Jun
12
2025
Preferred Stock vs. Common Stock
Before you start trading on the market, read our guide to understand the pros and cons of common vs. preferred stock.
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Jun
11
2025
When Should You Replace Home Appliances?
Home appliances typically need to be replaced every 10 to 15 years, and doing so can be expensive. Due to the cost and inconvenience, you definitely want to get the entire life out of them before you replace them.
At a certain point, however, it can make more financial sense to get a new appliance vs. paying to have it repaired. Where do you draw the line? Read on to learn how long your major home appliances should last, plus signs that it may be time to replace them.
Key Points
• Check appliance warranties before deciding on replacements to avoid unnecessary costs.
• Appliances typically last 10 years or longer, but some may have issues within the first five years.
• If repair costs exceed half the price of a new appliance, consider replacement.
• Regular cleaning and maintenance can significantly extend the life of home appliances.
• Purchase new appliances during sales periods like late summer or Black Friday for better deals.
Before Replacing Anything
Before you replace any appliance you believe is beyond repair, you’ll want to make certain the appliance is no longer under warranty. Calling the manufacturer before shelling out cash for something new when the old one might still be under warranty is a good place to start.
Beyond the manufacturer’s warranty, there may be other options for appliance replacement. Some homeowners may have a home warranty, which acts as a sort of supplemental insurance on appliances in the home that homeowner’s insurance doesn’t typically cover.
It’s important to understand the details of the home warranty to make sure all the rules are followed to have the repair or replacement covered. Another option may be to have a small amount of money saved to cover any potential repairs or replacement that will certainly come up sooner or later.
Recommended: What Are the Most Common Home Repair Costs?
Replacing Common Home Appliances
Here are details on replacing some of the most common home appliances.
Dishwasher
Typical lifespan: The average lifespan of a dishwasher should be about nine years. However, that doesn’t mean everyone will get a decade of bliss with their appliance. About 23% of all newly purchased dishwashers are likely to develop problems or break within the first five years, according to Consumer Reports data.
Cost to replace: The average cost, with installation, of a new dishwasher is $1,300, according to Angi, the home improvement site.
Signs of wear and tear: Typical signs a dishwasher is in need of a little care include leaking, door-latching problems, dishes coming out spotty, or the machine making unusual noises, among other things.
How to make it last longer: Reading the instruction manual and heeding the advice on cleaning the appliance and replacing the appropriate filters is the recommended best practice to get the most years of use out of the unit.
Refrigerator
Typical lifespan: The average lifespan of a refrigerator is about nine to 15 years. However, like dishwashers, fridges also tend to come with some issues at the five-year mark.
Cost to replace: The average cost to purchase a refrigerator is $1,000 to $3,000, not including installation cost (which can average around $210).
Signs of wear and tear: Signs of typical wear and tear include a fridge that is hot to the touch in the back, visible condensation (inside or outside of the unit), excessive frost in the freezer, and unusual noises.
How to make it last longer: Refrigerators should be cleaned regularly to keep them in tip-top shape. This means going deep by keeping door gaskets and condenser coils clean. Since a refrigerator needs space around it to operate efficiently, keeping the top of the unit clear of clutter is important. If the fridge has an ice maker or water filter, cleaning them regularly will keep them in good working order.
Recommended: The Ultimate House Maintenance Checklist
Range
Typical lifespan: The typical lifespan of a kitchen stove and oven — sometimes simply referred to as a range — are dependent on whether it is electric or gas. Electric ranges typically last 13-15 years, while gas ranges should last 15-17 years.
Cost to replace: The price of a new oven and stove combo can range from $600 to $1,300, without installation (which can run $100 to $300).
Signs of wear and tear: Usual signs of wear and tear on a range can include visible cracks in the top, lack of heat on either the cooktop or in the oven, and control panel issues.
How to make it last longer: Making a range last longer through regular cleanings is a consumer’s best bet (are you seeing a theme yet?). Beyond the exterior, also make sure to clean the fans, filters, and oven interior.
