The following piece gives information on the expected cost of labor for the installation of an AC unit based on a variety of factors such as home size, system type, quality of the system, availability of existing ductwork, geographic location, and seasonal demand.
Labor Cost per Sq Ft by Home Size
The following table breaks down the labor cost per square foot by the size of the home, as larger homes will cost more money per sq ft in labor.
| Home Size (Sq Ft) | Estimated Labor Cost Range | Cost per Sq Ft (Labor) Range |
| Under 1,500 | $1,000 – $2,500 | $0.67 – $1.67 |
| 1,500 – 2,500 | $1,500 – $3,000 | $0.60 – $2.00 |
| Over 2,500 | $2,000 – $3,500 + | $0.80 – $1.40 |
Considerations:
- The average labor cost for installing an AC unit ranges from $1,000 – $3,000, increasing with home size due to the increased complexity.
Labor Cost per Sq Ft by System Type
This table is an estimation of the labor cost range per square foot for different types of AC systems. We have based the estimates on the average labor costs associated with each system type while considering the complexity of installation and equipment needed.
| System Type | Estimated Labor Cost Range | Assumed Coverage Area (Sq Ft) | Cost per Sq Ft (Labor) Range |
| Central AC | $1,500 – $2,500 | 1,500 – 2,500 | $0.60 – $1.67 |
| Ductless Mini-Split | $300 – $1,500 per unit | 400 – 600 per unit | $0.50 – $3.75 per unit |
| Window Unit | $100 – $200 | 100 – 700 per unit | Per unit (not sq ft based) |
| Portable Unit | $0 | 100 – 700 per unit | $0 (no installation) |
| Geothermal Heat Pump | $3,000 – $6,000+ | 2,500+ | $1.20 – $2.40+ |
| High-Efficiency Units | $2,000 – $4,000 | 1,500 – 2,500 | $0.80 – $2.67 |
Considerations:
- Central AC installation includes setting up the system and connecting it with the indoor air handler and existing ductwork, but not installing new ductwork.
- With ductless mini-splits, additional indoor units will increase the number of zones, thereby increasing installation complexity and cost. It will give more flexibility for cooling specific areas.
- Geothermal heat pumps require excavation to install the ground loop system, driving up costs in the short term.
- Labor costs for high-efficiency units will vary widely based on the existing electrical connections or potential ductwork modifications.
Labor Cost per Sq Ft by System Quality
Systems of different quality will have different SEER ratings. A higher SEER rating will typically mean the system is more complex to install, which increases labor costs. The table below categorizes system quality into basic, standard, and high efficiency.
| System Quality | Estimated Labor Cost Range | Assumed Coverage Area (Sq Ft) | Cost Per Sq Ft (Labor) Range |
| Basic | $1,000 – $2,000 | 2,000 | $0.50 – $1.00 |
| Standard | $1,500 – $2,500 | 2,000 | $0.75 – $1.25 |
| High Efficiency | $2,000 – $4,000 | 2,000 | $1.00 – $2.000 |
Considerations:
- Basic includes systems with lower SEER ratings, typically sound 13-14, which are less complex to install, leading to cheaper labor.
- Standard includes mid-range SEER ratings (15-18), which may require some modifications to be made to properly fit the home.
- High-efficiency (SEER 19+) systems are highly complex leading to a more sophisticated installation effort, driving labor costs up. These systems will save money in the long term.
Labor Cost per Sq Ft by Condition of Existing Ductwork
If ductwork is in good condition, the labor for installing a new AC unit will be significantly more than if the ductwork must be repaired or modified or if it is nonexistent. The following table breaks down the expected cost for each condition.
| Ductwork Scenario | Estimated Labor Cost Range | Assumed Coverage Area (Sq Ft) | Cost Per Sq Ft (Labor) Range |
| Good Condition | $1,500 – $2,500 | 2,000 | $0.75 – $1.25 |
| Needs Repair/Modification | $2,000 – $4,000 | 2,000 | $1.00 – $2.00 |
| No Existing Ductwork | $6,000 – $12,000 | 2,000 | $3.00 – $6.00 |
Considerations:
- If existing ductwork is in good condition and can be used with the new system, the installation will be much cheaper.
- If the existing ductwork needs repairs or modifications such as sealing leaks, resizing ducts, or any other modification, labor costs will increase substantially depending on the extent of repairs.
- If there is no existing ductwork, it must be installed if any type of central AC unit is to be used. It must be designed to support the new AC unit and installed into the home, which does get more expensive than the other scenarios.
Labor Cost per Sq Ft by Geographic Area
Factors such as cost of living, local demand for HVAC services, and the availability of skilled labor will impact the labor cost per sq ft as highlighted in the table below.
| Geographic Location | Estimated Labor Cost Range | Assumed Coverage Area (Sq Ft) | Cost Per Sq Ft (Labor) Range |
| Urban | $2,500 – $4,000 | 2,000 | $1.25 – $2.00 |
| Suburban | $2,000 – $3,500 | 2,000 | $1.00 – $1.75 |
| Rural | $1,500 – $3,000 | 2,000 | $0.75 – $1.50 |
Considerations:
- Urban areas have higher labor rates due to the higher costs of living and higher demand for HVAC services. If there is limited access or parking issues, this can drive labor costs up further.
- Suburban areas are generally somewhat cheaper than urban areas due to the mix of high demand and easier access.
- Rural areas typically experience the lowest labor costs due to the lower cost of living and less demand for services. However, if the technicians must travel long distances to reach the job, labor prices could become higher.
Labor Cost per Sq Ft by Seasonal Demand
During peak season, HVAC technicians will be in higher demand than in the off-season. Due to basic supply and demand, this drives costs up in the summer for AC installation. This is why we recommend doing AC services in the winter.
| Seasonal Demand | Estimated Labor Cost Range | Assumed Coverage Area (Sq Ft) | Cost Per Sq Ft (Labor) Range |
| Peak (Summer) | $2,500 – $4,000 | 2,000 | $1.25 – $2.00 |
| Off-Peak | $1,500 – $3,000 | 2,000 | $0.75 – $1.50 |
Considerations:
- During peak season, technicians will be busier driving costs up.
- In the off-season, homeowners may find better deals on HVAC installation.
If you are in the Detroit metro area and would like a quote for AC installation, please contact us or learn more on the AC installation page.
