How much does it cost to start an HVAC business? The precise answer depends on the type of HVAC business, the equipment you already own, and whether you work from home or lease a location. On average, a technician will spend between $2,000 and $15,000 to start a small/solo HVAC business.
This article breaks down all costs so you can see where you fit in that range. It also includes costs for starting a larger company that requires a full shop. To make tracking easy, I’ve created a comprehensive HVAC business startup cost guide.
Once you have the price list (above) you can read this article to get context, consideration, and links to many of the things you need.
The companion to this cost guide is a step by step HVAC business startup checklist. Make sure you have both if you are serious about starting an HVAC business.
Article Contents
How This Guide Is Arranged
I’ve organized the costs into sections, starting with items you’re most likely to already own and ending with items you’ll probably need to purchase.
Within each section, items are listed alphabetically to make scanning easier. When applicable, I’ve provided prices based on quality, industry-standard brands, using Amazon pricing as of August 2025.
Many of the products include links. I do not earn any affiliate commissions from these. The links are provided solely to show examples.
Vehicle & Up-fit
Unless you’ve got significantly stronger legs than I do, you’ll probably need a truck to haul your equipment.
If you already have a truck (or service van), you might just need to outfit it with shelving and storage. You can save money here by building your own shelving and getting creative with storage solutions.
Otherwise, here are the standard options:
| Item | Suggested Brand / Model | Notes |
|---|---|---|
| 3/4-ton service vehicle | Ford Transit 250, Ram ProMaster 2500, Chevy Express 2500 | Ladder rack, backup camera preferred |
| Extension cord 12‑ga 100 ft | Southwire | |
| Extension cord 12‑ga 50 ft | Southwire | |
| Fire extinguisher mount | Kidde bracket | ABC extinguisher mounted near door |
| Floor liner | Legend, Weather Guard | Non-slip, protects metal floor |
| Inverter 1000–2000 W pure sine | Xantrex, AIMS | Hardwire to vehicle battery |
| LED cargo lighting | OEM or Auxbeam | Bright interior lighting |
| Open‑top tote | Veto Pro Pac OT‑XL, Husky | |
| Power strip heavy duty | Tripp Lite | |
| Ratchet straps and bungees | Any Brand | |
| Refrigerant bottle racks | Adrian Steel, Ranger | Secure DOT cylinders upright |
| Shelving and bins | Adrian Steel, Weather Guard | Left and right walls with small parts bins |
| Small parts organizers | Milwaukee Packout, DeWalt TSTAK | For terminals, screws, misc |
| Tool backpack | Veto Pro Pac TECH‑PAC, CLC | Daily carry |
| Van partition | Adrian Steel, Weather Guard | Solid or wire with window |
Core Hand Tools
If you have previous HVAC experience, you likely have a good chunk of these tools. Check through the list and see what you’re missing.
If you’re starting from scratch, you would need to spend $1,334.54 to buy everything on this list in the recommended brands.