Recommended: What Is the Average Cost to Remodel a Kitchen?
Washing Machine
Typical lifespan: The average lifespan of a washing machine is five to 15 years, though some brands claim their machines have an even longer lifespan than that. Still, about 30% of all newly purchased washers are likely to develop problems or completely break within the first five years.
Cost to replace: The cost to replace a washing machine can run between $700 and $1,300. Like the other appliances listed, the cost to install a new washer will likely cost extra.
Signs of wear and tear: Typical signs a washing machine is on its way out include leaks on the floor, unusual sounds, and water no longer filling the internal drum.
How to make it last longer: Beyond the normal cleanings, it’s also important to ensure a washing machine stays balanced, meaning make sure it stays level. After years of loads, it might toss and turn a bit, so leveling it every now and then can pay off. And, of course, regular maintenance like checking hoses and connections, checking for clogs, and ensuring filters are clear are recommended maintenance tasks.
Recommended: How to Pay for Emergency Home Repairs, So You Can Move on ASAP
Dryer
Typical lifespan: A dryer typically lasts 13 years.
Cost to replace: A new dryer can cost between $800 and $1,200, depending on the energy source (without installation). Like everything else on this list, dryer prices can vary greatly depending on size and features.
Signs of wear and tear: Some signs it may be time to look into either fixing an existing dryer or buying a new one include excessive or unusual noises while in use, clothing coming out damp or not drying at all, or any burning smells coming from the machine.
How to make it last longer: Some helpful tips on making a dryer last longer include dividing laundry by fabric weight, keeping a dryer clean and free of debris, regularly cleaning the lint trap, and reducing heat whenever possible. Not every load needs to be dried on high heat — the fabric type should determine the setting used. Air drying is better for some fabrics and will give both the dryer and the electric bill a break.
Garbage Disposal
Typical lifespan: The average garbage disposal should last about 12 years with normal use. If a household uses their disposal more often than average, their disposal may not last quite as long.
Cost to replace: The cost to replace a garbage disposal, on average, is $550, including labor. as of mid-2025, according to Angi.
Signs of wear and tear: Signs of wear and tear on a garbage disposal include excessive noise while in use, abnormal clogging, bad odors, and power failure.
How to make it last longer: To ensure a garbage disposal lives a long and useful life, homeowners are advised to be careful about what they put down the drain. Things like coffee grinds, pasta, or other starchy foods in large quantities shouldn’t go in the garbage disposal as they can clump together causing clogs and other issues with the blade. Using cold water when running a garbage disposal can make it easier for the disposal to break up solids, especially if there is some fat on them, and can reduce the chance of a clog. Non-food items should never be put in a garbage disposal. Reading the owner’s manual that comes with the unit is recommended.
Recommended: Cost to Repair a Plumbing Leak
Affording New Home Appliances
If replacement is your best option but the cost is beyond your budget, you might consider using a home improvement loan to finance the purchase of a new appliance.
A home improvement loan is essentially an unsecured personal loan that is used for home repairs or upgrades. You receive a lump sum up front which you can use to purchase and install a new appliance (or multiple new appliances); you then repay the loan over a set term, often five to seven years, with regular monthly payments. Interest rates are typically fixed.
Recommended: Guide to Unsecured Personal Loans
The Takeaway
Home appliances often last 10-15 years or even longer, but many encounter issues well before then. Deciding whether to repair or replace a home appliance can be a tricky decision and potentially an expensive one. If you decide to replace appliances, it can require careful budgeting. A personal loan could help you afford the new appliances you need.
Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.
FAQ
How often should you replace home appliances?
Typically, home appliances last around 10 years, but some may fail before then and others may work well for a longer period of time. When an appliance is not functioning properly and the cost of repair is close to the cost of replacement, you may want to buy a new unit.
What is the 50-50 rule for appliances?
The 50-50 rule says that if an appliance has reached 50% of its lifespan and the cost of repairing its issue is over 50% of the price of a replacement, then it may be time to go shopping for a new unit.
