How Much Does a New HVAC System Cost in Denver? (2026)

A new furnace and AC in the Denver metro typically runs from about $5,000 to $13,000 according to published cost data, while a whole-home cold-climate heat pump can reach $24,000 or more. Below are sourced 2026 ranges for every common system, the Colorado factors that move the price and the incentives still available. None of these figures are MrFixer quotes.

Ask three Denver HVAC companies to price a new system and you can get three answers that are thousands of dollars apart. Some of the gap is equipment, some is scope and some is how each cost guide defines a "system." This page pulls together the published ranges for every common project, names where each number comes from, and explains the Colorado-specific factors that move a quote.

Every figure on this page is a market range from the cited source, not a MrFixer Heating & Cooling price. Your cost depends on your house, your ducts and your electrical service. Use these ranges to sanity-check quotes, then get an itemized estimate for your home.

Furnace and air conditioner costs in Denver

Most Denver homes heat with a gas furnace and cool with a split central AC that shares the furnace's blower and ducts. That is why many homeowners replace both at once. The table below collects the most useful published ranges, Denver-specific first.

80% vs. 95–97% AFUE: what the upgrade really costs

AFUE is the share of the gas's energy that ends up as heat in your home. An 80% furnace vents hot exhaust up a metal flue, often shared with the water heater. A 95% or higher furnace is a condensing furnace. It pulls so much heat out of the exhaust that water condenses, so it needs plastic (PVC) venting, usually out a side wall or the roof, plus a condensate drain.

The price gap in HomeGuide's ranges is a few thousand dollars at the equipment level. The venting can add more: HomeGuide lists duct or vent modifications at about $500–$2,000 or more. If your current furnace is already a condensing model, a like-for-like swap usually reuses most of the existing venting. If you are moving from 80% to 95%+, ask each contractor to spell out the new vent route, the condensate disposal and what happens to the water heater that shared the old flue.

In Denver's heating-heavy climate, the higher-efficiency furnace burns less gas every winter. Whether that pays back depends on how long you stay and your gas use. Our heat pump vs. furnace in Colorado guide works through operating costs with EIA rates.

Why replace the furnace and AC together?

The AC's indoor coil sits on top of the furnace, and new AC systems use a different refrigerant (see below), so a new outdoor unit generally needs a matched new coil. Doing both at once means one permit, one crew visit and a matched system. Angi's national data shows the combined job averaging about $7,500, which is less than its separate furnace average (about $4,800) plus the AC range ($3,900–$8,000). If either unit is under about ten years old and working well, replacing only the failed one can still make sense.

For details on our installation services, see furnace installation and air conditioning installation.

Heat pump, dual-fuel and mini-split costs

A heat pump heats and cools with one outdoor unit, so it replaces the AC and some or all of the furnace's job. The price depends heavily on whether you choose a cold-climate model built to carry the house through a Front Range cold snap, or a standard unit backed up by gas.

Power Ahead's figures cover equipment and standard installation but leave out panel and duct upgrades. Angi's lower Denver average mixes in standard heat pumps that are not designed for deep cold. If the heat pump will be your only heat source, budget against the cold-climate figures. If you are keeping a working gas furnace as backup (dual fuel), the add-on range is more realistic. Our full breakdown is in heat pump installation cost in Denver, and you can read about our heat pump and ductless mini-split installation services.

Add-ons that change the total

Many quotes that look expensive simply include work that a cheaper quote leaves out. These are the line items to look for.

A gas furnace and AC rarely need a panel upgrade. A ducted heat pump with electric backup strips often does, especially in older homes with 100-amp service. Permit fees vary by city across the metro, so check with your local building department if your home is outside Denver proper.

What pushes Denver prices up

Altitude

Thin air at 5,280 feet affects both gas burners and airflow. Many furnace manufacturers require a derate of about 4% of input per 1,000 feet of elevation once a home is above 2,000 feet, according to ACHR News and manufacturer installation manuals (some premium models need only 2%). That works out to roughly 21% at Denver's 5,280 feet for those models; check your model's manual, since methods vary, and installers may need a high-altitude kit with different orifices or pressure switches. Air also carries less heat at altitude: Manual J's altitude adjustment at 5,000 feet is about 0.84 of sea level, so a correctly designed system may need more airflow than the same house at sea level. A quote sized by square footage alone can skip all of this.

