Should You Repair or Replace Your HVAC? The 5 Key Factors

The Repair vs. Replace Dilemma

Your AC or furnace just broke down. The repair quote is significant. Now you're wondering: "Should I fix this aging system or invest that money in new equipment?"

This is one of the most common questions we get. Here's how to make an informed decision.

Factor 1: Age of Your System

Average Lifespan by Equipment Type

• Central Air Conditioner: 15-20 years
• Gas Furnace: 15-25 years
• Heat Pump: 15-20 years
• Mini-Split: 15-20 years
• Boiler: 20-30 years

Age-Based Guidelines

Under 10 Years Old

• Usually worth repairing
• Most components still have life left
• Original efficiency mostly intact

10-15 Years Old

• Evaluate repair cost carefully
• Consider efficiency gains from replacement
• Major component failures lean toward replacement

Over 15 Years Old

• Lean toward replacement for major repairs
• Efficiency is likely 20-40% worse than new
• Other components likely to fail soon

Factor 2: The 50% Rule

Simple Math That Works

If repair cost > 50% of replacement cost, replace.

Example:

• New system cost: $8,000
• 50% threshold: $4,000
• Repair quote: $3,500

In this case, you might repair. But add age to the equation:

• If system is 5 years old: Repair makes sense
• If system is 15 years old: Replace (you're buying time, not reliability)

Modified Formula for Older Systems

Age + Repair Cost Rule: Multiply system age by repair cost. If result exceeds replacement cost, replace.

Example:

• System age: 12 years
• Repair cost: $800
• 12 x $800 = $9,600
• Replacement cost: $9,000
• Decision: Replace

Factor 3: Repair History

Track Your Repairs

If your system has needed frequent repairs:

• Keep a running total of repair costs
• Include service calls, parts, and labor
• Compare annual repair spending to replacement cost

Warning Signs from History

• 3+ repairs in past 2 years
• Same component failing repeatedly
• Repair costs increasing year over year
• System down multiple times per season

The Cascade Effect

One major failure often signals others coming. Components age together, so:

• Compressor fails → capacitors, contactors often follow
• Heat exchanger cracks → other parts stressed from same age/use
• Blower motor fails → bearings throughout may be wearing

Factor 4: Energy Efficiency

The Hidden Cost of Old Equipment

A 15-year-old AC might have been 10 SEER when new. New systems are 14-22+ SEER. That difference means:

Potential Annual Savings: Old SEERNew SEEREstimated Savings

101630-40% 102050%+ 131825-30%

Calculate Your Payback

Example:

• Current annual cooling cost: $1,200
• New system saves 35%: $420/year savings
• Premium for efficient system: $2,500
• Payback period: ~6 years

For a system lasting 15+ years, that's significant lifetime savings.

Rebate Impact

Current incentives can tip the balance:

• Federal tax credit: Up to $2,000
• Utility rebates: $200-800
• State programs: Varies

A $9,000 system with $2,500 in rebates = $6,500 net cost

Factor 5: Comfort Issues

When Problems Indicate System Inadequacy

Replacing makes sense when:

• System never kept home comfortable (wrong size)
• Humidity problems persist despite repairs
• Hot/cold spots throughout home
• Noise levels are bothersome

Repair Won't Fix Design Problems

If your system was:

• Incorrectly sized originally
• Poorly installed
• Inadequate ductwork

Repairs maintain a flawed status quo. Replacement allows proper design.

The Decision Framework

Strongly Consider REPLACEMENT If:

• System is 15+ years old
• Repair > 50% of replacement cost
• R-22 refrigerant system (phased out, expensive)
• Multiple major repairs in past 2 years
• Comfort issues beyond just "it's broken"
• Significant rebates available now

Likely Worth REPAIRING If:

• System is under 10 years old
• Repair is relatively minor (<$500)
• First major repair
• System has been properly maintained
• No underlying design/sizing issues

Case-by-Case (Consider All Factors):

• System is 10-15 years old
• Repair is moderate ($500-2,000)
• Second or third repair
• Efficiency gains would be meaningful
• Home comfort could be improved

Real Examples

Example 1: Repair

• 7-year-old Carrier AC
• Capacitor and contactor failed: $350
• System maintained annually
• Decision: Repair - Minor repair, plenty of life left

Example 2: Replace

• 18-year-old Lennox AC
• Compressor failed: $2,800 repair quote
• R-22 system requiring expensive refrigerant
• Decision: Replace - Old system, expensive repair, refrigerant obsolete

Example 3: Borderline

• 12-year-old Trane furnace
• Heat exchanger cracking: $1,800 repair
• Had $600 in repairs last year
• Decision: Replace - Expensive repair, age, and repair history together say replace

Our Honest Assessment

When you call us for repair, we'll: 1. Diagnose the problem accurately 2. Provide repair AND replacement options 3. Explain the factors specific to your situation 4. Let you decide without pressure

Sometimes we recommend repairs. Sometimes we advise replacement. Always, we explain our reasoning.