Age is the first thing to consider. If your water heater is under 8 years old and the problem is something like a faulty thermostat, heating element, or valve, repair usually makes sense. These are relatively straightforward fixes that can extend your unit’s life without breaking the bank. But if your water heater is 10 years or older and you’re dealing with a leaking tank, rusty water, or you’ve had multiple repairs in the past year, replacement typically offers better value. A leaking tank can’t be reliably patched—once the tank itself is compromised, the unit is done. We follow a simple rule: if the repair costs more than 50% of what a new water heater would cost, and your unit is already past its prime, replacement makes more financial sense. We’ll assess your specific situation, explain what we’re seeing, and give you honest guidance either way.