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When you’re looking to replace an air compressor, there are a lot of considerations to make. The compressor becomes one of the most important investments in your company’s output and production. Beyond the practical applications of the compressor and how it will fit in with your business, there’s another important consideration: cost.

It’s important to spend some time in the sales process understanding the costs associated with compressor ownership and determining how to find the right compressor for your needs. Compressed air system costs have a few variables, listed below.

The Importance Of Choosing The Right Compressor

Choosing the right air compressor is a critical decision that has a significant impact on future costs down the road. A compressor that doesn’t match the tool’s requirements will perform poorly and become inefficient. This can lead to higher costs down the road as you need to replace the compressor or damaged tools.

Continuous use on heavy-duty applications necessitates a compressor with a high duty cycle and larger tank capacity. On the other hand, when only lighter tasks are needed, a more compact compressor that matches the lower output can help you save energy and reduce utility costs. This is why it’s important to match the compressor with the costs.

The Cost Of Installation

It is important to keep in mind that the up-front purchase of the compressor is only a fraction of the total overall cost. On average, equipment and installation are typically ten percent of the total cost of ownership. A lower up-front purchase cost could lead to more expenses down the line. These costs vary depending on the style and model of the compressor, factoring expenses such as electrical wiring, the proper air and water piping, and potential foundation requirements.


Throughout its life, your air compressor will need new filters and fluids. It may need new gaskets and gauges, springs or valves, or a new air/oil separator. The cost of these parts will range from a few bucks to a few thousand, depending on the make and model. Often, the cost of replacement parts is small, but availability and timely delivery is a challenge. Be sure to know who to call when a part is needed.

Preventative Maintenance

The cost of preventative maintenance will vary depending on the labor, usage, and parts required for keeping the compressor performing optimally and adhering to recommended maintenance. Timely maintenance will help avoid downtime and unexpected emergencies, and is typically five to ten percent of annual operating costs. Outsourcing your maintenance checkups is an investment, but it can extend the life of your compressor and lower energy costs.


In the event your air compressor needs repair, the cost will vary depending on a number of factors. The age of the compressor, the extend of the damage, and if it has been maintained or neglected throughout its life. Reciprocating compressor repair can range from $500 to $2,000, while rotary screw compressor repair tends to be more expensive in the $2,000-$5,000 range.

Nitrogen Generation

Nitrogen generation has an up-front equipment cost, but it can save you money in the long run. Generating your own supply of nitrogen rather than purchasing for a supplier for the needed applications can provide you with some significant advantages. Once you can eliminate the transportation fees and stabilize your costs, you can begin to save money with nitrogen production.

Long-Term Energy Costs

An energy efficient air compressor can lead to significant savings on your utility bills. It doesn’t take long for energy savings to offset the initial purchase costs. With the costs surrounding your air compressor investment and the high levels of energy expended, a more efficient air compressor is an important consideration. This form from the Environmental Protection Agency can give you an idea on the long-term energy costs of a compressor.

Go With A Compressed Air Services Company You Can Trust

As you can tell, your air compressor plays a significant role in the productivity of your business or operation. It’s important to understand the costs involved. If you have questions or would like to talk about your compressor needs, contact Compressor Services today!

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