The Cost of Replacing Air Conditioners in 2025

Replacing an air conditioner is expensive, but there are some ways to save.
Person turning a thermostat

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The cost of replacing an existing central air conditioning system is typically between $5,000 and $13,000. Determine where your own costs will fall by taking stock of the state of your current system. Understanding your system and timing your purchase can affect final prices.

The cost to replace air conditioning

Replacing air conditioning will often cost $5,000 to $13,000. High-efficiency air conditioning systems can run as high as $19,000, according to Keith Wortsmith, President of DASH Heating & Cooling, via email.

Costs can be higher at times. You may also find it’s possible to replace your air conditioning for less. This may be true if you live in a low-cost-of-living area where labor is less expensive, if your home is fairly small or if your ductwork is in great condition.

Where your final bill will land depends on a few factors.

Efficiency

Air conditioner efficiency is based on seasonal energy efficiency ratios (SEER). A higher SEER is better for the long-term operating cost of your system, but are often more expensive systems upfront

U.S. Department of Energy. Explaining Central Air Conditioner & Heat Pump Standards. Accessed Jan 9, 2025.
.

Ductwork

Some homes have pre-existing ductwork that is efficient and in good working order. However, many typical homes have substantial leaks and poor connections that, if not repaired, can lower the efficiency of the replacement air conditioning system

EnergyStar.gov. Duct Sealing. Accessed Jan 9, 2025.
. If you need substantial ductwork repair or replacement, you’ll see additional costs in labor and ductwork materials. The cost of removing the old unit and disposing of it can also impact your total quote, so make sure that your estimate includes this service.

Infrastructure

“If there are issues with drainage, an HVAC technician may recommend using a condensate pump to prevent water backups or leaks that can lead to property damage or mold growth, which typically costs around $400,” Wortsmith said via email. “If your current unit is quite old, your new air conditioner is likely to need electrical updates, like adjusting thermostat wiring or upgrading breakers in your panel, and this can add up to $500 to the total cost.”

The furnace

If your furnace isn’t compatible with the new air conditioner, you might need to replace the furnace at the same time. When your central air conditioning needs replacing, some people opt to switch to a heat pump system that replaces both your heating and your cooling

.

Time of year

Labor costs vary throughout the year due to demand. “If it’s not an urgent replacement, wait until fall or early spring to update your current air conditioning system. Fall and early spring are when HVAC technicians are less busy with heating and cooling system installations, and often offer discounts on their services to attract customers. Additionally, AC unit prices tend to drop by the middle of fall and start rising again after April. You can save around 15% this way,” Wortsmith said.

Permits and inspections

Typically, you’ll get estimates for these things from your installer. The estimates include the costs of permits and inspections. Make sure to ask your installer about this if the estimate doesn’t clarify that they handle permits and inspections.

How often to replace air conditioners

Three things can signal when to replace an air conditioner.

  1. Age. Many air conditioners have a lifespan of 15-20 years. However, there have been major improvements in efficiency in the last 10-15 years

    Minnesota Commerce Department. Replacing an Air Conditioner. Accessed Jan 9, 2025.
    . Many new systems are between 20% and 50% more efficient than older air conditioning units in homes across the United States. This could tip the scales toward replacing sooner rather than waiting.

  2. Repeated repairs. This is often a red flag that you may need to replace the whole system, according to Wortsmith. He mentioned that replacing compressors or blower motors over and over can add up in terms of cost. 

  3. Ineffective repairs. Beware when repairs don’t get certain rooms to cool down. “If the cost of a repair equals half the price of a new unit, choose a complete replacement,” Wortsmith said.

Things to remember when replacing air conditioning

  • If you aren’t sure whether your furnace needs replacing at the same time as your AC, ask during your estimate request process.

  • Consider whether you can safely wait until early spring or fall (the slow seasons) to replace your air conditioner.

  • Get quotes from multiple companies, and check their reviews and licensure. You’ll want to know that the company has adequate insurance and a strong reputation.

  • The majority of air conditioner repair and replacement is complex skilled labor for professionals. Most people aren’t equipped to DIY a central air replacement process. If other systems, like plumbing or electrical, also need repair in order to complete the AC replacement, you’ll need to hire plumbers or electricians as well.

  • If you’re looking to save some money upfront and later via lower bills, research the various tax credits and rebates available for buying efficient air conditioner units. Your local electric company may have rebates available, and the DSIRE database may list energy-efficiency incentives in your state.

Can I get financing for a home repair or improvement?

Your contractor may offer some financing options (either through a partner or a payment plan), but there are other — any maybe better — financing options available.

Home equity loans or home equity lines of credit (HELOC) may have lower interest rates than financing with an installer, as well as future opportunities for refinancing and possible tax benefits.

With a home equity loan, you receive a lump-sum payment and then pay it back at a fixed interest rate over an agreed period of time, typically five to 30 years. HELOCs are more akin to a credit card, something you use as needed. You’ll usually have 10 years to draw from the line of credit, during which time you only have to pay interest, and after that you pay both the principal and interest. HELOC interest rates typically are variable, meaning your monthly payment could rise or fall over time. And with each of these options, you're using your home as collateral.

Many banks, credit unions and online lenders offer personal loans, with amounts typically from $1,000 to $100,000 and with fixed annual percentage rates. You receive a lump sum and repay it in equal monthly installments over a set period, typically two to seven years. Unlike with home equity financing, there is no collateral. This means your home isn’t at risk if you miss payments, but you’ll still have to pay late fees and the late payments can negatively impact your credit.

Credit cards are an option for lower cost repairs or renovations. That’s because credit cards typically charge higher interest rates than home equity loans, HELOCs and personal loans. When used responsibly, credit cards can come with great benefits, such as 0% introductory APR periods that allow you to avoid interest for a set number of months; rewards so you can earn cash back, travel or points; and sign-up bonuses that can give you some extra cash back or rewards for a larger purchase. If you go this route, you’ll want to make sure you pick one of the best credit cards for home improvements.

Which financing option is best for me?

The best financing option for you will depend on how much money you need, when you need the money, what project you’re doing and how long you need to pay the money back. If it’s something that’ll add value to your home, a HELOC or home equity loan may be your best option because the value of your house could increase by more than the amount of the loan.

On the flip side, if it’s a less expensive repair, a credit card is probably your best option if you want to pay no interest or earn rewards. Personal loans can apply to both small and large repairs or renovations, and they may make sense if you don’t have much equity in your home.

Some home improvement contractors offer their own financing options. Before taking this option, shop around and see how their offer compares with other loans.

Regardless of what you choose, make sure you compare interest rates, terms and fees with any financing options you’re considering. This will ensure you get the best deal.

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