The $5,000 rule and the age-cost math
The simplest screening tool we use is what the trade calls the $5,000 rule: multiply the cost of the repair quote by the age of the unit in years, and if the product is greater than $5,000, lean toward replacement. A $700 capacitor and contactor combo on an 8-year-old unit is $5,600 by that math, but it ignores that the underlying compressor is still healthy and the repair is genuinely modest, so we discount routine electrical repairs on otherwise healthy units. The math gets sharp when the repair is one of the big-ticket items: a compressor replacement at $2,800 on a 12-year-old unit ($33,600 by the rule) is almost always a replace decision, and a $1,900 evaporator coil on a 9-year-old unit ($17,100) deserves the same skeptical look. We pair this with two additional questions. First, how much longer do you plan to stay in the home? A homeowner planning to move within two years has a different calculation than one planning to stay a decade. Second, is the rest of the system healthy? Replacing a coil on an otherwise tired 13-year-old system buys you the coil's warranty period but does not improve the compressor, the ductwork, or the controls. We will not push you toward replacement when repair makes sense, but we also will not hide the math when it clearly does not.