The average cost across the United States to install central air conditioning was $5,882 as of mid-2023. That price can, however, fluctuate based on such factors as where you live, the size of your home, and what kind of unit you choose.
For instance, if you live in a 1,500 square foot home in Vermont, your air conditioning needs and costs will likely be quite different vs. those of someone who lives in a 5,000 square foot house in the desert.
Here, learn more about air conditioning costs, your options, and how to get the best possible price if you do choose to install central cooling.
What Factors Play a Role in Installing Central Air?
Many factors go into the cost to install central air conditioning, including the brand of AC you choose, the unit itself, and the overall size of your home. A central air conditioning unit alone can cost thousands of dollars. For instance, a split unit air conditioning unit will typically run between $1,900 and $4,200 on average; a packaged central air conditioning unit will be somewhat more, typically between $2,300 to $5,500. (More in a minute on the difference between these types of systems.)
If you add in the labor of an air conditioner contractor, the cost to install central air ranges from $3,883 and $7,918 on average. But that number can range depending on where you live, the type of AC system your home needs, and the condition of your existing air ducts.
According to HomeAdvisor , these are the average air conditioning unit costs with installation:
Average Cost by Size:
- 3-ton: $3,400 – $5,400
- 4-ton: $4,200-$6,200
- 14 SEER: $3,000–$6,000
- 16 SEER: $3,700–$9,000
Pre-Installation Evaluation
Some helpful things to think about when evaluating your home for a new air conditioning system include a careful analysis of how big of a system your living quarters need. The price jumps quickly for larger units, so it’s often smart to make sure you’re not overdoing the cooling capacity for your project.
Ease of access for installing the bulky ducting system of a traditional air conditioning setup is important, so if you have a tight basement or attic crawl space, expect to pay more in labor costs than if you had more room to mount all the equipment and pipes easily.
Also, think about where you’d want to locate the duct feeding into the room. You might have to cut through hardwood or tile, for example, to gain an access point for the air to flow. Or there could be a spot in your house that needs a little more airflow and will therefore require multiple ducts into the room.
Though an AC installation typically just takes one day, if extensive cutting into floors or walls or ductwork is required, it could take several. If this might disrupt your quality of living, you’ll likely want to consider staying with family or friends as your central air is installed — or move into a hotel, the cost of which should factor into your overall air conditioning home renovation budget (Learn more at Personal Loan Calculator).
Types of AC Units
Affordability and preference help determine the type of air conditioning unit that you’ll need, which affects the overall central air cost. A traditional split system — with air conditioning on one side of the unit, heating on the other — is on the lower end of the pricing range vs. packaged units. In addition, more complex models that include heat-pump, hybrid, and geothermal functionality can run substantially higher.
Ductless air conditioning systems have been around for years and are rapidly entering the U.S. market from overseas. They can offer affordable efficiency as they cool living spaces. Ductless units have a central compressor and fan with standalone wall-mounted units that eliminate the need for ducting. Instead, a wall-mounted fan serves each room independently. Coolant and drainage lines are routed through the wall back to the centralized air conditioning assembly, making for a clean finish.
Ductwork
When planning central air installation, you should consider what kind of ductwork is best for your home. Ductwork falls into two categories — flexible or rigid — with many different options for materials within each. Flexible and rigid ductwork each has its own pros and cons regarding price, lifespan, efficiency, and flexibility.
The cost of ductwork can vary greatly. The national average cost for ductwork is $1,179, but can range from $454 to $2,056 or significantly higher depending on the job specifics.
The cost to replace old ductwork is higher since it involves both removing the existing materials and installing new ductwork.
AC Installation and Labor
While handy types may be tempted to tackle the central air installation on their own, it might be wise to find a contractor who is well-qualified to ensure that the job is done properly.
City codes departments typically require permits for work like central air installation that can be obtained easily by a state-licensed contractor. Handling refrigerant chemicals like Freon™ also require a license.
