Calculate Actual Cost of New AC Unit
Like the rest of us, you don’t want to be in a situation where you have to choose between repairing your old air conditioner or buying a new one. Although a new system will cost more, it requires less maintenance and is more energy efficient. As a result, it is less expensive to operate over time.
That’s why we’ve put together this cost calculator. Just enter some basic information about your current system and we’ll provide you with an estimate of what it would cost to replace it.
Note: The prices provided by this calculator are meant to be used as a general guide only. For a more accurate estimate, please contact us for a free in-home consultation.
Typical Annual Operating Cost of an AC Unit, Based on SEER Rating
The calculations below have the following assumptions:
- Average hours spent on cooling yearly is 2200 hours
- 3 Ton air conditioner
- NV energy charge per Kwh is $.12
Equation: TonnageX 12000 (btu’s) / SEER Rating / 1000 (to get Kwh) X Hours of use (estimated at 2200) X cost per Kwh ($.1215 per NV Energy)
Using the above specifications the operating cost of each system is
10 SEER Annual operating cost is $962
11 SEER Annual operating cost is $875
12 SEER Annual operating cost is $801
14 SEER Annual operating cost is $687
16 SEER Annual operating cost is $601
18 SEER Annual operating cost is $534
20 SEER Annual operating cost is $481
Calculate Annual Operating Cost of AC Unit
Fill in the information below to calculate the annual operating cost of your AC unit.
AC SEER Rating:
AC Unit Tonnage:
Estimated Annual Operating Cost: $
Actual Factors Not Used
The calculation above does not include the following actual factors which would impact the cost:
- Annual Maintenance: You will need to factor in the cost of an annual maintenance contract or the cost of hiring a professional to service your unit every year. It is important that you keep your system clean, otherwise the efficiency will drop and it will cost more to operate.
- Inadequate Insulation: If your home is not well insulated, you will likely need to use your air conditioner more often, which will increase the operating cost. Before you upgrade your system, make sure to seal any leaks and add insulation to your attic and walls.
- Parts Inspection: When a qualified HVAC technician inspects your unit, he can pick up on small problems and make sure that they are fixed before they become bigger and more expensive to repair. This will help to extend the life of your unit.
- Poor Installation: When your ductwork and air conditioner are not installed properly, your system will have to work harder to cool your home and this will drive up the operating cost. Make sure that you hire a qualified professional to install your unit.
- How Do You Use Your System? If you set your thermostat too low during summer months, your system will have to work harder to cool your home and this will increase the operating cost. Try to keep your thermostat set between 78-80 degrees when you are home. A setting below 78 will increase your energy consumption while a setting above 78 degrees will lower your operating costs.
An Example of How to Calculate Savings on a New AC System
The example below is for a 12 year old 3 ton AC and heating system, which is a 16 SEER option. Today’s repair costs are $500 and SEER rating of 10.
- The life left for your system: 3 years
- Utility excessive payment: $361
- Today’s repair cost: $500
- Estimated yearly future repairs: $300
- Annual maintenance: $100
- Subtotal (2+4+5): $761
- Inflation (3% historically X [subtotal] $761 X 3 years left): $2283
Cost for existing system for 3 years + today’s repairs ($2283 + $500): $2783
This $2783 can be used to purchase a new system that is energy efficient and doesn’t break down as often as the old one. In this example, we assumed that you purchased a 16 SEER unit which costs $4000 today.
The amount saved by giving up the older AC system: $2783
Inflation costs evaded when you switch now: $720
Total saved just by moving to a new AC unit: $3503
Investment in a new system: ($8000 – $2783) = $5217
From the above figures, it is clear that if you delay for 3 years, the cost of this system would have risen to $8741. You would also have spent $500 in repairs. You would also have spent a total of $2783 on repair or maintenance costs if you waited 3 years to replace your old system.
Should You Repair or Replace Your AC Unit?
If you’re still not sure whether you should repair or replace your AC unit, DeZiel Heating & AC can help. We offer free consultations to help you decide what is best for your home and your budget. Call us at 763-684-3965 to schedule a consultation today.