How Much Does an AC Unit Cost in 2025?

The average cost to install an air conditioner ranges from $2,165 to $10,825.

An air conditioner transfers heat from the inside of a room to the outside and leaves the interior space cool. The average cost to install a central AC unit ranges from $2,165 to $10,825, including material and labor costs.

However, if you opt for a portable AC, costs could go as low as $130 (not including labor), whereas a package AC can cost as high as $12,755, including installation.

The price ranges in this article are based on the averages from our nationwide survey on AC installation costs. Your actual price will depend on the type of unit, the area to be cooled, and the unit’s efficiency.

Cost by Location

The cost of air conditioning installation varies significantly by location. This can be due to labor costs, the availability of AC professionals, and the cost of materials in different areas. In general, AC installation in a large metropolitan area is more expensive than in a rural area.

The table below shows the average AC installation cost across different locations in the U.S.

LocationAverage Cost (Including Labor and Materials)
Northeast U.S.
Pawtucket, RI$2,100 – $10,510
New York, NY$2,910 – $14,545
Southeast U.S.
Dothan, AL$1,800 – $8,980
Atlanta, GA$1,960 – $9,790
Midwest U.S.
South Bend, IN$2,170 – $10,870
Chicago, IL$2,370 – $11,860
Northwest U.S.
Corvallis, OR$1,990 – $9,970
Seattle, WA$2,370 – $11,850
Southwest U.S.
Roswell, NM$1,800 – $8,980
San Diego, CA$2,180 – $10,890

Cost by Type of Unit

The type of AC unit is a key factor when looking at cost. Central air conditioner units are the most common, and they need ductwork.

Portable and window units are budget-friendly because they are smaller and easier to install. On the other hand, the most expensive options are geothermal and package HVAC units, but they can save you money in the long run.

In the table below, you will find the average cost of different types of AC units:

AC Unit TypeAverage Cost (Unit Only)
Portable$130 – $630
Window AC$170 – $720
Swamp Cooler$1,560 – $3,770
Central Air$2,130 – $6,170
Ductless (including installation)$2,210 – $11,050
Geothermal AC$3,630 – $11,930
Package (including installation)$8,625 – $12,755
  • Portable AC Unit: Unlike traditional window AC units, portable ACs can be moved from room to room as needed and don’t require any installation or ductwork. They are also much quieter than stationary air conditioning units. When shopping for a portable AC, consider the room size you need to cool and the unit’s energy efficiency rating.
  • Window AC Unit: These units are one of the most commonly used air conditioning systems due to their convenient installation and affordability. Typically, these units are installed in windows and require minimal effort to set up and operate. Window units are also a great option for cooling rooms that don’t have access to install ductwork.
  • Swamp Cooler: They are an economical and environmentally friendly cooling alternative that uses evaporative or “swamp” technology to cool the air and humidify it simultaneously. These systems are typically more affordable to install and operate than traditional air conditioning units and are ideal for dry climates.
  • Central AC: This is the most common type of AC unit and is the best option for larger homes. The best part about a central air conditioner is that it is powerful enough to cool an entire house, so you don’t have to worry about keeping up with the temperature in each room.
  • Ductless AC Unit: These units come with a variety of features and in a variety of sizes to fit your needs. They are composed of two parts, an outdoor unit, and indoor air handlers, which provide a quiet operation. They can be used to cool specific areas of your home and do not require costly ductwork.
  • Geothermal AC System: They work similarly to traditional central AC systems but use the natural energy produced by geothermal heat pumps instead of electricity for heating and cooling. These systems use pipes buried in the ground to draw heat from the earth and transfer it into a home. They can reduce energy usage by up to 70% compared to traditional air conditioners.
  • Package AC Unit: This is the most cost-effective way to cool your home or office. It is a single unit that is installed outside, usually on the roof. The package unit houses an AC and furnace and can provide up to 10 tons of cooling capacity.

Cost by Efficiency Rating

The SEER (Seasonal Energy Efficiency Ratio) rating measures the cooling efficiency of an air conditioner. A higher SEER rating means the unit uses less power to cool the same area. The higher the efficiency, the higher the unit price.

However, the cost of using a higher-efficiency unit will be lower over time due to its energy savings. For example, a system with a SEER of 17 uses less energy than a system with a SEER of 14.

See the table below, which shows how the increase in SEER rating impacts the unit cost.

