Whether you manage a commercial facility, oversee a school, or own a home, you’ll eventually face one big question: Should you repair your HVAC system, or is replacement the smarter long-term choice? And in Michigan, where winter furnace runtime is punishing, and summer humidity puts extra strain on AC systems, the decision isn’t always straightforward.

This guide breaks down HVAC repair vs replacement in plain language, explains the key cost and performance considerations, and gives you a clear framework to make the right call, with decades of Robertson Morrison’s experience behind it.

Quick Answer: Should You Repair or Replace Your HVAC System?

In most cases, you should repair your HVAC system if the issue is minor, the system is relatively young, and the cost is small. You should replace the system when:

• It’s 10–15+ years old
  
• A major component has failed
  
• Breakdowns are becoming more frequent
  
• Your energy bills are rising
  
• The system uses outdated R-22 refrigerant
  
• Comfort is inconsistent (temperature swings, humidity problems)
  

The $5,000 Rule
Multiply the age of your system by the repair cost.
If the total is more than $5,000, replacement is usually the better investment.

Key Factors to Consider When Evaluating Your HVAC System

1. Age of Your System

Most furnaces and AC units last 10–15 years, though Michigan’s climate can shorten that lifespan. Commercial rooftop units (RTUs) run even harder. Constant cycling, higher BTU loads, and year-round operation mean age becomes one of the most important decision-makers.

If your system is approaching or past this window, replacement begins to deliver better long-term ROI.

2. Cost of the Repair

Small repairs such as capacitors, sensors, or contactors typically don’t justify full replacement. But if you’re facing a compressor, heat exchanger, or coil replacement, the cost often pushes you into “replace” territory.

This is where the $5,000 Rule is especially helpful.

3. Frequency of Breakdowns

Two or more repairs within a 12–18-month window signals declining reliability.
For facility managers, downtime has a real cost: lost productivity, operational disruption, and unhappy occupants. In these cases, replacement often stabilizes your long-term budget.

4. Energy Efficiency

Energy efficiency standards evolve quickly. Older systems with low AFUE or SEER2 ratings can quietly add thousands to your annual utility spend. Modern systems significantly reduce energy use, especially in properties with long runtime requirements.

If rising power bills are showing up in your budget meetings, efficiency should factor heavily into the decision.

5. Refrigerant & Safety

If your AC still uses R-22, replacement is almost always the best choice; it’s no longer manufactured and repairs are costly.

For furnaces, any cracked heat exchanger or carbon monoxide risk requires immediate replacement for safety reasons.

Cost Comparison: Repair vs Replacement

Typical Repair Costs (National Ranges)

• Capacitor: $150–$500
  
• Blower Motor: $300–$1,200
  
• Evaporator Coil: $600–$2,000
  
• Compressor: $1,500–$3,500
  
• Heat Exchanger: $1,000–$3,500
  

Union or specialized commercial work often sits at the higher end of these ranges.

Replacement Cost Ranges (National Averages)

Again, high-level examples only:

• Furnace Replacement: $4,000–$9,000
  
• AC Replacement: $5,000–$12,000
  
• Heat Pump: $6,000–$14,000
  
• Full HVAC System: $10,000–$20,000+
  

How the $5,000 Rule Works

Example:

• Repair cost: $1,200
  
• System age: 12 years
  
• 12 × $1,200 = $14,400 → Replace
  

Example:

• Repair cost: $300
  
• System age: 6 years
  
• 6 × $300 = $1,800 → Repair
  

This rule isn’t perfect, but it provides a reliable starting point.

When Repair Is the Better Choice

Repairing your HVAC system makes sense when:

• The system is under 10 years old
  
• The warranty is still active
  
• You’re dealing with a minor component
  
• Energy bills remain stable
  
• The system has been well-maintained
  

For ongoing health and efficiency, pairing repairs with a solid HVAC maintenance plan can extend equipment life. Robertson Morrison offers fully customized, commercial-grade maintenance programs designed to prevent unexpected failures.

When Replacement Is the Smarter Investment

You should strongly consider replacement when:

• The system is 10–15+ years old
  
• A major component has failed
  
• Breakdowns are increasing
  
• Your building has comfort issues or humidity problems
  
• Energy bills are rising
  
• The system uses R-22 refrigerant
  

Commercial Building Considerations

For facility managers, replacement often makes even more financial sense because:

• RTU downtime directly affects occupant comfort
  
• Older systems consume significantly more energy
  
• Newer systems integrate with advanced building controls
  
• Lifecycle planning improves budget predictability
  

If your building is due for efficiency upgrades, you can explore modern replacements.

Michigan-Specific Factors That Influence the Decision

Michigan’s mix of long, cold winters and humid summers significantly impacts HVAC equipment wear. You should factor in:

• Higher furnace runtime during extreme cold
  
• Heavy dehumidification loads in summer
  
• Air quality and ventilation expectations in commercial environments
  
• Local and statewide energy efficiency incentives
  

Because of the climate, many Southeast Michigan systems hit end-of-life on the shorter side of the national lifespan range.

Repair vs Replacement Comparison Table

Factor	Repair	Replace
Age	<10 years	10–15+ years
Cost	Low to moderate	Higher upfront, lower lifetime cost
Breakdowns	Infrequent	Frequent or recurring
Energy Efficiency	Average	High
Comfort	Generally consistent	Improves comfort & control
Safety	Safe, no major risks	Necessary for major safety issues
Long-Term ROI	Short-term fix	Best long-term savings

Frequently Asked Questions

Still Deciding? We Can Help.

If you’re weighing HVAC repair vs replacement, Robertson Morrison provides honest assessments, lifecycle-focused recommendations, and transparent cost explanations tailored to Southeast Michigan homes and facilities.

Whether you’re managing a building or maintaining your home comfort, we’ll evaluate your system and walk you through every option.

Schedule your evaluation today.