Cost to Replace AC: What to Budget for Your New System

Replacing a central air system is a big decision. Costs vary by equipment, labor, ducts, refrigerant, permits, and home complexity. This guide explains typical prices, what drives them, when repair makes sense, and how to cut replacement costs. The goal is clear steps you can use to compare bids and avoid costly mistakes. If you’re weighing replacement versus repair, start with our AC replacement page to see your options and what’s typically included.

Key Takeaways

Insist on a Manual J load calculation, AHRI certificate, and an itemized written quote.
Budget $500 to $3,000 extra for duct or electrical work when needed.
Higher SEER and variable-speed components raise upfront cost but often save 10 to 40 percent on cooling energy.
Rebates and tax credits can shorten payback periods.

How much does it cost to replace an air conditioner?

Expect a full central AC replacement to run roughly $3,000 to $12,000 for most homes, with many homeowners paying $5,000 to $9,000. Final cost depends on system size, efficiency, labor, ductwork, refrigerant, local permits, and upgrades like a heat pump or zoning. (Source: ASHRAE Technical Resources)

Typical price bands by home size?

Small home (about 1,000 sq ft; 1.5 to 2 ton): $3,000 to $5,500
Medium home (1,600 to 2,000 sq ft; 2.5 to 3.5 ton): $6,000 to $12,000
High-efficiency or heat pump upgrade (matched system, 16 to 20+ SEER/SEER2): $6,000 to $15,000+

Line-item cost examples?

Outdoor condensing unit plus matched indoor coil/air handler: $1,800 to $8,000+. If your quote includes an indoor unit swap, see air handler installation cost so you know what’s normal and what should be itemized. Labor and basic materials: $1,200 to $4,000. Duct repairs, sealing, or insulation: $500 to $3,000. Electrical upgrades: $200 to $1,500. Permits and disposal: $100 to $500. Thermostat: $100 to $400.

Typical timeline?

Most straight replacements take one to two days. Complex installs with duct redesign or electrical upgrades can take several days to a week.

What factors drive the price?

Price drivers are mostly predictable. Know them before you get quotes.

System capacity and tonnage?

Larger homes need higher capacity. A 5-ton unit costs more than a 2.5-ton unit.

Efficiency ratings: SEER and SEER2?

Higher SEER models use more advanced components. They cost more but reduce energy use. Installation quality affects real-world savings.

Compressor types?

Single-stage compressors are least expensive.
Two-stage or variable-capacity compressors add $500 to $2,000 but improve comfort and humidity control.

Matched components?

A matched indoor coil and air handler matter. Mismatched parts can cut performance and may void warranties.

Ductwork condition

Leaky or undersized ducts reduce system effectiveness. Plan $200 to $6,000 depending on whether you seal or replace ducts.

Refrigerant and regulations

If your unit uses R-22, refills are costly and phased out. Most replacements use R-410A or new low-GWP refrigerants. Certified technicians are required for refrigerant handling.

Installation complexity

Multi-level homes, hard-to-access attic or roof mounts, long refrigerant lines, and crane work increase labor time and cost.

Brand, warranty, and contractor markup

Premium brands and longer warranties raise equipment cost. Contractor experience and local markup also change the final price.

When is repair cheaper than replacement?

Deciding between repair and replacement depends on age, condition, and cost of the repair.

Repair makes sense when

The unit is under 8 to 10 years old.
The system is in decent condition and the repair is under 30 to 40 percent of replacement cost.
The fault is isolated and uses inexpensive parts like a capacitor or contactor.

Consider replacement when

The unit is older than about 12 years. Repair costs approach or exceed 50 percent of replacement cost. The system uses R-22 and needs frequent refrigerant top-offs. (Source: ASHRAE Technical Resources). Comfort issues persist after prior repairs.

How does system age affect cost?

Older systems typically have lower SEER ratings and may use phased-out refrigerants. A failing compressor or a rusty evaporator coil on a 15-year-old unit usually points to replacement. New equipment costs more up front but reduces operating cost and often qualifies for rebates.

Typical lifespan

Expect 12 to 20 years depending on maintenance, climate, and equipment quality. Regular maintenance helps reach the higher end.

Which efficiency upgrades save energy?

Upgrades vary in cost and payback. Some deliver faster returns.

High-ROI upgrades

Move from 13 to 16 SEER to cut cooling energy by a significant percent depending on climate and runtime. Duct sealing and insulation often deliver the fastest payback. Sealing can reduce heating and cooling losses by 10 to 30 percent in leaky systems. Variable-speed blower and compressor add $500 to $1,500 but improve humidity control and comfort. Smart thermostats cost $150 to $400 and can reduce runtime. Proper system matching and commissioning ensures rated efficiency.

