Replacing Your AC Unit? What Are the Costs? | MRCOOL (2024)

Once you decide that replacing your airconditioner is a better option than having it repaired, your nextstep is determining how much it will cost. While you have someflexibility in the amount you’re willing to spend, some factors, likethe size unit that’s right for your home or the local heating,ventilation and air conditioning (HVAC) installation costs, are atleast partially out of your control.

Whatever your budget, it’s best to estimate your project with a few local installers. They can size your system correctly for your home for more accurate pricing. It’s also helpful to arm yourself with some general air conditioner replacement costs so you know what to expect when you reach out to an HVAC professional.

Replacing Your AC Unit? What Are the Costs? | MRCOOL (1)

What Impacts the Cost to Replace Your Air Conditioner?

How much it costs to replace an airconditioner depends on many factors, making it challenging toidentify a reliable price range for your unique needs. Everythingfrom the size you need to your home’s installation conditions willplay a role. Some of your cost considerations include:

Size

A bigger air conditioning unit will costmore than a smaller one, and vice versa. The tonnage you need dependson how big your home is, your insulation and a few other factors.Since you’re replacing an existing unit, you probably already knowwhat size air conditioner you need. The label on your current unitshould tell you its tonnage and cooling capacity. You can also lookup your model number online to determine how large your replacementunit needs to be.

Unless you’ve added some major additions to your home sinceinstalling your existing air conditioner, you can expect the coolingcapacity to stay roughly the same. Going much smaller will not coolyour house effectively, and going larger may cool it too quickly,which can cause humidity concerns. In terms of how size affects cost,a 2.5-ton unit might cost roughly double the price of a 0.5-ton unit.

If you’re unsure what size unit you need, you can visit ourdetailed guide on sizingyour air conditioner for more information.

Brand

AC unit costs can vary in price quite a bit by brand name. Some manufacturers position themselves as value and cost leaders, while others gravitate towards high-end brands and prices. A premium brand might charge twice as much for a unit of the same size as a cost-leading brand.

Here at MRCOOL, we’re known for our excellent efficiency-to-costratio. When you install a MRCOOL air conditioning unit, you get ahigh-quality, well-performing product at a great value. You’ll saveon the product itself compared to some other brands and continue toshave costs on your electricity bill.

Efficiency

Energy-efficient air conditioners provideimpressive long-term cost savings over less-efficient models.However, as with most manufacturing, the more sophisticatedtechnology that makes a unit more efficient comes at a higher initialprice point. You can quickly compare units’ energy performance bytheir Seasonal Energy Efficiency Ratios (SEER). A higher SEER means amore efficient system. Likewise, a higher SEER also makes for ahigher upfront cost.

When determining if a more efficient model is worth the long-termsavings, the right call depends on your local climate and how manyhours you run your air conditioner. The payback period is shorter forhomeowners who use their air conditioner more often in hotterclimates.

The good news is that replacing an older air conditioning unit almost always provides efficiency gains. Even replacing a unit that’s only 10 years old cansave you 20%-40% on your cooling costs. Many MRCOOL models are Energy Star-certified, which means identifying an efficient model that’s right for your home and budget is easy.

The Model

Most air conditioner brands offer manydifferent types of units at varying price points. An advanced modelwith lots of extra features will cost more than a basic model. Thespecific model can also determine installation costs, as a ductlessmodel can require less labor and equipment than a central airconditioning system.

A packaged air conditioner, which combines heating and cooling,typically costs less than installing split systems. However, if youalready have a furnace for heating, it will probably be moreaffordable to install a split-system air conditioner.

Cost of Labor

Labor costs can vary a lot by where youlive and the HVAC installer you work with. The local labor market hasan unavoidable effect on the cost of installing replacing your airconditioner. And just like with the brand of the air conditioneritself, different installers may charge different rates. Some mayoffer premium service at a higher price.

To give you an idea of the labor cost differences, consider thatan HVACinstaller’s hourly wagecan span anywhere from $15.34 perhour to $38.86 per hour, according to the United States Bureau ofLabor Statistics. While it’s critical to note that the price you payfor labor will differ from wages, these figures give you a good ideaof how much the labor costs can vary.