When is the best time to buy a new appliance?
Typically, prices for appliances decrease in late summer and may hit their steepest lows on Black Friday, making those times the best to shop.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®
SOPL-Q225-076
Jun
10
2025
How to Use a Trailing Stop-Loss Properly
A trailing stop loss allows investors to create a built-in safety mechanism to insulate themselves against downward pricing trends. It’s an important exit strategy that day traders can use to manage their risk.
Understanding how a trailing stop order works and how to use it properly can help cap potential losses when day trading investments.
Key Points
• A trailing stop-loss is a flexible order that automatically sells an investment when its price falls by a set percentage, adjusting as the price moves.
• Trailing stop-loss orders move with the stock price, allowing investors to lock in gains and minimize losses without constant monitoring.
• A trailing stop-loss may lock in losses if the stock price drops quickly and then rebounds, causing you to miss out on potential gains.
• Trailing stop-losses boost investor confidence by automatically selling shares if the stock price falls below a set percentage, offering protection against significant losses.
• Rapid price declines can trigger a trailing stop order before the market can execute it, leading to larger losses than intended.
What Is a Trailing Stop-Loss?
A trailing stop-loss offers a flexible approach to minimizing investment losses. A trailing stop order trails the price of the underlying investment by a percentage or a specific dollar amount. So, if an investor buys shares at $50 each, they might impose a trailing stop limit of 10%. If the stock’s share price dipped by 10%, they’d be sold automatically.
To understand trailing stop-loss, it helps to have a basic understanding of how limit orders and stop orders work.
A limit order is an order to buy or sell a security once it reaches a specific price. If the order is to buy, it only gets triggered at or below the limit price. If the order is to sell, the order can only get executed at or above the limit price. Limit orders are typically filled on a first-come, first-served basis in the market.
A stop order, also referred to as a stop-loss order (yet another of the stock order types), is also an order to buy or sell a particular investment. The difference is that the transaction occurs once a security’s market price reaches a certain point. For example, if you buy shares of stock for $50 each, you might create a stop order to sell those shares if the price dips to $40. Once a stop or limit order is executed, it becomes a market order.
Stop orders help you either lock in a set purchase price for an investment or cap the amount of losses you incur when you sell if the security’s price drops. While you can use them to manage investment risk, stop orders are fixed at a certain share price.
💡 Quick Tip: How do you decide if a certain trading platform or app is right for you? Ideally, the investment platform you choose offers the features that you need for your investment goals or strategy, e.g., an easy-to-use interface, data analysis, educational tools.
How a Trailing Stop Order Works
Using a trailing stop to manage investments can help you capitalize on stock market movements and momentum. You determine a preset price at which you want to sell a stock, based on how a particular investment is trending, rather than pinpointing an exact dollar amount.
You can decide where to set a trailing stop limit, based on your risk tolerance and what you expect an investment to do over time. What remains consistent is the percentage by which you can control losses as the investment’s price changes.
3 Advantages of Using a Trailing Stop Order
There are several benefits that come with using a trailing stop limit to manage your investments.
1. Tandem Movements
First, trailing stops move in tandem with stock pricing. As a stock’s per share price increases, the trailing stop follows. In the previous example, when the stock’s price doubled from $50 to $90, the trailing stop price moved from $45 to $90. In effect, it’s a hands-off tool — which can be great for some investors.
2. Confidence
Implementing a trailing stop limit strategy can offer reassurance since you know shares will be sold automatically if the stop order is triggered. That can offer investors some confidence in what may be a chaotic market environment. That, for many, can be very valuable.
3. Take Emotion Out of the Equation
Trailing stop limits rely on math rather than emotions when making decisions. That can also help you avoid the temptation to try to time the market and either sell too quickly or hold on to a stock too long, impacting your profit potential.
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How Do You Set up a Trailing Stop Order?
