How Much Does Replacing an Air Conditioning Unit Cost?
- susan4434
- Jul 13, 2021
- 8 min read

There are several reasons why someone would replace an existing AC unit. Buying an AC unit is a major purchase for homeowners. Just like with other major purchases, knowing the details of what you are paying for is important.
Armed with the correct information, buying a new AC unit does not have to be painful. Knowing just a few basic facts about how air conditioners are priced can make the buying process easier.
No one wants to be living without air conditioning especially on a hot day. So, if you know how much it will cost to purchase and install an air conditioning unit before it breaks down, you will be confident and ready to make the purchase quickly. This article will break down how much it costs to replace an Air Conditioning unit, and discuss installation costs.
Average Cost of an AC Unit
The average cost of a home air conditioner in Northwest Arkansas is between $1,000 to $2,000. With installation costs, the total cost of replacing an air conditioning unit is about $4,500. Window air conditioning units cost around $350.
How is the Cost Determined?

Several factors determine the price of an air conditioning unit. Buying the largest, most powerful air conditioner is simply not the best approach. A large air conditioner is expensive and requires more maintenance. On the other hand, it is not smart to buy an air conditioner that is too small and not able to keep up with the home’s demands.
Every home is made differently. These differences require a detailed home assessment to understand the type and size of the air conditioner that needs to be installed. The home’s specifications determine the type of air conditioning unit required, which in turn defines the price.
The major factors of a home that influence the price of an air conditioner include:
Home size, measured in BTUs
Unit load capacity
Efficiency: SEER and EER ratings
Labor and fees
Single-stage or two-stage cooling system
Discounts, rebates and tax credits
Line set protection
Home Size Measured in BTU
An appropriately sized air conditioning unit installed in a home is based on the size of the home. Purchasing the proper size AC unit ensures you don’t over or underpay. The correct size AC unit also provides the appropriate levels of climate control and will guarantee the unit operates at maximum efficiency.
An AC unit that is too small will not effectively cool a home. But purchasing an AC unit that is too large may be like pouring money down the drain.
So why not buy the largest air conditioner possible? Even though a larger air conditioning unit pushes out more air, the unit would still run at the home’s needed levels. AC systems adjust to the appropriate output levels of the home’s size to make sure all living spaces are comfortable, and not forced with too much air.
When measuring a home for an AC unit, professional air conditioner installers measure the size in BTUs. BTUs (British Thermal Unit) is a measurement of thermal energy. For air conditioners, BTUs measures the amount of thermal energy removed from a living space. BTU amount is based on square footage and other factors.
An Air Control representative can determine the number of BTUs are in the home. If you are interested in learning how to calculate your home’s BTUs, follow the steps below:
List the square footage of the home. If you do not know the square footage, you will need to measure the length and width of each room. Multiply the length and width of a room, which results in the room’s square footage. Once you’ve calculated the square footage of each room, add all of these numbers together to get the total square footage of the home. You will not need to measure rooms that are not heated or cooled such as an attic or garage.
Find the heating capacity range for your home, which varies by climate zone. Northwest Arkansas resides in zones 3 and 4, which require 40 to 45 BTUs per square foot and 45 to 50 BTUs per square foot respectively.
The number of BTUs is also affected by the unique characteristics of the home. Take note of any factors that would influence the amount of cooling the home requires. For example, if you have a lot of large windows that face the sun, and these rooms heat quickly, you will need to use the higher end of the BTU range to estimate the total BTUs.
Finally, sum the total number of BTUs required to air condition your home. For example, a room size of 200 square feet in zone four (45 BTUs) would require 9,000 BTUs (200 x 45).
After calculating the BTUs for each room and including factors that will affect the room’s cooling levels, such as insulation amount and number of windows, add together the BTU numbers to get the total number of BTUs needed. For example, not taking in any factors that affect the cooling of a room, a house of 1,500 square feet in zone 4 that requires 45 BTUs per square foot would need 67,500 BTUs (1,500 x 45).
Unit Load Capacity

Unit load capacity is a measurement of how much energy is required to remove heat from a room. This is measured in tons, so when researching air conditioners, information regarding tons is often clearly labeled and part of a manufacturer’s AC model specifications.
However, the term ton does not equate to weight. This term was only originally used by businesses that sold the first air conditioning units. Before AC, many people used ice to cool their homes, and air conditioning companies were looking for a way to explain the power levels of the air conditioning units they were selling. So, a one-ton air conditioning unit had the equivalent power of a one-ton block of ice commonly used to cool homes at the time. AC manufacturers still use this term today.
Just like determining the BTU requirement levels, calculating air conditioner capacity cannot be done by using square footage measurement alone. Load capacity includes the amount of energy required to remove humidity levels in the air, since one of the major functions of an air conditioning unit is to remove humidity levels in the air.
Load capacity also depends on the number of people living in the house. People generate heat, so if there are a lot of people living in one house, the home will need a larger load capacity.
An Air Control professional can accurately determine the load capacity required for a home’s AC unit with an on-site inspection and assessment of the existing unit and home.
Efficiency: SEER and EER ratings

