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Guide Updated October 8, 2026

Furnace and AC Replacement Cost in the Chicago Area

2026 market prices for a new furnace, a new central AC, or both, in the Chicago area, with what moves the price and the rebates that apply.

In the past year, most new furnaces installed in Chicago and the western suburbs cost between about $5,500 and $9,400. A new central air conditioner with its indoor coil cost between about $7,400 and $11,600, and both together between about $10,500 and $16,500. These are market prices from real completed jobs, not a quote.

A new furnace installed in a utility closet beside the water heater

How much is a new furnace or a new AC unit?

Market prices for furnace and AC installation in Chicago and the western suburbs, October 2025 – September 2026:

What the job is Most local jobs Middle price
New furnace, installed $5,500 – $9,400 about $7,200
New central AC with indoor coil, installed $7,400 – $11,600 about $8,500
Furnace and AC together $10,500 – $16,500 about $12,800
Furnace with a heat pump instead of an AC $11,000 – $14,000 about $12,900

Based on about 570 installations completed through The Home Depot in the towns we serve. The middle half of the jobs falls in each range. Source: The Home Depot, “Projects Completed” for heating and air conditioning installation, read October 5, 2026.

An independent 2026 estimate for Naperville (Costadia) gives similar figures: $4,900–$8,800 for a furnace, $6,150–$13,150 for central AC, and $9,750–$18,100 for both. See the Naperville estimates for a furnace replacement and for central AC installation.

Rebates and credits in 2026

  • Nicor Gas customers: a $150 rebate for a 95% AFUE furnace installed in 2026.
  • Nicor Gas customers: a $225 rebate for a 97% AFUE furnace installed in 2026.
  • Programs and eligibility can change. Confirm the current amount and requirements with Nicor Gas before purchase.
  • Ask your contractor if it can be taken off the invoice. Nicor Gas rebates.
  • ComEd offers discounts on electric heat pumps and smart thermostats through participating contractors. See ComEd’s ways to save.
  • The federal tax credit for efficient heating and cooling equipment does not apply to equipment installed after December 31, 2025. IRS.

Check the running cost

See how much less gas or electricity a more efficient system uses, in dollars from your own bill: the Furnace and AC Savings Calculator.

The efficiency grade is the main reason two furnaces of the same size cost different amounts: the one that is cheaper to buy usually costs more to run.

An 80% AFUE furnace venting up through the existing chimney, labeled lower purchase cost, beside a 96% AFUE furnace with plastic vent pipes to the outside and a drain, labeled uses less gas for the same heat

For property and business owners

Rooftop and commercial units are priced job by job, so published home ranges do not apply. A site visit and a written quote set the price. See commercial HVAC service.

The price for your home

The price for a specific home is set after a visit, in a written quote with parts and labor listed separately. The work is described on heating installation and air conditioning installation.

Request a written quote

Sources

Need help with this?

Heating Installation

Our heating installation page describes the work and how to book it. We assess the system, explain what we found and provide a written quote for approval before work begins.

Before you call

Safe checks, and what needs a professional

Leave these to a professional

  • Smoke, flames or signs of a fire: leave the building, stay out and call 911.
  • A gas smell: leave the building and call your gas provider first, then call us.
  • Water leaking around the equipment, or staining near a ceiling unit.
  • Ice on the coils, or an outdoor unit that runs without cooling.
  • A breaker that trips repeatedly whenever the system starts.

Safe checks you can do yourself

  • Check the thermostat: is it set to heat or cool, and is the set point where you expect?
  • Check the filter: a clogged filter limits airflow. Replace it if it is visibly dirty.
  • Check the power: look at the breaker and the equipment switch near the unit.
  • Check the airflow: hold a hand at a supply register and feel whether air is moving.
  • Check the outdoor unit: clear leaves and debris from around it.

What moves the price

  • The size of the home, which sets the size of the equipment.

  • The efficiency rating. A higher-efficiency furnace costs more to buy and uses less gas. Compare an 80% and a 96% furnace.

  • The ductwork and the venting. Changes to either add to the price.

  • Choosing a heat pump instead of an AC. (See the table row.)

  • The brand and the number of pieces of equipment replaced.

  • Replacing the furnace and the AC at the same time, compared with two separate jobs.

Common questions about replacement cost

Are these SquareHVAC's prices?
No. They are market prices from real installations completed by another installer in Chicago and the western suburbs. The price for your home is set in a written quote after a visit.
Why do quotes for the same job differ so much?
Equipment size and efficiency, the brand, the ductwork and the venting change the price. Ask for quotes that list parts and labor separately, so you can compare them line by line.
Is there a rebate for a new furnace?
Nicor Gas customers: a $150 rebate for a 95% AFUE furnace installed in 2026. Nicor Gas customers: a $225 rebate for a 97% AFUE furnace installed in 2026. Programs and eligibility can change. Confirm the current amount and requirements with Nicor Gas before purchase. Ask your contractor if it can be taken off the invoice. Nicor Gas rebates.

Heating and cooling service · Hillside IL

Heating and cooling service in Hillside IL

SquareHVAC repairs, replaces and maintains heating and cooling systems for homes and businesses in Hillside IL and the surrounding communities.

We inspect the equipment, explain what we find and provide a written quote with parts and labor listed separately. You decide if and when the work happens. Serving homeowners and businesses since 2009.

Request service Call (708) 673-5633
  • Family-owned business
  • Licensed, bonded and insured
  • Serving since 2009