Quick Answer
Use the 50% rule: if the repair costs more than 50% of a new system's price, replace. For most Charlotte homes, that threshold is around $3,000-$5,000. Also replace if your AC is 15+ years old with a major repair, uses R-22 refrigerant, or has needed multiple repairs in the past 2 years. Minor repairs (under $500) are almost always worth doing regardless of age.
When your AC breaks down, the repair-or-replace decision can feel overwhelming—especially when you're hot, stressed, and a contractor is standing in your driveway. This guide gives you a clear framework for making the right decision without pressure.
As a company that doesn't pay sales commissions, we have no financial incentive to push you toward replacement. We'll tell you when a $200 repair is the smart call, even if it means a smaller invoice for us.
The Decision Framework
Rule #1: The 50% Rule
If the repair costs more than 50% of what a new system would cost, replacement usually makes more financial sense. For most Charlotte homes, a new AC runs $5,800-$10,000, so the repair threshold is roughly $3,000-$5,000.
Rule #2: The Age Factor
AC systems typically last 15-20 years. As they age, repairs become more frequent and efficiency declines. Here's how age affects the decision:
Repair vs. Replace by AC Age
| AC Age | Minor Repair (<$500) | Major Repair ($500-$1,500) | Critical Repair ($1,500+) |
|---|---|---|---|
| 0-8 years | ✓ Repair | ✓ Repair | Usually repair (check warranty) |
| 8-12 years | ✓ Repair | ✓ Probably repair | Consider replacing |
| 12-15 years | ✓ Repair | Evaluate carefully | Lean toward replacing |
| 15-20 years | ✓ Repair | Consider replacing | ✗ Replace |
| 20+ years | ✓ Repair (if minor) | ✗ Replace | ✗ Replace |
Minor repairs include capacitors, contactors, and fan motors. Major repairs include refrigerant leaks, coil replacements, and circuit boards. Critical repairs include compressor replacement.
Rule #3: The R-22 Factor
R-22 Refrigerant = Replace Sooner
When Repair Is (Almost) Always the Right Call
- Capacitor replacement ($200-$300)—the most common AC repair, quick and inexpensive
- Contactor replacement ($250-$400)—simple electrical component
- Thermostat issues ($100-$400)—often the cheapest fix
- Clogged drain line ($100-$200)—maintenance issue, not equipment failure
- Any repair under $500 on a system less than 12 years old
These repairs are routine maintenance items, not signs of a failing system. Replacing a $200 capacitor is always smarter than buying a $7,000 system.
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When Replacement Makes More Sense
- Compressor failure on a system over 10 years old ($1,500-$3,500 repair)
- Any major repair on an R-22 system
- Multiple repairs totaling $1,000+ in the past 2 years
- System is 15+ years old and needs a repair over $800
- Energy bills have increased 20%+ over the past 2-3 years
- System can't maintain comfortable temperatures on hot Charlotte days
- You're experiencing frequent breakdowns (3+ service calls in 2 years)
Real Cost Comparison: Repair vs. Replace
Let's look at a common scenario: your 14-year-old AC needs a $1,800 repair (evaporator coil replacement).
Repair vs. Replace: 14-Year-Old AC Needing $1,800 Coil Repair
| Feature | Repair ($1,800) | Replace ($7,500 new system) |
|---|---|---|
| Immediate Cost | $1,800 | $7,500 (or ~$120/mo financed) |
| Expected Remaining Life | 3-6 years | 15-20 years |
| Annual Energy Cost | $1,200+ (old, inefficient) | $800-$900 (new, efficient) |
| Future Repair Risk | High (aging components) | Low (new warranty) |
| Total Cost Over 5 Years | $7,800+ (repair + energy + likely more repairs) | $11,500 (equipment + lower energy) |
| Total Cost Over 10 Years | $15,000+ (new system anyway + higher energy) | $15,500 (one system, lower energy) |
| Comfort | Same (declining) | Better (quieter, more even cooling) |
At the 10-year mark, the costs nearly converge—but the replacement path gives you a new, efficient, warrantied system for the entire period instead of nursing an aging one.
How to Check Your AC's Age and Refrigerant Type
Find Your AC's Details
- 1
Locate the Nameplate
Find the metal label on your outdoor AC unit. It's usually on the side or back panel.
- 2
Find the Model and Serial Number
Record both numbers. The serial number typically contains the manufacture date (encoding varies by brand).
- 3
Check the Refrigerant Type
The nameplate lists the refrigerant type. R-22 = old (phased out). R-410A = current standard. This is the single most important factor in the repair-vs-replace decision for major repairs.
- 4
Not Sure? We Can Help
Call us with your model/serial number and we can look up your system's age, refrigerant type, and specs in minutes.
💡 Take a photo of the nameplate and text it to us—fastest way to get your system info.
Real Customer Review★★★★★"Our 15-year-old AC needed a compressor. Kodiak gave us an honest assessment—repair would be $2,200, but the system was on borrowed time. We put that money toward a new system instead. Really appreciated the honesty."
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Written by
Kodiak HVAC Team
HVAC professional at Kodiak Heating & Cooling.