Is it cost effective to replace your system?

The HVAC Rule of 5000 is a quick guideline to help decide if it's more cost-effective to replace your HVAC system or continue repairing it. To use it, multiply the age of your system in years by the cost of the repair. If the result is more than $5,000, replacement is usually the wiser financial choice; if it's less than $5,000, a repair might still be a good investment. 

How to Apply the Rule

1. Find the age of your HVAC system: Determine how many years old your current furnace or air conditioner is. 

2. Estimate the repair cost: Get a professional quote for the repair you are considering. 

3. Calculate the total: Multiply the age of the system by the repair cost. 

4. Compare to $5,000:

   • If the total is > $5,000: Consider replacement, as the repair may be a significant investment that could be better put toward a new, more efficient system. 

   • If the total is < $5,000: Repair may still be a reasonable option. 

Example

• Scenario: Your air conditioner is 10 years old and needs a $600 repair. 

• Calculation: 10 years × $600 = $6,000. 

• Outcome: Since the total is greater than $5,000, replacing the unit might be a more financially sound decision. 

Other Factors to Consider

While the Rule of 5000 is a helpful starting point, it's wise to also consider:

• Overall system condition:

  A unit in rough shape may need replacement regardless of the 5000 rule calculation. 

• Energy efficiency:

  Newer systems can significantly lower your energy bills and reduce your carbon footprint. 

• Refrigerant type:

  If your system uses R-22 or an older refrigerant, a major repair could justify replacement. 

• Frequent breakdowns:

  If your system requires repairs often, a new system can provide more reliability.