two man outside talking about the costs of a new hvac system

How Much Does a New HVAC System Cost?

When it comes to purchasing a new HVAC system for our home or business, we like to know how much it’s going to cost upfront. And with good reason. Purchasing a new HVAC system and having it installed can be pretty expensive.

I’m guessing that most of you reading this post are probably looking for a general idea of the associated costs. You probably haven’t found a specific system yet, but you are beginning the shopping process. This can be both exciting and also a little intimidating.

In this post we’re going to help give you an idea of what you can expect to pay. We’re also going to share some factors that will directly affect what you pay.

Let’s get started!

What Do We Mean by “HVAC System”?

Let’s clarify right off the bat what we mean by an “HVAC system”. Rather than just an air conditioner or just a furnace, we are referring to a system that includes both and everything in between. An HVAC system includes everything you would need for your heating and cooling needs.

Now, let’s get into some numbers!

National Averages

According to a couple of sources, the national average cost for a new HVAC system ranges from $4800-$9850, including installation. But, that doesn’t include new ductwork. If it’s a new construction project with a completely brand new HVAC system, the national average is around $6800-$12000, respectively. This includes ductwork and everything needed for a new system where one has never existed before.

For just a new ac installation only, the range is anywhere from $2400 – $8900. Purchasing and installing a new furnace ranges from $2100-$5900.

Those are the national averages. At Cagle Service, our numbers are a little different. Our starting price for a new HVAC system is right at $4000, including installation. If new ductwork is included, then it would be a little more.

Our starting price for a new air conditioner is around $1600 and a new furnace is around $1300. As you can see, our numbers don’t fall in between the national average.

And that’s the point.

This is why it’s important to understand all of the factors when it comes to a new HVAC system and its cost. These factors can drastically affect how much you are going to pay. Let’s get into some of the most important factors that affect the cost.


An HVAC contractor or company will typically offer more than one brand of HVAC equipment. Some of the most popular brands are Carrier, Trane, Lennox and Goodman, just to name a few. All of these companies charge different prices for their equipment. Some are much higher than others. Some are much lower. The price of the equipment that the HVAC company pays affects the price that you, the customer, will pay.

To put it simply, some brands just charge more than others. Although, don’t be fooled.

Just because something costs more, doesn’t mean it’s better or a higher end product than the others.

Product Line and Efficiency

Like most product sales, each HVAC brand offers different lines of products or equipment. These range from basic product lines to higher end product lines. The higher end product lines typically include more convenient features and options. They will have more of the “bells and whistles”.

Efficiency is another important factor and many times goes hand in hand with the quality of the product line. The more efficient a system is, the more it is going to cost.

Size of the Home or Business

Medium Size Home

This is an obvious one. The larger the home or business, the larger the HVAC system you will need. More square footage requires a system that can adequately heat and cool that space. So, a larger system needed to heat and cool a larger area is going to cost more than a smaller system. We’ve put together a couple of posts that can help you decide what size air conditioner that you need and the right size furnace that you need.

Mark Up

Let’s be transparent.

When you purchase a new car (or a used one), are you paying exactly what that car is worth? In most cases, no. When buying from a car dealer, there is going to be a mark up or built in profit margin of some sort. Why? Well, it’s business. This is how these dealers make money and earn a living.

In the HVAC world, there is a similar principle in play. HVAC companies purchase equipment such as air conditioners and furnaces from the manufacturers (Carrier, Trane, etc.). When this equipment is then sold to customers who need them, there is generally going to be some sort of mark up in order to make a profit. Again, this is part of how these companies make money and survive.

The key is that each HVAC company usually incorporates a different percentage or profit margin into their marked up price. Some companies incorporate larger mark ups than others. So, this is going to affect the final price that you, the customer, will pay.

Labor Costs

We won’t spend too much time here, but it’s important to mention. The labor costs associated with installing the new HVAC system plays a big role in how much you will pay. Every HVAC company or contractor has their set labor costs that they charge for installing HVAC systems. This can be based on an hourly rate or a flat rate for each job. What you will pay will likely vary with each company.

Get Numerous Estimates

Now that we’ve gone over some prices and the factors that affect those prices, let’s end with a helpful tip. If you don’t have a specific HVAC company that you trust and already depend on, do your research. Take your time. When looking for a new HVAC system, contact numerous companies or contractors and get an idea of how much each one charges. Most of them will provide an estimate free of charge.

This will help you gather an average cost for your specific area. With this information, you can better make a final decision.

Thanks for Stopping By!

We hope this information has helped you! Feel free to leave any feedback or a comment below.

We are an HVAC company located in Jackson TN. We serve Jackson and the surrounding areas. If you live in the area, feel free to give us a call for a free estimate on a new HVAC system at (731) 300-1030.

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