HVAC (heating, ventilation, and air conditioning) systems are an important part of every home. Therefore, it is important to understand the cost and effectiveness of an upgrade or replacement. Old HVAC models are less energy-efficient, so installing modern HVAC units at your home will enhance their efficiency and also reduce energy bills. You can upgrade your HVAC system with the help of proper tools, effective planning, and the HVAC upgrade calculator.
HVAC Replacement Cost
The average cost of replacing an HVAC system ranges between $11,590 and $14,100 as of 2025. This data covers central air conditioning, furnace, and heat pump replacement, plus labor costs. The average cost of a new HVAC system is around $13430 for a 2,000 to 2,500 sq. ft. home. For areas with lower labor costs, an HVAC replacement can cost as little as $5000 for a 1500 sq. ft. home. Whereas in areas with higher cost, a new AC and furnace could cost more than $20,000 for merely a 3000 sq. ft. home.
Here is the HVAC replacement cost for each type:
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Central Air Conditioner - $6,465 to $11,877
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Ductless Split AC - $2,142 to $3,936
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Electric Furnace - $767 to $3,523
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Gas Furnace - $956 to $3,870
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Oil Furnaces - $3,325 to $8,222
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Heat Pump - $2,905 to $7,449
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Geothermal Heat Pumps - $15,000 to $38,000
Understanding AFUE
AFUE (Annual Fuel Utilization Efficiency) is a percentage demonstrating the efficiency of a given furnace or boiler to use its fuel. For example, a furnace with 80% AFUE is 80% efficient. This means that 80% of the fuel consumed by it is converted to heat energy to warm your house. The remaining 20% of the fuel is wasted. Similarly, a 90% AFUE furnace will convert 90% of the fuel and waste only 10%.
100% efficiency with 0% fuel waste is possible to achieve only with an electric furnace. Though natural gas and propane furnaces can also do so.
AFUE and SEER
SEER stands for Seasonal Annual Efficiency Ratio. It is the ratio of the cooling output of an air conditioner over a season and the energy it uses in Watt-Hours. Both indicate a more efficient unit through a higher number. Since AFUE is represented in simple percentages, it is easier to understand AFUE compared to SEER.
Understanding HSPF
HSPF stands for Heating Seasonal Performance Factor. It is used to express the efficiency of the heat pump. The higher the number, the more efficiently the heat pump operates. A heat pump is used to cool and heat your home by transferring warm air from inside the house to outside and vice versa.
Newer heat pumps typically have HSPF ratings between 8 and 13. HSPF is the heat pump's total heat output (measured in BTU) for a heating season divided by the electricity it consumes (measured in watt-hours) during that same season. A heat pump with a 10 HSPF rating produces 10 BTU of heat energy per watt-hour of electricity used.
Comparing HSPF an AFUE
It is difficult to compare HSPF and AFUE as both are represented in different forms, and direct comparison would require HSPF to be converted to a percentage. After converting it to percentage, you will find that heat pumps are 150%-300% efficient. This means that a heat pump can generate 150%-300% more heat energy than the amount of electrical energy it uses. The efficiency of a heat pump is because of its ability to transfer heat from air to the home instead of creating heat energy from some fuel source.
| Notes | Heat pumps also have a SEER rating because they are used for heating and cooling. |
AFUE Calculator
The AFUE Savings Calculator helps you compare the heating costs of furnaces, boilers, and heat pumps with different efficiency ratings (expressed in AFUE or HSPF) and fuel types. It also evaluates the heating cost savings over periods of one, five, ten, and fifteen years.
The calculator tells your yearly spending on heating your home based on three primary factors:
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The fuel type of your current heating system.
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The AFUE rating or HSPF rating.
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The BTU input capacity.
The calculator uses several secondary factors to estimate the costs accurately, such as -
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The cost of heating fuels like natural gas, heating oil, propane, or electricity in your area.
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The number of heating degree days in your area.
In addition, you can also compare your heating costs with those of heat pump systems having different efficiency ratings.
SEER Calculator
The SEER calculator is used to compare the cooling costs of two air conditioners or heat pumps with the help of their SEER ratings and estimate your annual savings. The calculator estimates your annual home cooling costs based on four factors:
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The SEER rating of your current air conditioner.
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The size of the air conditioner (in tons).
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The cost of electricity per kilowatt-hour (Kwh) in your area.
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The annual cooling hours for your area.
The calculator also compares your home's estimated annual cooling to that of an air conditioner with higher efficiency. Therefore, you can see your savings per year by an AC compared to a higher SEER. It can also display your cumulative savings over periods of 1, 5, 10 and 15 years.