Efficiency Rating (SEER)Average Cost
13 – 14$1,360 – $3,900
15 -16$1,900 – $5,250
17 – 18$2,340 – $6,050
19 – 21$2,975 – $7,050
22 – 24$4,725 – $9,050

Cost by Ton

The cost of an AC unit is typically calculated by the number of tons of cooling capacity it provides. The BTU rating of a unit is usually listed in the manufacturer’s product description, so you can figure out what size AC unit you need based on your home or building’s cooling requirements.

Note: 1 ton = 12,000 BTUs per hour. The higher the BTU rating, the more it will cost to install and maintain the unit.

Additionally, larger AC units also require more energy to operate, so it’s important to consider the cost of electricity when purchasing a new system.

AC SizeSize in BTUsAverage Cost (Including Material and Labor)
1.5 ton18,000 BTU/h$2,825 – $5,625
2 tons24,000 BTU/h$3,375 – $6,500
2.5 tons30,000 BTU/h$3,600 – $6,500
3 tons36,000 BTU/h$4,000 – $7,825
3.5 tons42,000 BTU/h$4,275 – $8,350
4 tons48,000/h BTU/h$5,225 – $9,550
5 tons60,000/h BTU/h$5,900 – $11,000

Cost by Brand

The manufacturer of the air conditioner you choose will greatly impact how much you can expect to pay. Here is a look at some of the most popular brands and their average prices for a new AC unit.

BrandAverage Cost (Unit Only)
Goodman$2,050
Coleman$2,100
York$2,525
American Standard$3,050
Lennox$3,150
Trane$3,350
Carrier$3,425

Labor Cost

Labor cost is a significant part of the overall expense when installing a new air conditioning system. On average, HVAC contractors charge between $75 and $200 per hour for installing an AC unit. You can expect to pay between $1,125 and $2,500 for installation charges.

In addition, if you prefer the installation to be done after business hours, contractors are likely to charge more than usual.

Pro Cost vs. DIY Cost

Although DIY installation may seem like an attractive option due to its potential cost savings, we do not recommend it. On average, the cost to purchase all the tools required to install an AC unit costs around $175, and an installation kit costs between $225 and $685.

The only AC you can install yourself is a window AC unit. Installing any other type requires specialized knowledge and expertise and should only be done by a professional contractor.

Other Factors That Affect Cost

In addition to the unit type and size, there are a few factors that affect the total cost of AC installation. See the factors below and include them in your estimate if applicable.

Ductwork

A person installing rectangular metal HVAC ductwork in a basement setting and connecting sections of the ventilation system.
Photo Credit: Vernon Air Conditioning / Flickr / License

Installing central air conditioning without existing ductwork is considerably more expensive, as it requires additional duct system installation.

If the existing ductwork in your home or building is inadequate, you may need to install a new one. The cost will vary depending on the project’s size, type, and complexity. On average, installing new ductwork can cost between $2,000 and $5,000 in total.

Insulation

Proper home insulation is essential to maintaining and improving AC units’ efficiency. Insulation helps keep the air inside your home cooler in the summer and warmer in the winter and can save you money on your utility bills in the long run.

An expert insulation service provider can assess your home to determine what kind of insulation is best for your area. On average, insulation costs between $1.20 and $2.70 per square foot, including materials and labor.

FAQ

How much does it cost to run an air conditioner? 

On average, running an air conditioner costs between $0.08 and $0.60 per hour, depending on the unit’s size and the model’s energy efficiency.

Do I need a permit for air conditioning installation?

In many cases, a permit is required to install an AC unit. Before beginning installation, check local building laws to ensure you are in compliance. You can expect to pay around $200 to $450 for a permit.

What is the difference between an air conditioner and an HVAC unit?

An air conditioner is a single unit used to cool or heat a room. An HVAC (Heating, Ventilation, and Air Conditioning) system is a complete system that regulates temperature, humidity, and air quality in a space. It typically includes several components, such as air handlers, vents, and ducts. 

On average, an HVAC system costs between $2,170 and $10,840.

Stay Comfortable All Year Round

Professional installation comes with the benefit of a warranty and peace of mind that the job will be done correctly. In the long run, it may cost less to hire a contractor if something goes wrong.

Luckily, Home Gnome connects you to licensed and skilled HVAC technicians near you. With just a click, you can book a service, and our pros will take care of the rest.

Rahul Sattineni has contributed to this article.

Read More:

HVAC Repair Cost Guide

HVAC Maintenance Cost Guide

How Much Does an HVAC Inspection Cost?

Main Photo Credit: Yurii Klymko / Adobe Stock Free / License

Luminita Toma

Luminita Toma is a detail-oriented writer and home improvement enthusiast. When she’s not writing or tackling DIY projects — much to the amusement of her family — she’s exploring new places or catching a movie with friends.