If your furnace is on its last leg or your AC can’t keep up anymore, you’ve probably asked yourself:
“What’s it going to cost to replace both?”
The short answer? It depends. The long answer? We’re about to explain—all in plain English.
Upgrading your heating and cooling system is a big investment, but it doesn’t have to be overwhelming. With so many options, efficiency ratings, and installation factors, it’s easy to feel lost. That’s why we’re cutting through the jargon to bring you real numbers, smart tips, and honest answers to the questions every homeowner asks:
- How much does a new furnace and air conditioner cost together?
- What should I budget for installation?
- Are energy-efficient systems worth the higher price?
- How can I save money without sacrificing comfort?
Let us help you understand what you’re really paying for—so you can plan wisely, avoid surprises, and choose a system that works for your home and your wallet. Let us get into it.
Why You Might Need to Replace Your Furnace and AC?
Your furnace and air conditioner work hard year-round to keep your home comfy. But like all machines, they wear out. You might need to replace your unit if:
- Your HVAC system is over 15-20 years old
- You’re facing frequent repairs or higher energy bills
- You notice inconsistent heating or cooling
- Your system is noisy or has airflow issues
Sometimes, the cost to repair an older system adds up to more than what a new one would cost. That’s when it’s smart to consider a replacement.
Average Cost of a New Furnace and Air Conditioner
So, how much does it actually cost to get a new furnace and air conditioner?
- Standard Efficiency System: $7,500 to $12,000
- High Efficiency System: $12,000 to $18,000+
The cost can vary based on your home’s size, the type of furnace, the AC unit’s tonnage (like a 3.5 ton AC unit), and whether you need ductwork or electrical upgrades.
What Really Affects the Cost of a New Furnace and AC?
You might be wondering, “Why is there such a huge price range when it comes to HVAC quotes?” Well, it’s not one-size-fits-all. The cost to replace your furnace and air conditioner depends on a mix of factors—and some of them can sneak up on you if you’re not prepared.
Let’s break down the biggest cost drivers, so you know exactly what to expect.
1. The Size of Your Home (AKA: Bigger Space, Bigger System)
Your home’s square footage plays a major role in pricing.
- A small apartment or condo might only need a 2-ton AC and a compact furnace.
- But a larger home? You’re looking at a 3.5–5 ton unit to heat and cool all that space efficiently.
Why it matters?
Larger units cost more—not just for the equipment, but for installation too. More materials, more labor, more money.
2. The Type of Furnace and AC You Choose
Not all heating and cooling systems are created equal. The type of technology you choose can seriously impact your bottom line.
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Single-stage vs. Two-stage
- Single-stage units are cheaper upfront but offer basic performance (on or off).
- Two-stage units cost more but run more efficiently, giving you quieter operation, better airflow, and even temperatures.
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Gas Furnace vs. Heat Pump
- A gas furnace is often preferred in colder climates—more powerful, usually cheaper to operate with natural gas.
- A heat pump can be more energy-efficient in milder regions and offers both heating and cooling in one system.
Pro tip: Go for the system that fits your climate, comfort preferences, and future energy bills.
3. Energy Efficiency = Higher Upfront, Lower Long-Term Costs
You’ll notice some models are labeled ENERGY STAR® certified—and they usually come with a higher price tag. That’s because they’re built to use less energy while delivering top-notch performance.
- High-efficiency furnaces can reach up to 98% AFUE (Annual Fuel Utilization Efficiency).
- AC units with higher SEER ratings (Seasonal Energy Efficiency Ratio) save more energy per cooling hour.
Translation? You might pay more today—but your monthly utility bills will be noticeably lower. Over time, that adds up to serious savings.
4. Installation Complexity (This One’s a Sleeper Cost)
Replacing the furnace and AC isn’t just about swapping the old box with a shiny new one. The installation process itself can make a huge difference in price.
Ask yourself
- Does the ductwork need replacing or sealing?
- Is your thermostat outdated and needs an upgrade?
- Are there wiring issues, safety code updates, or ventilation changes?
Each of these adds time and cost to your project. That’s why you might see one quote at $8,000 and another at $13,000—even for similar systems.
What’s Included in the Cost?
Credit: usairheatingcooling.com
When you get a quote for a new air conditioner and furnace, it should include:
- The units themselves
- Installation and labor fees
- Any new thermostats, zoning equipment, or air purifiers
- Disposal of old equipment
- Potential rebates or tax credits
Always ask your installer for a full breakdown.
Repair vs. Replace: Which Is Cheaper?
Sometimes you just need to fix a small issue, like the wiring in your furnace. The average cost to repair wires in the furnace is around $150 to $400. But if repairs are piling up, it might be time to invest in a replacement.
Ask yourself
- Are repairs happening more than once a year?
- Is the system out of warranty?
- Are you seeing spikes in your energy bills?
If yes, replacing your heating system might actually save you money long-term.
Should You Upgrade to a High-Efficiency System?
High-efficiency models use less energy and offer better performance. They’re quieter, better for the environment, and reduce your utility bills.
While higher priced, the long-term payoff can be worth it. Especially if you’re planning to stay in your home for years.
Tips to Save on Furnace and AC Replacement
Credit: catesheatingandcooling.com
Here’s how you can trim your cost without cutting corners:
- Get multiple quotes: Don’t just go with the first offer. Compare 2-3 local providers.
- Look for rebates: Many utility companies offer cashback for installing energy efficient systems.
- Consider financing: Some companies (like Wilson Heating and Air) offer payment plans that spread out the cost.
- Bundle your upgrade: Replacing both your furnace and AC together often costs less than doing them separately.
💡 Need expert help choosing the right system?
At JLM Air Conditioning & Heating, we’re always here to guide you—whether you’re replacing an old unit, upgrading for efficiency, or just need honest advice. No pressure, just real solutions.
The Bottom Line
Now, what conclusion do we get, summing up? Yes, the cost of a new furnace with air conditioner can seem steep at first. But you’re not just paying for heat and cold air. You’re investing in year-round home comfort, energy savings, and reliable performance.
So, whether you’re upgrading an old gas furnace, exploring a heat pump, or planning a complete air conditioning overhaul—know this: a smart investment today can save you thousands tomorrow.
Need help deciding what’s best for your home? And if nothing works, you can always reach out to trusted pros like JLM air conditioning services to get personalized recommendations and transparent pricing.
Stay cool. Stay warm. Stay smart.
