$5000 Replacement Rule:
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The $5000 rule is a simple guideline to determine whether to repair or replace your HVAC system. If the product of your system's age (in years) and the repair cost exceeds $5000, replacement is typically recommended.
The calculator uses the $5000 rule formula:
Where:
Explanation: This rule accounts for both the diminishing returns of repairing older systems and the increasing likelihood of future repairs.
Details: Proper timing of HVAC replacement balances repair costs against new system efficiency gains, reliability improvements, and potential energy savings.
Tips: Enter your HVAC system's age in years and the estimated repair cost in dollars. The calculator will determine whether repair or replacement is more cost-effective.
Q1: Is the $5000 rule always accurate?
A: It's a guideline, not an absolute rule. Consider system efficiency, maintenance history, and future needs as well.
Q2: What if my system is very old but repair is cheap?
A: Even if (Age × Cost) < 5000, very old systems (15+ years) may still warrant replacement for efficiency gains.
Q3: Does this account for energy savings?
A: No, this is purely cost-based. Newer systems typically offer 20-40% energy savings that should be factored in.
Q4: What about warranty coverage?
A: If repair is covered under warranty, the effective cost is $0 for that calculation.
Q5: Should I consider refrigerant phase-outs?
A: Yes, if your system uses R-22 or other phased-out refrigerants, replacement may be more urgent.