How much does it cost to replace an HVAC system?

Full HVAC replacement (furnace + AC) costs $10,816-$14,571 in Denver depending on efficiency and system size. Standard efficiency bundles run $11,326-$13,115. High-efficiency bundles run $12,916-$14,571. These figures are derived from our furnace and AC installed pricing minus ~$1,500 in bundle labor savings.

How much does a new furnace and AC cost together?

A new furnace and AC installed together costs $10,816-$14,571 for most Denver homes. A typical combination (95% AFUE furnace + 16 SEER2 AC for a 2,000 sq ft home) runs about $12,694 installed. This includes both units, labor, permits, and standard installation with existing ductwork.

Is it cheaper to replace furnace and AC at the same time?

Yes. Replacing furnace and AC together saves roughly $1,500 in labor costs compared to two separate projects. The technician is already on site, ductwork connections are made once, and you need only one permit and one inspection. You also get matched efficiency ratings that work together properly.

How long does full HVAC replacement take?

Most full HVAC replacements (furnace + AC) take 1-2 days. A straightforward swap with existing ductwork can be completed in a single long day. If the project requires new venting (switching from standard to high-efficiency), electrical work, or ductwork modifications, expect 2 days.

Should I replace my HVAC with a heat pump?

Most of our full-system replacements are dual fuel: a cold-climate heat pump for primary heating and cooling, with the gas furnace as backup for the coldest nights below ~5°F. The heat pump handles 85-90% of heating hours at 2-3x the efficiency of gas. Dual fuel qualifies for the same rebates as all-electric (up to $15,750 combined), and after incentives it often costs less than a traditional furnace + AC replacement.

How often should an HVAC system be replaced?

Furnaces typically last 15-20 years. Air conditioners last 12-15 years in Denver's climate. If both systems are 12+ years old, plan for replacement within the next few years. Annual maintenance extends lifespan, but once efficiency drops and repairs become frequent, replacement is usually more cost-effective.

What size HVAC system do I need for my home?

HVAC sizing depends on square footage, insulation, windows, and climate. A typical 2,000 sq ft Denver home needs an 80,000 BTU furnace and a 3-ton AC. But rules of thumb are unreliable. We perform Manual J load calculations on every project to determine the exact size your home needs. Oversized or undersized systems waste energy and reduce comfort.

Are there rebates for HVAC replacement in 2026?

Not for traditional furnace + AC systems. As of 2026, all rebate programs (Xcel Energy, Colorado state, and federal) focus on heat pumps and electrification. Gas furnaces and AC-only systems receive zero rebates. If you choose a heat pump instead, you can stack rebates totaling $7,750-$15,750 depending on system size and income eligibility.

What is the most efficient HVAC system for Denver?

The most efficient option for Denver is a cold-climate heat pump with a variable-speed air handler. These systems achieve 300-400% heating efficiency (COP 3.0-4.0) compared to 95-98% for the best gas furnaces. For traditional systems, a 98% AFUE variable-speed furnace paired with a 20+ SEER2 variable-speed AC is the most efficient conventional option.

How much does a new HVAC system cost?

A new HVAC system (furnace + AC) costs $10,816-$14,571 installed in Denver. The most common configuration for a 2,000 sq ft home is a 95% AFUE furnace paired with a 16 SEER2 AC, which runs about $12,694 total. Heat pump alternatives cost $14,442-$26,444 before rebates but can drop to $5,534-$15,605 after Xcel, state, and federal incentives.

How much does it cost to replace a 3-ton HVAC system?

A 3-ton HVAC system (furnace + AC) costs $10,816-$13,500 installed in Denver. A 3-ton system is typical for homes around 1,500-2,000 sq ft. The exact cost depends on efficiency tier: a standard 80% furnace + 14 SEER2 AC runs less than a high-efficiency 95%+ furnace + 16 SEER2 AC. System size is determined by a Manual J load calculation, not square footage alone.

Pricing Guide

HVAC Replacement Cost

Denver HVAC replacement costs $10,816-$14,571 for a furnace and AC installed together. Replacing both at the same time saves roughly $1,500 in combined labor compared to doing them separately.

Denver Metro: $10,816–$14,571Typical: $12,694Free estimateFinancing available

Updated February 23, 2026•By Editorial Staff

Get Free Estimate (303) 250-1000

Cost Summary

Full HVAC replacement (furnace + AC) in Denver runs $10,816-$14,571 depending on efficiency and system size. Replacing both at once saves roughly $1,500 in labor versus doing them separately. Consider a heat pump alternative: similar total cost, but rebates up to $15,750 make it cheaper after incentives.

