Cost to Replace AC and Furnace? Tips to Lower Cost

When your heating and cooling systems begin to fail, the most pressing question for any homeowner is: what is the cost to replace AC and furnace in today’s market? In 2026, investing in a complete HVAC overhaul is more than just a repair—it’s a strategic move toward long-term home efficiency, smarter climate control, and significant energy savings.

At Hutchinson Heating and Air, we don’t just provide quotes; we provide clarity based on decades of boots-on-the-ground experience. Having performed thousands of installations across Temecula, Murrieta, and the surrounding communities, we understand that every home has a unique “energy fingerprint.” Whether you are navigating the latest 2026 high-efficiency standards or looking for a reliable budget-friendly replacement, this guide breaks down the real-world variables—from system sizing and SEER2 ratings to the hidden complexities of modern installation.

Average Cost to Replace AC and Furnace

The country wide average cost to replace AC and furnace levels from about $7,000 to $15,000 for maximum residential structures. This estimate consists of each gadget and set up hard work. For high‑performance structures, large houses, or vast set up necessities, the furnace and AC replacement cost can be better.

In general:

A wellknown crucial air con unit usually prices between $2,500 and $7,500. A new furnace frequently levels from $2,000 to $6,500 relying on gasoline kind and performance rating. Installation hard work typically bills for 30% to 40% of the general project, which include elimination of current gadget, device setup, calibration, and fundamental ductwork tweaks.

When combined, the furnace and AC unit price typically falls between $6,500 and $12,000 for wellknown installations.

Do You Really Need to Replace Both Systems?

Not every homeowner needs to replace both systems simultaneously. Some HVAC companies push dual replacements simply for higher revenue. Here’s when replacing both makes financial sense:

When Replacing Both is Smart:

Your AC is over 10 years old AND your furnace exceeds 15 years – If both systems are aging with declining performance, simultaneous replacement prevents two separate installations within a few years.

You’re upgrading to high-efficiency equipment (16+ SEER) – Your furnace and AC share the indoor blower motor. Installing high-efficiency AC with an old furnace wastes your investment. Equipment compatibility matters:

• Single-stage ACs work with any furnace
• Two-stage ACs need two-stage or variable-speed furnaces
• Variable-speed ACs only pair with variable-speed furnaces

Major financial changes are approaching – If a future furnace replacement will strain your budget, installing both now provides 15+ years of predictable comfort.

The Real Savings of Combined Installation

Installing both systems together saves $2,500 to $5,000 compared to separate installations through reduced labor costs, bulk equipment discounts, and installation efficiency.

Real Example: A 3-ton AC ($7,500) plus 80,000 BTU furnace ($6,800) totals $14,300 separately. Combined installation costs $10,500-$11,800, saving $2,500-$3,800.

What Determines the Furnace and AC Replacement Cost?

Several key elements affect the cost to replace AC and furnace, which include:

System Size and Capacity

Larger houses require better‑ability structures, which growth each gadget and hard work prices. A successfully sized device additionally operates extra efficiently, stopping pointless electricity waste.

Energy Efficiency Ratings

Higher performance structures price extra in advance however considerably lessen month-to-month application bills. Equipment with better SEER (for AC) and AFUE (for furnaces) scores usually results in higher consolation and long‑time period savings, which many owners discover really well worth the preliminary premium.

Installation Complexity

Homes that want ductwork modifications, electric upgrades, or fueloline line modifications can see an growth withinside the universal furnace and AC replacement cost because of introduced hard work and materials.

Local Labor and Permitting

Permits, inspections, and neighborhood hard work fees additionally affect the very last price. In areas like Temecula and Murrieta, HVAC specialists comply with strict code necessities and inspection procedures that make sure protection and compliance.

Furnace Air Conditioner Combo Cost vs. Separate Replacement

Replacing each structures immediately generally effects in a decrease furnace air conditioner combo cost in comparison to changing every unit one at a time over exceptional years. Installing a matched device guarantees additives paintings collectively seamlessly, enhancing ordinary overall performance and performance.

Many house owners mistakenly update simplest the AC even as leaving an older furnace intact. However, mismatched additives can reason inefficient operation, choppy airflow, and elevated application expenses. Coordinated alternative is frequently the high-quality fee withinside the lengthy run.

Factors Influencing Furnace and AC Unit Cost

1. System Efficiency Makes or Breaks Your Budget

The efficiency level you choose is honestly where most of your money goes. We’re talking about SEER2 ratings for cooling and AFUE percentages for heating.

Single-Stage Systems ($8,500-$13,000 total)

These things are basic. They’re either blasting at 100% or they’re off. That’s it. You’ll save money buying them, sure, but your utility company’s gonna love you because those monthly bills add up fast.

Two-Stage Systems ($13,000-$17,000 total)

Now we’re getting somewhere. These can cruise at about 65% capacity when it’s not crazy hot or cold, then ramp up to full power when needed. Way quieter than single-stage, and your neighbors won’t hear it cycling on and off all night. Energy bills are reasonable.

