The instinct to repair a broken appliance rather than replace it is often the right one, but not always, and knowing when to switch decisions can save significant money over time. A commonly used rule of thumb is the fifty percent rule: if the repair cost exceeds half the price of a new equivalent unit, replacement is usually the better financial decision, particularly for appliances already past the midpoint of their expected lifespan. Age matters as much as the specific fault — a refrigerator nearing ten years old with a compressor failure is a different calculation than a two-year-old unit with the same issue. Energy efficiency should factor into the decision too, since older appliances often consume significantly more electricity than current models, meaning a replacement can partially pay for itself through lower utility bills. Always get a written diagnosis before committing to a repair, since some technicians default to the more profitable option rather than the more sensible one for your situation.