Apr 9, 2025
How much does a new HVAC system cost? (Valparaiso & Northwest Indiana)
One of the most common questions we are asked is, “How much is a new furnace and air conditioner going to cost me?”
The short answer? It depends.
Factors that affect the price
I’m going to attempt to simplify this, as my goal here is to educate on what a new HVAC system may cost you. Every company out there is going to charge slightly different prices, but I want to provide typical ranges that I’ve seen for a new furnace, air conditioner, and evaporator coil here in Northwest Indiana.
When I say it depends, I really mean that. Four primary variables affect the price of a new HVAC system. Some may say there are more or less, but in my experience, these are the primary four considerations that any company will evaluate before giving you a price to do your project.
The core four are:
- Size
- Efficiency
- Type of system
- Ease of installation
Now, I’m going to go into further detail on each of these, but I know that some of you reading this either have short attention spans or only came here to see what this investment will cost you. Just know that I appreciate you. I, too, cannot stand when I click on an article that promises an answer to my question, and I find myself having to scroll through a 5-minute read just to see what I wanted in the first 30 seconds.
Without breaking down any details from the four variables, a typical price range you’re going to see for a new HVAC system is this:
- 80% furnace and AC: $7,500-$16,000
- 90%+ furnace and AC: $8,300-$18,000
If you find a company that is way cheaper than that, they’re probably not going to be making enough money to pay their bills, and you’ll be left in the dust if you have to make a warranty call to them. Or, they are just going to slap your system in, without any care or consideration of best practices, which will ultimately reduce the lifespan of your system.
If you find a company that is way more expensive than that, they are either trying to rip you off, or their overhead is through the roof because the company is poorly managed, or trying to pay for the owner’s fifth vacation home. Who knows?
I know those are large ranges, but the size and efficiency of the system you’re buying affect the cost the most. I’ll dive into more detail below and give some tighter ranges based on the types of systems. A more efficient system will end up costing quite a bit more up front, but there are going to be more long-term savings. The potential savings on your energy bills, as well as local and federal rebates, may make a higher efficiency system an investment that you’re comfortable making.
Variables
Size
This one is simple. Large homes usually require larger systems, or sometimes multiple systems. While smaller homes require smaller systems. A good HVAC contractor should be doing a load calculation on your home to determine what the home’s heat loss and heat gains are, so that they can size your system correctly.
If your home only needs a 60,000 BTUH furnace, and your contractor installs a 100,000 BTUH furnace because that’s what was there before, you’ll pay more for that larger furnace. There will also be other issues in that scenario, but that’s not the topic today. Long story short, make sure you ask your contractor if they’re doing a load calculation.
Efficiency
Here’s where I nerd out. SEER & AFUE Ratings. 1-Stage, 2-Stage, or Modulating. Constant Torque or Variable Speed. Communicating. Single, 2-Stage, or Variable speed Compressor. There are so many options today.
I’m not going to get into all the details here, but just know that higher-efficiency systems will have higher upfront costs, but can save you money in the long run. Additionally, there are usually local and federal rebates available for the higher-efficiency systems.
Type of System
Again, we have options here. You can get your traditional, northern climate gas furnace and air conditioner. However, heat pump technology has come a long way and can be a viable option in our climate. Heat pumps are typically more expensive, but are a green option as they don’t use natural gas as their fuel source. As the prices of gas and electricity fluctuate, this could end up providing savings on your utility bill as well. There are also mini-splits (or ductless systems) and package units, each coming in at their own price points.
Ease of Installation
Every new equipment install is going to be slightly different. This is where the contractor has to decide how long he or she thinks this project is going to take. Also, are there going to be additional materials needed that aren’t part of a standard install? Are significant ductwork modifications required to retrofit the new system?
There are a lot of variables in this section alone, so when choosing a contractor, make sure to choose one that is experienced, does a thorough evaluation, and takes lots of notes and pictures. Quoting is a science itself, but if all the necessary details are gathered during the evaluation, you can trust that you will be getting an accurate and detailed quote.
Price Ranges with Breakdowns
As promised, here are some tighter price ranges based on the size, efficiency, and type of equipment you may want to install. These ranges may have more fluctuation between different HVAC companies, but this should give you a good ballpark on what to expect. Some of these still have a large range, but size tends to be the biggest factor when looking at these breakdowns.
- 80% Furnace (1-Stage), Standard AC and Coil: $7,500-$10,000
- 80% Furnace (2-Stage), Upgraded AC and Coil: $8,000-$14,000
- 80% Furnace (2-Stage with a Variable Speed Blower motor), Upgraded or Most Efficient AC and Coil: $9,500-$16,000
- 96% Furnace (1 or 2-Stage, Constant Torque Blower Motor), Standard AC and Coil: $8,300-$13,000
- 96% Furnace (2-Stage, Constant Torque or Variable Speed Blower Motor), Upgraded or Most Efficient AC and Coil: $9,000-$16,000
- 97/98% Furnace (Modulating, Variable Speed), Most Efficient AC and Coil: $11,000-$18,000
- Mini-Split Installation: $5,000-$10,000. This could be higher or lower depending on the exact needs. This is just a median range.
Conclusion
If you made it this far, I hope you learned something and found what you were looking for. If you have any questions, are looking for second opinions, or maybe just want to chat about possibilities for increasing the comfort of your home, we’d be happy to help. The best way to contact us is through our website or by giving us a call. You can click the Contact Us button below and fill out our contact form, and a member of our team would be happy to reach out to you.
Whether you’re current system just broke down and you’re trying to figure out what a new one will cost, or you’re just trying to plan ahead, investing in a new system can lead to improved energy efficiency, comfort, and long-term savings.