Be careful of any installers who seem to be underchargingsignificantly for installation,as you want a qualityinstallation that is energy-efficient and will last for years tocome. We recommend you look for a MRCOOLdealer near you to ensure your installation is done right andrespects your warranty. If you’re looking to save on labor and you’refeeling handy, you might consider aMRCOOLDIY®Multi-Zone unit to cut out labor and installation costs entirely.

Home’s Age

If you have an older home, you might not have the existing ductwork to handle central air conditioning. Installing brand new ductwork or repairing some aging ducts can quickly add to the total cost of your air conditioner replacement. An alternative for an older home without the proper ductwork for central air is a ductless air conditioner. We offer a range of ductless mini-split models for DIY and professional installation, including the MRCOOL Olympus Multi-Zone, which can cover up to five zones in your home without any ducts.

Replacing Your AC Unit? What Are the Costs? | MRCOOL (2)

What Are the Costs of Replacing a Central Air Unit?

Central air replacement costs can varybased on your system configuration, installation requirements andunit size. A central air conditioning system circulates cool, dry airthroughout your home through ducts. As the cool air enters each roomthrough metal vents in your floors, ceilings or walls, other ventscollect warm air to be conditioned and recirculated. Central airconditioners are energy-efficient compared to window and portable airconditioners, are relatively quiet and can share ductwork with yourheating system. They come in two main types — split systems andpackaged units.

In a split system, the condenser and compressor are outdoors,while the evaporator is indoors. They are more energy-efficient thanpackaged units. Packaged air conditioners keep all three of these airhandling components outdoors, making them cheaper to install and morespace-efficient. Central air conditioners cool homes more effectivelythan other systems, usually for a higher upfront cost.

Central air conditioners also have one of the broadest pricingspreads since installation costs depend on whether the home has theproper ductwork. However, if you’re replacing an existing central airunit, you probably do not need all-new ductwork. It’s helpful to havean HVAC specialist look at your existing ductwork to determine ifanything needs work. Otherwise, you can focus on the cost of the newcentral air unit itself. Central air conditioner replacement can costanywhere in the low-to-mid thousands range, including the unit andinstallation.

Another factor here is the type of unit you want. Some centralsystems include heating, which adds to the cost. If your current airconditioner doubles as a heater, you’ll want a replacement that doesthe same. If you have a separate furnace, you can save some money bychoosing a system that does not offer heat.

What Are the Costs of Replacing an Air Unit With a Ductless Mini-Split?

Replacing your current air conditioningsystem with a ductless mini-split system can be an affordable optionsince you automatically eliminate any ductwork repair. However,ductless mini-splits typically cost more than central air units. Thereason for this is that ductless mini-splits are incrediblyenergy-efficient and remove the hassles involved with ductwork. Youmay pay more for the system itself while saving on installation costsimmediately and ductwork maintenance and energy costs down the road.

The most significant cost factor in a ductless mini-split is howmany units you need. While many think of a single-room unit,multi-zone systems can cover up to five zones. Of course, each zoneyou add will affect the cost since it requires an additional unit.While a single-zone model can cost somewhere in the low-to-midthousands range, multiple units can climb into the high thousands,including installation costs.

Other price differentiators are the individual model and the array of features you want. For example, a mini-split system that also provides heat will cost more than a cooling-only model. At MRCOOL, we offer a few different mini-splits at a range of prices.For example, our MRCOOL Advantage system prioritizes affordability and efficiency. The MRCOOL Olympus series includes units that offer advanced functionality, like the Olympus E Star®system offering superior energy efficiency and the Olympus Hyper Heat,which can heat your home incredibly efficiently.

To save money on a ductless mini-split system, you can also choose a DIY model for either a single room or multiple zones. MRCOOL offers the only true DIY ductless mini-split, allowing you to save significantly on installation costs.

Replacing Your AC Unit? What Are the Costs? | MRCOOL (3)

What Are the Costs of Replacing Your Air Unit With a Heat Pump?

