Andrew Martinez

HVAC System Pricing Guide: What Does a New Furnace and AC Cost in Colorado?

One of the most common questions we get as HVAC professionals is, "How much does a new heating and cooling system cost?”

And the honest answer is: it depends. But that doesn’t mean we can’t give you a realistic range.

 

At VO Heating and Cooling, we believe in transparent pricing and helping homeowners understand what their investment might look like before we ever step into your home. The information below gives you ballpark pricing ranges based on the most common systems we install across the North Denver area.

 

When we meet with homeowners, we typically present three options:

  • A Good option
  • A Better option
  • The Best option

All three options will provide reliable comfort and safe operation. The difference comes down to comfort level, efficiency, noise, and long-term operating cost.

 

Think of it like vehicles:

  • A Good system is like a dependable sedan—reliable and gets the job done
  • A Better system is like a mid-level SUV—more comfort and performance
  • The Best system is like a luxury vehicle—the highest comfort, efficiency, and technology available

Let’s walk through what each of those really means.

 

Understanding the Difference: 80% vs 90%+ Furnaces

Before we get into the equipment tiers, there’s one major factor that significantly impacts price: Furnace efficiency.

 

80% Furnace (Standard Efficiency)

An 80% furnace converts about 80% of the fuel you pay for into heat, with the remaining 20% lost through the exhaust.

These systems:

  • Use metal venting (typically into a chimney)
  • Cost less upfront
  • Are very reliable and widely installed
  • Work well in many homes

This is often the most cost-effective option when:

  • Your home already has an existing chimney or metal vent
  • You're looking to keep upfront costs lower
  • Efficiency upgrades are not required

90%–97% Furnace (High Efficiency)

A 90%+ furnace captures more heat from the fuel you use, meaning:

  • Lower monthly utility bills
  • Higher efficiency
  • More advanced technology
  • PVC venting instead of a chimney

These systems:

  • Are required in many newer homes
  • Often qualify for rebates
  • Provide better long-term operating savings
  • Deliver more consistent comfort

They do cost more upfront because they:

  • Use more advanced components
  • Require different venting
  • Often include upgraded blower technology

Understanding the Difference: Single-Stage, Two-Stage & Variable Speed Equipment

We provide our homeowners options around how they actually live in their homes. Not everyone needs the same level of comfort or technology, and that’s why we provide choices. Again, every option we offer is safe, reliable, and professionally installed. The difference is comfort, efficiency, and performance.

 

Single-Stage Equipment

Reliable, budget-friendly comfort. This is our most economical system and a very common choice for homeowners who want dependable heating and cooling without extra features.

 

A single-stage system has one setting:

ON or OFF

 

It runs at full power whenever it turns on.

That’s similar to:

 

A light switch—it's either on or off.

 

What this means for you

  • Lower upfront investment
  • Reliable comfort
  • Simple operation
  • Proven technology
  • More noticeable temperature swings
  • Louder than higher-end systems

Best for homeowners who:

  • Want the most affordable replacement option
  • Plan to stay in the home short- to medium-term
  • Rental property
  • Want dependable comfort without added features

Two-Stage Equipment

Improved comfort and efficiency. A two-stage furnace has two levels of operation:

  • Low power (most of the time)
  • High power (during very cold weather)

Instead of constantly turning on at full blast, it runs more gently and more consistently.

 

Think of it like this:

Driving your car—sometimes you cruise, and sometimes you accelerate.

What this means for you

  • More consistent temperatures
  • Quieter operation
  • Better energy efficiency
  • Improved comfort during cold weather
  • Longer equipment lifespan

Best for homeowners who:

  • Want better comfort without going all the way to premium systems
  • Plan to stay in their home long-term
  • Notice hot and cold spots, or certain rooms/areas, having a noticeable difference in temperatures. 
  • Value efficiency and quieter operation

Variable-Speed Equipment

Maximum comfort, efficiency, and performance. This is the highest level of comfort technology available today. Instead of always running at 100% or even at 40% capacity, variable speed systems (using inverter technology) can operate anywhere from 25% to 100% (often in 1% or 1/10 of 1% increments of capacity) to match the exact cooling or heating needs of the home.

 

Instead of cycling on and off, it runs smoothly and steadily.

 

Think of it like this:

Cruise control—The system adjusts its speed automatically to maintain a steady, comfortable pace without unnecessary stopping and starting. 

 

What this means for you

  • Extremely consistent comfort
  • Very quiet operation
  • Highest efficiency available
  • Lower monthly energy bills
  • Better humidity control
  • Longer equipment life
  • Eligible for rebates and incentives

Best for homeowners who:

  • Want the most comfortable home possible
  • Plan to stay in the home long-term
  • Are sensitive to noise or temperature swings
  • Want maximum energy efficiency
  • Are interested in modern, high-performance equipment

Pricing

Furnace & Central AC (Whole-Home Replacement)

  • Standard efficiency (80% furnace + 13-15 SEER AC): $12,000-$15,000
  • High efficiency (96%+ furnace + 15-17 SEER AC): $15,000-$18,000
  • Premium variable-speed system: $18,000-$22,000+

Heat Pump (Ducted, All-Electric or Dual-Fuel)

  • Standard efficiency (14-16 SEER2, single stage): $10,000-$15,000
  • High efficiency (17 SEER2, two-stage): $16,000-$20,000
  • Cold-climate/dual-fuel variable speed systems: $20,000-$25,000+.
    • Rebates from Xcel Energy and other programs typically reduce these costs by $900–$2,250+ per ton.

Central AC or Furnace Only Replacement

  • AC only replacement: $7,000-$10,000
  • Furnace-only replacement: $6,000-$9,000

Mitsubishi Ductless Mini-Split 

  • Single-zone system: $7,000-$10,000
  • Multi-Zone (2-4 zones): $9,000-$16,000+.
    • Rebates from Xcel Energy and other programs typically reduce these costs by $900–$2,250+ per ton.
    • Ductless systems are great solutions for additions, basement finishes, or electrification projects that may count for utility programs. 

Ductwork (New installation or add-on/replacement)

  • Heat Run/Return/Duct Pipe Adjustments: $300/run

Indoor Air Quality (IAQ)

  • Humidifier: $1,000-$1,600
  • Air purifier/UV light: $1,000-$3,000+
  • Smart thermostat: $500-$1,000

**Important Pricing Disclaimer**

This blog provides the pricing ranges for budgeting and planning purposes only. They are intended to give homeowners a general understanding of what a typical heating and cooling system investment may look like.

 

These figures are not exact quotes or guaranteed pricing.

Your final system cost will depend on several factors unique to your home and installation, including but not limited to:

  • Home size and square footage
  • Equipment size and system design requirements
  • Existing ductwork condition and modifications
  • Furnace efficiency level (80% vs 90%+)
  • Electrical or gas line upgrades
  • Venting requirements
  • Installation location (attic, crawl space, basement, etc.)
  • Accessibility to equipment
  • Insulation and home layout
  • Indoor air quality or accessory upgrades
  • Permit and inspection requirements
  • Local code compliance
  • Installation complexity
  • Seasonal demand
  • Available rebates or incentives

A professional in-home evaluation is required to provide an accurate, fixed-price estimate.