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The problem is less "when to replace" and more "when you should have replaced it ages ago" - with regular use like yours, a chain usually lasts 1-2 years before it wears out. Once it starts skipping and making noise, it's definitely time, otherwise you'll damage the sprockets too. A new one doesn't cost much and is quick to install, so I wouldn't wait around. Just make sure you clean it more often and give it a bit of oil - that'll make it last a lot longer.

The chain you're describing is definitely due for a replacement - the noises and chain skipping are classic signs of wear. The tricky part is: by the time the chain gets that bad, it's usually already damaged your sprockets and chainring, and then you end up paying a lot more because you have to replace not just the chain but the cogs too. You could've caught that much earlier with a chain wear indicator - it doesn't cost much and saves you a bunch of money down the road. My tip: get it done now, and after that check and oil the chain regularly (every couple of weeks or so), then you'll get more life out of it.

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