If you can afford it, most HVAC experts recommend replacing a furnace and AC together. HomeAdvisor puts the 2022 cost of furnace replacement at $1,000 to $4,000 and the cost of an air conditioner unit at $1,500 to $8,000. This means you’re likely to spend at least $2,500 to over $12,000 for a new HVAC system. Continue reading to learn more about the cost of replacing a furnace and AC together.
You Can Save by Installing Both
A contractor may offer a deal by installing both appliances at the same time. There may be additional labor and travel costs if they must visit at different times to install an air conditioner and then later a furnace. Other reasons you might save include:
- Matched components work together to maximize efficiency.
- Repairs to both systems are under warranty.
- Newer systems generally require fewer repairs.
- The installation process is less complicated.
- Both units can share the same air handler/blower.
However, replacing both an AC and furnace may not be necessary, or cost-effective, if your system is relatively new. The general rule is that if a repair will cost over half the price of a new system, replacement is more cost-effective. There’s often a decision-making process between you and your HVAC contractor when it comes to repair or replacement (unless your system has completely failed).
What Affects the Cost of Replacing a Furnace and AC Together?
When you replace your heating and cooling units at the same time, these are some factors that can impact the cost of the project:
- Type of System: Split systems generally cost in the $3,800 to $7,500 range compared to duct-free systems, which run from $2,000 to $14,500, and hybrid systems, which go from $2,500 to $10,000, according to Angi.
- Size: A new HVAC system generally costs $25 to $60 per square foot to install. A heat pump is usually in the lower end of this range. For a 1,500 square foot home, expect to spend $4,000 to $7,000 but for a 3,000 square foot home, the cost will run from $7,000 to $12,000.
- Brand: The brand of AC and furnace you choose can have a big impact on price. Units from Trane and York tend to be on the high end. However, you could spend significantly less on a system from Amana, Coleman, Bryant, or Rheem.
- Efficiency Rating: Seasonal Energy Efficiency Ratio (SEER), which measures the energy an HVAC unit uses compared to its cooling load, depends on where you live. Higher SEER units can cost $1,000 to $2,000 more than an average system.
- HVAC Contractor: Labor, according to Bob Vila, can cost anywhere from $500 to $2,500. New HVAC systems take between 6 and 10 hours to install. Labor charges vary from company to company, so make sure your contractor includes labor in its quote so you can make comparisons. The company will also charge for the removal and disposal of your existing system.
Additional Considerations
There are even more things to consider when budgeting for a new HVAC system. In addition to the furnace, AC unit, and labor, you’ll also need to think about:
- Ductwork: At about $10 to $20 per linear foot, replacing HVAC ducts generally costs from $500 to $2,000.
- Time of Purchase: If you have the option to wait, try purchasing your new AC in the fall, when demand is lower. Furnaces tend to drop in price by spring when it’s warmer.
- Home Value: If you have newer, well-maintained, compatible heating and cooling systems, replacing both at the same time can add value to your home.
- Climate: The cost of HVAC unit replacement is affected by climate. Depending on how warm or cool your area tends to be, you may need a furnace between 35,000 and 100,000 British Thermal Units (BTUs). Add 10% in BTU output for cooling if you live in a hot climate. For homes in dry areas, adding a humidifier is a cost factor to consider.
- Asbestos Removal: If you have an older home, HVAC replacement may involve asbestos removal, for which you may need a licensed professional. The cost typically ranges from $500 to $1,000.
- Insulation: While not part of your HVAC system, insulation affects comfort, performance, and efficiency; expect to spend $1,000 to $2,100 extra to update your insulation (but there can be a 10% to 15% reduction in heating/cooling costs).
Add-ons and upgrades can increase the overall cost by thousands of dollars. Adding equipment, labor, and time to the project, these extras can include installing a zone system, UV air purifying system, variable speed fan, or whole-house humidifier.
Contact Your Air Co.
Our team provides high-quality, 24/7 HVAC repair throughout the Houston area. When it’s time to replace your furnace and AC together, we’ll find the right equipment for your home, and ensure it receives preventative maintenance. We also provide ductwork and air quality services. Several financing options are available depending on your needs. To learn more about what we do and how we can help, call 832-244-9464.