| Item | Reputable Brand / Model | Price |
|---|---|---|
| Adjustable wrenches set | Crescent | $ 32.96 |
| Claw hammer 16 oz | Estwing E3‑16S | $ 24.98 |
| Combination wrench sets SAE & metric | GearWrench, Tekton | $ 128.24 |
| Crimpers and ferrule crimper | Klein, IWISS | $ 41.99 |
| Demolition Screwdriver | Klein 602 Series | $ 19.99 |
| Drywall saw | DeWalt | $ 18.94 |
| Duct crimpers 5‑blade | Malco C5R | $ 42.99 |
| Duct folding tools 12 in and 24 in | Malco 12F, 24F | $ 57.00 |
| Duct Stretcher | Malco DS2 | $ 34.99 |
| Flare‑nut wrench set | Tekton, Snap‑on | $ 39.99 |
| Hacksaw | Lenox | $ 24.95 |
| Hand Notchers | Malco N2R | $ 61.99 |
| Hand seamer tongs | Malco S2R | $ 54.68 |
| Headlamp | Energizer | $ 18.66 |
| Hex key sets SAE & metric | Bondhus | $ 20.99 |
| Impact‑rated bit set | Milwaukee Shockwave | $ 24.99 |
| Inspection mirror and magnet pickup | Any Brand | $ 22.95 |
| Lineman’s, long‑nose, diagonal cutters | Klein Tools | $ 29.97 |
| Locking pliers | Irwin Vise‑Grip | $ 23.98 |
| Markers and paint pens | Sharpie | $ 4.87 |
| Multi Screwdriver | Klein 11 in 1 | $ 15.97 |
| Nut drivers 1/4, 5/16 | Klein hollow‑shaft magnetic | $ 18.99 |
| Nylon tie tensioning tool | Malco TY4G or Klein 86570 | $ 46.10 |
| Pipe wrenches 10 in and 14 in | RIDGID | $ 75.99 |
| PVC cutter | RIDGID | $ 84.99 |
| Rubber mallet | Estwing | $ 14.98 |
| Snap‑lock punch | Malco SL2R | $ 55.72 |
| Stubby Screwdriver | Klein | $ 10.98 |
| Tape measure 30 ft | Stanley FATMAX | $ 30.10 |
| Tin snips L, R, straight | Midwest or Wiss | $ 82.07 |
| Tongue‑and‑groove pliers 10 in, 12 in | Channellock 430, 440 | $ 41.00 |
| Torpedo level | Empire or Stabila | $ 45.74 |
| Torx driver set | Klein | $ 21.99 |
| Utility knife with blades | Milwaukee Fastback | $ 38.83 |
| Wire strippers | Klein 11055 | $ 20.99 |
Cordless Power Tools
These power tools are non-negotiable. Without them, most installations simply can’t be completed. If you have employees, each one will need their own set.
The total cost for the tools on this list is $1,161.00.
| Item | Reputable Brand / Model | Price |
|---|---|---|
| Angle grinder 4.5 in | Milwaukee, DeWalt | $ 155.00 |
| Charger & Battery packs 5.0 Ah | Platform matched | $ 144.00 |
| Compact circular saw | Milwaukee, DeWalt | $ 196.00 |
| Cordless work light | Milwaukee, DeWalt | $ 44.00 |
| Drill/driver 1/2 in | Milwaukee M18 FUEL, DeWalt XR 20V | $ 145.00 |
| Hammer drill or SDS‑Plus | Milwaukee, DeWalt | $ 189.00 |
| Impact driver 1/4 in | Milwaukee M18, DeWalt XR | $ 109.00 |
| Reciprocating saw | Milwaukee M18 SAWZALL | $ 179.00 |
Refrigeration & Diagnostics
Those with previous experience as a technician will have a lot of these tools. Check through the list, still, as it includes a few larger tools that companies normally provide.
Every tool needed for refrigeration work and diagnostics costs $6,175.03 if you use the reuptable brands on this list:
| Item | Reputable Brand / Model | Price |
|---|---|---|
| Analog or digital manifold | Yellow Jacket 420xx, Fieldpiece SM38x/48x | $ 798.50 |
| Brazing torch kit | Any Brand | $ 243.57 |
| Coil cleaning sprayer | Solo pump sprayer or CoilJet | $ 64.95 |
| Core removal tools and tees | Appion or Yellow Jacket | $ 74.68 |
| Deburring tool | Any Brand | $ 14.31 |
| DOT recovery cylinders | Any Brand | $ 144.99 |
| Dual‑stage nitrogen regulator | Uniweld RHP400, CPS | $ 93.99 |
| Fast response thermometer | Fieldpiece SPK2 or SPK3 | $ 38.25 |
| Fin comb set | Malco FST2 | $ 14.99 |
| IR thermometer | Fluke 62 Max or Klein IR10 | $ 124.93 |
| Leak detector | Inficon H10 Pro or Tek‑Mate | $ 261.99 |
| Low loss hoses | Fieldpiece | $ 170.18 |
| Manometer digital | Testo 510i or Fieldpiece SDMN6 | $ 344.25 |
| Micron gauge | Testo 552i, Fieldpiece MG44 | $ 254.30 |
| Nitrogen cylinder | Local supplier | $ 130.00 |
| Psychrometer | Fieldpiece JL3RH or Testo 605i | $ 147.90 |
| Recovery machine | Appion G5Twin or Robinair RG3 | $ 1,071.92 |
| Refrigerant scale | Fieldpiece SRS1, CPS CC220 | $ 235.45 |
| Silver‑phos brazing rods and flux | Local supplier | $ 46.99 |
| Spring and lever benders | Hilmor | $ 174.99 |
| Swaging or expander kit | Hilmor | $ 459.00 |
| Tubing cutter 1/8–1‑1/8 | RIDGID 150, Yellow Jacket 60101 | $ 30.92 |
| Vacuum pump 5–8 cfm | NAVAC NP4DLM or JB DV‑6E | $ 483.99 |
| Wireless probes kit | Fieldpiece Job Link JL3KH6 | $ 749.99 |
Electrical
Most HVAC problems stem from electrical issues. If you invest in any high-quality tools, make the items in this section your top priority.
