HVAC Replacement Rule:
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The $5000 rule is a guideline that suggests replacing your HVAC system when the product of your system's age (in years) and the repair cost exceeds $5000. This helps determine whether repair or replacement is more cost-effective.
The calculator uses the simple formula:
Where:
Explanation: This rule accounts for both the diminishing returns of repairing older systems and the increasing likelihood of future repairs.
Details: This calculation helps homeowners make informed decisions about whether to repair an aging HVAC system or invest in a new, more efficient system.
Tips: Enter your HVAC system's age in years and the estimated repair cost in dollars. The calculator will determine whether replacement is recommended based on the $5000 rule.
Q1: Is the $5000 rule always accurate?
A: It's a guideline, not an absolute rule. Consider energy efficiency of newer models and frequency of repairs as well.
Q2: What if my system is very old but repair is cheap?
A: Even if (Age × Cost) < 5000, frequent small repairs may still make replacement more economical.
Q3: Does this account for improved efficiency?
A: No, this is purely cost-based. Newer systems may save enough on energy to justify earlier replacement.
Q4: What's the average lifespan of an HVAC system?
A: Typically 15-20 years, but proper maintenance can extend this.
Q5: Should I always replace if the score > 5000?
A: Consider your long-term plans - if moving soon, repair might make more sense despite the score.