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Home / HVAC Pricing Guide

How Much Does a New AC or Furnace Cost in Denver?

Honest, transparent pricing from On Time Heat & Air. We believe you should know what to expect before you call. Below are average installed prices for the Denver metro area in 2026 โ€” by tonnage, efficiency, and system type. Every estimate from us is free, with no obligation.

AC Pricing

Air Conditioner Cost by Tonnage (Installed)

Prices include equipment, labor, standard installation, permits, and old unit disposal. Colorado installations may cost slightly more than national averages due to altitude adjustments and refrigerant line requirements.

AC SizeHome Size (sq ft)14 SEER (Basic)16 SEER (Mid)20+ SEER (Premium)
1.5 Ton600 โ€“ 1,000$3,200 โ€“ $4,000$4,200 โ€“ $5,200$6,500 โ€“ $8,000
2 Ton1,000 โ€“ 1,300$3,500 โ€“ $4,500$4,500 โ€“ $5,800$7,000 โ€“ $8,800
2.5 Ton1,300 โ€“ 1,700$3,800 โ€“ $4,800$5,000 โ€“ $6,200$7,500 โ€“ $9,500
3 Ton โ˜…1,700 โ€“ 2,100$4,000 โ€“ $5,200$5,500 โ€“ $7,000$8,000 โ€“ $10,500
3.5 Ton2,100 โ€“ 2,400$4,500 โ€“ $5,800$6,000 โ€“ $7,500$8,500 โ€“ $11,000
4 Ton2,400 โ€“ 2,800$5,000 โ€“ $6,500$6,500 โ€“ $8,000$9,000 โ€“ $12,000
5 Ton2,800 โ€“ 3,500$5,500 โ€“ $7,200$7,000 โ€“ $9,000$10,000 โ€“ $13,000

โ˜… 3-ton is the most common size for Denver metro homes (1,700-2,100 sq ft). Prices are estimates โ€” your actual cost depends on home layout, ductwork condition, and specific equipment selected. Call (720) 527-0668 for your free, no-obligation estimate.

Want an exact price for YOUR home? We provide free in-home estimates.

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Furnace Pricing

Furnace Cost by Efficiency Rating (Installed)

Gas furnace prices for the Denver metro area. Colorado's altitude (5,000-6,500 ft) requires proper combustion adjustments โ€” always hire a licensed contractor for furnace installation.

Efficiency (AFUE)TypeSmall Home
(1,000-1,500 sf)
Average Home
(1,500-2,500 sf)
Large Home
(2,500-3,500 sf)
80% AFUESingle-stage (basic)$2,500 โ€“ $3,200$3,000 โ€“ $3,800$3,500 โ€“ $4,500
92-93% AFUE โ˜…Single-stage (standard)$3,000 โ€“ $3,800$3,500 โ€“ $4,500$4,000 โ€“ $5,200
96% AFUE โ˜…Two-stage (recommended)$3,800 โ€“ $4,800$4,500 โ€“ $5,500$5,200 โ€“ $6,500
97-98% AFUEModulating (premium)$4,500 โ€“ $5,800$5,500 โ€“ $7,000$6,500 โ€“ $8,000

โ˜… We recommend 92-96% AFUE for most Denver homes โ€” it balances efficiency with cost. 80% AFUE furnaces are being phased out under Colorado's new Ultra-Low NOx regulations. Call (720) 527-0668 to discuss the best option for your home.

Bundle & Save

AC + Furnace Combo Pricing (Installed Together)

Replacing both systems at the same time saves $500-$1,500 vs doing them separately. Both units are matched for maximum efficiency, and you only pay for one installation visit.

PackageWhat's IncludedAvg Home (1,700-2,500 sf)Best For
Good3-ton 14 SEER AC + 80% furnace$5,500 โ€“ $7,500Budget-conscious, basic comfort
Better โ˜…3-ton 16 SEER AC + 96% furnace$8,000 โ€“ $11,000Best value โ€” recommended for most homes
Best3-ton 20+ SEER AC + 98% furnace$12,000 โ€“ $16,000Maximum efficiency, quietest operation
Heat Pump3-ton heat pump (heats & cools)$7,000 โ€“ $14,000All-electric, CO tax credits up to $1,000+

โ˜… Our "Better" package is the most popular choice among Denver metro homeowners. All packages include: equipment, labor, permits, thermostat setup, old unit disposal, and a 1-year warranty on installation. Financing available from $79/month with 0% interest options.

