1. What is the $5000 Replacement Rule?

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

2. How Does the Calculator Work?

The calculator uses the $5000 rule formula:

Where:

• \( Age \) — Age of HVAC system in years
• \( Repair Cost \) — Estimated repair cost in dollars
• \( 5000 \) — The threshold value for replacement

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

3. Importance of the Calculation

Details: Making the right repair/replace decision can save thousands of dollars. Older systems are less efficient and more prone to breakdowns, while new systems offer better energy efficiency and reliability.

4. Using the Calculator

Tips: Enter your system's age in years and the estimated repair cost in dollars. Be sure to get an accurate repair estimate from a qualified HVAC technician.

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, expected lifespan, and your local climate should also be considered.

Q2: What if my result is close to $5000?
A: Results within 10% of the threshold ($4500-$5500) should be evaluated with additional factors like system performance and maintenance history.

Q3: Does this apply to all HVAC systems?
A: The rule works best for central air systems. Mini-splits, boilers, and other systems may have different considerations.

Q4: How accurate is the age factor?
A: Most HVAC systems last 10-15 years. Systems older than 15 years are typically near end-of-life regardless of repair costs.

Q5: Should I consider energy efficiency savings?
A: Yes, newer systems can save 20-40% on energy costs, which should factor into your long-term decision.