HVAC $5000 Rule:
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The $5000 rule is a simple guideline to help 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: This rule helps homeowners make cost-effective decisions about HVAC maintenance versus replacement, considering both immediate costs and long-term value.
Tips: Enter your HVAC system's age in years and the estimated repair cost in dollars. The calculator will apply the $5000 rule and provide a recommendation.
Q1: Is the $5000 rule always accurate?
A: It's a guideline, not an absolute rule. Other factors like system efficiency, maintenance history, and future energy costs should also be considered.
Q2: What's the average lifespan of an HVAC system?
A: Typically 15-20 years, but this varies by system type, usage, and maintenance.
Q3: Should I always replace if the product exceeds $5000?
A: Not necessarily. If your system is well-maintained and the repair would extend its life significantly, repair might still be worthwhile.
Q4: How accurate does the repair estimate need to be?
A: The more accurate the estimate, the better the recommendation. Get multiple quotes if possible.
Q5: Does this account for energy efficiency improvements?
A: No. Newer systems are often more efficient, which could provide additional savings not reflected in this calculation.