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The 50% Rule for Repair vs. Replacement for Your Furnace

All good things come to an end, and that includes your furnace. It’s a powerful system you have there, but when it hits a huge repair bill, you have to wonder if it’s still worth keeping around or if it’s time for an upgrade.

Through all the furnace repair in Jackson Township, OH that we’ve handled, we’ve seen various issues and a gradient of repair estimates we have to give to our customers based on the specific problems with their furnace. That’s where the 50% rule comes into play: the deciding factor that helps homeowners either upgrade their furnace, or stick with it for a bit longer. Here’s what it is, and how you can use it to your advantage.

The Deciding Factor

The 50% rule essentially states that if a furnace repair is estimated to be 50% of the total price of a new furnace installation, then it’s better to just go with the new installation. There are a few reasons for this:

  • You’ve already sunk a lot of money into repairs over the years.
  • The new furnace has higher efficiency, so you’ll spend less on a monthly basis.
  • This isn’t the last repair you’re going to see for this furnace, and there’s no telling how expensive the next one will be, but older furnaces generally need more work done so it’s safe to assume it will be a big bill.

If your furnace is 10-15 years old, it’s inefficient. Even if it was top-of-the-line when you bought it and had it installed, natural degradation decreases its efficiency over time, and that much is unavoidable.

What if it’s 40% of the cost?

It’s important to note that this rule is more of a rule of thumb. It ultimately comes down to you, but it’s not black-and-white at the 50% price. If the estimate is still really high, you might just decide to go with the new furnace. Here’s why that could be a good idea.

  • There are current government tax credits through the Inflation Reduction Act that can offset the cost of a new furnace.
  • You could spend less on monthly bills and encounter fewer repairs over the next few years as well.
  • It’s an excuse to upgrade other parts of your home heating as well.

When we say “other parts”, we mean upgrading your insulation, checking for drafts near doors and windows, and basically having an excuse to take some time and ensure your home is as efficient as possible. Sealing your home will also help cut down on your energy costs at the same time.

Farewell, Old Furnace

If you do decide that it’s time to replace your furnace, we can help you with that, but if you just want to repair it in the meantime, we’re available as well. Whatever you need for your furnace, we’re here to help–just give us a call or fill out our submission form today and we’ll get back to you as soon as possible.

Contact us today to schedule your furnace repair as soon as possible.

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