1. What is the $5000 Replacement Rule?

The $5000 replacement rule is a guideline used by HVAC contractors to determine whether to repair or replace a system. If the product of the system's age (in years) and repair cost exceeds $5000, replacement is typically recommended.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( Age \) — Age of HVAC system in years
• \( Repair Cost \) — Estimated repair cost in dollars

Explanation: This rule accounts for both the diminishing returns of repairing older systems and the increasing likelihood of future repairs.

3. Importance of HVAC Replacement Decisions

Details: Making the right repair/replace decision affects customer satisfaction, energy efficiency, and long-term costs. Older systems typically have lower SEER ratings and higher operating costs.

4. Using the Calculator

Tips: Enter the system age in years and the estimated repair cost in dollars. The calculator will determine whether repair or replacement is more cost-effective based on the $5000 rule.

5. Frequently Asked Questions (FAQ)

Q1: Is the $5000 rule always accurate?
A: It's a guideline, not an absolute rule. Other factors like system efficiency, refrigerant phaseouts, and customer preferences should also be considered.

Q2: What's the typical lifespan of an HVAC system?
A: Most systems last 15-20 years, but this varies by maintenance, climate, and usage patterns.

Q3: How accurate should the repair cost estimate be?
A: Use your best professional estimate. The more accurate the repair cost, the more reliable the recommendation.

Q4: Does this apply to all HVAC systems?
A: Primarily for central AC and heat pump systems. Different rules may apply for boilers, mini-splits, or commercial systems.

Q5: Should energy efficiency rebates factor into this?
A: Yes, current rebates for high-efficiency systems can make replacement more attractive even when the $5000 rule suggests repair.