Typical Cost

$12,694

Bundle Savings

~$1,500

Install Time

1-2 Days

Warranty

10 Years

How Much Does HVAC Replacement Cost in Denver?

UniColorado technician discussing furnace installation with homeowners in basement utility room

Full HVAC replacement in Denver - meaning a new furnace and central air conditioning system installed together - costs $10,816 to $14,571 depending on system efficiency, home size, and installation complexity.

The average Denver homeowner replacing a standard furnace and AC pays about $12,694 for a high-efficiency gas furnace paired with a two-stage air conditioner. This includes equipment, labor, permits, and standard installation with existing ductwork. Use our cost calculator below to estimate pricing for your specific system size and efficiency tier.

Replace Furnace and AC Together or Separately?

Replacing your furnace and AC at the same time saves money and produces better results. Here's why:

Replace Together

Recommended for most homeowners

Save ~$1,500 in combined labor costs
Matched efficiency ratings work together properly
Single permit, single inspection, single disruption
Warranty covers the complete system
Higher upfront cost

Replace Separately

Spread cost over time

Lower cost per project
Replace the failing unit first
Pay labor twice (technician visits, permits, inspections)
Mismatched efficiency between old and new components
Second unit may fail within 1-3 years anyway

If one system is under 5 years old and working well, replacing just the failed unit makes sense. But if both are 10+ years old, replacing together is almost always the better investment.

Bundle vs separate replacement costs

Approach: Furnace + AC together (bundle)
Total Cost: $10,816 - $14,571

Approach: Furnace separately
Total Cost: $5,936 - $10,094

Approach: AC separately
Total Cost: $6,890 - $10,403

Approach: Both separately (total)
Total Cost: $12,826 - $20,497

Approach: Bundle savings
Total Cost: ~$1,500

Approach	Total Cost
Furnace + AC together (bundle)	$10,816 - $14,571
Furnace separately	$5,936 - $10,094
AC separately	$6,890 - $10,403
Both separately (total)	$12,826 - $20,497
Bundle savings	~$1,500

HVAC Replacement Cost by Efficiency Level

Your total HVAC replacement cost depends heavily on the efficiency tier you choose. Higher efficiency costs more upfront but reduces monthly energy bills over the 15-20 year system lifespan.

Cost by Efficiency Tier (Furnace + AC Installed)

Standard (80% AFUE + 14-15 SEER2): $11,326-$13,115 - reliable, lowest upfront cost, highest operating cost
High-efficiency (95%+ AFUE + 16-17 SEER2): $12,916-$14,571 - 15-20% lower energy bills, best value for most homes

For most Denver homes, the high-efficiency tier offers the best balance of upfront cost and long-term savings. The premium tier makes sense for larger homes (3,000+ sq ft) where energy savings compound.

HVAC replacement cost by efficiency

Efficiency Tier	Furnace + AC Bundle Cost	Annual Energy Savings	Details
Standard (80% + 14 SEER2)	$11,326 - $13,115	Baseline
High-efficiency (95% + 16 SEER2)	$12,916 - $14,571	$300 - $500/year

Consider Dual Fuel: Heat Pump + Gas Furnace Backup

If you're replacing your HVAC system, a dual fuel setup is worth a hard look. A cold-climate heat pump handles heating and cooling for most of the year, and your gas furnace takes over on the coldest nights. You get heat pump efficiency without giving up the gas safety net.

This is how most of our full-system installs are configured. Denver's climate is ideal for it: the heat pump covers 85-90% of heating hours, and the furnace fills in during deep cold snaps below ~5°F.

Dual Fuel

Heat pump + gas furnace backup

Heat pump efficiency 85-90% of the year
Gas furnace backup below ~5°F
Qualifies for all heat pump rebates
After rebates, often cheaper than furnace + AC

$18,000-$26,000 before rebates

Furnace + AC

Traditional split system

Lowest sticker price
Familiar technology
Zero rebates in 2026
Higher operating costs long-term

$10,816-$14,571

All-Electric

Heat pump + air handler only

No gas bill at all
Full rebate eligibility
No backup on coldest nights
Higher electric bills in deep winter

$14,442-$26,444 before rebates

The rebate math is the same for dual fuel and all-electric: both qualify for Xcel, state, and HEAR incentives because the heat pump is the qualifying equipment. The difference is comfort and peace of mind during Colorado's coldest stretches. See our heat pump installation cost guide for detailed pricing.