The total cost for the tools in this list is $965.05.
| Item | Reputable Brand / Model | Price |
|---|---|---|
| Clamp Ammeter | Fluke 325 | $ 365.01 |
| Leads, alligator clips, magnetic probes | Fluke or Fieldpiece | $ 184.99 |
| Megohmmeter | Supco M500 | $ 110.48 |
| Non‑contact voltage tester | Klein NCVT3P | $ 29.97 |
| Pocket or secondary meter | Klein MM300 or UEi | $ 29.98 |
| Thermostat jumpers | Generic | $ 13.99 |
| True RMS multimeter | Fluke 116 | $ 230.63 |
Ladders & Access
Do I really need to say anything about this section? You need to climb, and you need to see. Buy the things required to do that.
A popular ladder for service vans that can replace smaller extension ladders is the Little Giant Ladder. They’re heavy, but they can take the place of multiple ladders, making them quite convenient for service work.
The total for the ladders and light in this list is $831.62.
| Item | Reputable Brand / Model | Price |
|---|---|---|
| Crawl space light | Any Brand LED | $ 25.59 |
| Extension ladder 20+ ft | Werner or Louisville | $ 373.05 |
| Fiberglass step ladder 6 ft | Werner or Louisville | $ 175.99 |
| Fiberglass step ladder 8 ft | Werner or Louisville | $ 256.99 |
Safety
Nobody cares about safety equipment until you need it.
Do yourself a favor and buy everything on this list. Future you will thank you once they invent time machines. All the safety equipment listed only totals $83.59.
| Item | Reputable Brand / Model | Price |
|---|---|---|
| ABC fire extinguisher | Kidde, First Alert | $ 26.98 |
| Cut resistant gloves | Any Brand | $ 14.69 |
| First aid kit and eyewash bottle | Industrial | $ 19.99 |
| Hearing protection | 3M Peltor | $ 7.77 |
| Safety glasses | Pyramex, 3M | $ 14.16 |
Install & Fastening
Some of the items on this list are essentials, like screws, vinyl tubing, and foil tape. Others can wait until they are needed.
Regardless of when you buy them, a fully stocked service van should eventually carry everything here. The total cost to purchase it all upfront is $450.43.
| Item | Suggested Brand / Notes | Price |
|---|---|---|
| Connectors, whip kits, disconnects | Local Supplier, order Per Job | |
| Duct strap and hangers | Local Supplier | $ 23.99 |
| EMT bender and reamer | Local Supplier, order Per Job | |
| Float switches | Safe‑T‑Switch | $ 32.42 |
| Foil tape and butyl tape | 3M, Nashua | $ 34.64 |
| Hole saws bi‑metal set | Lenox or Milwaukee | $ 80.43 |
| Line set covers | Local Supplier, order Per Job | |
| Line set insulation and tape | Local Supplier, order Per Job | |
| Long ship auger | Irwin 17 in | $ 14.00 |
| Masonry bit set | Dewalt | $ 19.47 |
| Mastic and brushes | Local Supplier | $ 25.00 |
| PVC pipe cement and primer | Oatey | $ 13.18 |
| Rivet gun and rivets | Any Brand | $ 22.97 |
| Self drilling zip screws | Local Supplier | $ 34.97 |
| Silicone and polyurethane sealants | GE, Sika | $ 8.87 |
| Sleeve and wedge anchors | Red Head | $ 15.48 |
| Step bits | Irwin Unibit | $ 37.95 |
| Vinyl tubing and traps | DiversiTech | $ 87.06 |
Truck Parts & Consumables
Buy all of this upfront and stock your truck / van. The amount of money you will waste driving to the parts store in the middle of a call outweighs the cost of a good parts stock, trust me.
