What this calculator works out
This calculator compares the annualised cost of repairing something against the annualised cost of replacing it. It divides each cost by the years of life you expect to get from it, and tells you which is lower.
Annualising is the right comparison because a repair and a replacement rarely buy the same amount of time. A £250 repair lasting three years and an £800 replacement lasting ten are not comparable until both are expressed per year.
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Before you compare
- Get a firm repair quote rather than an estimate. Diagnostic fees are sometimes charged separately and should be included.
- Be realistic about life after repair. Fixing one failed component on an old appliance often buys less time than the repair cost suggests.
- Include delivery, installation and disposal in the replacement cost.
- Check the warranty position first — a repair may be free, and consumer law may give you rights beyond the manufacturer's guarantee.
A ten-year-old appliance may use considerably more energy than a current model. If the replacement saves £50 a year in electricity, that is worth £500 over its life and can reverse the answer entirely. The Appliance Running Cost Calculator will give you the figure to weigh.
How this calculator works
Both options are reduced to a cost per year:
Repair cost per year = repair cost ÷ expected life after repair
Replacement cost per year = replacement cost ÷ expected replacement lifeThe lower figure wins on pure cost. The calculation deliberately ignores what you have already spent on the item, because that money is gone either way and should not influence the decision.
It also ignores running costs, reliability and the disruption of a second failure. Where the two annualised figures are close, those factors decide it rather than the arithmetic.
Worked example: a £250 repair
Using the default figures — a £250 repair expected to last three years, against an £800 replacement expected to last ten:
- Repair: £250 ÷ 3 = £83.33 a year
- Replace: £800 ÷ 10 = £80.00 a year
- Replacing has the lower annualised cost, by £3.33 a year
That margin is well inside the error of both estimates, so the arithmetic has not really decided anything — it has told you the two options are equivalent on cost. What should decide it is everything else: energy use, the risk of another failure on an old machine, and whether £800 today is easier or harder than £250 today. When the numbers are this close, that is the honest answer rather than a weakness in the tool.
Common mistakes
- Counting money already spent. Previous repairs are gone and should not influence this decision.
- Overestimating life after repair. An old machine with one new part is still an old machine.
- Ignoring energy consumption. On appliances this frequently outweighs the purchase difference.
- Forgetting disposal and installation costs. Both belong in the replacement figure.
- Skipping the warranty check. Consumer law may entitle you to a free remedy on goods that failed too soon.
Frequently asked questions
Is there a rule of thumb for when to repair?
A commonly used one is the 50% rule: if the repair costs more than half the price of a replacement, replace. It is crude but reasonable, because a repair that expensive usually signals a machine near the end of its life. Annualising, as this calculator does, is a better test where you have a realistic view of the remaining life.
What are my rights if something fails early?
Under the Consumer Rights Act, goods must be of satisfactory quality and last a reasonable time. Within the first six months, a fault is presumed to have been present at purchase and the retailer — not the manufacturer — must put it right. After that the burden shifts to you, but claims remain possible for up to six years in England, Wales and Northern Ireland, and five years from discovery in Scotland. Citizens Advice can help you make the case.
Does the environmental cost change the answer?
It is a real factor the arithmetic does not capture. Manufacturing a new appliance carries a substantial carbon cost, so repairing is frequently the better environmental choice even when it is marginally more expensive. Against that, a much more efficient replacement can reduce lifetime emissions on high-use items.
Where can I get things repaired?
Manufacturer service networks, independent repairers, and increasingly community repair cafés, which are free or donation-based and can handle many small appliances and electronics. Right-to-repair rules have improved parts availability for several product categories in recent years.
Should I buy an extended warranty instead?
Usually not. Extended warranties are frequently poor value relative to the risk, and they may duplicate rights you already have under consumer law or through a credit card purchase. Setting aside the premium as savings is often the better trade.
Related tools
References
- GOV.UK — consumer rights on faulty goods and product repair requirements
- MoneyHelper — guidance on extended warranties and appliance replacement decisions
Sources are checked at publication and can change — how I choose and check references.