When your air conditioner stops working properly, you face a critical decision: should you repair your existing unit or install a new one? This choice affects your comfort, finances, and energy bills for years to come. Here’s what you need to know to make the right decision.
When AC Repair Makes Sense
Repairing your air conditioner is typically the better choice when:
The unit is less than 10 years old. Modern AC systems are built to last 15-20 years with proper maintenance. If your system is relatively young, repair is usually more cost-effective.
The repair cost is less than 50% of a new installation. Use this simple rule: multiply the repair cost by the age of your unit. If that number is less than $5,000, repair is likely your best option.
Only minor components need fixing. Issues like clogged filters, faulty thermostats, or refrigerant leaks are straightforward repairs that don’t justify full replacement.
Your energy bills haven’t increased significantly. If your utility costs remain stable, your system is still running efficiently enough to keep.
When AC Installation Is the Better Choice
Installing a new air conditioner becomes the smarter investment when:
Your unit is over 15 years old. Older systems use outdated technology and refrigerants. They’re less efficient and parts become increasingly difficult to find.
Repair costs exceed $3,000-$4,000. At this threshold, you’re essentially paying for a temporary fix. That money is better spent toward a new, efficient system.
Your energy bills keep climbing. An aging, inefficient AC can add hundreds to your annual cooling costs. A new Energy Star-certified unit can cut those costs by 20-40%.
You’re experiencing frequent breakdowns. If you’re calling for repairs multiple times per season, your system is telling you it’s reached the end of its useful life.
Your home has comfort issues. Uneven cooling, excessive humidity, or constant cycling indicate your current system can’t meet your home’s needs.
The 50% Rule for Decision Making
HVAC professionals use a straightforward formula: if the repair cost is more than 50% of a new system’s price, install new equipment. A typical AC installation costs $3,500-$7,500, while major repairs can run $1,500-$4,000.
Long-Term Cost Comparison
While repair seems cheaper upfront, consider the total cost over five years. An aging AC requiring multiple repairs plus higher energy bills can exceed the cost of a new installation. Modern systems also come with warranties covering parts and labor for up to 10 years.
Energy Efficiency Considerations
Today’s air conditioners are significantly more efficient than models from even 10 years ago. A new system with a SEER rating of 16 or higher can reduce your cooling costs by $200-$500 annually compared to an older 8-10 SEER unit.
Making Your Final Decision
The answer to “AC installation vs repair: which is better?” depends on three factors: age, cost, and efficiency. Repair makes sense for newer units with minor issues. Installation is better for older systems with expensive problems or poor efficiency.
Get quotes from licensed HVAC contractors for both repair and replacement. They can assess your specific situation, calculate your potential energy savings, and help you understand which option provides better value.
Your air conditioner is a major home investment. Choose repair when it extends your system’s life economically. Choose installation when repair becomes throwing money at a dying system. The right choice keeps you cool and saves you money for years ahead.