Average Cost of New Gas Furnace and Air Conditioner 2026

Buyers typically pay for a complete gas furnace and central air conditioner installation within a broad range, driven by unit efficiency, system size, and installation complexity. This article covers typical costs in the U.S., including price ranges, per-unit pricing, and how to estimate a project budget. Cost considerations include equipment, labor, permits, and potential extras.

Item Low Average High Notes
Complete System (furnace + AC) $5,000 $7,500 $12,000 Assumes mid-range efficiency and standard installation
Gas Furnace (unit only) $1,800 $3,000 $5,000 AFUE 92%–95% typical; higher efficiency adds cost
Air Conditioner (unit only) $2,000 $3,800 $6,000 SEER 14–16 common; premium SEER 18+ costs more
Installation Labor $1,500 $2,800 $4,000 Includes removal of old equipment in many markets
Permits & Inspections $100 $500 $1,000 City/county requirements vary by location

Overview Of Costs

Typical cost ranges for a new gas furnace and central air conditioner in the U.S. often hinge on efficiency, capacity, and installation complexity. For a standard 3–4 ton AC and a 60–100 thousand BTU furnace, expect total project ranges from about $5,000 up to $12,000 or more, with midpoints near $7,500–$9,500. Per-unit guidance generally breaks out to $1,800–$5,000 for the furnace and $2,000–$6,000 for the AC, excluding labor and permits. Assumptions: region, specs, labor hours.

Cost Breakdown

Breaking down the common cost components helps compare quotes. The following table shows typical allocations and where savings or adds-ons may occur. data-formula=”labor_hours × hourly_rate”>

Component Low Average High Notes Assumptions
Materials $2,500 $4,200 $6,500 Furnace cabinet, ductwork, filters, refrigerant lines Mid-size home, standard duct layout
Labor $1,400 $2,600 $3,800 Installation crew hours, removal of old equipment 2–4 tradespeople, 1–3 days
Equipment $1,800 $3,000 $5,000 Furnace and condenser unit mix AFUE 92%–96%, SEER 14–18
Permits $100 $400 $1,000 Local code compliance Municipality dependent
Delivery/Disposal $50 $250 $600 Old system removal and waste disposal Residential curb-to-home delivery
Warranty & Overhead $50 $150 $400 Manufacturer warranty + contractor overhead Standard warranties

Factors That Affect Price

Key price drivers include system efficiency, size, and installation complexity. Higher AFUE furnaces and higher SEER ACs cost more but reduce energy use over time. Additionally, oversized or undersized equipment can raise both upfront costs and operating expenses. Assumptions: region, specs, labor hours.

Regional Price Differences

Prices vary by region due to labor markets and permitting rules. In the Northeast, installation and permit fees tend to be higher, while the Southeast may have lower labor costs but different equipment preferences. Central regions often fall within the national average, with urban markets at the high end and rural areas at the low end. Assumptions: typical urban, suburban, and rural distinctions.

Labor & Installation Time

Installation time commonly ranges from 1 to 3 days depending on home layout and ductwork. Labor costs are a major portion of total price, and longer jobs raise both labor and potential permitting fees. Assumptions: mid-sized home, standard ductwork.

Additional & Hidden Costs

Hidden or extra costs can include duct sealing, electrical upgrades, and refrigerant line repairs. Some towns require combustion safety inspections or carbon monoxide detectors as a condition of the permit. Contingency budgeting of 5–15% is common for unexpected issues. Assumptions: standard retrofit, no major structural changes.

Real-World Pricing Examples

Three scenario cards illustrate typical quotes in practice. Each example assumes a mid-size home with standard ductwork and a mid-range efficiency pairing. Assumptions: region, specs, labor hours.

Scenario System Specs Labor Hours Per-Unit Pricing Total
Basic AFUE ~90% furnace + SEER 14 AC 8–16 Furnace $1,800; AC $2,000 $5,000–$6,500
Mid-Range AFUE 95% furnace + SEER 16 AC 12–20 Furnace $2,800; AC $3,200 $7,500–$9,500
Premium AFUE 97–98% furnace + SEER 18+ AC 16–24 Furnace $4,000; AC $4,500 $11,000–$14,500

Assumptions: region, specs, labor hours.

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