A new furnace with central air typically costs $7,500-$16,500 installed, with an average near $11,500 for a standard home and midrange equipment. The new furnace with central air cost depends most on home size, equipment efficiency, ductwork condition, local labor rates, and whether old equipment must be removed.
| Item | Low | Average | High | Notes |
|---|---|---|---|---|
| Installed furnace and central AC | $7,500 | $11,500 | $16,500 | Typical 1,500-2,000 sq ft home |
| Furnace equipment | $2,000 | $3,400 | $5,800 | Gas furnace, before installation |
| Central AC equipment | $2,300 | $3,800 | $6,500 | 2.5- to 4-ton condenser and coil |
| Installed price per sq ft | $5 | $8 | $12 | Approximate planning range |
Assumptions: standard gas furnace, central split-system AC, existing usable ductwork, normal access, and midrange U.S. labor rates.
What a typical furnace and AC installation includes
For a 1,500-2,000-square-foot home with serviceable ducts, a basic matched system generally lands around $7,500-$10,000. Midrange equipment and routine thermostat or vent updates commonly bring the total to $10,000-$14,000. High-efficiency equipment, difficult access, or substantial duct repairs can push the quote to $16,500 or more.
A reasonable national planning figure is about $11,500 installed. This usually covers the furnace, outdoor AC condenser, indoor evaporator coil, standard controls, refrigerant line connection, startup, and removal of the old equipment. An in-person load calculation and duct inspection are needed to confirm capacity and price.
How equipment, labor, and ductwork shape the quote
Contractors may combine costs into one installed price, so an itemized estimate helps show what is included. The following ranges are typical for a standard replacement; they are not additional charges to add automatically to a package quote.
| Quote component | Low | Average | High |
|---|---|---|---|
| Furnace and AC equipment | $4,300 | $7,200 | $12,300 |
| Installation labor | $1,800 | $2,800 | $4,300 |
| Duct modifications and fittings | $0 | $700 | $3,000 |
| Removal and disposal | $150 | $350 | $700 |
| Permits, controls, and startup | $250 | $500 | $1,200 |
Labor commonly accounts for roughly $1,800-$4,300. A crew of two or three may spend 8-14 hours on a straightforward replacement. Labor calculation can be represented as ; contractor rates often work out to about $75-$150 per technician hour, though bids usually price the whole job.
How home size, tonnage, and efficiency change the price
System size should follow a load calculation, not square footage alone. Many 1,500-2,000-square-foot homes need roughly 2.5-4 tons of cooling, but insulation, windows, ceiling height, and climate can shift that estimate. Moving from a 2.5-ton to a 4-ton system may add $800-$2,000 for equipment and related installation changes.
Gas furnace capacity and efficiency also affect the quote. A standard 80% AFUE furnace may cost less upfront than a 95%-98% AFUE model, which can add about $1,000-$2,500 installed and may need compatible venting. AC systems around 14-16 SEER2 generally cost less than 17-20 SEER2 equipment; the higher-efficiency option can add $1,000-$3,500 depending on capacity and controls.
Duct condition can matter more than a small equipment upgrade. Sealing or balancing may cost $300-$1,200, while replacing extensive ductwork can add $2,000-$6,000 or more. A quote should identify whether the price includes a load calculation, duct repairs, electrical changes, condensate drainage, and code-required venting.
Why installation prices differ across U.S. regions
Labor markets, permit requirements, climate, and contractor demand produce meaningful regional differences. Compared with a national midrange quote, costs may run about 10%-20% higher in high-cost Northeast and West Coast metros, while some Midwest and Southern markets fall 5%-15% below it. Rural locations can still cost more when equipment delivery or technician travel is substantial.
These percentages are broad comparisons, not guaranteed regional prices. A local estimate should account for the home’s actual duct layout, fuel type, electrical service, and equipment availability. In hot climates, longer cooling seasons may make higher-efficiency AC worth comparing; colder areas may place more value on furnace capacity and venting compatibility.
What three installed-system quotes can look like
A 1,300-square-foot home with usable ducts might receive a $8,400 quote for a 2-ton AC, 60,000-BTU 80% AFUE furnace, basic thermostat, and about 10 labor hours. This is a lower-cost, standard-efficiency setup with limited modifications.
A 1,800-square-foot home might be quoted $11,700 for a 3-ton AC, 80,000-BTU 96% AFUE furnace, upgraded thermostat, removal, and modest duct sealing. The assumed crew completes roughly 12 hours of installation work, with no major electrical or duct replacement.
A 2,400-square-foot home with difficult access and duct repairs might total $17,800 for a 4-ton AC, 100,000-BTU furnace, new return-air work, and 16 labor hours. Compare each quote by capacity, efficiency, included duct work, and warranty—not just its total.
How to lower the replacement price without cutting capacity
Request at least three written bids using the same equipment capacities and efficiency levels. Ask contractors to separate equipment, labor, duct changes, permit fees, and disposal so that a low bid can be checked for missing work. Verify that each contractor has sized the system for the house rather than simply matching the old unit.
Keep usable ducts and controls when inspection shows they are in sound condition, and compare standard-efficiency equipment with premium models using projected energy use rather than sales claims alone. Replacing furnace and AC together can avoid paying for repeated setup and removal, but replacing a functioning component is not automatically cheaper over time. Control scope first, then compare equipment upgrades that have a clear operating-cost benefit.