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Many websites offer contractor and price-compare quotes in your area. Angi and Thumbtack both can be good places to start your research. A referral from someone you know also can be a great way to find a vetted air conditioning contractor.
You might also search online communities and neighborhood forums to find a reliable air conditioning contractor. There’s a good chance that someone locally has had similar issues and might be able to recommend a professional contractor to handle your air conditioning installation job.
The Takeaway
The cost to install central air conditioning is, on average, almost $6,000. While that’s a considerable expense, it can include the labor involved in addition to the price of the unit by itself. And it can give you peace of mind knowing you have a new central air system to keep you cool and likely improve the resale value of your home if you plan to list your house or refinance in the future. For this reason, it may be wise to look into your financing options, such as taking out a personal loan.
This article originally appeared on SoFi.com and was syndicated by MediaFeed.org.
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser. Information about SoFi Wealth’s advisory operations, services, and fees is set forth in SoFi Wealth’s current Form ADV Part 2 (Brochure), a copy of which is available upon request and at here. Liz Young is a Registered Representative of SoFi Securities and Investment Advisor Representative of SoFi Wealth. Her ADV 2B is available at here.
When should I get a personal loan vs. use a credit card?
You’ve decided that you need to borrow some money, but you don’t know exactly which type of loan will be best for your needs. Two of the most popular types of loans are personal loans and credit cards — but you don’t have to be a personal finance expert to know that they are both very different ways to borrow money.
Below we highlight the pros and cons of a personal loan vs. credit card to help you find out which one is best for your needs.
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A personal loan is a type of installment loan where the lender provides the borrower with a lump sum of money that they can use for a variety of purposes, such as making home improvements, covering car repairs, or consolidating debt.
Whether using a personal loan to pay down medical debt or pay for a vacation, personal loans can provide you with funding to meet your goals.
Generally, personal loans are paid back each month in fixed payments, or installments, with interest. Repayment is typically spread over a period of 12 months to seven years. You can use a personal loan for emergencies and financing major purchases.
Personal loans can be either secured or unsecured. An unsecured personal loan is an installment loan that’s not secured by any property such as a home or vehicle, whereas a secured personal loan is backed by some type of collateral. (Learn more at Personal Loan Calculator)
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A personal loan works like an installment loan that gives the borrower a lump sum of money — not revolving credit — that can be used for a variety of purposes. The borrower typically repays the loan over a set term, and these required payments may go toward principal, interest, and fees.
Typical Personal Loan Requirements
The requirements for personal loan funding typically require the borrower to provide proof of identity and proof of income. Lenders may review your creditworthiness when determining whether to approve or deny your personal loan application.
Typical Personal Loan Terms
Each lender can determine the terms and conditions of a personal loan, including the annual percentage rate (APR) comprising the interest rate and upfront fees. Borrowers with excellent credit may receive a lender’s best APR, whereas borrowers with bad credit may receive less favorable terms if approved for a loan.
Personal loan amounts may range from $1,000 to $100K. Personal loan repayment terms typically range from 12 months to seven years. You may compare personal loan rates and select an offer from the lender of your choice.
When to Choose a Personal Loan
A personal loan can be ideal for making large purchases. This simple type of loan allows you to break down a big purchase into smaller monthly payments that you spread out over time. A personal loan can also have lower interest rates than some other types of loans, including credit cards.
Generally, interest rates are lower for secured vs. unsecured personal loans, though with the former you run the risk of losing your collateral.
One of the top uses for a personal loan can be to consolidate your debts, especially those with high interest rates. And it’s also a great type of loan for people who would prefer to be committed to making the same payments each month. There are even personal loans available after bankruptcy.
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A credit card is a financial instrument that represents a revolving loan. When you use a credit card to pay for something, the credit card issuer (e.g., your bank) covers the cost of the purchase with the understanding that the cardholder will pay back the amount borrowed, plus any interest that applies.
When credit card users pay their entire statement balance in full by the statement due date, nearly all credit card issuers will waive interest charges. Credit cards typically represent an unsecured loan, so there’s no property that can be repossessed if credit card payments aren’t made. And while using a credit card irresponsibly can certainly damage your credit card, they can also help build it — in fact, there are a number of top credit building cards out there.
