When to Repair vs. Replace Your AC Unit

Every homeowner dreads the day their air conditioner stops blowing cold. The first question is always: "Can you fix it?" followed quickly by "Do I need a new one?"

Because AC replacements are major investments, we believe it's crucial for homeowners to understand the math behind repairing versus replacing their old system. At SunDollar A/C & Heat, we are a repair-first company. But sometimes, pouring money into a dying system is a bad financial move. Here is how you can tell the difference.

The $5,000 Rule

A quick rule of thumb used by honest HVAC technicians is the $5,000 rule. It helps you calculate if the repair cost is justifiable based on the system's remaining lifespan.

Multiply the Age of the Unit × Estimated Repair Cost

If the total is greater than $5,000, you should strongly consider replacing the system.

• Scenario A: Your 5-year-old AC needs a $300 blower motor. ($300 × 5 = $1,500). Replace the motor! It has plenty of life left.
• Scenario B: Your 12-year-old AC needs a $1,200 compressor. ($1,200 × 12 = $14,400). Stop! Stop spending money on this old system. Put that $1,200 toward a brand new, highly efficient AC.

R-22 Freon Is Obsolete

If your air conditioner was manufactured before 2010, it almost certainly uses R-22 refrigerant (often called Freon). This chemical was officially banned for production and import in the US in 2020 because it depletes the ozone layer. As a result, the remaining supply of R-22 is unbelievably expensive.

If your R-22 system develops a refrigerant leak in the evaporator coil or condenser, you are looking at massive costs simply to refill the system—and that doesn't even cover the cost of patching the leak. If you have an R-22 unit leaking refrigerant, it is almost always better to bite the bullet and upgrade to a modern, environmentally-friendly R-410a or R-454B system.

Are Your Energy Bills Skyrocketing?

Take a look at your August electric bill this year compared to the exact same month five years ago. Yes, electricity rates have gone up, but is your usage significantly higher?

As air conditioners age, they lose efficiency. The compressor strains, the coils corrode, and it takes longer to cool your home. Furthermore, older systems were built to a 10 SEER rating, while minimum standards today are 14.3 SEER2 or higher. By upgrading from an old 10 SEER unit to an 18 SEER2 Variable Speed system, you could potentially cut your cooling costs in half. In some cases, the monthly energy savings completely offsets the financing payment for the new equipment!