Repair vs replace: the $5,000 rule
The $5,000 rule is a rule of thumb: multiply your system's age in years by the repair quote. If the result is over $5,000, replacement is usually worth considering; under $5,000, repair usually makes sense. A 12-year-old AC with a $500 repair scores $6,000. It's a starting point, not a verdict.
Examples
| System age | Repair quote | Age × cost | Rule suggests |
|---|---|---|---|
| 5 years | $400 | $2,000 | Repair |
| 10 years | $450 | $4,500 | Repair, but start planning |
| 12 years | $500 | $6,000 | Consider replacing |
| 16 years | $1,200 | $19,200 | Replace |
Example numbers are illustrations of the math, not price quotes.
When to ignore the rule
- Under warranty: a covered part can make repair cheap at any age.
- Old R-22 systems: R-22 refrigerant is no longer produced in the U.S., so leak repairs on these systems tend to get expensive.
- Safety issues: a cracked furnace heat exchanger is a replace-now problem.
- Comfort problems: if the home never feels right, a properly sized new system may fix more than a repair.
Ask for both quotes
For systems older than about 10 years, ask the contractor for a written repair quote and a replacement quote so you can compare. Typical published costs are in our AC replacement cost guide.
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Questions
What is the $5,000 rule for AC?
Multiply the system's age by the repair cost. Over $5,000 suggests considering replacement; under $5,000 suggests repair. It's a rule of thumb.
More guides
- AC replacement cost in Texas (2026)
- SEER2 requirements in Texas (DOE 2023 South region)
- How to check an HVAC contractor's TDLR license
- Heat pump vs furnace in Texas
- Texas HVAC rebates and tax credits 2026
- Signs your AC is failing
- Emergency AC repair: what to do first
Sources
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