A finned tube heat exchanger is a key component used as a condenser or an evaporator in residential air-conditioning (AC) and heat pump systems. The overall cycle performance of these systems is significantly affected by the heat exchanger’s geometric design. This study investigates outdoor heat exchanger designs with varying geometric parameters such as the fin pitch, number of tube rows, and tube length, and their effect on system performance based on seasonal energy efficiency ratio (SEER) and seasonal coefficient of performance (SCOP). Air face velocity profiles for each operating condition along the outdoor heat exchangers are determined using CFD, with subsequent cycle simulations for 10 different operating conditions. Results have been validated with the available experimental data. The number of tube rows, fin pitch, and length of tube have been varied from 2–10, 1.4–2.5 mm, and 800–2800 mm respectively. The numerical results reveals that SEER increases 3.21% while SCOP increases 5.32% up to fourth and fifth tube row respectively and remain unaffected thereafter. Similarly, SEER increases by 3.55% as the tube length is increased from 800–1800 mm, while it increases only 0.67% for 1800–2800 mm and the maximum variation of 4.32% has been found for SCOP. Moreover, increasing the fin pitch reduces SEER and SCOP (except for fin pitch from 1.4 to 1.8 mm). Finally, the performance of the system with four different fin configurations have also been investigated and it has been found that slit fins are more effective.