If you’re day trading online, it’s relatively simple to set up a trailing stop loss order for individual securities. Because the orders are flexible, you can choose where you want to set the baseline percentage at which stocks should be sold. For example, if you’re less comfortable with risk you might set a trailing stop at 5% or less. But if you’re a more aggressive portfolio, you may bump the order up to 20% or 30%.
You can also control whether you want buy or sell actions to happen automatically or whether you want to place trades manually. Automating ensures that the trades happen as quickly as possible, but performing them manually may be preferable if you’re more of a hands-on trader.
Example of a Trailing Stop-Loss Order
Say that you buy 100 shares of Company A stock for $10. You set up a trailing stop-loss order at 10%, meaning that if Company A stock falls to $9 or below, a sell order will automatically be executed. The next week, Company A stock’s value rises to $12 — the trailing stop loss order follows. The week after, Company A’s stock loses 15% of its value, falling from $12 to $10.20.
The stop-loss order kicked in when the stock lost 10%, so your shares were sold at $10.80, saving you $0.60 per share, for a total of $60.
Again, this can be helpful if investors want to “lock in” their gains and cash out stocks with a positive return.
Are There Any Downsides of Using a Trailing Stop?
Investing is risky by nature, and no strategy is foolproof. While trailing stops can help minimize losses without placing a cap on profits, there are some downsides to consider.
Accessibility
Depending on which brokerage account you’re using, you may face limits on which investments you can use trailing stop loss strategy with. Some online brokerages don’t allow any type of stop loss trading at all.
Potential to Lock-in Losses
If a stock you own experiences a two-day slide in price, your stop loss order might require your shares be sold. If on the third day, the stock rebounds with a 20% price increase, you’ve missed out on those gains and locked in your losses. If you want to repurchase the stock you’ll now have to do so at a higher price point, and you’ve missed your chance to buy the dip.
Velocity Challenges
If share prices drop too quickly there may be some lag time before your trailing stop order can be fulfilled. In that scenario, you might end up incurring bigger losses than expected, regardless of where you placed your stop price limit.
No Market for the Security
It’s possible an investor finds themselves holding a stock that nobody wants — meaning that it has no liquidity, and can’t be traded. This is unlikely, but in this case, a stop-loss order couldn’t execute as there’s no one to trade with.
Market Closure
If you’ve set up trailing stop-loss orders, they can’t and won’t execute when the market is closed. Security prices can go up and down after-hours, but market orders can only be executed during normal operating hours for stock exchanges.
Using a market-on-open order may be another tool to consider if investors are concerned about this scenario.
Gaps
On the same note as market closures, pricing gaps — which may occur due to after-hours pricing movements, for instance — can and do occur. A stop-loss order may not help in those cases, and investors may lose more than anticipated as a result.
How to Use a Trailing Stop-Loss Strategy
Using trailing stops is better suited as part of a short-term trading strategy, rather than long-term investing. Buy-and-hold investors focused on value don’t need to worry as much about day-to-day price movements.
With that in mind, there are a few things to consider before putting trailing stop orders to work. A good starting point is your personal risk tolerance and the level of loss you’d be comfortable accepting in your portfolio. This can help determine where to set your trailing stop loss limit.
Again, if you’re a more conservative investor then it might make sense to set the percentage threshold lower. But if you have a larger appetite for risk, you could go higher. You can also tailor thresholds to individual investments to balance out your overall risk exposure.
Technical Indicators
Becoming familiar with technical indicators could help you become more adept at reading the market so you can better gauge where to set trailing limits. Unlike fundamental analysis, technical analysis primarily focuses on decoding market signals regarding trends, momentum, volatility and trading volume.
This means taking a closer look at a security’s price movements and understanding how it’s trending. One indicator you might rely on is the Average True Range (ATR). The ATR measures how much a security moves up or down in price on any given day. This number can tell you where to set your trailing loss limit based on whether price momentum is moving in your favor.
In addition to ATR you might also study moving averages and standard deviation to understand where a stock’s price may be headed. Moving averages reflect the average price of a security over time while standard deviation measures volatility. Considering these variables, along with your risk tolerance and overall investment goals, can help you use trailing losses in your portfolio correctly.