The consumables in this section total $624.86.
As your business becomes more established, you may also carry items like rescue motors. Your experience as a tech will guide you on which additional parts to keep on hand.
| Item | Reputable Brand / Source | Price |
|---|---|---|
| Blade and cartridge fuses | Local supplier | |
| Capacitors common sizes | Local supplier | $ 20.00 |
| Coil cleaner evap and condenser | Nu‑Calgon | $ 39.99 |
| Condenser fan motors and caps | Local supplier | |
| Contactors 24 V 30–40 A | Local supplier | $ 15.00 |
| Drill bits assorted | Milwaukee | $ 48.00 |
| Filters common sizes | Local supplier | |
| Float switches and condensate pumps | Little Giant | $ 62.00 |
| Grinder wheels cut and flap | Diablo | $ 19.90 |
| Hard start kits | Kickstart or Supco SPP6 | $ 15.47 |
| Heat shrink assortment | 3M | $ 4.99 |
| Low voltage cable staples | Southwire | $ 8.99 |
| Pan tablets and sanitizer | Local supplier | |
| Rags and drop cloths | Contractor packs | $ 37.95 |
| Relays and fan centers | Local supplier | $ 15.00 |
| Sawzall blades metal and wood | Milwaukee | $ 43.85 |
| Schrader cores and caps | Local supplier | $ 10.00 |
| Thermostat wire rolls 18/2, 18/5, 18/8 | Southwire | $ 65.50 |
| Thermostats basic and programmable | Local supplier | |
| Transformers 40 VA | Local supplier | $ 18.68 |
| Turbo 200 Universal Capacitor | Local supplier | $ 83.99 |
| TXV and piston assortment | Local supplier | $ 75.00 |
| Wire nuts, terminals, butt splices | Local supplier | $ 20.00 |
| Zip ties and mounts | 3M | $ 20.55 |
Office Systems & Software
In addition to the items listed below, you will need a computer, printer, shelving, and bins.
If you are working from home, you may be able to use your current setup.
If you are starting in a new location, plan to spend around $1,500 for a complete setup. The list below details monthly software subscriptions.
| Item | Reputable Brand | Price |
|---|---|---|
| Call tracking | CallRail | $45-95 Monthly |
| Cloud storage and docs | Google Workspace or M365 (charged per user) | $8 Monthly |
| CRM and estimates | Built into platform | $0 |
| Dispatching and invoicing | Housecall Pro, Jobber, ServiceTitan Start | $59-300 Monthly per user |
| Financing integration | GreenSky, Wisetack | $0 |
| Form templates | Maintenance and inspection | $0 |
| Google Business Profile | $0 | |
| Online booking widget | Platform plugin | $0 |
| Payments | Stripe, Square | $0 |
| Phone system | Dialpad, RingCentral | $20-35 Monthly |
| Pricebook and flat‑rate | Profit Rhino, ServiceTitan Pricebook (optional) | $50-150 Monthly |
| Review requests | NiceJob, Birdeye, Podium (optional) | $75-400 Monthly |
| Website and analytics | WordPress, GA4, GSC | $50-200 Monthly |
Business & Compliance
These are the costs that make your business legitimate. Without proper licensing and insurance, you’re not truly operating as a business.
The costs for licenses vary drastically depending on the state you operate in. I’ve provided detailed cost breakdowns in my state licensing guides.
