AC heater unit prices typically range from $5,500 to $12,500 for a central air conditioner and gas furnace replacement, including standard installation. System size, equipment efficiency, ductwork condition, local labor rates, and whether the project needs a heat pump or other configuration can change the quote substantially.
| Item | Low | Average | High | Notes |
|---|---|---|---|---|
| Central AC and gas furnace replacement | $5,500 | $8,500 | $12,500 | Typical equipment and installation |
| Heat pump with air handler | $6,500 | $10,500 | $16,000 | Equipment type and electrical work affect price |
| Central AC equipment | $2,500 | $4,500 | $7,500 | Equipment only; installation extra |
| Furnace equipment | $1,500 | $3,000 | $5,500 | Equipment-only gas furnace range |
What a new AC and furnace system costs
A standard central AC and gas furnace replacement in a typical 1,500- to 2,000-square-foot home often costs $6,500-$10,500 installed. A smaller, straightforward project may start near $5,500, while premium equipment, difficult access, or substantial duct repairs can push the total beyond $12,500.
For planning, a 2- to 3-ton air conditioner commonly runs about $1,500-$2,500 per ton for installed AC work, though that rate is not a substitute for a full-system quote. A furnace and AC are often priced as a matched package, with thermostat, basic connections, startup, and removal of old equipment included. For a typical home, budgeting about $8,500 for a standard matched replacement is a useful starting point.
Assumptions: Midwest or similar labor market, standard-efficiency gas furnace, mid-tier AC, normal access, and no major duct replacement.
Where equipment and installation dollars go
Quotes may bundle equipment and work rather than list every expense separately. The ranges below show common allowances within a complete replacement; they are not necessarily additive because contractor overhead and package pricing vary.
| Quote item | Typical range | Pricing basis | What it covers |
|---|---|---|---|
| AC condenser and indoor coil | $2,500-$5,500 | $2,500-$5,500 per system | Cooling equipment |
| Gas furnace | $1,800-$4,500 | $1,800-$4,500 per unit | Heating equipment |
| Installation labor | $1,500-$3,500 | $75-$150 per hour | Removal, connections, setup |
| Permits and inspection | $100-$500 | $100-$500 per project | Local approvals where required |
| Removal and disposal | $150-$600 | $150-$600 per system | Hauling away old equipment |
Ask whether the quote includes the coil, thermostat, permit, disposal, refrigerant lines, and startup; exclusions can make a low bid look cheaper than it is.
How tonnage, efficiency, and ducts change the quote
Equipment capacity is a major price driver. A 1,200-square-foot home might need around 2 tons, while a 2,400-square-foot home could require 4 tons or more, but insulation, windows, climate, and layout determine the actual load. Moving from a 2-ton to a 4-ton system can add roughly $1,000-$3,000 in equipment and installation, depending on the matched furnace and coil.
Efficiency also affects upfront cost. A basic AC system may cost $500-$1,500 less than a higher-efficiency model; variable-speed components can add $1,000-$3,000. Duct sealing or minor repairs may add $300-$1,500, while replacing extensive ductwork can cost $2,000-$7,000 or more. Capacity should come from a load calculation, not a guess based only on square footage.
How many labor hours does replacement take?
A straightforward changeout generally takes a two-person crew about 8-14 hours, often completed in one day. A furnace and AC installation with difficult access, new electrical circuits, line-set replacement, or duct modifications may take 1-3 days and cost more in labor.
Labor rates commonly fall between $75 and $150 per technician-hour, with higher charges in expensive metro areas or for specialized work. An estimate should state whether the crew is replacing only the equipment or also modifying drains, venting, wiring, and ducts. Compare the stated work scope and crew hours, not just the total labor line.
Why installed prices differ by U.S. region
Local labor and permit costs can shift a similar system quote by 10%-25%. Large coastal cities and high-cost metro areas may land above the national midpoint, while some rural markets have lower hourly rates but higher delivery or service charges. Hot-climate areas may also favor higher-capacity cooling equipment, while cold regions can require more heating capacity or a heat pump designed for low temperatures.
For example, a standard $8,500 project in a moderate-cost market might reach $9,350-$10,625 in a market running 10%-25% higher. Get at least three local, itemized quotes using the same capacity and efficiency target.
When repairs beat replacing both units
A minor repair such as a capacitor or contactor may cost $150-$600, while a blower motor or refrigerant leak repair can run $400-$1,500. If one component fails and the rest of the system is relatively young, a repair may preserve thousands of dollars in replacement budget. Replacing both furnace and AC together can make sense when both are near the end of service life, use outdated refrigerant, or have repeated failures.
For a system around 10-12 years old, compare the repair quote with the expected remaining life and efficiency. A $1,200 repair on an older system is a different decision from a $300 repair on a well-maintained unit. Request a repair estimate and a full replacement estimate before treating a single failure as a reason to replace everything.
Extras that can raise an AC heater quote
Common additions include a new thermostat at $150-$600 installed, electrical upgrades at $300-$2,000, and refrigerant line replacement at $300-$1,200. Condensate pumps, new flue venting, roof or attic access, and asbestos or mold work may add separate charges. Local permit fees commonly range from $100-$500, but requirements vary by city and system type.
Ask contractors to identify required code corrections separately from optional upgrades. A permit or safety correction is not equivalent to a premium thermostat or extended service plan. Have each proposed add-on tied to a specific condition, price, and whether it is required.
How to lower the replacement price without undersizing
Keep the project within scope by asking whether existing ducts, electrical service, drain lines, and refrigerant piping can safely remain. Choose efficiency based on local utility rates and expected ownership time rather than paying extra for features with little practical value. Replacing equipment before an emergency can also provide time to compare bids and avoid rush scheduling.
Request quotes for the same system capacity, efficiency tier, warranty, and included work. Check whether financing fees, disposal, permits, and taxes are included, and consider bundling furnace and AC replacement only when both units need attention. Preserve proper sizing and installation quality; cuts to those items can create comfort and operating problems.