The Takeaway
Whether you plan to use trailing stop strategies in your portfolio or not, making sure you’re working with the right brokerage matters. Ideally, you’re using an online brokerage that offers access to the type of securities you want to invest in with minimal fees so you can keep more of your portfolio gains.
Keep in mind, though, that utilizing stop-loss orders isn’t foolproof, and that there can be pros and cons to doing so. It’s also a somewhat advanced tool to incorporate into your strategy — if you don’t feel like you fully understand it, it may be worth discussing with a financial professional.
Ready to invest in your goals? It’s easy to get started when you open an investment account with SoFi Invest. You can invest in stocks, exchange-traded funds (ETFs), mutual funds, alternative funds, and more. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).
FAQ
How does a trailing stop-loss work?
A trailing stop-loss is a built-in mechanism that automatically sells an investor’s holdings when certain market conditions are met — specifically, when a stock loses a predetermined amount of value.
What is a disadvantage of a trailing stop-loss?
There are several potential disadvantages to using trailing stop-losses, including the fact that they won’t execute during market closures. Securities may lose value during that time, and traders could experience a pricing gap as a result.
What is a good trailing stop-loss percentage?
A good stop-loss percentage will depend on the individual investor’s risk tolerances, but many investors would likely be comfortable with a 5% or 10% trailing stop-loss.
About the author
Rebecca Lake
Rebecca Lake has been a finance writer for nearly a decade, specializing in personal finance, investing, and small business. She is a contributor at Forbes Advisor, SmartAsset, Investopedia, The Balance, MyBankTracker, MoneyRates and CreditCards.com. Read full bio.
Photo credit: iStock/akinbostanci
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SOIN-Q225-121
Read moreJun
10
2025
3 Ways to Pay for Your Kid’s Braces
Braces can help correct dental alignment issues (like crowded, gapped, or crooked teeth) and give your child a beautiful smile. But if an orthodontist visit is in your future, prepare for sticker shock: Depending on the type of appliances they recommend and severity of the dental problem, kids’ braces can run well into the thousands of dollars. If you haven’t been saving up for this developmental milestone, you may be wondering: How do I pay for braces?
Fortunately, you do have some options, including payment plans, flexible spending accounts, and loans. Here’s a look at ways to make covering the high cost of braces more manageable.
Key Points
• Braces can enhance dental health and appearance.
• Costs range from $3,000 to $10,000, depending on the case.
• Insurance may cover 50% of the cost, often with a lifetime cap.
• Paying up front can result in a discount.
• Personal loans and FSAs/HSAs provide alternative payment options.
What’s the Average Cost of Braces?
The cost of getting braces varies depending on the area, dentist, and type of braces, but you can expect to shell out anywhere from $3,000 to $10,000.
Here is a look at typical costs for different types of orthodontic treatment:
• Metal braces (traditional braces): $3,000 – $7,000
• Ceramic braces (tooth-colored braces): $3,500 – $8,000
• Lingual braces (braces that go on the back surfaces of your teeth): $5,000 – $13,000
• Invisible braces (custom-made trays that straighten your teeth over time, such as Invisalign): $3,500 – $8,000
If you have dental insurance, it might partially cover a child’s orthodontic treatment. Policies vary but many dental plans will cover 50% of the cost of braces with a $1,500 or $2,500 lifetime maximum per child. While this still leaves you on the hook for the remainder, it can make a significant dent in your total out-of-pocket expenses.
Also keep in mind that many practices offer a discount (often 5%) on your braces cost if you choose to pay for the treatment up front.
Recommended: 8 Smart Tips To Finance Expensive Dental Work
Smart Options to Pay for Braces
Here’s a look at some ways to make orthodontic treatment costs more manageable.
1. Asking Your Orthodontic Office About Payment Plans
Many orthodontic offices offer flexible payment plans that allow you to stretch the cost of braces over a specified period. One common scenario is interest-free financing that spreads payments across two years. This can make the payments (typically debited monthly from your checking or saving account) more manageable.
