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Packaged Heat Pump Costs

Average DIY
(Not Recommended)
$4,950
Average Pro
$10,400
Typical Range
$8,500 – $13,700
Low End (DIY)
$4,250
High End (Pro)
$16,000
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The average cost of a packaged heat pump professionally installed is $10,400. The low cost is $6,300 for a small unit with basic features and efficiency. The highest price is $16,000 for a large packaged unit with top efficiency and performance.
What do these prices cover? Not cover? These are direct replacement prices. When extras such as ductwork installation or modification, a new thermostat, zoning controls and other changes are included, the price can approach $20,000. And yes, HVAC prices are much higher now than they were just 5 years ago, a reality discussed at length below.  If you to prefer more accurate estimates, use the package unit cost calculator we recently added to our Calculators section
Updated: December 6, 2023

How Much does a Packaged Heat Pump Unit Cost?

Low
$4,250 – $7,400
Average Cost Estimate
$7,500 – $11,500
High
$11,600 – $16,000
Retail Cost $3,400 – $4,200 $4,300 – $5,400 $5,500 – $7,000
Efficiency 14 SEER 14 – 15 SEER 15 – 16+ SEER
Features Standard Standard or Premium Premium
Unit Size 1.5-4 Ton 3-5 Ton 4-5 Ton
Installation Location Ground Ground or Roof Roof
Parts Warranty 5 Years 5-10 Years 5-10 Years
Brand Rating Good | 2-3 Stars Better | 3-4 Stars Best | 4-5 Stars
Supplies $250 – $600 $700 – $1,000 $1,000+
DIY Installation Partial or Full DIY Partial DIY or Pro Pro
Permit & Inspection $50 – $150 $100 – $200 More than $200

 

Sections: Overview | Product Costs | Installation Cost | DIY or Pro

Gas Packaged Heat Pump Unit Costs

Overview of Heat Pump Package Units

This Costimate provides detailed package heat pump cost information for the units, installation and extras.

Heat pump package cost factors are included to help you determine where in the price range your cost will fall.

Is a packaged heat pump your best option? There are pros and cons.

A package system is a common HVAC choice in homes without basements, especially in moderate and warm climates, or where interior space isn’t sufficient for the equipment. Packaged heat pump prices are lower than split system heat pump costs in most cases.

First, equipment and installation cost is lower because the components are housed in one cabinet instead of two, such as when a gas furnace is installed in an attic or basement plus an air conditioner condensing unit outside. Also, packaged heat pumps are less efficient than mini split systems, so costs are significantly lower than mini split heat pump costs.

The disadvantage, besides lower efficiency, is that all the equipment is subject to the elements, so often requires repair or replacement sooner.

In addition to cost factors below, you will find heat pump installation prices from around the web and actual costs submitted by other readers. Feel free to return to share your own package heat pump cost when your project is complete.

Packaged Heat Pump Cost Details

System Price Factors

While a system cost of $8,500 to almost $16,000 is a wide range, these factors will help you narrow down to a closer range, depending on features and other relevant factors an HVAC installer if going to consider when quoting your job.

