Appliance Repair: The 50% Rule

Excel Formulas › Appliance Repair

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The industry's 50% rule: if the repair costs more than half of a new unit AND the appliance is past half its expected life, recommend replacement. IF plus AND turns the rule into a verdict column.

Quick formula: Both halves must be true to tip the verdict:

=IF(AND(B2>0.5*C2,D2>0.5*E2),"Replace","Repair")

A $450 board on a $700 dryer that is 10 years into a 13-year life fails both tests — the sheet says Replace.

Functions used (tap for the full reference guide):

IF AND

The example

Three units, each with a repair quote, replacement price, age, and expected lifespan.

	A	B	C	D	E	F
1	Appliance	Repair $	Replace $	Age	Lifespan	Verdict
2	Fridge compressor	$380	$800	9	13	Repair
3	Dryer control board	$450	$700	10	13	Replace
4	Washer pump	$220	$650	4	11	Repair

The formula

AND requires both conditions before IF flips the answer:

=IF(AND(B2>0.5*C2,D2>0.5*E2),"Replace","Repair") // costly repair + old unit = replace

How it works

Two tests, one verdict:

B2>0.5*C2 tests whether the repair exceeds half the replacement cost.
D2>0.5*E2 tests whether the unit is past half its expected lifespan.
AND demands both; IF prints "Replace" only when the rule truly fires.

The fridge above fails the cost test ($380 < $400), so it stays a repair even at 9 years old — the AND is what keeps the rule honest.

Try it: interactive demo

Interactive

Enter the repair quote, replacement price, age, and expected lifespan.

Repair ($)

Replace ($)

Age (yrs)

Lifespan (yrs)

Variations

Tune the thresholds

Some shops use 40% on premium brands worth saving.

=IF(AND(B2>0.4*C2,D2>0.5*E2),"Replace","Repair")

Show the repair-to-new percent

A companion column makes the recommendation easy to explain.

=B2/C2

Pitfalls & errors

Using OR instead of AND flags every aging appliance for replacement even when the fix is $80 — the rule needs both conditions.

Keep a lifespan lookup by appliance type (fridge ~13, washer ~11, dryer ~13 years) so techs do not guess the E column.

Practice workbook

📊

Download the free Appliance Repair: The 50% Rule practice workbook

Edit the yellow Repair, Replace, Age, and Lifespan cells; the Verdict recalculates.

Frequently asked questions

Where does the 50% rule come from?

It is a long-standing industry guideline: past half the lifespan, a repair over half the replacement price rarely pays off before the next failure.

Does the verdict account for efficiency?

No — a 12-year-old fridge also costs more to run than a new one. Treat the rule as the floor; energy savings only strengthen a Replace verdict.

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Function references: IF AND