How Much Does an HVAC Unit Replacement Cost?

Are you thinking to replace your old HVAC system? If yes, then this article is for you, below in this article, we have shared everything you need to know about the HVAC replacement, how much it will cost you, and how you can choose the right HVAC system using modern HVAC software such as a residential HVAC calculator.

Replacing the HVAC system is the correct decision if your HVAC unit is older than 10 years, becoming less efficient, and if it demands repair continuously. The HVAC units are made for 10 to 15 years of use, but the lifespan depends on different factors. In simple words, the more your HVAC system operates, the faster it will become less efficient.

Few brands claim that their HVAC systems have worked effectively for more than 15 years, but it is not true in lots of conditions. If you are continuously facing problems with your HVAC system then it is a smart decision to replace it rather than blindly paying for repairs.

Not just about the cost of repair, the ineffective HVAC system will also increase your energy bill when it operates on load to provide optimal cooling or heating. You may not see the sudden rise in the electricity bill but it will cost you a fortune in the next few months.

Cost of An HVAC Unit Replacement

National Average Cost$6500
Minimum Cost$2500
Maximum Cost$12000
Average Price Range with DuctworkFrom $5000 to $14000

The cost of HVAC unit replacement may vary according to work type, HVAV unit type, ductwork, insulation, and more. Regarding replacing the complete HVAC unit, it will cost you around $2500 to $12,000, which means you need to pay $20 to $50 per square foot. You must also pay for the labor, from $1000 to $1200.

No one can tell you the exact cost required for a full replacement, you can show your property to the HVAC professional, and he can help you with the pricing after he does the residential heat load calculation through an HVAC calculator.

We recommend you not entirely depend on the pricing calculated by HVAC professional; the cost may be slightly different when your replacement starts in the real world.

Factors in Calculating HVAC Unit Replacement Cost

As we have told you from the beginning, the HVAC unit replacement depends upon many factors. Below we have explained different factors that affect the cost of your HVAC system replacement. After going through the factors below, you can calculate the approximate pricing estimate for your replacement.

1. New Unit

The main compound of the HVAC system is the central HVAC unit. If your unit is older than 10 to 15 years, you must replace it. Depending upon the size of your property and the brand you choose, the HVAC unit may cost you from $4,000 and $12,000. The air conditioner is about $4,000 to $9,200, and the new furnace is about $2,500 and $4,500. You must go with the unit equipped with the latest technology, energy-efficient and provide you with performance.

HVAC Unit Installation CostsLow CostHigh Cost
Central Air Conditioner$4,000$9,200
Ductless Split AC$2,000$4,200
Electric Furnace$2,500$3,200
Gas Furnace$2,900$3,500
Oil Furnaces$5,000$7,500
Heat Pump$5,100$9,000
Geothermal Heat Pumps$14,500$38.500

2. Labor Work

When it comes to any work, you need to hire laborers. In general, the labor work may cost you from $500 to $2,500, but this price is included with the installation cost. The labor cost depends upon the time required for the installation. Usually, the replacement will take about 6 and 10 hours; the ductwork is not included. If your house’s duct needs to be replaced, it may take 2 to 3 more days and will cost you more also.

3. Types of Installation

There are 3 different types of HVAC system installation, and the cost for the replacement is highly affected by the installation type. Those are as below:

  • Chat out installation – Includes the installation of new heating and cooling system
  • Complete installation – Includes the installation of all HVAC equipment and new ductwork
  • Full installation with zoning system and additional features.

You need to choose the replacement and installation type depending on the condition of your current HVAC system. Just keep one thing in mind; the more time and work your replacement demands, the more it will cost you.

4. Removal and Disposal of Old Unit

Mostly the HVAC professional handling the work of your replacement does the removal and disposal of your old HVAC unit for free. Still, we recommend you check with your professional before starting work. If your HVAC professional demands additional money for the removal and disposal, you can check with the other HVAC professional or pay him after some bargaining.

5. Location of Your Properly

The climate of your property location directly affects the price of the HVAC unit. If you live in a hotter climate, more BTU output will be required; typically, the residential furnace runs from 30,000 to 110,000 BTUs.

Central Air Conditioner SizeAC Unit BTUAC Unit Only
1.5 Tons18,000 BTU$2,500
2 Tons24,000 BTU$2,420
2.5 Tons30000 BTU$2,795
3 Tons36000 BTU$2,890
3.5 Tons42000 BTU$3,450
4 Tons48000 BTU$3,550
5 Tons60000 BTU$3,660

You must purchase a humidifier if you live in a dry climate. Those are the few things that most affect the cost of HVAC unit replacement.

How to Save Money on HVAC Installation?

The HVAC installation will cost you high, but you can save dollars if you do some hard work. We suggest you search for the manufacturer’s rebates. If you find any, you can combine this with other deals offered by your installer. To find the rebates, you need to visit the official website of the HVAC unit manufacturer and search for the model.

You can save money by finding a local HVAC professional instead of hiring a well-known company for a replacement. You will get many experts and professional HVAC system installers locally. Make sure he uses a modern auditor to conduct the home performance audit to calculate the required BTU and then suggest the machine depending on the statistics.

If you purchase the wrong unit, it will not provide optimal cooling. You should look for the other person if your HVAC professional is suggesting to you everything on his own without doing a residential heat load calculation.

Hidden HVAC Replacement/Installation Costs

You need to pay extra for some work even if you have paid for the complete HVAC unit replacement to the HVAC contractor. Mainly the AC installation cost includes the estimation provided for HVAC. There are a few more things that you should ask your HVAC contractor before starting with the work. The questions are as below:

  • Will they take care of the permit required from the country building department, or do you need to do it independently?
  • Does the estimate include the cost of testing, removal, or replacement of the material if your home has asbestos or lead paint?
  • Do I need to pay in addition if any additional work involves in the HVAV installation process, such as electrical work, plumbing, removal of an existing system, and installing the HVAC system at a new location?

Those are the few things you should clear with your HVAC contractor.

In short, the average cost of an entire HVAC system replacement is from $5000 to $14000, depending on many factors. We recommend you hire a professional and licensed contractor for your HVAC unit replacement. Suggesting you go with the HVAC contractor equipped with modern HVAC software.

If you have any questions, please ask below!