Key takeaways
- Short answer: A gas furnace usually costs less to install, typically $2,000–$6,900, while a heat pump system runs about $5,000–$18,000 or more.
- Furnace: $2,000–$6,900 installed
- Heat pump system: $5,000–$18,000+
- Climate and energy prices decide running cost
- Typical hvac cost: $7,000–$12,000 for a combined AC and furnace replacement.
Upfront cost comparison
| System | Typical installed cost | Notes |
|---|---|---|
| Gas furnace | $2,000–$6,900 | 90%+ AFUE models $3,300–$6,900 |
| Central AC (to pair with a furnace) | $2,500–$9,000 | Needed for cooling |
| AC + furnace replacement | $7,000–$12,000 | Average-size home |
| Heat pump system | $5,000–$18,000+ | Heats and cools |
If you need both heating and cooling, compare a heat pump to the combined AC-plus-furnace price, not to the furnace alone.
Which is cheaper to run?
- Mild and hot climates: heat pumps usually cost less to run and handle cooling too.
- Very cold climates: cold-climate heat pumps work well, but many homes pair them with a furnace backup (dual fuel).
- Energy prices: cheap natural gas and expensive electricity favor a furnace; the reverse favors a heat pump.
Ask installers for an operating-cost comparison using your actual utility rates.
Other factors
- Ductwork condition and size
- Electrical panel capacity for a heat pump
- Utility and state rebates, which change often
- Whether you have gas service at all
Related questions
Do heat pumps work in cold weather?
Modern cold-climate heat pumps keep heating well below freezing, though output drops in extreme cold. Dual-fuel setups add a furnace for the coldest days.
Is a heat pump worth it if I already have gas?
Often when your AC also needs replacing, because one heat pump can replace the AC and handle most heating. Compare quotes for both options.
Which lasts longer?
Furnaces typically last 15–20 years and heat pumps 10–15 years, because heat pumps run year-round.
Other hvac questions homeowners ask
Are there rebates for a new heat pump?
Federal energy tax credits changed in 2025, so check current IRS guidance. Utilities and some states still offer rebates for high-efficiency heat pumps, so ask installers which programs apply.
Should I replace my AC and furnace at the same time?
Often yes when both are over 12–15 years old. A matched system runs more efficiently, and you pay for one installation visit and one permit instead of two.
How much does a new AC unit cost for a 2,000 sq ft house?
Most 2,000 sq ft homes need a 3–4 ton system. A central AC replacement alone typically runs $2,500–$9,000 nationally, and replacing both the AC and furnace costs about $7,000–$12,000.
HVAC at a glance
Timeline
Most AC or furnace swaps take one day. A full system with new ductwork takes 2–5 days.
Permits
Replacing an AC, heat pump or furnace usually needs a mechanical permit, and the installer normally pulls it.
DIY or pro?
Filters, clearing debris from the outdoor unit and flushing the condensate line are safe DIY jobs. Refrigerant, gas and electrical work need a licensed technician.
What HVAC repair and replacement costs
Replacing a central AC and furnace together typically costs $7,000–$12,000 installed. An AC alone runs about $2,500–$9,000 and a furnace $2,000–$6,900, depending on size, efficiency and brand. Most single repairs cost $250–$700.
Keep reading
Sources: PickHVAC — Furnace & AC replacement cost. Ranges are rounded estimates; see our editorial policy.