For example, an interest-free, 24-month payment plan, with no required down payment, would make a $5,000 orthodontic treatment cost about $209 per month, assuming you don’t have any insurance coverage. If your dental plan covers some of your costs, your monthly, of course, will be less.
Payment policies will vary from office to office, so it’s a good idea to ask about payment plans, including any interest or financing charges associated with the plan, as well as the duration of the payment period. By understanding the terms up front, you can make an informed decision about which practice you want to use and how you will pay for the braces.
Recommended: Guide to Paying for Dental Care With a Credit Card
2. Using a Flexible Spending Account or a Health Savings Account
Flexible spending accounts (FSAs) and health saving accounts (HSAs) are offered as a part of healthcare plans by some employers. Both allow you to set aside pretax dollars to be used toward eligible expenses, which often include orthodontic treatment.
With an FSA, you determine how much you want your employer to set aside for the year (up to the FSA limit). You then need to use the funds for qualified medical expenses before the end of the year (though you may be able to roll over a certain amount to the following year.
To save to an HSA, you must enroll in a high-deductible health insurance plan, or HDHP (as defined by the government). Each year, you decide how much to contribute to your HSA, though you can’t exceed government-mandated maximums. If you have an HSA through your workplace, you can often set up automatic contributions directly from your paycheck. Typically, you get a debit card or checks linked to your HSA balance, and you can use the funds on eligible medical expenses.
Unlike an FSA, your HSA balance rolls over from year to year, so you never have to worry about losing your savings.
3. Taking out a Loan
If the above options aren’t available or sufficient to cover the cost of braces, you may want to consider getting a personal loan. These loans, available through banks, online lenders, and credit unions, are usually unsecured (meaning you don’t need to put up any collateral) and can be used for almost any type of expense, including your kid’s braces. In fact, healthcare costs are a common reason why people apply for a personal loan.
Financing braces this way, of course, comes with personal loan interest, which will add to the total cost of the treatment. However, personal loans generally have lower interest rates than credit cards. They also provide you with a lump sum up front, which might help you get a discount for paying in full (if your orthodontist offers that). Plus, you’ll get a set monthly payment you can budget for.
When getting a personal loan to pay for braces, it’s important to shop around and look for a loan that offers favorable rates and terms and fits within your budget.
Recommended: How to Apply for a Personal Loan
The Takeaway
The cost of a child’s braces, which can run more than $10,000 in some cases, can seem daunting. Fortunately, there are several options available to help you manage the expense. Whether you choose a payment plan offered by your orthodontist, utilize a flexible spending account or health savings account, or opt for a loan, careful planning and research can help you to find a solution that works for your family’s financial situation.
Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.
FAQ
How to get braces if I can’t afford them?
If you need braces for yourself or a child but can’t afford them, see if you can find an orthodontist with an affordable payment plan, look into dental insurance or Medicaid policies, research if funding is available through charitable organizations, or consider a personal loan.
Can you make payments on braces?
Yes, it is common for orthodontists to offer payment plans or work with financing companies to help patients pay for braces over time. Or you might consider a personal loan, which you pay off over a typical term of a couple to seven years.
How much do braces cost for a child?
Prices can vary for children’s braces depending on the patient’s specific case, the orthodontist’s fee scale, and where you live. Typically, expect prices in the $3,500 to $8,000 range as of mid-2025.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
SOPL-Q225-095
Read moreJun
10
2025
What Is the Cost to Replace an HVAC System?
Replacing your home’s heating, ventilation, and air conditioning (HVAC) system costs $7,500 on average in mid-2025, according to the home improvement site Angi. Prices will vary with such factors as home size, type of unit, and local climate.
Here, take a closer look at what’s involved in replacing your property’s HVAC system and how much it’s likely to cost.
Key Points
• Average cost to replace an HVAC system is $7,500, varying by unit type, size, and installation.
• Boilers cost around $5,908, including fuel tanks and piping.
• Heat pumps, providing both heating and cooling, range from $8,000 to $15,000.