A heat pump is a unit that can pump heatout of your home to cool it and into your home to warm it. When usedto cool your home, its functionality is almost identical to an airconditioner. The MRCOOLGeoCool® Geothermal Package Heat Pumpofferssome incredible cost advantages with energy efficiency of up to 36.5SEER and operational costs reduced to 50% that of a conventionalsystem. Geothermal heat pumps last for decades with littlemaintenance, which can also make them well worth the investment.

Replacing a traditional air conditioner with a geothermal unit canvary in price with several factors. An important costingconsideration is in the sizing. It’s critical to install a heat pumpwith the correct capacity for your home’s size to get the longestlifespan. As with other types of air conditioners, a heat pump’s sizeaffects its cost. Their level of efficiency also affects the pricing,with more efficient models requiring higher upfront investments.

Note that geothermal systems also require permitting alongside theunit and labor costs. Heat pumps also require ductwork like atraditional air conditioner, which may add to your replacement costsif you need any additional ductwork. They vary quite a bit in cost,starting in the mid-thousands and climbing as high as$12,000-$30,000, depending on many factors.

What Should You Know Before You Replace Your Unit?

Many factors can go into choosing toreplace your air conditioner besides cost. If you still haven’tdecided whetherto replace or repair your existing unit, it’s important to keep afew things in mind. Some things to note about your current airconditioner before replacing it include its:

  • Age: A typical air conditioner canlast 12-15 years or more. Energy Star recommendsreplacing any unit over 10 years old because of the cost savingsresulting from better energy efficiency. Any unit under 10 years oldmay be a better candidate for repair.
  • Repair costs:If this is thefirst time your air conditioner has given you any problems, it’sprudent to look at repair estimates first. An HVAC professional cangive you an idea of whether a routine repair or a full replacementis a better option. If repair costs are low, consider fixing itrather than replacing it. However, as a unit ages, repairs becomemore frequent and costly, making replacement more cost-effective.
  • Energy efficiency:It may beworth your money to replace a well-functioning air conditioner forthe long-term energy savings. If your current unit isenergy-efficient as is, you may be better off with a repair.
  • Performance:When an airconditioner cannot cool your home to your satisfaction or adequatelyremove humidity, it may have larger-scale performance issues than arepair could address. These types of concerns are a sign that theunit is under- or oversized, which you can address by replacing yourunit with the help of an HVAC professional to estimate your requiredcapacity.

Can You Lower the Cost of an AC Unit Replacement?

When you’re comparing costs for airconditioner replacements, you’re usually interested in getting thebest price possible without sacrificing performance. Using a DIYductless system is one way to gain that advantage by eliminatinginstallation costs. If you’re looking for a professionalinstallation, you still have many options to bring down your ACreplacement cost. Our best cost-saving tips include:

  • Look for rebates and tax credits: Your local government or utility provider may offer financial incentives for installing an energy-efficient air conditioner, potentially saving you hundreds. Visit the MRCOOL rebate finder tool to look for rebates from your local electricity provider and federal and local tax credits.
  • Install outside of peak heating and cooling season: HVAC specialists are busier during the hottest and coldest months. You can often save money and get the job done faster by scheduling your replacement for fall or spring.
  • Consider your cooling needs: A ductless mini-split system offers enhanced energy efficiency over central air. If you only need cooling for one or several rooms of your home, you can save a lot in the long run by choosing a ductless system over central air. Empty nesters and those who are only home at night save a lot of money by only cooling key areas of their homes.
Replacing Your AC Unit? What Are the Costs? | MRCOOL (4)

Contact Your Local MRCOOL Reseller or Installer Today

MRCOOL has a wide range of airconditioning systems that can fit any homeowner’s unique coolingneeds and budget. From DIY ductless mini-split systems to save oninstallation to high-efficiency systems that will save on long-termcooling costs, we have something for everyone. We also offer aninnovative MRCOOLUniversal® Series system that can easily replace anyconventional central air condenser for a quick installation andsuperior performance.

If you’re interested in a high-quality, better value air conditioning system from MRCOOL, look for a nearby reseller or installer to help you with all your air conditioning replacement needs.

Replacing Your AC Unit? What Are the Costs?  |  MRCOOL (2024)

FAQs

What is the most expensive part to replace on an AC unit? ›

Usually, it is a quick fix, but sometimes the failure can be caused by a much bigger problem. The most expensive part of an AC unit to replace and repair is the air compressor.

