AC Replacement

You are looking to replace your AC unit, but you have no idea how much does a new ac unit cost or what factors affect the price. 

We’ve done all the research for you. In this article, I will explain all the factors that affect the cost and what are different costs relating to the replacement of AC units; and why it’s important for you to understand these things before making an investment like this one.

This article is going to help you understand everything about AC replacement so that when you talk with a contractor, they can give you an accurate estimate for your project.

Do you need a new AC Unit?

The first thing to ask yourself is if you need a new AC unit.  Sometimes, with minor repairs and some general maintenance, your existing unit can keep running for a few more years.  I know, I know, it’s not as simple as that.   

The truth is that the temperature in your home can have a significant effect on the lifespan of your unit, especially if you’re located somewhere hot and humid.

But if you need to replace an AC system because it has broken down or because it just doesn’t really work well anymore, then this article will give you the tools to do that.

3 Major Factors That Affect The Price of AC Replacement

1: Size

The main factor that influences the total price of your project is the size of the unit.  An AC unit with more cooling capacity will be more expensive than smaller ones.

The size of the system affects two main things: 

1) The price you pay for a new unit and 

2) The amount of electricity it uses.

If you are replacing an old, inefficient unit then, after the cost of installation, this will be your second biggest cost.  Your largest cost will be the installation which accounts for around 75% of your total costs.

2: Location

The location of your AC unit is also a factor in the price.  If you live in an area with extreme weather, like Florida, the cost will be higher than if you live in a milder climate, like New York.

The main reason for this is that manufacturers have to use a thicker material to make AC units that can withstand extreme heat and winds, so they cost more.  The unit also has to be of a certain size in order to work efficiently in those conditions.

Your location affects other factors as well though, such as the cost of materials and installation.  You might pay an installation cost twice as high if you have to hire someone to install a unit that is twice as big.

3: Brand and Quality

AC replacement is one of the few areas where people are often willing to spend more money for a better product.  A well-known brand name will cost more than an unknown one, but the quality of the product will also be better.

Cost Of New AC Unit

So, let’s come back to the main point, how much does an AC replacement cost.

As I have mentioned earlier, the cost depends upon many factors like size, location, brand, and quality of the product. The average cost of AC replacement in the U.S. is between $4,000 and $6,000 for a 5-ton unit, and an average labor cost is $2,300.

If you are lucky to have a home warranty, you can replace your ac unit much cheaper. Here is the list of companies that cover air conditioner replacement.

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Benefits of replacing an AC unit

Here are some benefits of AC replacement 


Q. What other costs are associated with AC replacement?

When you replace your AC unit, here are your other costs:  

Q. How long does an HVAC system last?

HVAC systems typically last 10-20 years, though some can last as long as 30. The life of the HVAC system can be increased with regular maintenance.

Q. When is the best time to replace an AC

If your unit is more than 10 years old and you are having problems, it’s probably time to consider an upgrade. 

Q. What should I look for in a new AC unit?

A new AC should be Energy Star rated. You should also look into warranty issues and check into the company’s customer service policies.


Having a good AC is very important for your comfort, especially if you live in a hot and humid area.  Installing a new unit will save you a lot on your electricity bill.  You will also have a unit that is more efficient and lasts longer than the old one.

We hope now you know how much does an air conditioner cost and you can decide if you want to replace an air conditioner or not.