The 50% Rule
If repair costs exceed 50% of replacement cost, replacement usually makes sense. A $2,000 repair on a system that costs $4,000 to replace is borderline.
Age Considerations
Air conditioners last 15-20 years. If your system is 12+ years old and needs major repairs, replacement provides better long-term value.
Efficiency Improvements
A 15-year-old 10 SEER system uses 40% more electricity than a new 16 SEER unit. Energy savings can offset replacement costs.
Refrigerant Issues
Systems using R-22 (Freon) face expensive repairs as the refrigerant becomes scarce. R-22 systems are strong replacement candidates.
Repair History
Frequent repairs indicate systemic problems. If you've spent significant money on repairs recently, further issues are likely.
Comfort and Features
Replacement offers opportunity for upgrades: variable-speed operation, smart controls, improved humidity management, and quieter operation.