1. What is the $5000 Rule?

The $5000 rule is a simple guideline to help homeowners decide whether to repair or replace their HVAC system. If the product of your system's age (in years) and the repair cost exceeds $5000, replacement is typically recommended.

2. How Does the Calculator Work?

The calculator uses the $5000 rule formula:

Where:

• Age — Current age of your HVAC system in years
• Repair Cost — Estimated cost of the needed repair in dollars
• 5000 — The threshold value for replacement recommendation

Explanation: This rule accounts for both the diminishing returns of repairing older systems and the increasing likelihood of future repairs as systems age.

3. Importance of HVAC Replacement Decision

Details: Making the right repair/replace decision can save thousands of dollars in the long run. Older systems that require frequent repairs often become less energy efficient, costing more in utility bills.

4. Using the Calculator

Tips: Enter your HVAC system's age in years and the estimated repair cost in dollars. The calculator will apply the $5000 rule and provide a recommendation.

5. Frequently Asked Questions (FAQ)

Q1: Is the $5000 rule always accurate?
A: It's a guideline, not an absolute rule. Consider energy efficiency, system performance, and your long-term plans for the property.

Q2: What if my system is very old but repair is cheap?
A: Even if the product is under $5000, very old systems (15+ years) may still warrant replacement due to inefficiency.

Q3: Does this account for energy savings from new systems?
A: No, the rule is purely based on age and repair cost. Newer systems are typically 20-40% more efficient.

Q4: Should I consider other factors beyond this calculation?
A: Yes, consider system performance, comfort issues, refrigerant type (if phasing out), and planned home ownership duration.

Q5: How accurate does the repair estimate need to be?
A: Get at least 2-3 professional estimates for significant repairs to ensure you're making an informed decision.