Central Air Conditioning Cost Guide

*Updated December 1st, 2025

Installing central air conditioning is a major investment that can significantly improve your home’s comfort and value. Most homeowners can expect to pay between $5,000 and $12,000 for a new central air conditioner and installation, depending on the HVAC system you choose and your home’s setup.

To avoid unexpected costs and make smart choices, it’s important to understand what drives pricing. From system type and energy efficiency to ductwork and labor, this guide explains every factor that affects the total cost. You’ll also find tips on how to save money over time, especially with available tax credit incentives and energy-efficient upgrades in 2025.

Average Cost of Central Air Conditioning (2025)

Central air conditioning costs vary significantly based on system specifications, home requirements, and regional factors. Understanding the average cost helps establish realistic budget expectations for your project and answer the question: how much does it cost to install central air?

The national average cost of a new central air conditioning system is about $5,964, with typical ranges between $5,000 and $12,000. However, costs in 2025 can extend from around $1,495 for basic AC replacement to $12,400 for complex central air installation projects requiring extensive ductwork modifications.

Cost with and without ductwork

Existing ductwork significantly impacts the cost to install central air. Homes with functioning existing ductwork typically see costs between $4,500 and $7,500 to install a new central air unit.

If your home needs new ductwork, the cost of installing a central air conditioning system increases. Complete air system and duct installations range from about $1,500 to $16,000 for roughly 275 linear feet needed to cover an average 2,500 sq ft home.

Installed price vs. unit-only price

A central air conditioner or central AC unit alone typically costs $1,000 to $5,000, depending on size and energy efficiency. Installation labor, materials, and extras add another $1,500 to $2,500, representing 40% to 60% of the overall cost of the project. This is why the price of a new AC unit often looks much lower than the final system cost once everything is included.

New installation vs. replacement comparison

The cost to replace an old air conditioning unit with a new air conditioner is usually 30% to 50% lower than the cost to install a new system from scratch. A replacement in a home that already has compatible HVAC components and ductwork avoids many of the big ticket items, while installing a central air system in a home without ducts often requires new ductwork, electrical upgrades, and permits that can add $3,000 to $8,000 to the cost of central air.

Cost by System Type and Size

The type of system and unit size you choose play a big role in the system cost and final price of a new HVAC setup.

Split-system AC (most common)

Split-system air conditioners—with an indoor air handler and outdoor unit—are the most common air conditioning systems for homes.

• Unit-only: $1,900 to $4,200
• Installed AC system cost: $4,500 to $8,000

Split systems usually offer better energy efficiency than many packaged units and are a popular choice when you want a new AC unit for a standard square foot house with existing ductwork.

Packaged AC systems

Packaged systems combine the central air unit and key components into one air conditioning unit outside.

• Unit-only: $2,300 to $5,500
• Installed: $5,000 to $9,000

These systems are common when there isn’t much indoor space for an air handler or when a homeowner wants to keep all HVAC components outside.

Cost by ton (system capacity)

The size of a central air system is measured in tons (cooling capacity):

• 1 ton = 12,000 BTUs
• Typically cools 450–600 square foot of living space

Common ranges for central air installation costs by size:

• 1.5–2 tons (up to ~1,200 sq ft): $3,500–$5,500 installed
• 2.5–3 tons (1,200–1,800 sq ft): $4,500–$7,000 installed
• 3.5–4 tons (1,800–2,400 sq ft): $5,500–$8,500 installed
• 4.5–5 tons (2,400+ sq ft home): $7,000–$10,000 installed

Unit size of a central air system affects not just the upfront cost, but also how efficiently it can heat and cool your home in extreme temperatures.

How to size an AC unit based on square footage

A quick rule of thumb is about 20 BTUs per square foot of living space. For example, a 2,000 square foot house needs roughly 40,000 BTUs, or around a 3.3-ton system.

However, a reputable HVAC contractor will perform a Manual J load calculation to consider factors like insulation, window orientation, ceiling height, and climate before you install a new or new AC system. This ensures the central air conditioning system has the right cooling capacity and unit size, so it’s not too small or oversized and expensive to run.

Factors That Affect Central AC Cost

Several factors that influence central air pricing determine what you’ll ultimately expect to pay when installing central air in 2025.

Unit size and brand

Larger systems and premium brands tend to have a higher cost. A bigger central AC or central air conditioner with more cooling capacity and features will cost more upfront. Premium brands may offer better warranties or efficiency, but you’ll pay a higher initial cost compared to basic models.

Energy efficiency (SEER / SEER2)

The Seasonal Energy Efficiency Ratio (SEER or SEER2) measures how efficiently an air conditioner for your home uses energy:

• Higher SEER = lower operating costs and better indoor air comfort
• High-efficiency new AC units typically costs more initially
• Over time, a high-SEER new unit can reduce the overall cost of ownership

In many cases, higher-efficiency HVAC replacement systems cost more upfront but save money over 10–20 years.

Condition of your ductwork

If your home already has ductwork in good shape, the cost to install central air is much lower. Damaged or undersized ducts may require:

• Sealing
• Insulation
• Partial or complete replacement

New ductwork is one of the most significant line items in the cost of the project, especially if you need to install a new HVAC system in a home that never had central air.

