HVAC installation vs HVAC repair

Should you repair your aging HVAC system or replace it? Compare costs, efficiency gains, and the break-even point for a new installation.

HVAC repair ($150–$600 for common fixes) makes sense when the system is under 10 years old, the repair costs less than 50% of replacement, and the unit still uses current refrigerant (R-410A). Common repairs include capacitor replacement ($150–$300), contactor swap ($200–$400), refrigerant recharge ($200–$500), and blower motor replacement ($300–$600). HVAC installation ($4,000–$12,000 for a central system) becomes the better investment when the unit is 15+ years old, uses phased-out R-22 refrigerant (production ended 2020, prices 3–5x higher), requires a compressor replacement ($1,500–$3,000), or has a cracked heat exchanger (safety hazard — immediate replacement). The efficiency gap drives the math: a 15-year-old system rated at 10 SEER replaced with a modern 16 SEER unit cuts cooling costs by 35–40%. At $200/month in cooling costs, a $8,000 installation pays for itself in 5–6 years through energy savings alone. The $5,000 rule is widely used: multiply the unit's age by the repair cost — if the result exceeds $5,000, replace rather than repair.