If you have an older furnace that needs repairs, you may be wondering if you should repair your old furnace or buy a new one. This can be a tough choice, but you should look at how inefficient your old furnace is and how much money you stand to save with the improved efficiency of a new furnace before you make a choice. 

Furnace Efficiency As A Function of Time

Older furnaces have two factors working against them. For one, older furnaces were built to less demanding standards for efficiency, so they start out at a disadvantage. As time goes by, furnace performance will decrease as the components inside the furnace wear out. Thus, if you have a furnace that is twenty years old or older, it can be as little as 56% efficient, and at best, it will only be 70% efficient. What this means is that even after repairing your furnace, you will still be throwing away $46 to $30 for every $100 that you spend on heating your home. 

How Efficient Is A New Furnace?

Considering how much you stand to lose by sticking with the furnace you have, you might be wondering how much you stand to save with a new furnace. A new highly efficient furnace can be as much as 98.5% efficient. Thus, you will save anywhere from $42 to $28 for every $100 that you spend on operating your furnace. While it may seem like an obvious choice at this point, there is still one factor that you have to consider. 

Financing Costs

Before you decide that replacing your furnace is the way to go, you need to get an idea of how much money you will pay from month to month on financing your furnace. If you can afford to pay for a new furnace upfront, then you can simply use the money you save with your new furnace to replenish your savings. On the other hand, if you have to buy a new furnace on credit, you can still free up money in your budget as long as your financing costs are lower than the amount of money you spend on heating your home. 

If you are having a hard time determining how efficient your old furnace is, how much financing costs are, and how much money you can free up in your budget with a new furnace, you should sit down with a furnace technician to discuss your options. Contact a business, such as Absolute Comfort Heating & Air Conditioning, for more information.