Variable-Speed Systems ($17,000-$24,000+ total)

This is where technology gets interesting. The system’s constantly making tiny adjustments – running anywhere from 25% to full blast depending on what your house actually needs. Super comfortable, super efficient.

2. Size Matters More Than You Think

Here’s where a lot of homeowners get burned. They assume square footage tells the whole story. It doesn’t.

A proper contractor won’t just eyeball it. They’ll do what’s called a Manual J calculation – sounds fancy, but it just means they’re looking at everything: how good your insulation is, what kind of windows you have, how many people live there, what the weather’s like where you are, and whether your ducts can handle the airflow.

Ballpark AC sizing:

• 1,200-1,500 sq ft: 1.5-2.5 tons ($6,500-$9,000)
• 1,500-2,000 sq ft: 2-3 tons ($7,500-$10,000)
• 2,000-2,500 sq ft: 3-4 tons ($9,000-$11,500)
• 2,500+ sq ft: 4-5+ tons ($10,500-$15,000)

Furnace sizing (roughly):

• 1,200-1,500 sq ft: 40,000-60,000 BTUs ($5,000-$7,000)
• 1,500-2,000 sq ft: 60,000-80,000 BTUs ($6,000-$8,000)
• 2,000-2,500 sq ft: 80,000-100,000 BTUs ($7,000-$9,000)
• 2,500+ sq ft: 100,000-120,000+ BTUs ($8,000-$10,500)

Get the size wrong and you’re looking at bills that are 20-30% higher than they should be. Plus the equipment breaks down more and dies sooner. I’ve seen it happen too many times.

3. What Type of System and Fuel You Go With

Most homes have split systems – that’s your furnace sitting in the basement or closet and the AC condenser outside. If space is tight, packaged units cram everything into one cabinet that sits outside.

Your fuel choices:

• Natural gas – what most people have, runs cheap
• Propane – solid option if you’re rural
• Oil – still around in older homes, costs $500-$1,500 more to install
• Electric – less expensive upfront, way more expensive monthly
• Heat pumps – handle both jobs, pretty slick technology

4. When Installation Gets Complicated

Sometimes the install’s straightforward. Other times? Not so much. These issues can add $500-$4,000 to your total:

• Getting into tight attics or sketchy crawlspaces
• Ductwork that’s shot and needs replacing ($1,500-$5,500)
• Electrical panel that can’t handle the new equipment ($500-$2,500)
• Old refrigerant lines that have to go ($500-$1,800)

5. Your Location Changes Everything

Live in a big city? Prepare to pay more. We’re talking 20-35% higher because contractors charge more for labor and permits aren’t cheap.

Climate plays into it too. Down in Texas or Arizona, you’re putting serious money into cooling capacity. Up in the Dakotas or Vermont, heating’s where you can’t afford to cheap out.

6. Brand Names and Efficiency Ratings

The well-known brands with ENERGY STAR certification cost more walking in, but there’s good reasons. Better build quality, longer warranties, and they actually save you money over time.

Plus there’s money on the table from the government:

2026 Federal Tax Credits:

• Heat pumps can get you up to $2,000 back
• High-efficiency furnaces and ACs qualify for up to $600

7. The Contractor You Hire

Cheapest bid isn’t always the smartest move. Professional outfits charge 15-25% more than the low-ball guys, but here’s what you’re actually paying for:

• They run the calculations right
• They size everything properly so it actually works
• They test the whole system before they leave
• They stand behind their work with real warranties

I learned this the hard way years ago. Went with the cheap guy, saved $1,200 upfront. Spent $3,000 fixing problems over the next two years. Do the math on that one. Choose licensed, insured contractors with 10+ years experience, positive reviews, and detailed written estimates.

Extras and Upgrades That Affect Cost

In addition to primary alternative pricing, numerous elective enhancements affect the very last furnace and AC replacement cost:

• High‑performance air filtration and air purification structures
• Smart thermostats and zoning controls
• Variable‑velocity blower automobiles for quieter and greater particular comfort
• Ductwork sealing and insulation enhancements
• Humidity manipulate additives

While those extras growth preliminary price, they drastically enhance comfort, indoor air quality, and lengthy‑time period HVAC overall performance — and lots of house owners discover them worthwhile.

For more detail read our blog: How much does a HVAC system cost?

How Much Does It Cost to Install Furnace and AC Combo?

A furnace and AC combination system is an excellent way to upgrade your home’s HVAC efficiently and cost-effectively. The furnace air conditioner combo cost typically ranges from $5,000 to $8,000, depending on the size of the system and the complexity of the installation. Opting for a combined system can save you generally 10% to 30% compared to purchasing and installing the furnace and AC units separately.