Expect to pay between $1,850 and $8,550 to form your business, obtain the required insurance and bonding, and set up your accounting and merchant processing. You will also have additional monthly fees, which are detailed in the list below:
| Item | Notes | Price |
|---|---|---|
| Accounting software | Add-ons: payroll often $45 base + $6–$8 per employee per month. | $30-60 Monthly |
| Bond if required | Premium is usually 1–3% of bond amount; higher if credit is weak. | $100-500 Annually |
| Business bank account | Many are $0 if you keep a small balance; otherwise maintenance fee. | $0-25 Monthly |
| City business license | Some cities peg it to revenue or employee count. | $50-200 Annually |
| Commercial auto insurance | Varies by driver MVR, garaging zip, limits, comp/collision. | $1200-3500 Annually |
| Contractor license | Application $100–$400, exam $50–$200, plus fingerprint/background fees where required. | $150-800 One-time |
| CPA engagement | Bookkeeping: $150–$500/month for a small shop ; Year-end tax prep: $600–$2,000 ; one-time chart-of-accounts setup can be $300–$1,000. | $0-8000 Annually |
| EPA Section 608 certification | Proctored exam fee plus optional prep. | $40-150 One time |
| General liability insurance | Driven by revenue, claims history, service vs install mix. | $900-3000 Annually |
| Legal entity setup | State filing fee typically $50–$500; online service $0–$300 plus state fee; attorney-prepared package $600–$1,500. | $200-1500 One-time |
| Merchant services | Interchange-plus accounts can be a bit cheaper with volume. Ongoing Processing Fees | $ 59-299 One time hardware |
| Supplier accounts | May require trade references; interest or terms apply only if you use credit. | 0 |
| Workers comp policy | Rate depends on state class code and experience mod. | $500-1000 Annually |
Branding & Presentation
You can spend a lot of money on full van wraps and fancy uniforms, or you can spend about $120 on some business cards, shoe covers, a t-shirt with your logo, and a magnetic logo for your truck.
To start, you can really go either way. Do what works for your budget, but keep in mind that positive first impressions go a long way and that a good looking truck is a mobile billboard.
| Item | Price |
|---|---|
| Business cards | $50 |
| DOT number if required | $0 |
| Shoe covers | $30 Monthly per tech |
| Uniforms and branded outerwear | $250-500 per tech |
| Vehicle wrap or door logos | $40-5000 one time |
Fabrication & Heavy Equipment
Alright. Before you panic, know that most of the items on this list are intended for those starting a larger-scale HVAC business. A one-person operation can usually get by with a small used brake and a pipe threader. ($1,000 – $2,000)
The price ranges here are intentionally wide. The low end represents what you might pay for a used piece of equipment you found at a bargain, while the high end reflects the cost of a brand-new, top-tier model.
In reality, most shops source used equipment for their setup. The only companies filling their shop with entirely new gear are industry leaders. Think of this list as a goal to work toward, not something you must have right from the start.
| Item | Reputable Brand | Price Range |
|---|---|---|
| Manual Ratcheting Threader Set | RIDGID 12‑R or 00‑R | $200 – $900 |
| Tripod Vise + Pipe Cutter + Reamer | RIDGID 460‑6; 42‑A/44‑S; 2‑S | $200 – $900 |
| Power Pipe Threader (w/ stand, oiler, ½–2″ dies) | RIDGID 300 or 535 | $1,800 – $6,500 |
| Roll Groover | RIDGID 915 or 975 | $600 -$2,500 |
| Box & Pan Brake (8 ft) | Tennsmith; Roper Whitney; Baileigh | $2,500 – $10,000 |
| Stomp Shear (52″) | Tennsmith; Baileigh; JET | $2,000 – $9,000 |
| Cheek / Right‑Angle Bender | Tennsmith; Roper Whitney; Malco (bench) | $250 -$1,500 |
| Slip Roll (52″) | Baileigh; JET; Birmingham | $800 – $5,000 |
| Bar Folder / Small Hand Brake (36–48″) | Tennsmith; Roper Whitney | $500 -$2,500 |
| Power Flanger / Beader | Lockformer; Roper Whitney; Baileigh | $1,200 – $7,000 |
| Button‑Punch Snap Lock (BPSL) machine | Lockformer; Flagler; Engel | $3,500 – $11,000 |
| S/Drive Cleat Rollformer | Lockformer; Flagler; Engel | $3,000 – $10,000 |
| Pittsburgh Lockformer | Lockformer; Engel; Flagler | $3,500 – $14,000 |
| MIG Welder (light‑gauge) | Miller; Lincoln; ESAB | $500 – $2,000 |
| Spot Welder | Miller; Tuff Spot; Baileigh | $800 – $4,000 |
| Sheet Rack / Coil Rack | Listo; Global Industrial; custom fab | $300 – $2,500 |
| Pallet Jack + Heavy Dollies | Dayton; Vestil; Milwaukee | $200 – $900 |
Marketing Costs
If you thought you could passively grow overtime by word of mouth, I hate to break it to you, but you need marketing. Word of mouth will help you grow, of course, but as a new business, you dont have the luxury of time for your reputation to naturally build.
