When the time comes it can be daunting to choose between repair or replacement, however at OACR we have a method that can be used as a baseline to evaluate between these two options. For many repair costs, it can be unreasonable to dumb 20-40% of the cost of a new unit into an aging and failing unit, so here is a simple formula to calculate that.
We recommend using the rule of 10,000, a simple adaptation to an industry standard that accounts for the more modern AC unit pricing. Take the age of the system, and multiple times the cost of the repair. If this ends up being more than 10,000 then it’s not worth the repair and a replacement is a smarter use of your money.
Lets compare a 900 dollar repair on an 8 year old system to a 1200 dollar repair on a 12 year old system
900$ x 8 years = 7,200$
1200$ x 12 years = 14,400$
As we can see, the first calculation was under 10,000 and as a result it makes financial sense to do AC repair instead of replace. However in the second equation it was over 10,000 and that means it would be illogical to repair instead of replace.
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AC Repair Typical Costs and Related Factors
It can feel confusing when given a price on AC repair because a lot of these parts and the processes that are involved are unfamiliar to many homeowners. One thing to consider is that these can vary based on a few factors;
Refrigerant type (R-22 vs R-410a for example) can affect the cost of the ac repair. For older refrigerant types it can be more expensive since they are being phased out or banned for current unit sale. Learn more on this
Another factor that can affect price is the location of the unit. For tight spaces like attics, crammed basements, or units tucked away it can cost more since there is more work involved and less space to do it. However for basement units or outside ground units that have lots of space around this shouldn’t be a factor in the price.
The size of the house can also affect repair costs because they typically involve a more heavy duty unit or multiple units to properly remove heat. So larger houses with beefier units can expect a slightly higher cost on repairs.
Full disclosure we are not an HVAC repair or replacement company and our pricing is just estimates
AC replacement Typical cost and related factors
Just like how repairs depend on a variety of factors, these same factors apply to new units and their installation, and a few more
Refrigerant type isn’t much of a concern since most units will be using the same refrigerant when being installed in the same year. However the size of the house can make a bigger difference than in repairs, since the square footage is the main factor in the size of the unit. This means that bigger houses will pay significantly more for a stronger unit that is going to work properly.
Location of the install can be one of the biggest factors, since attic or basement units require a heavy machine to be moved up or down and takes a lot more work. For those who have a nonstandard location like the outside ground units, this can raise the cost up significantly.
A factor that we haven’t discussed at all yet is the condition of the area where the unit is. If it is old and degraded and requires extra work to restore it for proper function, this brings a whole new set of tasks.