Your air conditioner is on the fritz again, and it doesn’t look good. You call for repairs, and you get hit with a massive repair bill that you didn’t expect–after all, it didn’t cost that much last time.

We know it’s frustrating, but it could be a signal that your air conditioner is on its way out… maybe. Let’s go over the ways you can know if your air conditioner falls under the $5,000 rule, or if you need to simply repair your unit.

The $5,000 rule is an industry accepted rule for determining whether to repair or replace an HVAC system. Multiply the age of your equipment by the cost of the repair. If the outcome is under $5,000, you should probably repair. If over $5,000 you should replace.

Replace if…

• Your warranty has expired and you are no longer covered.
• Your product’s age is within life expectancy or older.
• Your product had 3+ repairs in the last 3 years.
• The equipment’s general performance is worse than before.
• You plan to live in your home 7 years or more.
• The product is 10+ years old and you want to optimize energy efficiency. Newer models run more efficiently and keep costs down.
• You have talked to a dealer and they have also mentioned these industry standards and guidelines.
• Your unit uses R-22 Freon: This freon is being phased out because it is harmful to the ozone layer.