Credit card users also enjoy robust security protections against fraud and billing mistakes. They can also offer rewards in the form of cash back, points, or miles. And finally, credit cards can provide travel insurance policies, purchase protection benefits, and other perks.
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A credit card works like revolving or open-end credit — cardholders have a line of credit and the ability to make transactions up to the credit limit.
One of the keys to understanding credit cards is recognizing how your line of credit limits the spending power on your card. A portion of your available credit is used when you make transactions on the card. Unless you have a $0 balance, cardholders are expected to make at least minimum monthly payments each billing cycle.
Paying your credit card bills may replenish your available credit.
Typical Credit Card Requirements
Consumers typically need proof of identity and proof of income to become a credit card account holder. Credit card issuers may review your creditworthiness when determining whether to approve or deny your credit card application.
Some credit cards may offer 0% intro APR on purchases for several billing cycles or cash back rewards. You may compare credit cards and apply for the card of your choice.
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Depending on your circumstances, a personal loan may not be the right choice. A credit card can be a good option when you need a secure and convenient method of payment and are confident you can pay off your balance in the short term to avoid paying interest.
As a revolving loan, a credit card has no set terms, other than the minimum payment amount you must make each month. With a credit card, you can borrow as much or as little as you need up to your approved credit limit, and you only pay interest on the loan based on your account’s average daily balance. Some credit cards can also come with 0% APR introductory financing offers for new accounts.
That means you won’t begin incurring interest on your charges until the day they are made, and you can make payments against your balance at any time, and in any amount. All you have to do is make sure that you make at least the minimum payment each month on or before the statement due date.
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When comparing a personal loan vs. credit card, it’s important to consider the benefits and drawbacks of each.
When is a personal loan better than a credit card? This chart highlights how either a personal loan or credit card can help you meet your goals and the pros and cons of an installment loan vs. credit card.
Sofi
This table highlights some of the pros and cons of credit cards. (Learn more atHow Many Credit Cards Should I have?)
Sofi
Once you understand the advantages and drawbacks of each, it’s up to you to decide whether a personal loan or credit card will best meet your needs.
A personal loan can be a better choice when you are making a large purchase and want fixed repayment terms. A credit card, on the other hand, can be a better option when you occasionally need to finance smaller purchases, or are just looking for a method of payment that can sometimes be used as a loan.
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Even if you understand the difference between a loan vs. credit card, there are other funding options that may be worth considering. Below we highlight some alternative funding options you may consider:
- HELOC: A home equity line of credit, or HELOC, uses the equity in your home to secure a revolving personal loan, allowing you to draw funds as you need them. Just keep in mind you are putting your home up as collateral, which means you could risk losing it if you fail to repay the loan.
- 401(k) loan: You can also take loans from your 401(k) retirement plan, which is essentially making a loan to yourself from your own savings. However, there can be substantial penalties if you fail to pay it back on time or leave your employer with an unpaid loan. You’ll also be missing out on potential growth on those funds.
- Loans from friends and family: Friends and family can offer you personal loans. And while they may offer excellent terms without having to make a formal application, family loans can risk your relationships if not paid back.
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As you can see, there are clear differences between credit cards and personal loans, as well as pros and cons to consider when weighing whether a personal loan vs. credit card is better for your financial situation. Make sure you understand the ins and outs of whichever financial product you choose and that you can afford to pay off any debt you incur to avoid negative consequences to your credit score.
This article originally appeared on SoFi.com and was syndicated by MediaFeed.org.
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser. Information about SoFi Wealth’s advisory operations, services, and fees is set forth in SoFi Wealth’s current Form ADV Part 2 (Brochure), a copy of which is available upon request and at here. Liz Young is a Registered Representative of SoFi Securities and Investment Advisor Representative of SoFi Wealth. Her ADV 2B is available at here.
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Featured Image Credit: tommaso79 / istockphoto.