Marketing costs preceed revenue. In other words, you need to have marketing money set aside BEFORE you start generating a profit.
How much? In your startup phase, plan to spend 8–12% of your expected revenue on marketing. If you want to make $4,000 in your first month, you better spend $320+ on digital ads first.
Failure to do marketing is failure to grow. If you don’t know where to start, you’re not alone. That’s why we created a step by step guide showing how to market an HVAC business.
Cash flow
Cash flow problems are one of the fastest ways to kill a new HVAC business. You can be getting jobs and still end up broke if you do not have money ready for the slow stretches.
In your first couple of years, expect to either break even or take a loss. That’s normal. The early money you make will disappear into tools, marketing, and keeping the lights on. Real profit usually won’t show up until 18 to 36 months in.
Also remember that HVAC work is seasonal. Summer will feel like a money-printing machine, but spring can be painfully slow. If you don’t save some of that summer boom money to carry you through, you’ll be scrambling for loans just to make it.
Start with a nest egg that can cover at least three months of expenses. Then, each busy season, stash enough to float you through the next slow one. This discipline is what keeps you in business long enough to build a solid customer base.
Tips to reduce costs
In the beginning of this guide, I told you the average technician starting their own HVAC company spends between $2,000 and $15,000. That figure does not include buying a new vehicle, stocking a shop with heavy fabrication equipment, purchasing a new computer, or any other big-ticket extras.
A lot of what is in this guide is essential, but an experienced tech will already own much of it. If you have been collecting quality tools throughout your career, you will probably be on the low end of that startup cost range.
Still, when you factor in marketing money and a healthy nest egg, the price to start a business can climb fast. Here are a couple of tips to keep your startup costs under control:
- Purchase tool bundles
- Power tools can be bought in bundles with batteries included. Electrical and HVAC supplier also have bundles. Save money on the important stuff by utilizing these bundle savings.
- Buy used where it makes sense
- The less critical diagnostic tools can be purchased used. Heavy tools such as a brake or pipe-threader can almost always be found used.
- Delay non-essentials
- Don’t blow money on a shop full of gear you won’t touch for the first year. Get what you need now and upgrade as revenue grows.
- Skip the full van wrap
- Magnetic signs or a clean, lettered van will get the job done early on. Invest in a wrap later when cash flow is steady.
- Keep your debt low
- Loans feel like free money until the slow season hits. Limit debt and keep payments low so you’re not scrambling in the spring.
- Stock parts smart
- Carry the most-used items so you avoid wasted trips to the supply house, but don’t overstock on slow-moving inventory. Stock universal components when appropriate.
Final advice and Conclusion
Starting an HVAC business is exciting, but don’t dive in headfirst. Start part-time. Land a handful of clients, build some word of mouth, and get a feel for the business without putting everything on the line.
Keep your full-time job in the beginning and tackle installs or repairs on evenings and weekends. This eases you into the business side of HVAC and shows you exactly what things cost before you’re relying on it for 100% of your income.
Before you make the leap, have a nest egg. Three months of personal income is the bare minimum, and don’t forget to budget for marketing.
And while you’re at it, subscribe to our newsletter. You’ll get monthly business growth tips that’ll save you time, money, and headaches.
