Replacing a furnace and AC unit is one of the most significant investments a homeowner can make. Whether your system is aging, inefficient, or frequently breaking down, understanding the average cost to replace a furnace and AC unit helps you plan your budget and avoid unexpected surprises.
Homeowners often ask: How much does it cost to replace both a furnace and an AC system? The answer depends on several factors, including the type of furnace, the size of your home, the brand of equipment, and the complexity of installation. This guide breaks down pricing, factors that affect costs, and tips for saving money while ensuring your home stays comfortable year-round.
Average Furnace Replacement Cost
The average cost to replace a furnace in 2026 ranges widely depending on the type of furnace you select. For a standard gas furnace, most homeowners pay between $2,500 and $6,000, including installation. High-efficiency models with AFUE ratings above 95% can cost $6,000 to $9,000.
Oil furnaces are typically more expensive to replace. The average oil furnace replacement cost falls between $4,000 and $7,000, largely due to the complexity of oil burners, combustion chambers, and additional safety components.
The age and condition of your home can also influence pricing. Older homes may require duct modifications or upgrades to accommodate new systems, adding to the total cost.
Average AC Unit Replacement Cost
High-efficiency SEER-rated units (14–20 SEER) can cost up to $10,000, especially if paired with a new furnace in a complete HVAC upgrade.
Additional costs may include refrigerant upgrades, electrical work, and modifications to ductwork. Homeowners searching for “AC replacement near me” often notice significant regional price differences, influenced by labor rates and seasonal demand.
Combined Furnace and AC Replacement Cost
When replacing both systems simultaneously, many homeowners consider the total furnace and AC replacement cost. On average, a combined installation ranges from $5,500 to $15,000, depending on system size, efficiency, and installation complexity.
While this may seem high, replacing both units at the same time often results in better efficiency and fewer compatibility issues. Pairing a new high-efficiency furnace with a modern AC system can reduce utility bills, improve indoor air quality, and extend the lifespan of your HVAC setup.
Factors Affecting Furnace and AC Replacement Costs
Several factors influence the total cost of replacing your heating and cooling systems:
1. Equipment Type and Brand
Premium brands like Carrier, Trane, or Lennox cost more upfront but often have better efficiency ratings, warranties, and durability. Budget brands may have lower installation costs but higher long-term operating expenses.
2. Efficiency Ratings
High-efficiency furnaces and AC units reduce energy bills but come with higher initial costs. AFUE ratings above 95% for furnaces or SEER ratings above 16 for AC units increase upfront pricing.
3. Home Size
Larger homes require more powerful systems, which increases the cost of both equipment and installation.
4. Ductwork and Installation Complexity
If your home has outdated or leaky ducts, replacements or modifications will add to labor costs. Installation in tight spaces or multi-story homes can also increase charges.
5. Regional Labor Rates
HVAC installation prices vary by location. Urban areas or regions with high labor demand may cost more than rural locations.
6. Additional Services
Optional add-ons like smart thermostats, air purifiers, humidifiers, or extended warranties also affect the final cost.
Signs It’s Time to Replace Your Furnace and AC
Not every repair warrants full replacement. Homeowners should consider replacing their furnace and AC if:
- The system is older than 15–20 years
- Repair costs exceed 50% of the replacement cost
- Heating or cooling performance is inconsistent
- Energy bills are unusually high
- Frequent breakdowns occur during peak seasons
Replacing an old system proactively can prevent emergency failures, improve comfort, and save money on energy bills in the long run.
DIY vs Professional Replacement
While minor HVAC maintenance can sometimes be done at home, furnace and AC replacement must be handled by licensed professionals. Attempting DIY replacement can lead to:
- Incorrect sizing or installation
- Inefficient operation
- Voided manufacturer warranties
- Safety hazards, including carbon monoxide leaks or refrigerant exposure
A professional installation ensures the system runs safely, efficiently, and lasts for its full expected lifespan.
Ways to Save on Furnace and AC Replacement
Replacing both units doesn’t have to break the bank. Consider these cost-saving strategies:
- Schedule Off-Season Installation: Prices are often lower in spring or fall, outside peak heating and cooling seasons.
- Bundle Furnace and AC Replacement: Many contractors offer discounts for combined installations.
- Explore Financing Plans: Many HVAC companies offer 0% APR or low-interest financing for new systems.
- Check for Rebates: Manufacturers and local energy programs sometimes provide rebates for high-efficiency units.
- Regular Maintenance: Extending the life of your existing system with annual servicing can delay full replacement.
Furnace and AC Replacement: Is It Worth It?
Investing in a new furnace and AC system can be costly upfront, but the long-term benefits are significant. High-efficiency systems improve comfort, reduce energy bills, and can increase your home’s resale value.
The alternative frequent repairs on old, inefficient systems — often ends up costing more over time. A modern HVAC upgrade also allows homeowners to take advantage of smart thermostats, improved indoor air quality, and reliable climate control year-round.
Final Thoughts: Average Cost to Replace Furnace and AC Unit
To summarize, the average cost to replace a furnace and AC unit in 2026 ranges widely:
- Furnace replacement: $2,500–$9,000 depending on type and efficiency
- AC replacement: $3,000–$10,000 depending on capacity and SEER rating
- Combined replacement: $5,500–$15,000 for a complete home HVAC upgrade
The exact price depends on your home size, system type, efficiency, ductwork condition, and labor rates in your area. While it may seem like a large investment, replacing aging or inefficient systems is one of the smartest ways to improve comfort, save on energy bills, and prevent costly emergency repairs.
