How Much Does It Cost to Install Central Air in 2023?

Central Air Conditioner by Unit Type

There are two types of central air conditioning systems, which we discuss below.

Split Central Air Conditioning System

A split system is the most economical central air option at around $1,900 to $4,200. It consists of three main elements: the condensing unit, evaporator coil, and air handler. The condensing unit sits outside, while the evaporator coil and air handler are inside the home.

Packaged Central Air Conditioning System

A packaged central AC system is similar to the split air system, but the condensing unit, evaporator coil, and air handler are all packaged in a single “box” located on the roof or next to the foundation. Packaged systems are less common in residential settings and less efficient. On average, they cost around $2,300 to $5,500.

Other Air Conditioners

If you live in an older home without ducts, you may want to forego the cost and construction involved in installing central AC and consider a few other cooling system types instead:

• Ductless mini-split air conditioner cost: This mini-split system uses multiple indoor units without the need for ducts. It costs around $2,000–$14,500.

• Window air conditioner cost: This unit mounts to your windows and is easy to install on your own. It costs around $150–$500.

• Portable air conditioner: A portable unit can be placed anywhere and uses a hose to send heat out of a window. It also costs around $150–$500.

Make an informed decision about what kind of AC system you need before installing or replacing a unit since the AC type you choose determines a large percentage of your overall cost. For example, if you decide to have one of the two central air systems installed, you’ll need to hire an air conditioning pro.

Central Air Conditioner by Size

Pay attention to the square footage recommendations listed for each air conditioning unit you’re considering. The general rule is that every 500 or 600 square feet require 1 ton of cooling power. However, this calculation can vary. 

You can also estimate your overall price based on the British Thermal Unit (BTU) capacity, which measures how many BTUs per hour the AC unit can add or remove from the air. You'll need about 18 BTU capacity per square foot, but anywhere from 14 to 26 BTU capacity per square foot is acceptable.

The rule of thumb is that the bigger the house, the more cooling power is needed. But too big of a system isn't good either because the central air system will cycle on and off all the time, wasting energy and giving off a loud, disruptive noise. On the opposite side of the spectrum, a too-small system will work overtime and cool your house inefficiently. Be sure to consult an AC pro to get the most accurate estimate for this project.

Central Air Conditioner by SEER Rating

SEER stands for seasonal energy efficiency ratio, and the SEER rating of an AC system is particularly relevant if you live in a climate where the temperature changes drastically. SEER is calculated by determining the cooling output during the winter season divided by its electric input. The higher the rating, the more efficient it'll be. Since 2006, the U.S. Department of Energy has required new central ACs to have a minimum SEER rating of 13. According to the U.S. Energy Information Administration, this will increase to 14 in the northern U.S. and 15 in the southern U.S. by 2023.

The price to install a 14 SEER AC unit is between $3,000 and $6,000. The higher the SEER rating is on your AC unit, the more energy-efficient it'll be. A 16 SEER AC runs from $3,700 to $9,000 to install. At the time of publication, federal tax credits for residential energy-efficient equipment expired on December 31, 2021, but check the Energy Star website for updates on whether any extension or renewal of these credits gets approved by Congress.

Central Air Conditioner by Brand

Currently, the least expensive central air conditioning unit brand on the market is Payne, with an average price of $1,400. The most expensive AC unit brand is Lennox, coming in at around $3,400. The table below provides general price estimates for the most popular AC brands.

Central Air Conditioner by Labor 

Labor adds between $500 and $2,500 to the material costs. Installing a brand-new system with all new ducts will require more work than replacing an existing system with ducts already installed.

Additional Central Air Conditioner Cost Considerations

Depending on your home and current AC system, you may also encounter these additional cost factors.

Installing Ducts and Vents

You'll need a system of ducts and vents for the central AC to work because the unit carries cool air to the various rooms in your home via supply ducts and vents, or openings in the walls, floors, or ceilings covered by grills. Installing ducts and vents costs $500 to $2,100. 

A lack of existing ductwork is often why homeowners don't install central air conditioning. If you're installing new ducts, it’s also an excellent time to explore upgrading your heating system, as it'll be cheaper to do both together.

Repairing the AC 

If your air conditioner unit is relatively new, you may want to pay for AC repair costs. Most homeowners will spend about $390 on repairs.

Warranty

Any newly installed air conditioning unit will come with a manufacturer's warranty, which generally lasts for five to 15 years and may save you money if you're still covered.

Insulation

Explore the costs of home insulation since your heating and cooling systems will work more efficiently and save you money. 

Adding Central Air to Forced Air Heat

Many central air systems use furnace blowers to distribute cool air throughout the space. If you don’t have a central heating system, installing a cost-effective heating and air conditioning system at the same time can be worth it. You can use the existing fans and duct system for the central air if you already have central heating. 

Replacing a Central Air Conditioner Unit

Replacing a central AC costs around $5,000, depending on the size of your home, AC unit brand, and project complexity. Prices can go up as high as $12,500 to replace an air conditioning unit. The labor of removing and disposing of the old system also adds to the cost. 

DIY vs. Hiring an HVAC Pro

For a skilled DIY-er, installing a central air conditioning system can be a large but doable project. You may need to crawl under your home, lift heavy parts, prepare an installation site, pour concrete, and climb onto the roof. It'll also involve some paperwork since in most places, your local government may require a permit to replace or install large-scale appliances like HVAC systems.

If you hire a local air conditioner installation pro, your technician will complete the entire process for you. They may start with a load calculation—known as the Manual J methodology—to determine the proper unit size for your home. A pro will also look at your home’s insulation, walls, floors, and windows to determine the best model for your needs, as well as examine any leaks, seals, and existing ducts or vents to make sure your AC works at its best. Lastly, pros may even help you get a discount on the unit itself and offer maintenance plans for any future repair work.