Are heat pumps a viable replacement option?

Yes. Modern heat pumps cool and heat efficiently and can replace a separate furnace plus AC in many homes.

Heat pump cost and benefits

Cost: $6,000 to $12,000+ depending on size and cold-climate capability.
Climate fit: In mild climates, heat pumps often save money versus gas or oil heating.
Rebates: Many utilities offer rebates for heat pump installations.

How do duct repairs change the estimate?

Duct repair cost depends on the scope.

Typical ductwork price ranges

Minor sealing or mastic: $200 to $800
Moderate repairs (some sheet metal, insulation): $800 to $2,000
Major replacement or redesign: $2,000 to $6,000+

If ducts leak more than about 15 percent of conditioned air or are badly undersized, even a high-efficiency replacement will underperform. Have ducts inspected and request a duct leakage test if recommended.

Do refrigerant changes add cost?

Yes. Refrigerant type influences parts, labor, and future service cost.

Key refrigerant points

R-22 systems: R-22 is phased out and expensive. Most replacement is preferred to refilling.
New refrigerants: R-410A is common. Lower-GWP refrigerants like R-32 and R-454B are entering the market and may be regional.
Retrofitting old equipment to new refrigerants is often costly and not recommended.

Regulatory note: EPA Section 608 requires certified technicians for refrigerant work.

What permits or inspections are required?

Most jurisdictions require a permit for HVAC replacement. Typical permit costs: $100 to $400, sometimes included in the contractor quote. Inspections verify electrical safety, proper refrigerant handling, and code compliance. Ask if permits and inspections are included in the quote.

How are replacement quotes calculated?

Contractors base quotes on load calculations, equipment price, labor, materials, and adjustments for ducts, electrical work, refrigerant, and optional upgrades.

What to require in a quote

Manual J load calc to size the system. Itemized equipment list with model numbers and SEER/SEER2. AHRI reference or certificate for proposed models. Labor and material line items. Optional items like duct sealing, zoning, and thermostat upgrades. Always get a written, itemized quote.

How should homeowners compare SEER ratings?

SEER or SEER2 measures seasonal cooling efficiency. Higher numbers are better for energy use but realize that installation quality matters as much as rating.

Simple payback method

Use your current SEER, estimated annual cooling kWh, and local electricity rate to estimate savings. Higher SEER gives diminishing returns in low-use climates.

Which brands and contractors matter most?

Pick manufacturers with local support and parts availability. For contractors, prioritize licensed and insured companies with NATE-certified technicians.

Contractor credentials to check

NATE certification for lead technicians. Local license and liability insurance. Willingness to perform Manual J and Manual S. Will provide AHRI certificate and itemized quote. (Source: ASHRAE Technical Resources)

What warranty options reduce risk?

Manufacturer parts warranties: 5 to 10 years; compressors often 10 years with registration.
Contractor labor warranties: 1 to 5 years. Get this in writing.
Extended plans: cost more but lower future repair bills for some homeowners.

How do add-ons like smart thermostats affect price?

Basic programmable thermostat: $50 to $150
Smart thermostat: $150 to $400 plus $75 to $200 for setup if needed

Smart thermostats can reduce wasted runtime and improve ROI when paired with efficient equipment.

Which upgrades give the best ROI?

Duct sealing and insulation: often the fastest payback. Proper sizing with a two-stage or variable-speed compressor: better humidity and long-term savings. Smart thermostats: moderate payback. Very high-SEER units: longer payback unless rebates or heavy cooling hours justify them.

Is a variable-speed blower worth it?

Yes in many homes. Benefits include quieter operation, even temperatures, better humidity control, and improved part-load efficiency. Added cost typically $500 to $1,500.

Can zoning solve uneven cooling?

Yes. Zoning uses motorized dampers and multiple thermostats to control airflow. Typical cost: $1,500 to $4,000. Best used when ductwork is in good condition and rooms have different needs.

When should I upgrade ductwork?

Upgrade ducts when leakage is high, ducts are undersized, crushed, or located where insulation is inadequate. If Manual J shows supply or return imbalance, include duct work in the contract.

Do ENERGY STAR systems qualify for rebates?

Many utilities and states offer rebates for high-efficiency systems, heat pumps, and duct sealing. Rebates range widely. Check local utility programs and federal incentive portals before purchase.