• Home equity or unsecured home improvement loans help finance HVAC replacements.
• ENERGY STAR® certified units reduce long-term energy bills, offering efficiency.
HVAC System Parts
There are several ways to heat and cool a home that falls under the HVAC umbrella. Yet, most HVAC system parts and components can be grouped into the following categories.
Thermostat
Thermostats monitor temperature and can be used to adjust whether a HVAC system heats or cools a building. Generally, the temperature can be set manually or preset to regulate heating and cooling to a desired indoor temperature.
These systems can be connected to the HVAC system through wiring — or wifi in the case of smart thermostats. More advanced thermostats can be used to enhance comfort and efficiency by controlling temperature settings for multiple zones throughout a home or building.
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Heating and Cooling Unit
The heating and cooling unit is the main component of any HVAC system. Common types include furnaces, boilers, heat pumps, and air conditioners.
Furnaces are generally located inside a structure and comprise a heating element powered by gas, oil, or electricity and a blower to circulate heated air through the building.
Boilers are traditionally interior units, too, but circulate hot water or steam to radiators or baseboards located throughout the property.
Air conditioners include condenser units, which are located outside because they produce hot air through the heat transfer process. Another key component is the compressor, which pressurizes and circulates the refrigerant.
Heat pumps also consist of an external condenser, but a key difference is that they can be used to either heat or cool a home. These systems work in conjunction with an indoor blower unit to distribute heated or cooled air.
Filtration
HVAC systems incorporate air filters to remove dust, allergens, and other particles from entering the return-air duct. Usually, air is drawn from multiple locations inside a building to the HVAC system.
Whether filters are the reusable or disposable variety, periodic cleaning or replacement is necessary to maintain optimal performance.
Ultraviolet lights are another option for treating air quality in an HVAC system. Their ability to disinfect the air of mold and pathogens makes them helpful for some homeowners with severe allergies.
Delivery System
Most buildings and homes consist of multiple rooms and may include more than one floor. Distributing heated and cooled air throughout the space requires a system of ductwork and vents.
Many HVAC systems utilize separate supply and return ducts to circulate, filter, and treat air continuously. Supply ducts bring air from the heating and cooling unit to blowers and vents to heat or cool an area.
Meanwhile, return ducts transport untreated air back to the HVAC system.
Exhaust Outlet
Any HVAC system that involves combustion — burning oil, gas, or wood — will need an exhaust outlet to expel harmful fumes out of the building. An exhaust outlet can be its own vent or be connected to an existing chimney.
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HVAC System Cost Estimates
The type of unit chosen for replacement is a key determinant of cost. Prices may fluctuate whether a full or partial replacement is needed and based on technological advances in HVAC efficiency.
Cost estimates below account for the HVAC unit, any system parts, installation, and removal of old equipment.
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Boilers
Boilers have been used to heat buildings for more than a century and are found in homes and commercial buildings alike. The average replacement cost can range between $3,600 and $8,500 depending on the type of boiler. The average cost to replace a boiler is $5,908 as of mid-2025, according to Angi.
HVAC replacement cost for boilers can be higher if fuel tanks, piping, and gas hookup need to be repaired or installed.
Heat Pumps
Despite their name, heat pumps actually can be used to both heat and cool a building. These electric HVAC systems pull heat from outdoor air to heat a building even during cold weather conditions. When it’s warm out, heat pumps cool buildings by drawing heat from indoor air and expelling it outside.
Depending on the type of heat pump and size of the system (measured in tons), costs average between $8,000 and $15,000.
Air-source heat pumps typically run on the cheaper end of the heat pump spectrum, whereas ground source heat pumps (often called geothermal heat pumps) can cost between $4,500 and $26,600.
Although the upfront cost is significant, lower utility bills could make a heat pump a wise investment in the long-run.
Central Air Conditioners
Central air conditioners work by drawing moisture from the air inside a building and returning cooled air throughout the structure via ductwork. The system usually consists of one unit located outside but near the structure.
