Repair vs Replace: Cost per Year

Enter the cost and expected lifespan for each option. Annual cost is cost divided by years of use.

Repair Lower annual cost

Repair cost ($)

Years it will last

Cost per year = repair cost ÷ years

Replace Lower annual cost

Replacement cost ($)

Years it will last

Cost per year = replacement cost ÷ years

Comparison:

This compares annual cost only. It does not account for downtime, reliability, energy use, resale value, or other factors, so the lower number is not necessarily the best decision.

Example: a $100 repair

Suppose the repair costs $100 and lasts 2 years, while replacing costs $200 and lasts 5 years.

Repair: $100 ÷ 2 years = $50.00 per year

Replace: $200 ÷ 5 years = $40.00 per year

Here replacing has the lower annual cost, by $10.00 per year, even though the repair is cheaper up front.