How much will I save by replacing my AC unit? ›

How much you can save with a new AC unit will depend on your old unit, the replacement model, how much you use your air conditioning, and the cost of electricity where you live. Estimates vary from 10% to 50% savings on your air conditioning costs per year.

What should be included on AC replacement? ›

The components installed may include the inside air handler or evaporator, outside compressor or condensing unit, new refrigerant supply lines, thermostat, condensate drain lines, and the condensate pump when applicable.

Why is replacing AC so expensive? ›

Some may need a new compressor, while others just need a refrigerant recharge. The type of problem your AC will affect how much the repair will cost. The more extensive the issue is, the more it will cost to repair. Your technician will need to spend more time fixing the problem, and they may need to buy new parts.

Is it worth replacing the condenser on an AC unit? ›

It may be worth replacing your condenser on an AC unit if the unit is relatively new and otherwise operating efficiently. However, it may be more affordable to repair the condenser by replacing the malfunctioning component.

How much does a new AC condenser cost? ›

Replacing an air conditioning condenser costs $1,200–$4,200 on average. You may only have to pay for installation costs if the unit is still under warranty, reducing the price to $300–$1,200.

How many years should an AC unit last? ›

It's important to be aware of how long air conditioners last, so you don't get the unwelcome surprise of a broken air conditioner in the peak of the summer heat. In general, air conditioners that are properly maintained can last 15 to 20 years.

How many hours does it take to replace an AC unit? ›

On the Day of Installation. A typical air conditioner installation typically takes between 4 and 8 hours to complete. These times can fluctuate depending on the size of the existing system, weather, and accessibility. Air conditioners are made up of two components: the indoor evaporator coil and an outdoor condenser.

How long does it take to replace an entire AC unit? ›

On average, it will take between 4 to 8 hours to replace an air conditioner. If you are replacing both your furnace and air conditioning unit at the same time, then the job will take between 8 to 14 hours.

How many quotes should I get for HVAC replacement? ›

How many HVAC quotes should I get? Most experts recommend getting three to five HVAC quotes from licensed, insured, reputable local heating and cooling companies.

Should I get multiple quotes for HVAC replacement? ›

After speaking with HVAC professionals and experienced homeowners, it's clear that receiving multiple HVAC estimates can save you money, help you better understand your available options, and provide peace of mind when choosing the right HVAC system and contractor for your needs.

Does the air handler need to be replaced when replacing an AC compressor? ›

If the air handler is still working well it does not have to be replaced. However, when replacing the compressor is a good time to check the operation of the air handler and replace it, if needed.

Why is my AC so expensive? ›

The System Is Old

Your overly high electric bill could be a sign that it's time to upgrade your system. The average central air conditioning system lasts for up to 15 years with regular care and maintenance. Think about how long you've had your current HVAC system in place and how often you've gotten it serviced.

How much does it cost to replace a compressor in an AC unit? ›

Prices vary depending on HVAC type, but compressors generally range from $800–$3,000. For repairs, most technicians charge between $100 and $150 per hour. Labor for compressor replacement can cost between $400 and $1,200.

Is it cheaper to replace AC in winter? ›

Winter isn't the time to buy

People who want to have their air conditioning units replaced often choose the winter months to do it. They can save on delivery and installation costs by replacing air conditioning units at the same time as replacing or repairing a furnace.

What parts of an AC unit are worth money? ›

The most important thing, and the most valuable, is the copper that is found inside of your unit. Be sure that you not only remove the copper lines, but that you also look for any thick insulated copper wiring as every little bit counts.

How much is a compressor for an AC unit? ›

Prices vary depending on HVAC type, but compressors generally range from $800–$3,000. For repairs, most technicians charge between $100 and $150 per hour. Labor for compressor replacement can cost between $400 and $1,200.

Why are AC parts so expensive? ›

HVAC prices are rising throughout the US because of parts shortages. Parts shortages are because of global shutdowns and other issues. Those issues make manufacturing and shipping parts difficult, slow, and expensive. Homeowners should expect higher prices and delays on replacement parts.

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