“The comfort of your home shouldn’t break the bank — but knowing what you’re paying for can save you thousands.”
According to the U.S. Department of Energy, heating and cooling account for nearly 50% of your home’s energy use. That’s the biggest chunk of your utility bill. But how much does heating and cooling actually cost today — whether you’re installing a brand-new system or upgrading an old one?
Whether you’re planning for a central HVAC system, exploring geothermal solutions, or just wondering about your monthly costs, this guide breaks it down.
How Much Does Heating and Cooling Cost – Key Takeaways
- The average cost of a new heating and cooling system in 2025 ranges from $5,000 to $18,000, depending on type, size, and complexity.
- Monthly heating and cooling costs can vary between $70 to $250 based on usage and local climate.
- Ducted systems are generally more expensive upfront but efficient for whole-home climate control.
- Geothermal and ductless systems offer long-term savings, despite higher initial costs.
How Much Does a Heating and Cooling System Cost – Factors Explained
Let’s be clear — the answer to how much does heating and cooling cost? depends on a range of factors:
- System type (Central, Ductless, Geothermal)
- Home size and insulation
- Ductwork complexity
- Brand and model (e.g., Trane)
- Local labor rates
- Energy efficiency ratings (SEER, HSPF, etc.)
Insights From Some of Our Clients in Michigan
- Jane owns a 2,000 sq. ft. home. She opted for a central heating and cooling system, which included ductwork upgrades. Her total cost: $13,200 including installation.
- Tom lives in Michigan and chose a geothermal heating and cooling system for long-term sustainability.
Initial cost? Around $25,000, but he qualifies for a 30% federal tax credit, bringing it down.
How Much Does a New Heating and Cooling System Cost
How much does a central heating and cooling system cost?
$6,000 – $12,000
Great for whole-home coverage. Best if ducts are already installed.
How much does a geothermal heating and cooling cost?
$18,000 – $30,000
High upfront cost but saves 40-60% on energy bills over time. Best for eco-conscious households.
How much does ductless heating and cooling cost?
$4,000 – $10,000
Perfect for smaller spaces or additions. Installation is quick and flexible.
How much does ducted heating and cooling cost?
$6,500 – $14,000
Efficient, quiet, and best for multi-room coverage.
How much does a Trane heating and cooling system cost?
$7,500 – $15,000
Known for reliability and advanced smart features.
How Much Does Heating and Cooling Cost Per Month?
Average monthly heating and cooling cost for a U.S. household:
| Home Size | Average Monthly Cost |
| < 1,500 sq. ft. | $70 – $120 |
| 1,500–2,500 sq. ft. | $120 – $180 |
| > 2,500 sq. ft. | $180 – $250+ |
These costs fluctuate based on local climate, energy rates, and system efficiency.
How Much Does a Heating and Cooling Unit Cost with Rebates
Many states offer rebates for energy-efficient systems. Mass Save®, Energy Star, and Federal Tax Credits can shave hundreds or even thousands off your bill.
Things to Consider Before Buying
- Don’t just go for the cheapest quote
Cheaper systems often mean higher monthly costs.
- Check warranties
Most good systems come with 10–12 year warranties.
- Look at SEER ratings
Higher SEER = Lower long-term bills.
- Ask your contractor: “How much does it cost for heating and cooling system maintenance annually?”
Note:
The cost estimates provided are averages as of 2025. For the most accurate pricing, always request a detailed quote from a licensed HVAC professional such as High Comforts.
“Quality is remembered long after the price is forgotten.” – Aldo Gucci
Investing in the right HVAC system pays off in comfort, reliability, and lower energy bills.
How Much Does Heating and Cooling Cost Per Month – Conclusion
So, how much does heating and cooling cost?
In short — it depends. From ductless units starting around $4,000 to geothermal systems pushing $30,000, there’s a wide range.
But one thing is clear: investing smartly today saves you money and hassle tomorrow.
Still unsure which system is right for your home?
Reach out to the pros at High Comfort for personalized recommendations.
How Much Does it Cost for Heating and Cooling System – FAQS
How much should I expect to pay for a new furnace and air conditioner in michigan?
In Michigan, replacing both a furnace and air conditioner costs between $5,000 and $12,500, with an average around $7,500 . Prices vary based on system efficiency, home size, and installation complexity.
What is the $5000 rule for HVAC in the USA?
The $5,000 rule for HVAC helps decide whether to repair or replace your system.
Multiply the unit age by the repair cost—if the total exceeds $5,000, replacement is recommended.
How much does HVAC cost for a 2000 square foot house in Michigan?
For a 2,000 sq. ft. home in Michigan, installing a new HVAC system—including both furnace and air conditioner—costs between $8,000 and $20,000, depending on system brand, ductwork needs, and installation complexity . If ductwork is already in place, costs may range from $5,000 to $12,000 .