Which refrigerant is more future-proof: R-410A or R-32?

R-410A is common now. Regulators are moving toward lower-GWP refrigerants like R-32. Availability and code acceptance vary by region. Ask your contractor about local trends and serviceability.

How does insulation affect system sizing?

Better insulation reduces required tonnage and runtime. Upgrading attic or wall insulation can let you downsize equipment and save equipment cost. Include an insulation check in the pre-installation review.

Are heat pump rebates available?

Yes. Many utility and federal programs incentivize heat pump installations. Rebates and tax credits can materially reduce net cost.

How do I select a trustworthy contractor?

Ask for references and documentation. Use this vetting checklist.

Vetting questions to ask

Will you run a Manual J and provide the report? Can you show AHRI certificates for the exact models? Are your technicians NATE-certified and locally licensed and insured? What is included in the written labor warranty? Do you handle permits and inspections? Use local reviews and ask for recent local references.

How can I budget and finance a replacement?

Pricing by home size appears earlier. Financing options include home equity loans, personal loans, contractor financing, utility on-bill financing, and federal or state incentive programs.

Financing tips

Compare APR, term, and total interest paid. Watch deferred-interest offers. Check for prepayment penalties. Factor rebates and tax credits into net cost before committing. Get at least three bids. Large differences in scope or price usually indicate different assumptions.

Common red flags in quotes

No Manual J, Manual D, or model numbers listed. Vague tonnage with no AHRI certificate. No itemized labor and material line items. Large unexplained markups or bundled fees with unclear coverage. Push to oversize the unit to avoid duct work. Ask for clarification and written change orders.

Pre-installation checklist for homeowners

Confirm the written itemized quote and AHRI certificate. Verify permits and start/finish dates. Clear work areas and confirm access to attic or crawlspaces. Have filters ready and identify thermostat location. Confirm debris staging and parking for contractor vehicles. (Source: ASHRAE Technical Resources)

Post-installation checklist and commissioning

Ask the contractor to demonstrate these at hand-off.

Commissioning items to verify

Thermostat operation and programming. Airflow balance: installed CFM per ton target ~350 to 450 CFM/ton. Measured temperature split across supply and return: typical 14 to 22 F. Proof of correct refrigerant charge and startup sheet. Condensate drain flows and has a trap. Electrical disconnects labeled and secure. Do a quick homeowner check: measure temperatures in several rooms, listen for unusual noises, and ensure no short cycling.

Routine maintenance schedule

Filters: change monthly to quarterly depending on type. Annual tune-up: check refrigerant, electrical, blower, and coils. Every 3 to 5 years: inspect ducts and outdoor coil. Keep outdoor unit clear with 2 to 3 feet of clearance. A maintenance agreement can cost $100 to $300 per year and may include priority service.

How to compare financing offers

Compare APR, monthly payment, loan term, and total interest
Watch deferred-interest and balloon payment traps
Consider term length vs total interest paid

Sample contractor email to request quotes

Hello [Contractor name], I am requesting a written, itemized quote to replace my central air system. My home is [square footage], built in [year], with an existing [make/model if known] AC that is approximately [age] years old. Current issues: [humidity/even cooling/high bills/other]. Please include: Manual J load calculation and proposed Manual S equipment selection. AHRI certificate or model data sheet for proposed equipment. Itemized labor and materials, permit costs, and any optional upgrades (duct sealing, smart thermostat, zoning). Project timeline and warranty details. Available times to inspect: [dates/times]. Please call with any questions: [phone]. Thank you, [Your name]

Final checklist before signing

Get three itemized bids and compare AHRI certificates and Manual J results. Confirm permits, warranty lengths, and labor warranty coverage in writing. Verify duct condition or include ductwork if testing shows problems. Check rebate eligibility and factor rebates into net price. Request an on-site walkthrough with the proposed lead technician and ask for references for similar installs. Choose the installer who demonstrates correct sizing, quality components, and clear documentation.

Sources and compliance notes:

Preserve any quoted warranties and contractor promises in writing before payment. Follow local codes and inspections as required.

Key Takeaways

Insist on a Manual J load calculation, AHRI certificate, and an itemized written quote.
Budget $500 to $3,000 extra for duct or electrical work when needed.
Higher SEER and variable-speed components raise upfront cost but often save 10 to 40 percent on cooling energy.
Rebates and tax credits can shorten payback periods.

How much does it cost to replace an air conditioner?

Typical price bands by home size?

