Pricing Guide
Furnace and AC Replacement Cost (Denver)
Denver HVAC replacement costs $13,500 to $16,850 for a furnace and AC installed together. Replacing both at the same time saves around $1,500 to $2,000 compared to doing them separately.
Updated October 1, 2026•By Editorial Staff
Replacing furnace and AC together saves around $1,500 to $2,000 vs. separately. A heat pump with a gas furnace costs $14,800 to $18,200 out of pocket after stacking Xcel, Power Ahead Colorado and the state credit.
Furnace and AC Replacement Cost in Denver
The cost to install a furnace and AC together in Denver runs $13,500 to $16,850, depending on system efficiency, home size, and installation complexity. That's the all-in price for a new furnace and AC unit, including equipment, labor and standard installation with existing ductwork.
A standard efficiency furnace and single-stage AC sit at the low end of that range. A high-efficiency gas furnace paired with a two-stage air conditioner sized for a typical 2,000 sq ft home lands higher. Use the 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 around $1,500 to $2,000
- Matched efficiency ratings work together properly
- One crew visit, one disruption
- One install, one labor warranty
- Higher upfront cost
Replace Separately
Spread cost over time
- Lower cost per project
- Replace the failing unit first
- Pay labor twice
- 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
- $13,500 to $16,850
- Approach
- Furnace separately
- Total Cost
- $5,400 to $11,200
- Approach
- AC separately
- Total Cost
- $7,700 to $11,200
- Approach
- Bundle savings
- Total Cost
- ~$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 to 15 SEER2): low end of the range; lowest upfront cost
- High-efficiency (97% AFUE + 16 to 17 SEER2): upper half of the range; best value for most homes
For most Denver homes, the high-efficiency tier offers the best balance of upfront cost and long-term savings.
Systems in attics and crawl spaces
The ranges above assume your furnace and air handler sit somewhere reasonable: a basement, a mechanical closet, a garage. If your system lives in an attic or a crawl space, adjust your budget before you start collecting quotes. We no longer take attic or crawl space replacements, and the contractors who do typically add $400 to $800 for crawl spaces and $500 to $1,200 for attics. Swapping two pieces of equipment through a ceiling hatch is slow, awkward work, and the price reflects it.
Summer attic temperatures along the Front Range can pass 130 degrees, so many companies, including us, will not do attic work in summer at all. That heat risk is a big part of why we dropped attic jobs entirely. If you are replacing an attic system, start getting bids in spring or fall rather than during a July heat wave.
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 the gas furnace takes over below a switchover temperature you set. The switchover follows outdoor temperature, not a limit of the heat pump: cold-climate units keep heating well below zero, and the furnace covers the coldest stretches.
This is how most of our full-system installs are configured. The heat pump handles most heating hours, and the furnace runs during the coldest stretches.
Dual Fuel
Heat pump + gas furnace backup
- Heat pump handles most of the year
- Gas furnace backup below your switchover point
- Qualifies for all heat pump rebates
$14,800 to $18,200 out of pocket after rebates
Furnace + AC
Traditional split system
- Lowest sticker price
- Familiar technology
- Rebates limited to $225 on a 95%+ AFUE furnace
$13,500 to $16,850
All-Electric
Heat pump + air handler only
- No gas bill at all
- Full rebate eligibility
- No gas backup heat
- Higher electric bills in deep winter
$15,300 to $18,950 out of pocket after rebates
The rebate math is the same for dual fuel and all-electric: both qualify for Xcel, state credit, and Power Ahead Colorado because the heat pump is the qualifying equipment. The difference is which fuel runs during the coldest stretches. See our heat pump installation cost guide for detailed pricing.
Available Rebates for HVAC Replacement
Rebates and incentives focus on heat pumps and electrification. A gas furnace + AC replacement does not qualify for state credits or federal tax credits.
2026 HVAC Incentive Summary
- Furnace + AC (gas): Xcel pays $225 on a qualifying 95%+ AFUE gas furnace through its Whole Home Efficiency program, for installs through 2026. No state credit, and the federal credit ended.
- Heat pump: around $7,000 typical, up to $10,000 combined on 5-ton systems. Xcel ($1,500/ton cold-climate), Power Ahead Colorado ($1,500), and the Colorado state tax credit ($1,000).
- Federal 25C tax credit: ended December 2025. Do not plan on this for 2026 installations.
A heat pump with a gas furnace costs $14,800 to $18,200 out of pocket after Xcel, Power Ahead Colorado and the state tax credit ($20,850 to $27,650 before rebates). Review the available programs: Xcel Energy rebates, Power Ahead Colorado, and Colorado heat pump tax credit. Our rebates hub has 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. For a financial comparison between gas and heat pump operating costs, see our heat pump vs gas furnace operating costs breakdown.
Avoid mid-summer (June-August) and mid-winter (December-February) replacements if possible. Contractors are busiest in those months and scheduling is tightest.
How to Pay for HVAC Replacement
Financing options for Denver homeowners:
Payment options
- RENU: low fixed-rate loans through Colorado credit unions, with terms up to 15 years for heating and cooling equipment.
- 0% APR: Wells Fargo offers 0% APR for 12 months on any brand, and Synchrony offers 0% APR for 18 months on Mitsubishi, on approved credit.
- ClearPath On-Bill: fixed 4.50% to 5.49%, repaid on your Xcel bill.
- Cash or check: eliminates interest charges entirely.
- 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, Power Ahead Colorado, and the state credit are typically applied upfront at installation as invoice discounts. The Colorado state credit is passed through the contractor, not claimed on your return.
Ready to replace your HVAC system?
Free in-home assessment. We size the system, calculate rebates, and provide a written estimate.
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
- 1 year of labor included
Starting From
$13,500
Full range: From $13,500
High Efficiency
97% furnace + two-stage AC.
97% AFUE furnace + 16-17 SEER2 AC
- Less fuel wasted
- PVC venting (quieter, more efficient)
- Better humidity control
- 1 year of labor included
Starting From
$16,850
Full range: Up to $16,850
Dual Fuel (Heat Pump + Furnace)
Heat pump primary, gas furnace backup.
Cold-climate heat pump + existing or new gas furnace
- Heat pump handles heating and cooling most of the year
- Gas furnace takes over below the switchover temperature you set
- Rebates ~$7,000 (up to $10,000 on 5-ton)
- Gas furnace stays as backup
Gross (before rebates)
$20,850 to $27,650
Out of pocket (after rebates)
$14,800 to $18,200
Prices based on typical home in Denver metro. Actual costs depend on home size, ductwork condition, and equipment selection.
Consider Also
Other systems that may fit your needs and budget.
Furnace Installation
Furnace-only replacement pricing and sizing guide.$5,400 to $11,200Pricing guide · Heating
AC Installation
AC-only replacement pricing and SEER ratings.$7,700 to $11,200Pricing guide · Cooling
Heat Pump Installation
All-electric alternative with around $7,000 in rebates (up to $10,000 on 5-ton systems). Price shown is out of pocket after rebates.$14,800 to $18,200Pricing guide · Heat pump
Got a Furnace and AC Replacement quote?
Tell us the equipment, with or without their price.
Contact UsFree Estimates
Get Your Price
Fill out the form and someone from our team will reach out within 1-2 business days to schedule your free in-home consultation.
Was this page helpful?
AnsweringYour Questions
Frequently Asked Questions
Common questions about HVAC replacement costs in Denver.