In a packaged system, all equipment is built into a single unit or "package". These are outdoor units usually installed on the roof or a concrete slab in the yard that connect to ductwork in the home. The primary advantage of a packaged system is that they are ideal for homes with space constraints that do not allow for a traditional split heating and cooling system.

Packaged systems can come as the following types:

• All electric cooling only (air conditioner only)
• Gas heating only (electricity still required for fan motor, etc.)
• Electric cooling (air conditioner) and gas heating (furnace)
• Heat pump model (electric heating and cooling)
• Hybrid package which includes gas furnace and heat pump (electric cooling / gas and electric heating)

The efficiency of packaged systems are rated as with individual units: SEER (for cooling efficiency), AFUE percentage (for gas heating efficiency) and HSPF (for heat pump heating efficiency). As mentioned above, ductwork is required as usual to transfer the heated / cooled air throughout the home.