Long‑Term Savings vs. Upfront Furnace and AC Unit Cost

Although the cost to replace AC and furnace may be substantial, new structures provide lengthy‑time period financial savings. High‑performance devices use much less power, decreasing month-to-month heating and cooling expenses. Over time, those financial savings can offset a part of the preliminary investment.

Modern structures additionally usually require fewer upkeep and supply greater regular comfort, which provides fee past the charge tag.

Signs It`s Time to Replace Both AC and Furnace

Homeowners frequently ask whether or not they ought to restore or update their structures. The following are not unusualplace signs that alternative makes greater economic sense:

• Frequent breakdowns or luxurious upkeep
• Age of structures drawing near 15‑20+ years
• Rising power payments regardless of everyday use
• Inconsistent temperatures in the course of the home
• Unusual noises or seen rust/corrosion

If you revel in numerous of those caution signs, it`s beneficial to assess the furnace and AC replacement cost and take into account making an investment in new gadget in preference to purchasing ongoing upkeep

Cost Comparison: Mid‑Range vs. High‑Efficiency Systems

To deliver a clearer image of ways performance impacts charge:

Mid‑Range Furnace and AC Replacement Cost:

A proper stability of overall performance and charge, frequently with SEER rankings withinside the mid‑variety and trendy AFUE furnaces.

High‑Efficiency Furnace and AC Replacement Cost

Includes structures with pinnacle SEER and AFUE rankings, superior features, and top rate warranties. These can value greater prematurely however frequently offer the bottom lifetime working expenses.

Hutchinson Heating and Air can assist house owners weigh those alternatives primarily based totally on their consolation desires and budget.

Why Professional Installation Matters

The very last charge isn`t pretty much equipment. Proper set up is vital to maximizing overall performance and keeping off issues down the road.

A expert provider ensures:

• Accurate gadget sizing primarily based totally in your home`s layout
• Correct ductwork connections and airflow stability
• Safe fueloline and electric connections
• Compliance with neighborhood codes and inspection standards
• Peace of thoughts with guarantee protections

DIY or low‑nice installations can also additionally seem inexpensive at the beginning however frequently bring about expanded restore fees and decreased gadget lifespan.

How to Save Money on Furnace and AC Replacement

Financing Options: Many HVAC companies offer 0% financing for 12-24 months or low-interest loans for longer terms.

Rebates and Incentives: Combine manufacturer rebates ($300-$2,000), utility company programs, and federal tax credits to reduce costs by $1,000-$4,000.

Best Timing: Spring and fall offer better availability and competitive pricing versus emergency summer or winter replacements.

Maintenance Plans: Annual service ($150-$300/year) prevents 80% of breakdowns and maintains efficiency, recovering costs through energy savings.

Hire a Professional: Never attempt DIY installation. Improper installation voids warranties and creates safety hazards.

Common Mistakes to Avoid When Replacing Your Furnace and AC

When upgrading your furnace and air conditioner, steer clear of these frequent errors:

• Selecting equipment that’s improperly sized for your home, either oversized or undersized, which can compromise both comfort levels and system efficiency
• Overlooking energy efficiency specifications – whenever feasible, prioritize ENERGY STAR certified models
• Skipping a professional assessment of your home before finalizing your equipment selection

How Long Does a Furnace and Air Conditioner Last?

Most air conditioners and furnaces can perform properly for 10-15 years. After this period, efficiency begins to decline and repair frequency usually increases. If your air conditioner or furnace is this age, you may want to consider replacement options especially if you are experiencing any problems with performance. Being proactive about replacing your system will provide you with peace of mind and savings in your energy bill and repair costs.

Conclusion: Is Replacing Your Furnace and AC Worth the Investment?

Understanding what is the cost to replace AC and furnace allows you propose financially, pick out wisely, and spend money on lengthy‑time period domestic comfort. While the in advance furnace and AC unit cost may be vast, changing each structures collectively frequently yields higher overall performance, decrease electricity bills, and less maintenance over time.

If you`re prepared to discover options, examine structures, or time table a expert estimate, Hutchinson Heating and Air is right here that will help you each step of the way — from selecting the proper device to finishing a ideal set up.

FAQs

Is it cheaper to replace AC and furnace together?

Yes, replacing both together usually lowers overall costs because you save on labor and installation fees compared to doing them separately.

What is the average cost of a new furnace and air conditioning unit?

A typical new furnace and AC installation costs between $5,000 and $12,000, depending on size, efficiency, and brand.

Is a furnace or AC unit more expensive?

Air conditioners often cost more than furnaces due to higher equipment costs and the complexity of installation.

Is it worth replacing a 20-year-old furnace?

Yes, a 20-year-old furnace is past its lifespan, so replacement improves efficiency, safety, and reduces repair expenses.

What is the $5000 rule for AC?

The $5,000 rule suggests if the repair cost plus the age of the AC (in years × repair cost) exceeds $5,000, replacement is more cost-effective than repairs.