Cost Guide
HVAC System Installation Cost in New Jersey
A new gas furnace and central AC together run $8,000 to $39,000 installed in Union County when you add the ranges Vanguard's Instant Estimator shows for each. Each tier range here is the estimator's furnace range plus its AC range at the same tier and home size. Standard equipment in a home under 1,800 sq ft sits at the low end; top-tier equipment over 3,500 sq ft sits at the top.
Typical price ranges
Good
$8,000 to $21,500
An 80% AFUE single-stage furnace plus a 14 SEER2 AC on existing ductwork. $8,000 to $12,500 in homes under 1,800 sq ft ($3,500 to $5,500 for the furnace plus $4,500 to $7,000 for the AC), up to $14,300 to $21,500 over 3,500 sq ft, where duct changes may be needed. Mid-size homes fall in between; the final price is confirmed on site before work starts.
Better
$12,000 to $30,000
A 92-96% AFUE two-stage furnace with a variable-speed blower, plus a 16-17 SEER2 two-stage AC. $12,000 to $17,500 in homes under 1,800 sq ft ($5,500 to $8,000 plus $6,500 to $9,500), up to $20,000 to $30,000 over 3,500 sq ft. The final price is confirmed on site before any work begins.
Best
$16,000 to $39,000
A modulating 97-98% AFUE furnace with an ECM variable-speed blower, plus a variable-speed 19+ SEER2 AC. $16,000 to $23,000 in homes under 1,800 sq ft ($7,500 to $10,500 plus $8,500 to $12,500), up to $27,000 to $39,000 over 3,500 sq ft. Both estimator ranges include a smart thermostat, so the sum counts one twice. The final price is confirmed on site before the job begins.
What drives the price
- Home size and capacity
- Both halves climb with square footage. The estimator's AC steps from about 3 tons for a 1,800 to 2,500 sq ft home to 4 and 5 tons for larger ones, and its furnaces move to high-output models. The right sizes come from a heat-loss and cooling-load calculation; oversized equipment cycles on and off often and heats and cools unevenly.
- Ductwork
- The furnace and the AC share the same ducts. Reusing sound, correctly sized ducts keeps the price down; leaky or undersized ducts limit what any new system can deliver and add work.
- Venting
- An 80% furnace vents up a chimney or metal flue. A 90%-plus condensing furnace vents through PVC pipe and needs a condensate drain. Switching to one can leave a gas water heater alone on the old chimney, which may then need a liner.
- Electrical
- A new outdoor unit may need an updated disconnect or circuit to match its rating. Our own crew does that electrical work, and it is included in your written price.
- Permit and inspection
- In New Jersey, replacing a furnace or central AC needs a permit and an inspection from the local construction office, so a quote should include the permit. Even a like-for-like swap counts as minor work under the state construction code, which still calls for notice to that office before work starts.
Replace both at once, or one at a time?
In most homes with a gas furnace and central air, the furnace blower moves the air for the AC, and the AC's indoor coil usually sits on the furnace. Replacing both together fits the coil, the furnace and their connections once, and matches the new blower to the new AC.
If only one is failing and the other is young and sound, replacing just that piece usually makes more sense. On its own, a gas furnace runs $3,500 to $15,000 and a central AC $4,500 to $24,000 in the estimator, and each has its own cost guide.
Repair or replace?
A common rule of thumb: if the equipment is around 15 years old or older and a repair would cost more than about a third of replacing it, replacement is usually the better spend. Apply it to the piece that failed, using the estimator's replacement figure for your own home size. Major repairs such as a compressor or heat exchanger run $1,200 to $5,500 in the estimator. A new Good-tier furnace starts at $3,500 and a Good-tier AC at $4,500 in a home under 1,800 sq ft, and both cost more in larger homes.
Two findings usually point toward replacement on older equipment: a cracked heat exchanger, which can let combustion gases, including carbon monoxide, into the air stream, and a leak in an AC that uses R-22 refrigerant. New R-22 has not been produced or imported in the US since 2020, so recharging an R-22 system after a leak is costly.
What a fair quote includes
The furnace, the outdoor AC unit and its indoor coil, whether the refrigerant lines between them are reused or replaced, the thermostat, the labor, the gas, vent, drain and electrical connections, the permit, and what happens to the old equipment. If a quote leaves any of those out, ask before you sign.
Be wary of a firm price given over the phone before anyone has seen the ducts, the venting and the electrical panel. Vanguard gives upfront pricing with no hidden fees and confirms the final price on site before work starts. Vanguard's own technicians, not subcontractors, install the furnace and the AC under NJ HVACR license 19HC00609600.
Get a tailored estimate
See Good, Better, and Best options priced for your home in about a minute, with no phone call required.
Frequently Asked Questions
How much does a new furnace and AC system cost in NJ?
Adding Vanguard's Instant Estimator figures for a gas furnace and a central AC at the same tier gives $8,000 to $21,500 for a standard system, $12,000 to $30,000 for a high-efficiency two-stage system and $16,000 to $39,000 for a modulating furnace with a variable-speed AC, depending on home size.
Why are the furnace and AC figures added together?
The estimator prices a gas furnace and a central AC as separate jobs, not as one package. For your home, run it once for each with the same home size and add the two results. Because each range prices a standalone job, the sum can count shared items twice, such as the smart thermostat both Best-tier ranges include. The price for the combined job is confirmed on site before work starts.
Can I choose a different tier for the furnace and the AC?
Yes, with one limit. The furnace blower moves the air for the AC too, so a two-stage or variable-speed AC is best paired with a furnace that has a variable-speed blower. In the estimator, only the Better and Best furnaces list a variable-speed or ECM blower. A 92-96% AFUE furnace ($5,500 to $8,000) with a 14 SEER2 AC ($4,500 to $7,000), for example, adds up to $10,000 to $15,000 in a home under 1,800 sq ft.
Do these prices cover heat pumps, boilers or oil heat?
No. The ranges on this page are for a gas furnace with central AC. Ductless mini-split heat pumps are priced separately in the estimator, under Heat Pump (Single Zone) and Heat Pump (Multi-Zone). Boilers and ducted heat pumps are not in the estimator. For those, or for an oil or electric furnace, call 908-577-5579; the price is confirmed on site before any work starts.