Small home (about 1,000 sq ft; 1.5 to 2 ton): $3,000 to $5,500
Medium home (1,600 to 2,000 sq ft; 2.5 to 3.5 ton): $6,000 to $12,000
High-efficiency or heat pump upgrade (matched system, 16 to 20+ SEER/SEER2): $6,000 to $15,000+

Line-item cost examples?

Typical timeline?

Most straight replacements take one to two days. Complex installs with duct redesign or electrical upgrades can take several days to a week.

What factors drive the price?

Price drivers are mostly predictable. Know them before you get quotes.

System capacity and tonnage?

Larger homes need higher capacity. A 5-ton unit costs more than a 2.5-ton unit.

Efficiency ratings: SEER and SEER2?

Higher SEER models use more advanced components. They cost more but reduce energy use. Installation quality affects real-world savings.

Compressor types?

Single-stage compressors are least expensive.
Two-stage or variable-capacity compressors add $500 to $2,000 but improve comfort and humidity control.

Matched components?

A matched indoor coil and air handler matter. Mismatched parts can cut performance and may void warranties.

Ductwork condition

Leaky or undersized ducts reduce system effectiveness. Plan $200 to $6,000 depending on whether you seal or replace ducts.

Refrigerant and regulations

If your unit uses R-22, refills are costly and phased out. Most replacements use R-410A or new low-GWP refrigerants. Certified technicians are required for refrigerant handling.

Installation complexity

Multi-level homes, hard-to-access attic or roof mounts, long refrigerant lines, and crane work increase labor time and cost.

Brand, warranty, and contractor markup

Premium brands and longer warranties raise equipment cost. Contractor experience and local markup also change the final price.

When is repair cheaper than replacement?

Deciding between repair and replacement depends on age, condition, and cost of the repair.

Repair makes sense when

The unit is under 8 to 10 years old.
The system is in decent condition and the repair is under 30 to 40 percent of replacement cost.
The fault is isolated and uses inexpensive parts like a capacitor or contactor.

Consider replacement when

How does system age affect cost?

Typical lifespan

Expect 12 to 20 years depending on maintenance, climate, and equipment quality. Regular maintenance helps reach the higher end.

Which efficiency upgrades save energy?

Upgrades vary in cost and payback. Some deliver faster returns.

High-ROI upgrades

Are heat pumps a viable replacement option?

Yes. Modern heat pumps cool and heat efficiently and can replace a separate furnace plus AC in many homes.

Heat pump cost and benefits

Cost: $6,000 to $12,000+ depending on size and cold-climate capability.
Climate fit: In mild climates, heat pumps often save money versus gas or oil heating.
Rebates: Many utilities offer rebates for heat pump installations.

How do duct repairs change the estimate?

Duct repair cost depends on the scope.

Typical ductwork price ranges

Minor sealing or mastic: $200 to $800
Moderate repairs (some sheet metal, insulation): $800 to $2,000
Major replacement or redesign: $2,000 to $6,000+

Do refrigerant changes add cost?

Yes. Refrigerant type influences parts, labor, and future service cost.

Key refrigerant points

R-22 systems: R-22 is phased out and expensive. Most replacement is preferred to refilling.
New refrigerants: R-410A is common. Lower-GWP refrigerants like R-32 and R-454B are entering the market and may be regional.
Retrofitting old equipment to new refrigerants is often costly and not recommended.

Regulatory note: EPA Section 608 requires certified technicians for refrigerant work.

What permits or inspections are required?

How are replacement quotes calculated?

Contractors base quotes on load calculations, equipment price, labor, materials, and adjustments for ducts, electrical work, refrigerant, and optional upgrades.

What to require in a quote

How should homeowners compare SEER ratings?

SEER or SEER2 measures seasonal cooling efficiency. Higher numbers are better for energy use but realize that installation quality matters as much as rating.

Simple payback method

Use your current SEER, estimated annual cooling kWh, and local electricity rate to estimate savings. Higher SEER gives diminishing returns in low-use climates.

Which brands and contractors matter most?

Pick manufacturers with local support and parts availability. For contractors, prioritize licensed and insured companies with NATE-certified technicians.

Contractor credentials to check

What warranty options reduce risk?

Manufacturer parts warranties: 5 to 10 years; compressors often 10 years with registration.
Contractor labor warranties: 1 to 5 years. Get this in writing.
Extended plans: cost more but lower future repair bills for some homeowners.

How do add-ons like smart thermostats affect price?

Basic programmable thermostat: $50 to $150
Smart thermostat: $150 to $400 plus $75 to $200 for setup if needed

Smart thermostats can reduce wasted runtime and improve ROI when paired with efficient equipment.