๐Ÿ”ฅ Don't wait for your old system to fail completely

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Common Repairs

Average HVAC Repair Costs in Denver

Not every problem needs a full replacement. Here's what common repairs typically cost in the Denver metro area.

Repair TypeAverage CostNotes
AC diagnostic / service call$75 โ€“ $150Waived with completed repair (our policy)
Capacitor replacement$150 โ€“ $350Most common AC repair โ€” often same-day
Refrigerant recharge$200 โ€“ $600Depends on refrigerant type and amount needed
Blower motor replacement$300 โ€“ $700AC or furnace โ€” affects airflow throughout home
Compressor replacement$800 โ€“ $2,500Major repair โ€” often worth replacing the whole unit instead
Ignitor replacement (furnace)$150 โ€“ $350Common furnace repair โ€” quick fix, same-day
Heat exchanger replacement$1,000 โ€“ $3,500Safety issue โ€” cracked heat exchanger usually means new furnace
Thermostat replacement$150 โ€“ $450Basic to smart thermostat (Nest, Ecobee, Honeywell)
Drain line cleaning$100 โ€“ $250Prevents water damage from clogged AC drain
Ductwork repair/sealing$300 โ€“ $1,500Fixes leaks that waste 20-30% of your energy

All prices are estimates for the Denver metro area. We always provide an upfront quote before any work begins โ€” no surprises. Mention this page for $50 OFF any repair. Call (720) 527-0668.

Colorado Savings

Rebates & Tax Credits for Colorado Homeowners

๐Ÿ’ฐ Colorado Heat Pump Tax Credit

Colorado residents can receive at least $1,000 in state tax credits for qualifying heat pump installations in 2026. On Time Heat & Air is a registered contractor โ€” we handle all paperwork.

๐Ÿ›๏ธ Federal Energy Tax Credit (25C)

The federal Inflation Reduction Act provides up to 30% of costs (up to $2,000) for qualifying high-efficiency HVAC equipment including heat pumps, furnaces 97%+ AFUE, and central AC 16+ SEER.

โšก Xcel Energy Rebates

Xcel Energy offers rebates for Colorado customers who install qualifying high-efficiency equipment. Rebates vary by equipment type โ€” ask us for current amounts when you call for your estimate.

๐Ÿ’ณ 0% Financing

Can't pay upfront? We offer 0% interest financing for qualified buyers, with payments as low as $79/month. Same-day approval โ€” get your new system today and pay over time.

Colorado-Specific

Why HVAC Costs Are Different in Colorado

If you've compared prices from national websites, you may have noticed that Colorado HVAC installations can cost slightly more than the national average. There are real reasons for this โ€” and understanding them will help you evaluate quotes more accurately.

Altitude affects everything

Denver sits at 5,280 feet. Castle Rock is at 6,200 feet. Parker is at 5,900 feet. At these elevations, gas furnaces burn differently โ€” the air is thinner, which affects combustion efficiency. Every furnace installed in Colorado needs altitude-specific adjustments to the gas valve orifice and burner settings. This requires a technician who understands high-altitude HVAC โ€” not every company does this correctly, and improper adjustment leads to higher gas bills, carbon monoxide risks, and shortened equipment life.

Colorado's new furnace regulations (2026)

As of 2026, Colorado's Ultra-Low NOx regulations affect all new furnace installations. This means some older, cheaper 80% AFUE furnace models are being phased out. If someone quotes you a suspiciously low price on a furnace, make sure it complies with current Colorado regulations. On Time Heat & Air only installs compliant equipment.

Extreme temperature swings demand properly sized systems

Colorado can swing 50ยฐF in a single day โ€” from a sunny 60ยฐF afternoon to a 10ยฐF night. This puts unique demands on HVAC systems. An undersized system won't keep up during deep cold snaps. An oversized system will short-cycle and waste energy during mild weather. Proper Manual J load calculations are essential โ€” and On Time Heat & Air performs them on every installation.

Dry air = special considerations

Colorado's dry climate (often below 20% humidity in winter) accelerates wear on HVAC components and makes indoor comfort harder to achieve with heating alone. We recommend whole-home humidifiers for most Colorado homes โ€” they cost $400-$800 installed and make a dramatic difference in comfort and system longevity.

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