Heat pump installation costs
Heat pumps serve the same purpose as a furnace but usually have a higher installation cost. Known for their energy efficiency, heat pumps have long-term cost benefits because they often cost less to run. Ductless mini-split heat pumps are the most affordable, starting at $1,300, while geothermal heat pumps can cost up to $35,000 to install.
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Average cost
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|---|---|
| Ductless mini-split | $1,300 - $14,500 |
| Dual fuel or hybrid | $2,500 - $15,000 |
| Gas-fired | $3,800 - $10,000 |
| Air-source | $4,500 - $14,000 |
| Geothermal | $6,000 - $35,000 |
Additional costs
If you’re installing a new HVAC system, you may consider adding or updating other systems at the same time, like adding an air purifier or home humidifier. These accessories add more to the up-front bill but can make your home more comfortable and lower some monthly costs. Other add-ons can also help.
However, don’t think the installation and monthly bills are the only times you will spend money on your HVAC system. Maintenance is a must, and breakdowns occur. Chris Purvis, the owner of Concrete Construction Austin, reminds homeowners to always “budget for potential unforeseen expenses,” as these can easily add hundreds of dollars to the cost of your HVAC project.
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Average cost
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|---|---|
| Ductwork | $10 - $40 per linear foot |
| Air purifier | $400 - $4,900 |
| Dehumidifier | $1,000 - $3,000 |
| Smart thermostat | $120 - $425 |
| UV lamp | $100 - $1,000 |
| Humidifier | $450 - $2,000 |
What factors affect HVAC installation costs?
Many factors go into the cost of an HVAC installation. As a homeowner, you must decide what matters most to you. Do you care about the brand, the long-term efficiency of the system, financing options or something else?
HVAC brand
Even though they serve the same function, you’ll find a range of costs across HVAC brands and installers. HVAC brands vary in performance, reliability and efficiency. Often, you do get what you pay for. Many reputable brands have a higher sticker price, but their warranties and quality make them a good investment. Yet you may not need the most high-end HVAC system and can save money by choosing a less expensive brand.
SEER value
Seasonal Energy Efficiency Ratio (SEER) measures the efficiency of an air conditioning system or heat pump. Higher SEER values mean greater energy efficiency, but they also mean higher initial cost. The most efficient HVAC units have SEER ratings of 20 or higher, and you’ll see increased costs for these units compared to systems with a minimum SEER rating between 13.4 and 14.3, depending on the type of HVAC system and regional location.
Financing
HVAC systems break down unexpectedly. Instead of draining your bank account, you may finance your HVAC replacement. “If [you’re] financing the project, factor in interest rates and loan terms” that can increase the price tag on your project, said Jordan Woolf, a professional roofer and general contractor with Southern Roofing Solutions who has seen how loans for HVAC installations can affect homeowners.
Installation costs
The cost of an HVAC installation depends on the complexity and can add from $2,000 to $8,000 to your cost, according to Josh Mitchell, a seasoned HVAC technician.
“A straightforward installation in a newly constructed home may cost less compared to retrofitting an older home with complex ductwork adjustments,” Mitchell said.
Unexpected problems
If you live in an older home or are replacing a 20-year-old HVAC unit, you might run into unexpected problems.
“Homeowners often overlook the cost of additional materials like insulation, thermostats or air filters,” contractor Purvis said. “Hidden costs may arise from unexpected complications during installation or if the existing infrastructure needs significant updates.”
When to install a new HVAC system
HVAC system costs can also rise and fall based on demand. During the spring and fall seasons, temperatures are milder, so homeowners don’t rely as much on their heating and cooling systems. When HVAC companies are less busy, they sometimes offer promotions and discounts to get more business. During slower times of the year, you’ll have an easier time getting on their schedules because there are fewer HVAC emergencies to respond to.
DIY vs. hiring a professional HVAC installer
HVAC installation involves considerable risks, so it’s not a project for the average DIYer. It involves multiple utility lines, including plumbing, electrical and natural gas. Unless you have experience installing air conditioners, furnaces, or heat pumps, you should hire a pro to do this job.
A professional HVAC installer will ensure your system is installed correctly and is the right size for your home. This ensures that your system runs efficiently, has a longer lifespan and is safe to use.
How to save money on a new HVAC system
A new HVAC system can cost thousands of dollars, but there are ways to save money. Use these tips to cut down on cost:
- Get multiple quotes: When you’re ready to look for your new system and installer, get at least two quotes from HVAC professionals, if not more.
- Keep up your maintenance: Get your HVAC systems serviced at least once a year to avoid unexpected failure or premature breakdown. Some service companies provide discounts if you have technicians look at your system twice a year before peak cold and hot seasons.
- Invest in energy-efficient units: The more energy-efficient your HVAC system is, the more money you will save on your energy bills. Invest in HVAC units that at least meet the minimum SEER requirements in your region.
- Use existing ductwork, plumbing and electrical: “Upgrading electrical wiring or plumbing connections for the new system might be necessary, adding costs,” warned Woolf. Use the existing ductwork and utility lines for your new HVAC system if they are in good condition.
- Prep for the installation: Save on hours of labor by prepping the area around your units — such as moving furniture, trimming bushes, and cleaning up — for your HVAC technician.
- Replace before they break: Instead of replacing your HVAC system in the dead of winter or heat of summer, replace your systems during the off-season before they have a chance to break during peak installation season.
- Install the right-sized unit: Don’t buy an expensive HVAC unit with more capacity than you need. If a smaller system can effectively regulate the temperature in your home, you can save hundreds of dollars.
Bottom line
Depending on the type, a new HVAC system can cost you as little as $100 or as much as $35,000. The average homeowner will spend about $10,000 on a new HVAC system, and you can easily find a more budget-friendly option or invest in a more expensive model that boasts more energy efficiency.
When it comes down to making a decision, your home’s needs are what matter. You need to consider efficiency, brand, size and other factors to decide how much you want to spend on a new HVAC unit.