Tip
AC: replace or repair?
The "$5,000 AC needs a $1,500 repair" decision is one of the most common HVAC questions. Here's the math.
The 5,000 rule
Multiply the AC's age by the repair cost. If the result exceeds $5,000, replace. Example: a 12-year-old AC needing a $500 repair = 12 × $500 = $6,000 → replace.
Refine with these factors
| Replace if... | Repair if... |
|---|---|
| Uses R-22 refrigerant (banned, expensive) | Uses R-410A (current standard) |
| SEER < 13 (current minimum is SEER2 14-15) | SEER ≥ 14 (still efficient) |
| Compressor failure | Capacitor, contactor, fan motor (cheap repairs) |
| Multiple major repairs in 24 months | First major repair |
| > 12 years old | < 8 years old |
| Bills increasing year-over-year | Bills steady |
| You qualify for $2,000+ in rebates on replacement | Limited rebates available |
The hidden third option: heat pump replacement
If your AC is dying, the question isn't "AC vs repair" — it's "AC vs heat pump." A heat pump replaces both your AC and your heating equipment. The federal credit is $2,000 (vs $600 for AC). HEAR rebate adds up to $8,000. Utility rebates often run 2-3x larger for heat pumps than for AC.
If you're income-eligible for HEAR, replacing a dying AC + furnace combo with a heat pump can be a near-zero-cost upgrade after stacking. See heat pump page.
Don't fall for these
- "Free estimate" salespeople who push replacement on a fixable AC
- Refrigerant top-offs without finding the leak (you'll need another top-off in 1-2 years)
- "Whole-system replacement" recommendations when only the outdoor unit failed (matched coil + outdoor unit is needed; not a full duct replacement)