  • Energy Efficiency – Packaged heat pumps list SEER and EER ratings for cooling and HSPF ratings for heating. The higher the ratings, the more efficient the unit and the higher the cost.
  • Unit Size – In any model or efficiency level, the larger the capacity, the higher the cost. Your options range from 24,000 to 60,000 BTU/hour, also know as 2-5 tons.
  • Two-stage Operation – A two-stage compressor runs at low speed, which is about 70% of capacity, most of the time. Many have variable-speed fans. These features improve indoor control of temperature and humidity. Low speed quieter. Two-stage packaged heat pumps cost $1,000 to $6,000 more than comparable single-stage models.
  • Brand Rating – Trane/American Standard, Lennox and Carrier/Bryant are considered premium brands and cost the most. Goodman/Amana are budget brands and cost the least. The rest are moderately priced.
  • Supplemental Heat – Most heat pumps are equipped with heat strips, like space heaters inside the air handler, to provide supplemental and emergency heat. Heat strips from 5kW to 20kW are common, and price rises with kW power.
  • Dual Fuel Models – A dual fuel model packaged heat pump is equipped with a gas furnace instead of an air handler. This is done for installation in cold climates where heat pumps lose efficiency in very cold temperatures. When the temperature falls into the 30s F, the system automatically switches from the heat pump to the furnace. Dual fuel packaged units cost $200-$500 more than comparable units without a gas furnace. The Trane Earthwise, Carrier Hybrid Heat and Goodman dual fuel packaged heat pumps are among the most popular dual fuel series.
  • Warranty – It’s difficult to determine what part in pricing a better warranty plays, but it probably raises cost to cover the manufacturer’s increased risk. Your options are either 5-year or 10-year parts warranties. Heil, Arcoaire and Day & Night are among the brands that also offer complete package unit replacement if the compressor or coil fail during the warranty period.
  • Removal and Disposal of Old HVAC Equipment – This can increase cost by several hundred dollars.
  • Demand at Time of Replacement – Each region of the country has slightly different busy/slow times. If you have to replace your system during the peak busy season, cost will be higher. We recommend proactively replacing an older package unit before it fails. This gives you control over when the job is done – and should help you get a lower cost during a slow season.
  • Cost of Living – You’re likely aware of the relative cost of living in your city or region. Equipment and installation cost reflects the general cost of living in your area.

Retail Cost Range (Packaged Heat Pump Only)

Goodman is one of the few brands that allow their packaged heat pump models to be sold online and at large home improvement stores. Most brands including Carrier, Bryant, Trane, American Standard and Lennox, do not. We mention that because Goodman prices are among the lowest, so not reflective of the whole range of products.

Regardless of the brand you choose, installation has a far bigger impact on the quality and longevity of your packaged unit than any other factor.

Here is a packaged heat pump price list for the unit only. A price list for installation parts and supplies is below.

  • $3,400 – $4,850| 14 or 15 SEER single-stage packaged heat pump
  • $3,900 – $5,900| 16 SEER single-stage packaged heat pump
  • $4,000-$6,725| 16 SEER two-stage packaged heat pump
  • $4,250 – $7,000| Dual fuel packaged heat pump

Cost of Installation Supplies

New installations require all the supplies listed. Replacements typically require some of the supplies. If the old package unit is 20+ years old, it might require replacing all the supplies accept ductwork.

  • $75 – $300 | Sheet metal for transition / plenum to return and supply air duct.
  • $40 – $760 | New Thermostat
  • $200 – $400 | Package unit pad for ground installation
  • $500-$850 | Package unit rack and sheet metal for sloped roof installation.
  • $65 – $115 | Electrical wire, and/or new breaker switch for connecting to power.
  • $35 – $100 | Miscellaneous screws, fasteners, mastic, tape etc.
  • $1,500 – $5,000+| New ductwork (if needed – not included in price ranges above)
  • $1,000 – $3,500 | Zoning controls (optional)

Sample Packaged Heat Pump Installations

Size DIYCost Low Cost Average Cost High Cost
2 Ton $3,400 – $5,500 $5,500 – $7,300 $7,400 – $9,400 $9,500 – $14,500
3 Ton $3,650 – $6,400 $5,900 – $7,650 $8,000 – $10,000 $10,100 – $15,000
4 Ton $3,900 – $6,900 $6,300 – $8,200 $8,500 – $10,600 $10,700 – $15,500
5 Ton $4,300 – $7,500 $6,750 – $8,600 $9,100 – $11,200 $11,300 – $16,000

It is important to have a load calculation like a Manual J done to determine the right size heat pump for your home. Climate, house size, insulation levels, layout, window # and quality, number of people in the household and other crucial factors are considered in order to get the sizing correct. Only when properly sized will a package heat pump run at optimal performance and efficiency.

