On average, replacing an air conditioning system in a 1,700-square-foot home costs about $8,283 for a 14.3 Seasonal Energy Efficiency Ratio (SEER2) AC and gas furnace system. The typical low-end price of a 12.4 SEER2 system is $5,634. Expect to pay roughly $14,686 for a high-end 16.1 SEER2 unit. Your final cost depends on several factors, including the type of system you choose, its efficiency rating, and the complexity of the installation.
In this guide, we’ll walk you through what you can expect to pay, how system types and SEER2 ratings impact price, and what to keep in mind when shopping for a system to ensure it fits your home and budget.
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HVAC Replacement Costs by System Type
Choosing the right HVAC system is one of the most important decisions you’ll make for your home’s comfort and efficiency. There are five main system types to consider: AC and gas furnace, AC and electric furnace, heat pump and air handler, dual fuel system, and standalone air conditioner. You’ll also need to think about the SEER2 rating, which measures how efficiently a system cools your home over an entire season. The higher the SEER2 rating, the more efficient the system. Typically, higher SEER2 rating systems have higher upfront costs.
For a 1,700-square-foot home, here’s what you can expect to pay across different system types, based on low (12.4 SEER2), high (16.1 SEER2), and average (14.3 SEER2) price points:
| System Type | Low Cost | High Cost | Average Cost |
|---|---|---|---|
| AC & Gas Furnace | $5,634 | $14,686 | $8,283 |
| AC & Electric Furnace | $5,026 | $13,048 | $7,343 |
| Heat Pump & Air Handler | $5,558 | $14,483 | $8,166 |
| Dual Fuel System | $7,252 | $19,051 | $10,787 |
| Air Conditioner Only | $5,181 | $13,465 | $7,582 |
HVAC Replacement Cost Breakdown
When planning your HVAC replacement, it’s important to understand what you’re paying for. Costs aren’t just about the equipment—they also include labor, permits, and ductwork. Labor typically accounts for a big portion of the bill, covering installation, wiring, refrigerant handling, and testing. Permits, which ensure the system meets local codes, usually cost a few hundred dollars. Finally, if your ductwork is damaged or outdated, you may need to budget for repairs or replacement.
Here’s a breakdown of these cost components based on a 1,700-square-foot home with a 14.3 SEER2 system:
| Cost Component | Estimated Cost |
|---|---|
| Equipment (unit) | $4,935–$8,933 |
| Labor | $1,213–$2,763 |
| Total | $6,148–$11,696 |
Understanding this breakdown helps you budget realistically and avoid surprise expenses.
Additional Charges for an HVAC Installation
Beyond the basics, some optional add-ons can improve comfort and efficiency. These include smart thermostats, zoning systems (which let you control temperatures in different parts of the house), ductwork repairs or replacements, and air purification systems. While these extras can add to your upfront cost, they often pay off in better comfort and long-term energy savings.
| Additional Charge | Estimated Cost |
|---|---|
| Thermostat | $39–$217 |
| Ductwork Replacement | $1,500–$3,000 |
| Permits | $250–$400 |
How Do I Determine the Tonnage or SEER2 Rating?
Tonnage refers to your HVAC system’s cooling capacity, not its weight. One ton equals 12,000 British Thermal Units (BTUs) per hour, and for a 1,700-square-foot home, you typically need a 3-ton system, depending on your home’s insulation, layout, and climate. SEER2 ratings reflect energy efficiency; the minimum today is 12.4 SEER2, but upgrading to 16.1 SEER2 can significantly reduce energy bills.
The table below summarizes the average, low, and high costs for an AC & gas furnace system in a 1,700-square-foot home, based on 12.4–16.1 SEER2 ratings.
| SEER2 Rating and System Type | Low Cost | High Cost | Average Cost |
|---|---|---|---|
| 12.4 SEER2 (AC & gas furnace) | $5,634 | $10,765 | $7,570 |
| 13.4 SEER2 (AC & gas furnace) | $5,829 | $11,118 | $7,841 |
| 14.3 SEER2 (AC & gas furnace) | $6,148 | $11,695 | $8,283 |
| 15.2 SEER2 (AC & gas furnace) | $6,113 | $11,633 | $8,235 |
| 16.1 SEER2 (AC & gas furnace) | $7,800 | $14,686 | $10,573 |
Note that SEER2 requirements vary by region. For example, the Southeast and Southwest regions require a minimum of 14.3 SEER2 for new central air conditioners. Lower-rated units, such as those with a 12.4 SEER2, are no longer widely available due to updated federal efficiency standards. Your contractor can help you ensure your unit meets requirements.
How Does My Location Affect Cost?
Where you live can have a big impact on the total cost of a new air conditioner. Labor rates are generally higher in urban and coastal areas and typically account for 5 hours per unit of installation time. In areas with difficult installation conditions, such as tight crawl spaces, expect to pay more for labor.
Higher labor costs typically come from the Northeast and Hawaii, ranging as high as $2,769 for a 1700 square foot home. On the contrary, the South and Midwest are normally the cheapest, with some areas at just $1,213 in labor costs.
Editor’s note: Although this article discusses SEER2 ratings in the context of AC and gas furnace split systems, SEER2 applies only to the air conditioning portion. SEER2 measures cooling efficiency and does not apply to the heating performance of gas furnaces.
FAQs About Air Conditioner Costs for a 1,700-Square-Foot Home
Do I need to replace my furnace when I replace my AC?
Not necessarily. If your furnace is relatively new and in good condition, you can replace the air conditioner. That said, if your furnace is older or incompatible with a modern, high-efficiency AC, replacing both can improve overall system performance and avoid future repairs.
What’s the difference between a heat pump and an air conditioner?
A heat pump provides both heating and cooling, while an air conditioner only cools. In warmer climates, a heat pump can replace both your AC and furnace, offering year-round comfort with better energy efficiency.
How long will my new HVAC system last?
On average, air conditioners last 12–15 years, gas furnaces 15–20 years, and heat pumps 10–15 years. Routine maintenance, such as yearly tune-ups and filter changes, can extend their lifespans and improve system performance.
Is a higher SEER2 rating always worth it?
Not always. While a higher SEER2 rating can lower your energy bills, it comes with a higher upfront price. Homeowners in hot climates with heavy AC use benefit the most, while those in milder areas might find that a midrange SEER2 (like 14.3–15.2) offers the best balance between cost and savings.
How We Get Our HVAC Cost Data
Replacing an HVAC system is a large investment. Throughout this article, we estimated what it would cost to replace an HVAC system in a 1,700-square-foot home. Keep in mind: These are estimates intended to help you understand what a project like this might cost. You should get quotes from at least two companies to understand the true costs in your area.
We collected unit prices and the average cost of labor to calculate a total estimated price to replace an HVAC system in a 1,700-square-foot home. For unit costs, we collected wholesale prices for air condensers, electric furnaces, gas furnaces, evaporator coils, heat pumps, and air handlers from three sources, including: AC Direct, HVACDirect.com, and Buy Comfort Direct. We calculated prices for the total system using various combinations of unit costs. We also added an estimated retail markup. For labor, we researched the average time it takes to replace an HVAC system and multiplied this by the average cost of labor.