When your AC breaks down in summer, you need to make a quick decision: repair it or replace it? Here's the framework HVAC professionals use.
The 5,000 Rule
Multiply the repair cost by the age of the unit in years. If the result exceeds $5,000, replacement is usually the better investment. A $400 repair on a 5-year-old unit = $2,000 (repair). A $400 repair on a 15-year-old unit = $6,000 (replace).
Signs Replacement Makes More Sense
- The unit is 10–15+ years old
- Repairs have been needed more than once in the past two years
- Your energy bills have increased significantly without a change in usage
- The system uses R-22 refrigerant (phased out — increasingly expensive)
When Repair Is the Right Call
If the unit is under 8 years old, the repair is relatively minor, and it has been well-maintained, repair almost always makes more financial sense. A good HVAC contractor will give you an honest assessment of both options.