Should You Repair or Replace Your Broken AC Unit?

Air Conditioner

Your AC stops working—what do you do? Should you repair it or replace it entirely? Unfortunately, the answer isn’t straightforward. While repairs might cost less initially, they are not always guaranteed to last, meaning you might face further expenses down the line. This often leaves homeowners wondering whether investing in a new unit might be the wiser choice.

Let’s explore both options to see which one is right for you.

Evaluating Your AC Unit: Should You Repair or Replace?

When it comes to deciding whether or not you should repair or replace your unit, you need to look at your individual system to determine the best approach, not only in the moment, but in the future as well.

Here’s how to evaluate the best course of action for your AC unit based on several critical factors.

Factors to Consider:

1. Age of Your AC Unit:

The age of your air conditioner is crucial in this decision. The Department of Energy states that the average lifespan of an air conditioning unit is between 15-20 years.
If your unit is over 10 years old and frequently needs repairs, it may be time to replace it with a more energy-efficient model. While the upfront costs are higher, the long-term savings on energy bills can be substantial.

2. Type of Refrigerant Used:

The type of refrigerant your AC uses significantly impacts your decision. Older models often use R-22 refrigerant (Freon), which is not only harmful to the environment, but also becoming increasingly expensive as its phasing out in 2020.
If your system uses R-22 and has a coolant leak, it’s generally more cost-effective and environmentally responsible to replace it with a unit that uses R-410a, a more eco-friendly refrigerant.

3. Energy Efficiency:

Evaluate whether your energy bills are increasing despite steady rates from your electric company. This could indicate that your AC unit’s efficiency is declining.
Upgrading to a new, energy-efficient model can reduce your home cooling costs by 20-40%, according to EnergyStar. Although the initial investment might be substantial (average costs range from $3,888-$7,948), the savings over time can justify the expense, especially if you plan to stay in your home for another 7-10 years.

4. Repair Costs vs. Replacement Costs:

Consider the cost implications of both repairing and replacing your AC. A good rule of thumb is if the repair costs multiplied by the age of the unit exceed $5,000, replacement might be the more economical choice. We’ll explore this rule later.

Estimating the Costs: Repair vs. Replacement

According to HomeAdvisor , the average cost to repair an AC unit in the United States is approximately $405, with a typical range between $170 to $641. However, more extensive repairs can reach as high as $2,400. Specific repairs, such as replacing a home air compressor, can cost between $1,350 and $1,800, while replacing an evaporator coil ranges from $650 to $1,200. So, it’s safe to say that even repair costs can make a dent in your wallet.

The $5,000 Rule

To decide whether to repair or replace your AC unit, many HVAC technicians use the $5,000 rule. Multiply the cost of the repairs by the age of the unit in years.

For example:

If repair costs are $500 and your unit is 5 years old, the total would be $2,500. It would be more cost-effective to repair.
If repair costs are $900 and your unit is 10 years old, the total would be $9,000. In this case, replacing the system would be more sensible.

Potential Savings with a New AC Unit

While the initial expense of a new AC unit can be high, the long-term savings can be significant. Use tools like our New AC Unit Savings Calculator to estimate how much you can save with a more energy-efficient unit.

Real-World Example of Calculating Savings on a New AC Unit Consider a 15-year-old, 4-ton HVAC system, with today's repair costs estimated at $600, and a SEER rating of 8. Suppose the new system would be a 18 SEER model. Evaluation of the Existing System: Remaining lifespan of your system (Expected lifespan for an AC system is typically 10-15 years): 1 Year Today's repair cost: $600 Utility overpayment (Using the estimated savings calculated under the annual operating estimated costs): $450 Estimated annual future repairs (Anticipated yearly maintenance costs to keep the system functional): $400 Annual Club Membership or Maintenance: $150Estimated annual future repairs (Anticipated yearly maintenance costs to keep the system functional): $400 Subtotal (Estimated annual repairs + maintenance + utility overpayment): $1,000 Calculating Total Costs Over Remaining Life: Inflation: (Applying a historical 3% inflation rate on the subtotal [$1,000] over 1 year left): $1,030 Total cost for the existing system for 1 year including today’s repairs: ($1,030 + $600): $1,630 Financial Comparison to a New System: Amount that could be applied towards a new system, providing increased reliability and efficiency: $1,630 Inflation costs avoided by upgrading now: $1,090 Total potential savings by upgrading to a new system: $2,720 Investment required for a new system in 2020: ($10,000 - $1,630) = $8,370 Future Costs If Delaying the Upgrade: Future system price with inflation (Applying a 3% inflation rate, the cost of a similar new system in one year): $10,300 Total extra costs if delayed for one year: You would pay $930 more for the new system in one year, plus the $1,630 spent on maintaining the old system. This example demonstrates how replacing an old system not only avoids costly repairs and inefficiencies but also saves money in the long term by reducing energy bills and minimizing the impact of inflation on future purchases.

The Importance of Regular HVAC Maintenance

Regular maintenance is key to extending the lifespan and enhancing the efficiency of your HVAC system. Just as a car needs regular oil changes, your HVAC system requires periodic check-ups to ensure it runs smoothly and efficiently throughout the year. Here’s why routine maintenance is not just beneficial but essential:

1. Prevent Costly Breakdowns

Regular maintenance helps catch issues before they escalate into costly repairs or require a complete system replacement. By addressing problems early, you can save money and avoid the inconvenience of system failures during extreme weather.

2. Enhance Efficiency

Maintenance check-ups include cleaning and tuning the system to ensure it operates at peak efficiency. This can significantly reduce your energy bills as a well-maintained HVAC system uses less energy to heat or cool your home.

3. Improve Air Quality

HVAC systems circulate air throughout your home. Without regular cleaning, filters and ducts can accumulate dust and allergens, which are then distributed throughout your living spaces. Regular maintenance ensures cleaner air, reducing the risk of respiratory issues and allergies.

4. Extend System Lifespan

The better you care for your HVAC system, the longer it will last. Regular maintenance prevents the wear and tear that can shorten a system’s lifespan, ensuring you get the most out of your investment.

Join Legacy’s Maintenance Program To make regular maintenance hassle-free, consider enrolling in our Maintenance Program. This program is designed to keep your system in optimal condition with scheduled services that include comprehensive checks and maintenance tasks. Members benefit from priority service and special pricing, ensuring your HVAC system is always a step ahead in efficiency and reliability.

Need AC Repair or Replacement? Call Legacy

If you find yourself facing the need for AC repairs or considering a new installation, Legacy is the trusted choice. Our experienced technicians are equipped to handle all aspects of HVAC service, from routine maintenance to full system replacements.

Don’t let HVAC issues stress you out. Contact Legacy today.

Should You Repair or Replace Your Broken AC Unit?