Which upgrades give the best ROI?

Is a variable-speed blower worth it?

Yes in many homes. Benefits include quieter operation, even temperatures, better humidity control, and improved part-load efficiency. Added cost typically $500 to $1,500.

Can zoning solve uneven cooling?

Yes. Zoning uses motorized dampers and multiple thermostats to control airflow. Typical cost: $1,500 to $4,000. Best used when ductwork is in good condition and rooms have different needs.

When should I upgrade ductwork?

Upgrade ducts when leakage is high, ducts are undersized, crushed, or located where insulation is inadequate. If Manual J shows supply or return imbalance, include duct work in the contract.

Do ENERGY STAR systems qualify for rebates?

Many utilities and states offer rebates for high-efficiency systems, heat pumps, and duct sealing. Rebates range widely. Check local utility programs and federal incentive portals before purchase.

Which refrigerant is more future-proof: R-410A or R-32?

R-410A is common now. Regulators are moving toward lower-GWP refrigerants like R-32. Availability and code acceptance vary by region. Ask your contractor about local trends and serviceability.

How does insulation affect system sizing?

Are heat pump rebates available?

Yes. Many utility and federal programs incentivize heat pump installations. Rebates and tax credits can materially reduce net cost.

How do I select a trustworthy contractor?

Ask for references and documentation. Use this vetting checklist.

Vetting questions to ask

How can I budget and finance a replacement?

Pricing by home size appears earlier. Financing options include home equity loans, personal loans, contractor financing, utility on-bill financing, and federal or state incentive programs.

Financing tips

Common red flags in quotes

Pre-installation checklist for homeowners

Post-installation checklist and commissioning

Ask the contractor to demonstrate these at hand-off.

Commissioning items to verify

Routine maintenance schedule

How to compare financing offers

Compare APR, monthly payment, loan term, and total interest
Watch deferred-interest and balloon payment traps
Consider term length vs total interest paid

Sample contractor email to request quotes

Final checklist before signing

Sources and compliance notes:

Preserve any quoted warranties and contractor promises in writing before payment. Follow local codes and inspections as required.

Cost to Replace AC: What to Budget for Your New System

Key Takeaways

How much does it cost to replace an air conditioner?

Typical price bands by home size?

Line-item cost examples?

Typical timeline?

What factors drive the price?

System capacity and tonnage?

Efficiency ratings: SEER and SEER2?

Compressor types?

Matched components?

Ductwork condition

Refrigerant and regulations

Installation complexity

Brand, warranty, and contractor markup

When is repair cheaper than replacement?

Repair makes sense when

Consider replacement when

How does system age affect cost?

Typical lifespan

Which efficiency upgrades save energy?

High-ROI upgrades

Are heat pumps a viable replacement option?

Heat pump cost and benefits

How do duct repairs change the estimate?

Typical ductwork price ranges

Do refrigerant changes add cost?

Key refrigerant points

What permits or inspections are required?

How are replacement quotes calculated?

What to require in a quote

How should homeowners compare SEER ratings?

Simple payback method

Which brands and contractors matter most?

Contractor credentials to check

What warranty options reduce risk?

How do add-ons like smart thermostats affect price?

Which upgrades give the best ROI?

Is a variable-speed blower worth it?

Can zoning solve uneven cooling?

When should I upgrade ductwork?

Do ENERGY STAR systems qualify for rebates?

Which refrigerant is more future-proof: R-410A or R-32?

How does insulation affect system sizing?

Are heat pump rebates available?

How do I select a trustworthy contractor?

Vetting questions to ask

How can I budget and finance a replacement?

Financing tips

Common red flags in quotes

Pre-installation checklist for homeowners

Post-installation checklist and commissioning

Commissioning items to verify

Routine maintenance schedule

How to compare financing offers

Sample contractor email to request quotes

Final checklist before signing

Sources and compliance notes:

Related reading: what to explore next?

Related Articles

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Cost to Replace AC: What to Budget for Your New System

Key Takeaways

How much does it cost to replace an air conditioner?

Typical price bands by home size?

Line-item cost examples?

Typical timeline?

What factors drive the price?

System capacity and tonnage?

Efficiency ratings: SEER and SEER2?

Compressor types?

Matched components?

Ductwork condition

Refrigerant and regulations

Installation complexity

Brand, warranty, and contractor markup

When is repair cheaper than replacement?

Repair makes sense when

Consider replacement when

How does system age affect cost?