How Much Does a New Air Conditioner Cost?
How much should you expect to spend on replacing your outdated Air Conditioner unit?
There is no set-in-stone number because many variables influence the price.
The good news is you have options, and your choices influence how much you pay for a new unit. Air Products & Services can guide you toward comfort and savings when you are ready to replace your AC system. In the meantime, we have compiled this guide to help you budget wisely when considering a new AC unit for your Beverly Hills, home.
The information does not pinpoint an exact cost, but provides a range and explains what drives the cost of installing new air conditioning equipment.
How Much is a New AC Unit?
This Old House says the unit cost in 2025 ranges from $5,500 to $16,000, with installation between $1,000 and $7,000. Homes and Gardens estimates the average new AC unit cost with installation is between $5,000 and $12,000. NerdWallet estimates the price range from $6,000 to $11,500.
Who is correct?
They all could be. Depending on several factors, you might pay more or less than the average price range.
What Drives Central AC Cost?
The cost of installing new central air conditioning depends on various factors.
Size & Capacity: A bigger home needs a higher‑capacity unit, raising the price.
Energy Efficiency: A unit with a higher Seasonal Energy Efficiency Ratio 2 (SEER 2) rating is more energy efficient and will cost more upfront for its high efficiency. However, a high-efficiency unit can save money on energy bills over its 15-20-year lifespan.
Brand: Some brands have a bigger price tag than others, especially if they offer generous warranties.
Compressor: A unit with a single-stage compressor will be less efficient and cost less than those with two-stage and variable-speed compressors. Variable-speed fan motors, advanced filtration systems, and enhanced insulation that muffles noise can hike the cost of new cooling equipment.
Ductwork: If your ductwork is in good shape, you will not have to spend on duct installation or repair. Adding new air ducts or making significant ductwork repairs will impact the cost.
Labor: Installation costs vary, depending on your location and the job’s complexity. A difficult-to-reach installation site and complex home layout can increase the price.
Electrical: Upgrading wiring or your electrical panel to accommodate the new equipment will increase costs.
Permits: The fees vary by municipality. Contractors typically include permit costs in the overall price of the project.
Keep New AC Unit Costs Down
A new AC is a big investment, but there are smart ways to save money and reap the rewards.
Consider upgrading your air conditioning during the off-season. You may get a better price and faster scheduling in the fall or spring.
Get at least three quotes from licensed HVAC companies and be sure they include a detailed list of all costs, such as the equipment, labor, permits, and warranties.
Ask how they calculated the size of the new unit. You want to be sure the new air conditioner is sized for your home’s square footage. An oversized unit will cycle on and off too quickly, cooling and dehumidifying inconsistently.
An undersized unit will struggle to cool your home. Either way, you will waste energy and money trying to cool your home.
Ask contractors if they offer discounts for bundling home improvements. If you replace your heating and cooling system simultaneously or schedule air duct sealing when you replace your AC, will the company budge on its price? Some companies also offer discounts for veterans and seniors.
Budget for an annual spring tune-up. Investing in maintenance does not reduce the price of the unit you buy, but helps maintain its efficiency and prevent breakdowns.
Replace Your AC Before It Fails
If your AC unit is over 10-15 years old, replacing it now can prevent a costly breakdown in the middle of a heat wave. Waiting for your unit to fail can leave you scrambling to find a contractor and paying a premium for emergency repairs.
If the contractor cannot repair the unit and replacement is the only option, you need to get estimates, choose a company for installation, and schedule the replacement. You could wait days in sweltering heat for your new system.
Upgrade now to significantly improve indoor air quality (IAQ), comfort, and energy efficiency. A new unit is more reliable and quieter, and offers features like two-stage compressors and variable-speed blowers that provide more consistent cooling and better humidity control.
The U.S. Environmental Protection Agency (EPA) recommends an indoor humidity level of 30 to 50 percent to maintain good IAQ. A new air conditioner plays a huge role in maintaining the correct amount of moisture in the air.
Replace Your AC Confidently
Upgrading the AC system in your Beverly Hills, home does not have to drain your savings. Plan your installation by getting three quotes—including one from Air Products & Services. Try to time your installation for the off-season, and select the best unit for your home.
Ready for a personalized estimate? Let Air Products & Services design a cooling solution tailored to your budget, home, and comfort. Call us at 818-334-8403 or request service online.