Venting for condensing furnaces

Condensing furnace vent pipe has to be sized for altitude too. ACHR News reported one dealer's example in which a long vent run at altitude needed 3-inch PVC even though the furnace had a 2-inch outlet. Longer runs, extra elbows and roof penetrations all add labor.

Colorado's ultra-low-NOx furnace law (HB23-1161)

Since January 1, 2026, new fan-type central furnaces under 175,000 Btu/h sold in Colorado must emit no more than 14 nanograms of NOx per joule, according to the HBA of Metro Denver's summary of HB23-1161. Furnaces certified to the most recent ENERGY STAR version are deemed compliant. Gas furnaces are not banned, but US Engineering expects higher upfront costs for compliant models and fewer leftover non-compliant units. Ask every contractor to confirm in writing that the furnace they quote complies.

New refrigerants (R-454B and R-32)

New residential AC and heat pump systems began moving from R-410A to lower-impact refrigerants on January 1, 2025. ACHR News reported in mid-2025 that R-454B supply backlogs had pushed refrigerant prices up about 40% since January, and that equipment prices were rising with copper, tariff and efficiency-standard costs. Some brands use R-32 instead. New outdoor units are designed around a matched indoor coil, which is one more reason AC-only replacements cost more than they used to.

Labor and scope

Angi lists Denver HVAC labor at about $75–$200 per hour and says labor is typically 25–35% of a standard full replacement. Tight attics, long line-set runs, crane lifts and condensate pumps all add time.

Incentives as of November 2026

Incentives mostly favor heat pumps. Confirm current terms before you sign. Our full guide is Colorado heat pump rebates and tax credits.

• Federal 25C credit: ended. The IRS says the Energy Efficient Home Improvement Credit is not allowed for property placed in service after December 31, 2025. That covers furnaces, central AC and heat pumps alike.
• Colorado heat pump tax credit. For 2026 installs, a contractor registered with the Colorado Energy Office claims $1,000 for an air-source heat pump and must pass at least $333 to you as a "State of Colorado Heat Pump Discount" on the invoice.
• Power Ahead Colorado. $1,500 for an ENERGY STAR cold-climate air-source heat pump installed as a retrofit by an approved contractor in a participating DRCOG community. The project must be submitted before work begins.
• Xcel Energy. Xcel pays cold-climate heat pump rebates per ton of heating capacity at 5°F. Installer notices (UniColorado, Three Crowns Electric) report that on October 1, 2026, Xcel lowered its bonus multiplier, cutting the cold-climate maximum from about $2,250 to about $1,500 per heating ton. We could not confirm the new amounts on Xcel's own site, so check Xcel's rebate pages or ask your contractor for the current figure. Xcel may also offer rebates on some high-efficiency furnaces and AC units.

Example: a 3-ton cold-climate heat pump at Power Ahead's $18,000–$24,000 range, less the reported Xcel maximum of $4,500, the $1,500 Power Ahead rebate and the $333 state discount, nets out around $11,667–$17,667 before any panel or duct work. That is still more than a typical furnace and AC replacement, which is why many Denver homeowners compare dual fuel as a middle option.

How to compare quotes

1. Ask for a Manual J load calculation that uses Denver's design temperature and an altitude adjustment.
2. Get exact model numbers and the AHRI matched-system certificate for the furnace, coil and outdoor unit.
3. Confirm the furnace is NOx-compliant and has the correct high-altitude conversion.
4. Check the venting plan for any change between 80% and condensing furnaces.
5. List what is included: line set, pad, thermostat, permit, disposal, duct changes and electrical work.
6. See how incentives are handled: which rebates are already subtracted and who files the paperwork.

If one quote is far below the others, check it against this list before you decide. Already holding a quote you are unsure about? We offer a free second opinion. MrFixer Heating & Cooling installs furnaces, AC, heat pumps and mini-splits across the Denver metro and offers free in-home estimates. Call (720) 466-7983.