Repair vs Replace Calculator
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About this Repair vs Replace calculator
Sooner or later, every maintenance team faces the same dilemma: should we keep repairing this asset, or is it finally time to replace it?
This free calculator helps you answer that question in seconds, using just four simple data points:
- Replacement cost: What it would cost to buy and install a new unit.
- Repair cost: The estimated cost to repair the current equipment, including parts and labor.
- Equipment age: How long the asset has been in service since installation or purchase.
- Expected lifespan: The typical useful life of this type of equipment under normal operating conditions.
It shows which option — repairing vs replacing the asset with a new one — gives you the lowest cost per year (CPY) of useful life, based on the asset’s current age and expected lifespan.
CALCULATION EXAMPLE:
- Replacement cost: $9,000
- Repair cost: $3,000
- Age: 6 years
- Expected lifespan: 10 years
Repair CPY = $3,000 ÷ 4 = $750/year
Replace CPY = $9,000 ÷ 10 = $900/year
✅ Result: Repairing the asset is the more cost-effective decision in this case.
An alternative repair vs replace calculation
For teams that want to factor in downtime and maintenance costs, or plan to replace the existing asset with an asset of a different type, there’s a more comprehensive way to evaluate the repair vs. replacement decision.
You’ll need to know the following variables:
- Repair cost: The amount needed to fix the existing asset and get it running again. Include parts, labor, and service fees.
- Replacement cost: The total cost of buying and installing a new asset, including purchase price, setup, and commissioning.
- Remaining useful life: The number of years (or months) the repaired asset is expected to keep working before it must be replaced.
- New asset life expectancy: How long a brand-new replacement should last under normal operating conditions.
- Downtime cost: The estimated cost of lost production, labor, or revenue for each day (or hour) the asset is out of service during repair or replacement.
- Maintenance cost: The average yearly maintenance expense for each option — typically higher for older assets than new ones.
This method looks at each option’s total cost over time:
- Repair TCO = Repair Cost + Downtime Cost + (Maintenance Cost × Remaining Useful Life)
- Replace TCO = Replacement Cost + Downtime Cost + (Maintenance Cost × New Asset Life )
The option with the lower total cost per operating year provides better long-term value.
This expanded model is useful for critical equipment or assets with large differences in downtime or maintenance requirements. It helps you see the true cost of keeping older equipment versus investing in something new.
While more accurate, it can be quite challenging to get accurate numbers that you can plug into the calculator.
Best practices for making good repair or replace decisions
Getting the most out of the Repair vs. Replace Calculator depends on the quality of your data and how consistently you use it. Make smarter decisions by sticking to the following best practices.
Keep detailed cost records
Good decisions start with good data. Try to record every repair cost — parts, labor, and service fees — along with the date and type of failure. Include downtime duration and cost if possible.
Over time, this creates a clear history of how much each asset truly costs to keep running. Accurate records make your repair vs. replace calculations far more reliable.
Use realistic lifespan estimates
Don’t guess how long an asset will last — use real evidence. Check maintenance logs, manufacturer specifications, or industry averages to set realistic lifespan expectations.
If you’re unsure, look at similar assets in your facility: how long did they run before major overhauls or replacements were needed? Basing lifespan on data (not hope) prevents misleading results.
Run multiple asset scenarios
Don’t just test one machine — run the calculator for all major assets. Comparing results side-by-side helps you identify which type of equipment drains your budget fastest and which repairs still make sense. Group assets by type or criticality to see patterns: for example, older HVAC units or conveyors might consistently fall on the “replace” side of the equation.
Combine results with reliability metrics
Your cost numbers tell one story, but reliability data completes the picture. Use metrics like Mean Time Between Failures (check our online MTBF calculator), failure frequency, and downtime history to understand how dependable each asset really is.
If an asset’s cost looks reasonable but it fails often, the hidden downtime cost may still make replacement the smarter move.
Revisit the numbers regularly
A repair vs. replace decision isn’t permanent. Re-run the calculator every six to twelve months — or after major repairs — to see how your numbers change. As equipment ages and costs rise, what was once a “repair” decision might shift toward “replace.”
What to do when you know your numbers
Here are some smart ways maintenance and reliability teams can put this data to work:
- Plan smarter maintenance spending: Use the results to decide where repair budgets should go and which assets deserve replacement funds. Focus your resources where they’ll make the biggest difference.
- Prioritize high-cost assets: Assets that consistently fall on the “replace” side of the calculator may be draining your budget. Use that insight to target them for upgrades or phase-outs.
- Support capital planning: When you can show the cost-per-year difference between repairing and replacing, it’s easier to justify funding for new equipment. Data beats guesswork in every budget discussion.
- Reduce downtime risk: If an asset’s repair costs keep climbing or its expected life is nearly used up, plan a replacement before failure happens. Preventive replacement avoids costly breakdowns and production delays.
- Guide long-term investment decisions: Tracking repair vs. replace results over time helps you spot trends in asset reliability and lifecycle cost. That insight can shape your future purchasing and maintenance strategies.
Bottom line: The repair vs. replace calculation isn’t just a one-time decision tool. Used consistently, it can help reduce maintenance costs and make data-backed asset management decisions.
