Repair or Replace? How to Decide What's Best for Your Appliance

When your appliance breaks down, you're faced with a common dilemma: should you pay to repair it or invest in a new one? Here's how to make the smartest financial decision.

The 50% Rule

The most commonly cited guideline is the 50% rule: If the repair cost is more than 50% of the price of a new appliance, it's generally better to replace it. But this rule alone doesn't tell the whole story.

A more nuanced approach: If the appliance is more than halfway through its expected lifespan AND the repair costs more than 50% of replacement, lean toward replacing.

Average Appliance Lifespans

Knowing how long appliances typically last helps you gauge whether yours still has good years ahead:

When to Repair

Consider repair if:

• The appliance is less than halfway through its expected lifespan
• Repair cost is less than 50% of replacement cost
• It's a simple, inexpensive fix (like a door seal or thermostat)
• It's a high-quality or premium brand that tends to last longer
• The appliance has been reliable with few previous repairs
• Finding an exact replacement is difficult (built-in units, specific sizes)

When to Replace

Consider replacement if:

• Repair cost exceeds 50% of a new appliance AND it's past half its lifespan
• You've had multiple repairs in the past few years
• The appliance is significantly past its expected lifespan
• Energy efficiency has improved dramatically (older models can cost significantly more to operate)
• Replacement parts are hard to find or discontinued
• It's a major repair like a sealed system or compressor on an older unit

Questions to Ask Your Repair Technician

• What's wrong with the appliance?
• How much will the repair cost (parts and labor)?
• Are there any other potential issues you see?
• Based on the appliance's age and condition, would you recommend repair or replacement?

A good technician will give you an honest assessment, even if it means recommending replacement over a profitable repair.

The Bottom Line

There's no one-size-fits-all answer. Consider the appliance's age, repair history, repair cost, and your budget. Sometimes a $200 repair on a quality 8-year-old refrigerator is a much better value than a $1,500 replacement. Other times, putting money into an aging, problematic appliance is throwing good money after bad.