The decision between repair and replacement depends on several factors:

Age of the Water Heater: If it’s older than 10-15 years, replacement might be more cost-effective.
Frequency of Repairs: Frequent breakdowns might indicate it’s time for a new one.
Efficiency: Older models are less efficient. A new, energy-efficient model could save on utility bills.
Damage: Significant damage like a leaking tank usually requires replacement.