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The difference
| Feature | Split system | Packaged unit |
|---|---|---|
| Layout | Indoor unit plus outdoor unit | All in one outdoor cabinet |
| Best for | Most homes with attic, closet, or basement space | Slab homes, tight spaces, rooftop installs |
| Indoor space needed | Yes, for the air handler or furnace | No |
Split systems
The condenser sits outside and the air handler or furnace and coil sit inside, connected by a refrigerant line set. This is the standard residential setup. It gives the widest choice of equipment and efficiency tiers, and the indoor unit is protected from the weather.
Packaged units
Everything lives in one cabinet outside, usually on a slab beside the home or on the roof. With no indoor equipment, packaged units fit homes that have no basement, attic, or closet space to spare. They are common in warmer regions and on manufactured homes.
How to choose
If you have indoor space for an air handler or furnace, a split system gives you the most options. If indoor space is tight or you are replacing an existing packaged unit, a packaged system keeps it simple. Your existing setup is usually the strongest hint.
Shop split and packaged systems
Browse both configurations for your home.
Common configuration questions
Which is more common, split or packaged?
Is a packaged unit less efficient?
Can I switch from packaged to split?
Do mobile homes use packaged units?
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