Repair or Replace Calculator

Questions

What is the $5,000 rule?

Multiply the system’s age by the repair cost. If the result is over $5,000, replacing usually makes more sense than repairing. It is a rule of thumb cited by HomeGuide and many contractors, not a hard limit.

What is the 50% rule?

If a single repair costs about half of what a new system would, most homeowners are better off putting that money toward a replacement — especially on an older unit.

How long do furnaces and ACs last?

ENERGY STAR suggests considering replacement when a furnace is over 15 years old or an air conditioner or heat pump is over 10 years old, especially if it needs frequent repairs or your bills are climbing.

My AC uses R-22. Should I repair it?

R-22 is no longer produced for servicing, so refrigerant repairs on these older units get expensive and harder to source. A refrigerant leak on an R-22 system usually tips the decision toward replacement.

Sources
1. HomeGuide — AC repair cost ($5,000 and 50% rules)
2. ENERGY STAR — when to replace
3. HomeGuide — gas furnace prices
4. Power Ahead Colorado — cost summary (Denver region)