Higher costs in the chart above reflect not just pro installation but higher efficiency and performance, such as two-stage heating and air conditioning. If you are replacing the thermostat and you choose a smart thermostat like a nest or ecobee thermostat or top-of-the-line model from the manufacturer, prices will also be higher.

Online Pacakged Heat Pump Prices Are Too Low

HVAC prices have skyrocketed in the last 5 years. The pandemic brought supply chain problems, much higher labor costs and rising materials costs.

As a result, most heat pump prices on cost sites are far too low. Here is a sampling:

Bob Villa: $4,133 – $7,294 (These costs barely cover the equipment, but not installation charges).

HomeGuide: $3,800 – $8,200 (HomeGuide is often reliable, but these costs are inaccurate).

Angi: $4,193 – $7,616 (Equipment, yes. Installation, no).

Forbes: Gives $5,500 as an average cost. The actual average cost is nearly twice that.

Accurate Packaged Heat Pump Prices

We get pricing from manufacturers, retailers, HVAC installers and consumers. Here are three reliable sources of packaged heat pump prices:

Online packaged heat pumps retailer – HVAC Direct.

Published prices for installed HVAC equipment from a large contractor in Arizona.

Trane Packaged Heat Pump Costs – a manufacturer with slightly higher-than-average costs.

Permits, Inspection, and Unit Installation Costs

A permit is required for the installation of a packaged heat pump, whether it is a replacement or installed in new construction. Most permits call for one or two inspections to ensure the work is done properly and the heat pump will operate safely.

  • $100 – $300 | Packaged heat pump installation permit with inspection(s)

Installation Labor Factors

Packaged heat pump installation cost is about $1,100 to $3,300 depending on a range of factors.

  • Ground or Roof – Roof installation usually requires hiring a crane/boom at a cost of $200-$500.
  • Installation of the Supplies and Extras – The more items from the supplies list above that are installed, the higher the labor cost will be.
  • Size of the Unit – Larger units sometimes require a larger crew, so cost is higher.
  • Removal and Disposal of Old HVAC Equipment – Labor costs are higher due to the one to two hours required to remove the old system. Disposal costs are $15 to $50+.

Installation Time

Installation in new construction and when ductwork is installed takes longer than when replacing an old unit with one very much like it.

  • 1-3 days | Install new ductwork, if needed
  • Up to 1 day | Prepare roof or ground and modify connecting ductwork or plenum, if needed
  • Up to half day | Remove old HVAC equipment
  • About 1 day | Install, connect and tune a new package unit

DIY or Hire a Pro

Package units are easier to install in some ways than split systems. There are no refrigerant lines to install, and the system comes precharged. In short, you don’t need a refrigerant handling license for most installations.

But there are a couple things to consider here. First, complete DIY installation voids almost every HVAC warranty in the industry. The manufacturers won’t warranty a unit installed, or at minimum, inspected by by someone that isn’t certified and licensed before the unit is started for the first time, so they don’t incur risks due to faulty installation.  This also protects the network of dealers selling and installing their products.

That is enough reason for most homeowners to choose pro installation. Since your HVAC system is a large investment – one of the 10 most expensive home repairs – it’s important to do it properly.

Secondly, you might be able to find an installer that will allow you to disconnect the old unit and set the new unit. Then they would do the final connection, test and tune the system for your installation requirements and sign off on the installation. This might cut your installation labor costs in half and still give you warranty coverage. You’ll probably have to shop around for that kind of deal, but it doesn’t hurt to ask.

Rooftop installation is a different animal due to the equipment required and the inherent danger of working on a roof. We recommend leaving every aspect of packaged heat pump rooftop installation to the pros.

Get Free HVAC Advice and Cost Quotes from Pros in Your Area

Get Free HVAC Advice and Cost Quotes from Pros in Your Area