HVAC Replacement Rule:
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The $5000 replacement rule is a guideline used in the HVAC industry to determine whether to repair or replace a system. If the product of the system's age (in years) and repair cost exceeds $5000, replacement is typically recommended.
The calculator uses the simple formula:
Where:
Explanation: This rule accounts for both the diminishing returns of repairing older systems and the increasing likelihood of future repairs.
Details: Making the right repair/replace decision can save thousands in unnecessary repairs or premature replacement costs, and ensure optimal system efficiency.
Tips: Enter the system's age in years and the estimated repair cost in dollars. The calculator will determine if replacement is recommended based on the $5000 rule.
Q1: Is the $5000 rule always accurate?
A: It's a guideline, not an absolute rule. Other factors like system efficiency, refrigerant type, and future plans for the building should also be considered.
Q2: What if my system is very old but repair is cheap?
A: Even if the score is below 5000, very old systems (15+ years) may still warrant replacement for efficiency and reliability reasons.
Q3: Does this apply to all HVAC equipment?
A: The rule works best for central air conditioners and heat pumps. Furnaces and boilers may have different considerations.
Q4: Should energy efficiency factor into the decision?
A: Absolutely. Newer systems are significantly more efficient, which can offset replacement costs through energy savings.
Q5: How accurate are repair cost estimates?
A: Get multiple quotes for major repairs. The calculator is only as accurate as the repair cost estimate you provide.