The average cost for installing central air is between $3,906 and $8,021, with an average of $5,959, according to Angi, as of mid-2025. Prices may be lower for 2-ton or smaller systems, while costs can creep higher if a building requires a 5-ton unit.
Besides the unit itself, the total footage of ductwork to be installed or replaced is a significant cost consideration.
Furnaces
The cost to buy and install a furnace can vary by energy type, total ductwork needed, and the model. On average, prices for replacing a furnace range from $2,800 to $6,800.
Furnaces that run on natural gas or electricity tend to be cheaper to replace than oil-fueled systems.
The total area that will be heated and how well a building is insulated are other factors that will affect the size of the system and potentially increase the cost.
Other HVAC Replacement Cost Factors
When evaluating HVAC options, the type of system is only part of the equation for determining the final price tag. There are many other factors that can affect how much an HVAC replacement will cost.
Local Climate
The popular real estate mantra, “location, location, location,” rings true for HVAC systems, too. Whether you live in a cold, warm, or temperate climate will have implications for how an HVAC system is designed.
Property owners in warmer climates could face higher prices for replacing air conditioning units since greater capacity is needed. Meanwhile, costs for furnaces can be higher in more frigid regions where heating efficiency is more important.
Building Characteristics
The size, layout, and condition of a building can play a role in HVAC replacement cost.
Excluding geographic influences, larger structures generally require a more substantial HVAC system to match. The total square footage can impact the price for filtration, ductwork, vents, and zones throughout a building.
A home’s design could also affect how much you’ll pay for HVAC installation. More difficult jobs can add additional labor hours and drive up the cost.
Some possible complications to consider are the ease of accessing components ductwork and whether building renovations will be needed to accommodate new HVAC equipment.
Unit Efficiency
The operational efficiency of a new system is another factor of HVAC replacement cost. Although more efficient units are generally more expensive upfront, they can recoup long-term savings through lower energy bills.
While browsing models, keep an eye out for an ENERGY STAR® label to identify the highest-performing HVAC systems. To become certified, this equipment has been vetted by the Environmental Protection Agency and Department of Energy.
For instance, air conditioner models that achieve efficiency scores in the top 25% among competitors are eligible for ENERGY STAR® certification.
Paying for HVAC Replacement
The upfront cost of paying for HVAC replacement can be steep. If covering expenses with cash and savings alone isn’t feasible, there may be other ways to finance this kind of project. For example, you could look into a home equity loan or line of credit, both of which tap the equity you have in your home. These options require using your home as collateral, however, which not all homeowners will be comfortable with.
Another option is a home improvement loan, which is a kind of personal loan. With this type of unsecured loan (in other words, no collateral needed), you get a lump sum of cash, which you pay back in installments with interest. The loan term is usually between one or two years and seven years, and the interest rate for a personal loan is typically lower than what you’d pay with a credit card.
One other consideration: The HVAC unit cost for more environmentally friendly technologies, such as ground- and air-source heat pumps, may be eligible for rebates and tax incentives.
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The Takeaway
Replacing your home’s HVAC system costs, on average, $7,500 as of mid-2025. The exact price tag will depend on the unit you choose, the size of your home, your location, the complexity of installation, and other factors.
If replacement is necessary for your HVAC system, you may still have a sizable sum to pay after claiming amu tax credits or manufacturers’ rebates you might qualify for. Financing options include secured funding that draws on your home’s equity or an unsecured home improvement loan.
Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.
FAQ
How much does it cost to replace an entire HVAC system?
Currently, the average cost to replace an HVAC system is $7,500 on average. Prices will vary depending on the kind and size of unit you purchase, your location, installation challenges, and other factors.
How often do HVAC systems have to be replaced?
Typically, an HVAC system lasts 10-20 years, though the details can vary depending on your particular situation.
What is the most expensive part of an HVAC system?
The most expensive part of your home’s HVAC system is often the compressor, which compresses the refrigerant and plays a key role in the cooling process.
Photo credit: iStock/South_agency
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