Is Appliance Repair Worth It? How to Do a Cost-Benefit Analysis

Jul 13

When an appliance stops working, many homeowners face the same question: Should I fix it or replace it? The answer isn’t always simple. Some repairs are quick and affordable, while others cost almost as much as buying a new unit. To make the right decision, it helps to look at the problem from both a financial and practical standpoint.

This article will guide you through how to evaluate the real cost of a repair, when it makes sense to invest in fixing an appliance, and when replacement may be the better option. By using a clear cost-benefit analysis, you can avoid unnecessary spending and keep your home running smoothly.

Step 1: Identify the Appliance’s Age and Expected Lifespan

Every appliance has an average life expectancy. If yours is near or past its useful life, repairs might offer only short-term relief. Here are common lifespan estimates:

Appliance	Average Lifespan
Refrigerator	10–15 years
Washing Machine	8–12 years
Dryer	10–13 years
Dishwasher	7–10 years
Oven/Range	10–15 years
Microwave	7–10 years

If your appliance is older than its average lifespan and facing a costly repair, it may be smarter to replace it.

Step 2: Estimate the Cost of Repair

Repair costs depend on the appliance type, the nature of the issue, and the labor required. Here's what you can expect for typical repairs (excluding parts):

Refrigerator repair: $200–$400
Washing machine repair: $150–$350
Dryer repair: $130–$300
Dishwasher repair: $120–$250
Oven/range repair: $100–$250

You should also factor in:

Parts cost: OEM parts are more reliable but more expensive than generic.
Labor rate: Typically $75–$150 per hour.
Diagnostic fee: Usually $50–$100, often credited toward the repair.

Understanding the full cost of appliance repairs helps you compare it with the price of a new unit and make an informed decision.

Step 3: Research Replacement Cost

If you're considering buying a new appliance, price matters. Replacing an appliance doesn’t just mean the purchase price. It can also include:

Delivery and installation fees
Haul-away charges for the old appliance
Upgrades or compatibility changes (e.g., electric vs. gas)

Here are average costs for replacement:

Appliance	Average New Cost
Refrigerator	$800–$2,500
Washer	$600–$1,200
Dryer	$500–$1,000
Dishwasher	$400–$1,000
Oven/Range	$600–$2,000
Microwave	$100–$500

If your repair cost is more than 50% of the replacement cost, replacement may be the better investment.

Step 4: Consider Energy Efficiency and Operating Costs

Older appliances typically use more energy than newer models. Even if a repair is less expensive than a replacement, an older unit may cost more to operate over time.

Look at:

Energy usage in kilowatt-hours (kWh)
Water usage (for dishwashers and washers)
Manufacturer’s energy rating or ENERGY STAR label

For example, replacing a 15-year-old refrigerator with a new ENERGY STAR model can save up to $100 per year on energy bills. If your appliance is inefficient and approaching the end of its lifespan, replacement could provide long-term savings.

Step 5: Weigh the Benefits of Repair vs. Replacement

Here are some scenarios to help guide your choice:

When Repair Makes Sense:

Appliance is under 7–10 years old
Repair cost is less than 50% of replacement
The issue is common and inexpensive to fix (e.g., seal, switch, hose)
Appliance is a high-end model with expensive replacement value
You plan to move soon and don’t need a new appliance

When Replacement is Better:

Appliance is over 10–12 years old
Repair cost is more than 50% of replacement
Unit has a history of frequent problems
The appliance is not energy-efficient
Replacement comes with new features that meet your needs better

A good rule: Repair when the fix is low-cost and the appliance is relatively new. Replace when the fix is expensive and the appliance is aging.

Step 6: Factor in Warranty and Reliability

If your appliance is still under manufacturer warranty or an extended service plan, repairs may be covered fully or in part. Check documentation before scheduling service.

Also consider:

OEM vs. generic parts: OEM parts are preferred by most technicians for reliability.
Availability of parts: Older or discontinued models may require hard-to-find parts, delaying or increasing the cost of repair.
Technician recommendations: A trustworthy appliance repair professional can tell you whether the unit is likely to last after the fix.

Step 7: Think About Environmental Impact

Repairing an appliance can also reduce environmental waste. Landfills receive millions of discarded appliances each year. If a reliable fix can keep your unit running for several more years, it’s often the more eco-friendly choice.

At the same time, upgrading to energy-efficient models can help reduce your carbon footprint and utility bills. If your old unit is leaking refrigerant or consuming excess energy, replacement may be the better option for both cost and sustainability.

Final Thoughts

Deciding whether appliance repair is worth it requires more than just comparing prices. By following a clear cost-benefit analysis, you can evaluate the age, repair cost, replacement price, efficiency, and long-term value of your appliance.

Use this step-by-step guide to decide:

Is the unit still within its typical lifespan?
Will the repair extend the life of the appliance by several years?
Are the energy and usage costs reasonable after the repair?
Does the new appliance offer significant benefits that justify the investment?

When in doubt, consult a professional appliance repair technician for a full diagnosis. They can help you understand the repair cost, availability of parts, and expected longevity of the fix.

Smart decisions start with knowing your options. Whether you choose to repair or replace, doing the math upfront helps protect your budget and ensure the comfort and reliability of your home appliances.