Repair usually makes sense if the system is fairly young and the fix is small. Replacement is worth a look when an AC or heat pump is more than 10 years old, a furnace is more than 15, repairs keep adding up, or an older AC still uses R-22 refrigerant. A quick rule: multiply the system's age by the repair cost. If it tops $5,000, get a replacement quote too.
Start with the age
ENERGY STAR suggests thinking about replacement when a heat pump or air conditioner is more than 10 years old, or a furnace or boiler is more than 15 years old. That does not mean a 12-year-old AC must go. It means that once you pass those ages, a big repair deserves a second look, because newer equipment is more efficient and the next part to fail may not be far behind.
Maintenance history matters too. A 13-year-old system that was tuned up every year can be in better shape than an 8-year-old one that was never serviced.
The $5,000 rule of thumb
Many contractors use a simple test: age of the system times the repair cost.
- An 8-year-old AC with a $300 repair: 8 x 300 = 2,400. Repair it.
- A 14-year-old AC with a $600 repair: 14 x 600 = 8,400. Get a replacement quote before you decide.
It is only a starting point. Also think about how long you plan to stay in the home, whether the system has needed other repairs lately, and whether rooms have ever been comfortable.
Other signs it may be time
- Repairs are getting more frequent and energy bills keep rising.
- Some rooms are always too hot or too cold.
- Humidity problems, extra dust, or loud operation.
- The compressor (AC) or heat exchanger (furnace) has failed. These are the most costly parts, and on older systems the repair can cost a large share of a new unit.
A cracked furnace heat exchanger is a safety issue because it can let carbon monoxide into the home. If your CO alarm goes off, leave the house first, then call 911 from outside. If you smell gas, leave and call Nicor Gas at 888-642-6748 or 911 once you are safely away.
On the other hand, many common repairs are modest and worth doing even on an older system: a capacitor, contactor, igniter, flame sensor, or drain fix often keeps equipment running for years. The key is knowing which part failed and what shape the rest of the system is in.
If your AC still uses R-22
Many ACs installed before about 2010 use R-22. U.S. production and import of R-22 ended on January 1, 2020, according to the EPA. You can keep running an R-22 system, and it can still be serviced with recovered, reclaimed, or stockpiled R-22, but that supply only shrinks. Newer refrigerants are not a drop-in swap. EPA notes that equipment runs best on the refrigerant it was designed for.
So if an R-22 system needs a refrigerant leak repair or a new compressor, replacement is usually the better use of money. Systems that use R-410A can also still be repaired. Our article on R-454B and the refrigerant change explains what that means for you.
Costs, rebates, and tax credits
Price depends on the size of the home, the ducts, and the equipment you pick, so get a written quote. Yogi gives you a written quote before any work starts, and financing is available.
- Federal tax credits: The IRS says the Energy Efficient Home Improvement Credit (25C) only covers equipment placed in service through December 31, 2025. It does not apply to systems installed in 2026.
- ComEd: ComEd offers discounts on qualifying heat pumps bought through its network of heat pump-trained contractors. Amounts and rules change, so check ComEd's current offers before you buy.
When to call a pro
If you are facing a big repair on an older system, have a technician give you both numbers: the repair price and the replacement price. Yogi Heating & Cooling serves Schaumburg and nearby suburbs and will walk you through both options. Call (814) 431-1709 or book a visit. Before you replace, make sure the new system is sized with a load calculation. See what size AC or furnace your house needs.
More questions
How long does a central AC last?
Many last 10 to 15 years with regular maintenance. ENERGY STAR suggests considering replacement once an AC or heat pump is more than 10 years old.
Is it worth fixing a 15-year-old furnace?
For a small part like an igniter or a flame sensor, often yes. For a failed heat exchanger or control board on a furnace that old, compare the repair price to a replacement quote first.
Should I replace my furnace and AC at the same time?
Not always, but it can make sense when both are older. The indoor coil sits with the furnace, and matched equipment installed together tends to work best.
Can I still get a federal tax credit for a new AC or heat pump?
Not for 2026 installs. The IRS says the 25C credit applies only to equipment placed in service by December 31, 2025.
Related
- AC repair and installation
- Furnace and heating repair
- Financing
- HVAC questions
- Reviews
- R-454B and the refrigerant change: what it means for your R-410A or R-22 system