How Much Does Installing a New AC Unit Cost?

On February 25, 2026 By newsroom Topic: Home Services

A new air conditioning unit can be a game-changer for home comfort, particularly during hot summer months. Here's a breakdown of the costs, types, and factors influencing installation:

Typical Costs

National Average: $3,800–$7,500.
Unit Only: $1,500–$4,000 (varies by brand and capacity).
Full Installation: $3,000–$11,000+ (depending on system size, labor, and extras).
High-End Systems: $10,000–$15,000+ for premium or large-capacity units.

Regional Installation Costs

| City | Average Cost |
|------------------|------------------|
| San Diego, CA | $6,170 |
| Denver, CO | $4,640 |
| Austin, TX | $5,840 |
| Madison, WI | $4,360 |
| Atlanta, GA | $4,515 |
| Philadelphia, PA | $6,350 |

What You Can Get on Your Budget

| Budget | What to Expect |
|-------------------|----------------------------------------------------------------------------------------|
| $4,000 | Basic 2-ton central AC unit, standard labor costs. |
| $5,000 | Mid-range AC unit with improved efficiency (SEER 16–18), standard installation. |
| $8,000+ | High-efficiency system (SEER 20+), premium features, larger capacity, advanced labor. |

Cost by Type of System

| AC Type | Cost Range | Key Features |
|---------------------------|---------------------------|-------------------------------------------------------|
| Central Air | $3,815–$7,480 | Most common; cools entire home via ductwork. |
| Ductless Split System | $2,000–$14,500 | Energy-efficient, no ductwork needed. |
| Window AC Unit | $150–$500 | Best for small spaces; low installation cost. |
| Portable Unit | $90–$500 | Movable; suitable for single rooms. |

Factors That Influence Cost

Unit Size (Tonnage):
1 ton = 12,000 BTUs/hour (cooling capacity).
Rule of thumb: 1 ton for every 500–600 sq. ft. of living space.
SEER Rating:
Higher SEER (Seasonal Energy Efficiency Ratio) = More energy-efficient, higher upfront cost.
Standard: 13–16 SEER; Premium: 20+ SEER.
Labor & Installation:
Ductwork modifications, electrical wiring, concrete pad, and framing increase costs.
Brand:
Budget Brands: Payne, Coleman, Comfortmaker (<$2,000).
Premium Brands: American Standard, Carrier, Lennox (>$3,000).
Additional Features:
Smart thermostats, noise-reduction fences, or zoning systems add to the cost.

DIY vs. Professional Installation

DIY:
Not recommended due to complexity (EPA certification required for refrigerant handling).
Risk of improper installation can lead to higher repair costs.
Professional:
Ensures proper sizing, safe installation, and compliance with local codes.
Costs include labor ($50–$150/hour) and permits ($50–$200).

FAQs

1. How often should my AC be serviced?

Annually, preferably before summer.
Clean evaporator coils and check refrigerant levels to ensure efficiency.

2. Repair or replace my AC unit?

Repair: If unit is under 10 years old and repair costs are minimal.
Replace: If unit is over 15 years old or repair costs are close to replacement costs.

3. Can I lower costs with rebates?

Check for state and local rebates for ENERGY STAR-rated systems.

A new AC unit is an investment that pays off in comfort and energy savings. Choose wisely to stay cool!