Complexity of installation and home layout

The cost of a new HVAC system also depends on how complex it is to get equipment and ducts where they need to go:

• Multi-story vs. single-story
• Attic or crawlspace access
• Distance between air handler and outdoor unit

More complicated layouts mean higher labor costs, and installing a central air conditioning system may be more expensive to install.

Local labor and permitting

Your location affects what HVAC contractor labor runs per hour, and what permits and inspections include the cost of the project. Urban areas see higher rates than rural ones, and some local codes require additional inspections that add to the final price.

Installation Costs

Professional central air installation is essential to ensure your HVAC system is safe, efficient, and compliant with building codes.

Labor and installation costs

Labor for installing a central air conditioning system usually ranges from $1,500 to $3,500, depending on whether it’s a straight swap or a more complex new system with major duct or electrical work.

A HVAC contractor may also charge differently for:

• Replacement vs. full install a new system
• Complex rerouting of ducts
• Adding or upgrading electrical circuits

Combined with equipment, this makes up the majority of your central air installation costs.

Additional work: ductwork, electrical, and more

Beyond the main AC unit, you may need:

• Duct sealing or new ductwork
• Electrical panel upgrades
• New thermostat
• Concrete pad for the outdoor unit

All of these add to the cost of installing central air but may be necessary to safely operate a new HVAC system.

Energy Efficiency and Long-Term Savings

While a high-efficiency new central air conditioner has a higher upfront cost, it can reduce your long-term air conditioner costs significantly.

SEER, SEER2, and operating costs

The seasonal energy efficiency ratio (SEER) tells you how efficiently your AC system uses electricity. A new air conditioner with a higher SEER/SEER2:

• Uses less energy to cool the same square foot area
• Lowers monthly bills during extreme temperatures
• Often qualifies for rebates or a tax credit

This is especially important for homeowners in hot climates who run their air conditioning much of the year.

Balancing initial cost and long-term value

A premium, high-efficiency new AC or new AC system typically costs in 2025 more up front, but the reduced energy usage often offsets the price over its lifespan. When calculating value, look at:

• System cost
• Estimated lifetime energy savings
• Available rebates and tax credit incentives

Cost of Replacing vs. Repairing Central AC

At some point, you’ll face the decision of whether to repair or replace your central AC.

When repairs make sense

Repairing an air conditioner often makes sense if:

• The system is relatively new
• The cost to fix is low compared to the cost to replace
• You haven’t had frequent breakdowns

If the AC unit cost of repairs is minor and the equipment is efficient, repair is usually reasonable.

When replacement is the better choice

A new HVAC or new central air conditioner may be the smarter move if:

• The unit is 12–15+ years old
• Major components are failing
• Your energy bills are rising
• You’re dealing with frequent repairs

In that case, the cost of a new system, while higher up front, may make more sense than continuing to pour money into an old unit.

Ways to Save on Central Air Installation

Even though central air can be expensive to install, there are several ways to reduce the cost of central air for your home.

Tax credits and rebates

In 2025, federal incentives can significantly lower the cost to install central air:

• Federal tax credit for qualifying high-efficiency air conditioning systems
• State or utility rebates for energy-efficient HVAC upgrades

These programs can reduce the initial cost of the new unit and make a higher-efficiency HVAC system more affordable.

Utility and local incentives

Utility companies sometimes offer rebates for installing energy-efficient air conditioning unit upgrades or new HVAC system equipment. These may apply to:

• Higher SEER systems
• Smart thermostats
• Complete HVAC replacement projects

Get multiple quotes from licensed HVAC contractors

Because the cost to install a new system can vary widely, it’s wise to get quotes from licensed HVAC pros and compare:

• Equipment type and system type
• What’s included (ductwork, thermostat, permits, etc.)
• Labor warranty and manufacturer coverage

A reputable HVAC contractor will provide a detailed estimate so you can compare central air installation costs and choose the type of system that offers the best fit.

FAQs

How much does it cost to install central air?

The cost to install central air typically ranges from $5,000 to $12,000, depending on the AC unit, HVAC system size, ductwork, and complexity. A basic ac replacement in a home with good existing ductwork usually sits at the lower end, while a full installing a central air setup with new ductwork and electrical upgrades can be at the higher end of the costs in 2025 range.

Is it more expensive to install central air in an older home?

Older homes without ductwork or with limited access spaces often have a higher cost because the installer has to add or redesign ducts, upgrade electrical, or modify framing. This increases the cost of installing a central air conditioning system compared to a newer sq ft home that already uses forced air to heat and cool.

How do I get the best price on a new AC system?

To get the best price of a new central air conditioner or new AC unit:

• Get multiple quotes from a reputable HVAC contractor in your area
• Ask about seasonal discounts and promotions
• Look into tax credit and rebate programs
• Choose a system with the right cooling capacity rather than oversizing

This helps you secure best coverage at the best value for your new air conditioner while still matching your comfort needs.

Bottom line: The cost to install central air in 2025 depends on your home, your HVAC system choices, and how much prep work is required. By understanding the factors that influence the cost of a new system and planning ahead, you can install central air conditioning that keeps your indoor air comfortable without overspending.