Xcel Energy Rebates

For Xcel account holders. Dual fuel and all-electric both qualify.

Up to $11,250+

AvailableLearn More

CO Heat Pump Credit

For all Colorado residents. Any qualifying heat pump installation.

Up to $1,000

AvailableLearn More

Income Qualified

HEAR Rebates

Income-qualified federal incentives for heat pumps.

Up to $8,000

AvailableLearn More

Available Rebates for HVAC Replacement

As of 2026, rebates and incentives focus on heat pumps and electrification. Traditional furnace + AC replacements do not qualify for utility rebates, state credits, or federal tax credits.

2026 HVAC Incentive Summary

Furnace + AC (gas): $0 in rebates. No Xcel, no state, no federal credits available for gas equipment in 2026.
Heat pump: up to $15,750 combined. Xcel ($2,250/ton), Colorado state tax credit ($1,500), and HEAR federal rebates (income-qualified, up to $8,000).
Federal 25C tax credit: ended December 2025. Do not plan on this for 2026 installations.

The rebate gap between furnace + AC and heat pump is significant. A heat pump that costs $20,000 before rebates may cost $8,000-$12,000 after incentives, making it comparable to or cheaper than a mid-range furnace + AC bundle. See our rebates hub for current program details.

When Is the Best Time to Replace Your HVAC System?

Timing affects both price and convenience. The best time to replace your HVAC system in Denver:

Optimal replacement timing

Spring (March-May) or fall (September-October): shoulder seasons when demand is lowest. Contractors are less booked, and you're not stuck without heating or cooling during extreme weather.
Before failure: a planned replacement gives you time to get multiple quotes, choose the right equipment, and schedule at your convenience. Emergency replacements limit your options and may cost more.
When both systems are 12+ years old: if your furnace and AC are the same age and both approaching end of life, replacing together avoids the cost of a second project 1-3 years later.

Avoid mid-summer (June-August) and mid-winter (December-February) replacements if possible. These are peak emergency repair seasons when contractors are busiest and scheduling is tightest.

How to Pay for HVAC Replacement

A full HVAC replacement is a significant investment. Several financing options are available to Denver homeowners:

Payment options

Monthly financing: most HVAC contractors offer financing plans. A $12,694 system at 7.9% APR over 60 months runs about $257/month.
Deferred interest: some plans offer 0% interest for 12-18 months if paid in full before the promotional period ends.
Cash or check: eliminates interest charges entirely. Some contractors offer a small discount (2-3%) for cash payment.
Home equity: HELOC or home equity loan rates are typically lower than contractor financing, and the interest may be tax-deductible.

If you're choosing a heat pump to take advantage of rebates, factor in the timing of rebate payments. Xcel rebates are typically applied upfront at installation. State tax credits reduce your Colorado income tax liability the following year. HEAR rebates are processed through your installer.

Ready to replace your HVAC system?

Free in-home assessment. We size the system, calculate rebates, and provide a written estimate.

Since 2014

12,000+ installs

Licensed & insured

(303) 250-1000

Investment Options

Three tiers for every budget. All include installation, permits, and warranty.

Standard Efficiency

80% furnace + single-stage AC.

80% AFUE furnace + 14-15 SEER2 AC

Lowest upfront cost
Metal flue venting (existing)
Basic cooling and heating
5-year parts warranty typical

Starting From

$11,326

Full range: $11,326-$13,115

Best Value

High Efficiency

95%+ furnace + two-stage AC.

95%+ AFUE furnace + 16-17 SEER2 AC

15-20% lower heating bills
PVC venting (quieter, more efficient)
Better humidity control
10-year parts warranty

Starting From

$12,916

Full range: $12,916-$14,571

Dual Fuel (Heat Pump + Furnace)

Heat pump primary, gas furnace backup.

Cold-climate heat pump + existing or new gas furnace

Heat pump handles heating down to ~5°F
Gas furnace kicks in on coldest nights
Rebates up to $15,750
2-3x more efficient most of the year

Starting From

$18,000

Full range: $18,000-$26,000

Prices based on typical home in Denver metro. Actual costs depend on home size, ductwork condition, and equipment selection.

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Frequently Asked Questions

Common questions about HVAC replacement costs in Denver.

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HVAC Replacement Cost

How Much Does HVAC Replacement Cost in Denver?