A SEER rating measures the efficiency of an air conditioning unit. SEER rates the cooling output during average warm seasons divided by the total electric energy input during that same season. It is a good measurement to use when comparing different models of air conditioners.
The higher the SEER rating, the more efficient the air conditioning system. A high SEER rating on an air conditioning unit equals a significant jump in the amount of energy the home uses. This is helpful for Northwest Arkansas residents who experience hot summers. An AC unit with higher SEER ratings is more expensive, but you will see the savings in the energy bill.
When considering SEER levels and a new AC unit in general, it is important to maintain the air conditioning unit once it is installed. This will maximize the life and efficiency of the unit. Units that are not maintained well can have significant reductions inefficiency, even though the unit may have had a high SEER rating when it was first installed.
Sometimes an EER, instead of a SEER rating will be displayed on an AC unit model label. EER is the energy efficiency ratio (EER) of an AC unit, which is similar to SEER.
Labor and Fees
Labor costs for installing an air conditioning unit can easily double the price of the unit itself. The cost of installing an air conditioning unit in Northwest Arkansas varies, but the average is around $4,500. If you are replacing an air conditioning unit and do not require ductwork, expect labor costs for installing a new air conditioning unit to include:
Basic labor to install air conditioning at an existing, favorable site. If your site needs adjusting, this adds to labor costs.
Prepping of area, setup and cleanup
Installing new pad
Adding the new AC to an existing heating system
Installing new electrical circuits
Mounting and securing condensers
Installing a heat exchanger.
Duct sealing up to a certain amount (average 200 ft.)
Upgrading the blower motor
Connecting and insulating lines between condenser and heat exchanger
Charging the condenser with refrigerant
Checking to see if the unit is functioning and operating correctly
The factors listed above apply for an average installation. Sometimes an installation job is not as simple as a standard change out. The most common reasons the average installation cost will change include:
Certain parts of the old unit can stay with the new unit, and new parts are not required
Redoing ductwork is required
Accessing the unit is difficult
Single-Stage or Two-Stage Cooling System
Single-stage AC units have only one power setting, so when AC is needed, the unit turns on, and when it is not needed, it is powered off. Single-stage air conditioning units are the most common AC unit installed.
A two-stage air conditioning unit has two power levels. When temperatures are hot, the AC unit runs high. On milder days, the AC unit runs at a lower level to maintain cooling and humidity levels. This low setting means the AC unit can run longer at lower energy usage levels, which means steady temperatures and more energy efficiency.
A two-stage AC unit will generally cost more than a single-stage unit, but again, efficiency may mean lower energy costs.
Discounts, Rebates and Tax Credits

When researching AC units, ask if the manufacturer is running any rebates or promotions. A manufacturer often runs seasonal promotions which reduce the cost of the unit. Air Control also offers specials for AC units and installations. Be sure to ask Air Control about any specials when inquiring about a new AC unit.
Tax benefits are also available for installing energy-efficient air conditioning units. These credits have been extended through 2021. Ask Air Control or a tax professional for advice on tax benefits for purchasing energy-saving air conditioners.
Line Set Protection
Line sets allow refrigerant to flow from the HVAC system to the air-conditioning unit’s compressor. Protecting these refrigerant line sets can improve energy efficiency and keep the AC unit running well.
These lines are usually made of copper, and when they are exposed to sunlight, they quickly heat up. As most AC units are outside, sunlight exposure is a common occurrence. Protecting these lines allows for the refrigerant to flow smoothly and helps the unit run more efficiently.
The type of insulating material used to protect the line sets vary in cost depending on the material used. Be sure to keep in mind the cost of protecting line sets when estimating the cost of a new AC unit.
Replacing an AC unit in Northwest Arkansas

When you need a new air conditioning unit, an Air Control representative will come to the home and assess the home’s size, location and existing HVAC system. The representative will use their education, experience and industry specifications to determine what the home requires.
After outlining the home’s needs, the Air Control representative provides you with information on different AC models and manufacturers and explains the differences in each model, so you can determine what unit is best for your home. They will discuss the differences between manufacturers, load capacities and efficiency levels for each model. They may also make recommendations for your particular home.
Summary
A new air conditioner is a significant purchase for any homeowner. But buying a new air conditioning unit does not have to be a painful process if you know how the cost of an AC unit is calculated.
After reviewing the cost factors above, and if you believe you need a new air conditioning unit, call Air Control for a professional assessment. A representative can work off of what you know about your home and use their professional skills and expertise to help you find the exact model of AC unit you need.
Sources
https://en.wikipedia.org/wiki/Seasonal_energy_efficiency_ratio - Relationship_of_SEER_to_EER_and_COP
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