Should I Repair or Replace My Furnace? A Guide from a Texas HVAC Expert

When deciding between furnace repair or replacement in North Texas, understanding your options can help save money and improve your home’s comfort.

As a licensed HVAC master technician serving Texas homeowners for decades, I’ve helped 100’s of families make the best decision for them and their families based on their unique situations.

In this guide, I’ll walk you through the main factors I consider when providing homeowners with options, including a third solution we offer at billyGO—a Furnace Factory Refresh.

Key Factors to Decide: Repair vs. Replace Your Furnace…or Refresh

Here’s a breakdown of what to evaluate when your furnace isn’t working as it should:

1. Age of Your Furnace & Life Expectancy

• Most furnaces in Texas have a life expectancy of about 15 years, thanks to our milder winters.
• If your furnace is nearing or over this age and has recurring issues, replacement might be the best option.

Older systems are less efficient and more likely to have hidden issues, meaning frequent repairs could cost more in the long run.

2. HVAC Repair Costs vs. Replacement Costs: The $5,000 Rule or 50% Rule

An easy way to decide whether to repair or replace your HVAC system is to use the $5,000 rule, a trusted HVAC industry guideline.

• How It Works: Multiply the age of your equipment by the cost of the repair.
• If the total is less than $5,000, it’s usually worth repairing.
• If the total exceeds $5,000, replacement is typically the smarter choice.

Example:

• Furnace Age: 16 years
• Repair Cost: $650
• $650 x 16 = $10,400 → Replacement recommended.

Trane has a calculator using this rule here.

The 50% Rule:

Another way is to calculate if the cost of repairs is less than 50% of the replacement cost and your furnace is under 10 years old, a furnace or HVAC repair is usually worth it.

3. Repair History and Frequency

If your furnace has required 3 or more repairs in the last 3 years, this could indicate deeper issues. Recurring breakdowns often signal that other components are nearing failure.

Even if each repair seems minor, the cumulative cost could surpass the price of a new furnace.

4. Warranty Status and Coverage

• Active Warranty: If your furnace is still under warranty, furnace repair costs might be covered, making repairs a smarter option.
• Expired Warranty: Without coverage, you’re responsible for the full cost of repairs, which could make replacement a more appealing choice.

Check your warranty details before deciding, as this can significantly impact your out-of-pocket costs.

5. Energy Efficiency and Monthly Costs

Older furnaces tend to have lower efficiency ratings, meaning they use more energy to heat your home. If you’ve noticed rising energy bills during the colder months, your furnace may be the culprit.

• New Systems: Modern furnaces boast Annual Fuel Utilization Efficiency (AFUE) ratings of 90–98%, translating into significant energy savings over time.
• Old Systems: Older units may only be 65–75% efficient, costing you more in monthly energy bills.

6. Your Long-Term Homeownership Plans

Are you planning to stay in your home for 5 years or more? If so, investing in a new furnace or HVAC system could provide better long-term value. An HVAC system replacement will improve your home’s comfort, reduce energy costs, and increase resale value if you decide to sell later.

The Cost-Effective 3rd Option: HVAC or Furnace Factory Refresh

At billyGO, we offer a unique 3rd option: a Factory Refresh. This service is perfect if your furnace is still functional but showing signs of wear and tear.

What Is an HVAC or Furnace Factory Refresh?

• A comprehensive overhaul of your existing furnace to restore efficiency and performance.
• Includes replacement of key major components and recalibration.
• Backed by a 4-year warranty for peace of mind.

Is an HVAC or Furnace Factory Refresh Right For Me?

If your furnace is between 6 to 12 years old and it’s starting to show its age with repair costs adding up, this can be a cost-effective alternative to a full replacement. Ask your technician to provide you with a breakdown of repair vs refresh vs replacement.

Common Questions About Furnace Repair or Replacement

Should I Replace My Furnace When I Replace My AC?

If your furnace and AC are both over 10 years old, replacing them together can be a smart choice. A matched system ensures compatibility, maximizes efficiency, and reduces overall installation costs by replacing the entire system together.

How to Tell If My Furnace Is Electric or Gas?

Check your energy bill or look for a gas line connection near your furnace to identify its type.

Understanding your furnace type can help you evaluate repair or replacement options:

• Electric Furnace: Often quieter and less maintenance-intensive but may have higher operating costs. Although more and more high-performance heat pumps are going to market every year.
• Gas Furnace: More common, especially in Texas, and usually more cost-efficient for heating larger homes.

When to Call a Professional for Help

If you’re unsure whether to repair or replace your furnace or HVAC system, it’s always best to consult a licensed HVAC professional. At billyGO, we provide free detailed assessments and options to help you make the right choice. During an inspection, we’ll:

• Evaluate the age, efficiency, and condition of your system.
• Calculate repair vs. replacement vs. factory refresh costs.
• Offer transparent pricing and recommendations tailored to your needs and budget.

How billyGO Simplifies Your Furnace Repair or Replacement Decision

At billyGO, we’re committed to simplifying the repair vs. replacement (vs. refresh) decision for our customers:

• Transparent Pricing and Free Estimates: We provide free estimates on new equipment and break down all costs so you can weigh your options confidently.
• Financing Options: Replacing a furnace or HVAC system is a significant investment, but our flexible financing plans make it more accessible.
• Comprehensive HVAC Services: Whether you choose a repair, replacement, or our Factory Refresh, we’re here to ensure your home stays comfortable and efficient.

Frequently Asked Questions

Q: How Do I Know If I Should Repair or Replace My Furnace?

A: Use the $5,000 rule, evaluate repair frequency, and consider your system’s age and efficiency. If your furnace is over 15 years old, replacement is often the best option.

Q: What Is a Furnace Factory Refresh?

A: billyGO’s Factory Refresh is a cost-effective service that restores your furnace’s performance by replacing key components with brand new parts and includes a 4-year warranty.

Q: Should I Replace My Furnace with My AC?

A: Replacing both at the same time can save money and improve efficiency, especially if they’re both older or not compatible.

Ready to Decide? Call billyGO Today!

If you’re still wondering whether to repair or replace your furnace, let us help. Our licensed HVAC technicians are here to guide you every step of the way. Call billyGO today for a free consultation or schedule your service online. Whether it’s a repair, replacement, or Factory Refresh, we’ll ensure your home stays warm and comfortable all winter long.

Key Takeaways

• Evaluate your furnace’s age, repair history, energy efficiency, and warranty status to make the right decision.
• Use the $5,000 rule as a quick guideline for repair vs. replacement.
• Consider billyGO’s Furnace Factory Refresh for a cost-effective alternative with a 4-year warranty.