When a furnace breaks down, the first question is always: "Should I repair it or replace it?" Making the wrong choice can cost you thousands. Here is our framework for making the right decision.
The $5,000 Rule
Multiply the age of your equipment by the estimated cost of the repair. If the result exceeds $5,000, replacement is usually the better financial decision.
Age Matters
Furnaces typically last 15-20 years. If your system is over 12 years old and needs a major repair, replacing it with a modern, high-efficiency model (or a heat pump) makes sense.
Efficiency Gains
Old furnaces may operate at 70-80% efficiency, meaning 20-30% of the fuel you buy goes up the chimney. Modern condensing furnaces operate at up to 98% efficiency, while heat pumps can exceed 300% efficiency. The fuel savings alone can offset the cost of a new system over time.