Repair or Replace? The Real Math Behind Your 10-Year-Old AC

Mrs. Shah called me last week with a problem I hear almost daily: "My AC is 9 years old. The compressor failed. One technician quoted ₹12,000 for repair. Another said I should just buy a new AC for ₹35,000. I don't know what to do."

I understand the confusion. It's a significant decision. And there's no shortage of people with opinions - most of them wanting to sell you something.

So let me give you the honest math. The formula I've used for 30+ years to help customers make this decision.

The 50% Rule (And When to Break It)

Here's the industry rule of thumb: If the repair cost is more than 50% of a new AC's price, and your AC is over 7-8 years old, replace it.

In Mrs. Shah's case: Repair cost ₹12,000. New AC ₹35,000. That's 34% - under 50%. By the rule, repair makes sense.

But the rule is too simple. Here's what it misses:

Factor 1: Age and Expected Lifespan

A well-maintained AC lasts 12-15 years. Mrs. Shah's AC is 9 years old. After a ₹12,000 compressor replacement, she might get another 3-5 years - if everything else holds up.

But here's the reality: When a compressor fails, it's often a sign that other components are aging too. Within 18-24 months, she'll likely face another ₹3,000-5,000 repair.

Factor 2: Energy Efficiency

Mrs. Shah's 9-year-old AC is a 3-star non-inverter model. Monthly electricity in summer: about ₹2,400.

A new 5-star inverter AC would cost about ₹1,600/month for the same cooling. Savings: ₹800/month × 5 months = ₹4,000/year.

Over 5 years: ₹20,000 in electricity savings alone.

Factor 3: Total Cost of Ownership

Let's do the full math for Mrs. Shah:

I showed Mrs. Shah these numbers. Despite the ₹12,000 repair being "under the 50% rule," replacing made more financial sense.

When Repair Actually Makes Sense

Repair is the right choice when:

1. The AC is under 5 years old - Still has plenty of life left
2. Minor repair (under ₹3,000) - Gas refill, capacitor, sensor, etc.
3. Well-maintained unit with service history - Shows it's been cared for
4. Budget constraints - Sometimes you need the AC working today, even if replacement is better long-term

When Replacement is Better

1. Age 8+ years and major repair needed - Compressor, motherboard, heat exchanger
2. Frequent repairs - If you've spent ₹5,000+ on repairs in the last 2 years
3. Poor energy efficiency - Old non-inverter ACs cost significantly more to run
4. Multiple issues - Cooling problem + noise + leakage = dying AC
5. No service history - Unknown maintenance means unknown problems ahead

The Questions to Ask Your Technician

When facing this decision, ask:

• "What's the realistic lifespan after this repair?"
• "Are there other components showing wear?"
• "What's the likelihood of another major repair in 12-24 months?"
• "How much am I spending on electricity compared to a new inverter AC?"

A honest technician will tell you the truth. A salesman will push whatever makes them more money.

Special Cases

The Sentimental AC

I once had a customer refuse to replace a 14-year-old AC because "it has served us faithfully." I respect that. But I also explain the costs clearly. Sentimentality is fine as long as it's an informed choice.

The Tenant Dilemma

If you're renting, repair usually makes more sense even if replacement would be better long-term. You won't benefit from the energy savings for the full lifespan.

The Budget Reality

Sometimes ₹35,000 for a new AC isn't available, but ₹8,000 for repair is manageable. I get it. In that case, repair, but start saving for replacement. It's coming.

What Mrs. Shah Decided

After seeing the numbers, Mrs. Shah chose replacement. She bought a 5-star inverter AC for ₹36,000.

Six months later, she called to thank me. Her summer electricity bill dropped from ₹2,400 to ₹1,500. The AC cools faster and quieter. She calculated the new AC would pay for itself in electricity savings alone within 4-5 years - and she'd have a reliable, efficient AC for the next decade.