The average cost for a water heater is $1,327, but it can range between $1,807 and $883. Your pro can discuss tank or tankless systems and if you need any additional plumbing upgrades.
Water heater replacement costs range from $883 to $1,807, with the average cost being $1,327. Your total price depends on whether you’re doing a simple one-for-one swap or a detailed upgrade, like to a tankless system. Additional cost components include the water heater's size and labor costs.
Check out these cost factors to consider when replacing your water heater.
A traditional tank-style water heater stores water in a large tank that holds anywhere from 20 to 100 gallons. If you’re like 90% of households, you have a tank hot water heater sitting on a concrete pad in a basement, laundry room, or utility room. In comparison, a tankless water heater is the size of a small suitcase, has a coil system for heating water, and is usually mounted on the wall.
Is a tankless water heater worth it? The cost to replace a tankless water heater ranges from $1,200 to $3,500. Though it's a higher upfront investment than a traditional water heater, a tankless unit can provide significant energy savings and reduce your energy bills over its 20-year life span.
Keep the ongoing maintenance for the unit in mind when making a decision. For example, the cost to repair a tankless water heater is often higher than what you’d pay to repair a tank water heater, often between $220 and $975. Repairing a tank heater costs between $100 and $500. Still, the pros of a tankless water heater often outweigh the drawbacks.
"Many homeowners invest thousands in upgrading their water heaters to tankless systems but are never informed about the importance of regular maintenance," says Jeff Botelho, Angi Expert Review Board member and Massachusetts-licensed journeyman plumber.
Although repairs are expensive, you should still always call a tankless water heater repair service near you for a solution, as a DIY job is complicated and can lead to severe damage if you make a mistake.
A tank-style water heater is a conventional option, featuring a large tank that stores and constantly heats a supply of water for the home. These units are less expensive to install, though costs can range from $600 to $2,500 depending on tank size.
If you’re converting a tank system to a tankless system, you may pay significantly more for labor because the job can take twice as long and include replumbing to the appropriate mounting area.
Hot water heaters come in different sizes, measured by gallons (for tank-style systems) or gallons per minute (for tankless systems).
| Hot Water Heater Size (Gallons) | Average Cost |
|---|---|
| 30 | $550–$2,100 |
| 40 | $550–$2,100 |
| 50 | $650–$2,400 |
| 75 | $1,250–$3,500 |
| 80 | $1,350–$3,500 |
The number of people in your home is the best factor to consider when deciding which size water heater you’ll need. Start by calculating your first-hour rating (FHR)—a.k.a. peak hot water demand—and your tank's recovery rate.
For example:
Function x Peak Use During One Hour = Gallons Used in One Hour
Shower (10-gallon average) x 3 per hour = 30 gallons
For a two- or three-person household, a water heater that holds 40 to 50 gallons—or heats 3 to 5 gallons per minute—is usually adequate. Larger families will need a larger tank, but be careful not to purchase a water heater that’s too big for your household, as running it will cost you more over the unit’s life span.
When you install a hot water heater, costs are dependent on the type of fuel the unit runs on. Natural gas, propane, and electric water heaters all start at around $600—but costs rise from there. A high-end electric water heater is the most expensive type and can cost as much as $3,500, excluding hookup or installation.
You’ll pay significantly more if you need to install a gas line or electrical wiring to switch the type of fuel you use. Keep in mind that converting to a more efficient fuel type could save you more than the unit costs over time on your utility bills.
You’ll also find high-efficiency, indirect, solar, and hybrid heat pump water heaters, which we describe in-depth in the next section.
Electric water heaters generally don’t need venting, but gas or propane water heaters do. There are two types of venting: direct or power. Direct-vent heaters, which use a passive venting system, are less expensive and use an exhaust pipe or chimney. Power-vent heaters are more expensive and use a fan or blower plus electricity.
In general, expect to spend an additional $300 to $600 on a power-vent unit, plus $300 to $500 for the electrical work.
| Venting System | Venting Route |
|---|---|
| Direct | Exhaust pipe or chimney |
| Power | Fan or blower—costs $500–$1,000 more than other options |
Labor is a significant part of a hot water heater replacement—usually accounting for around 50% of your total—but costs vary based on how long the job takes. In general, plumbers cost $45 to $200 per hour, while electricians cost $50 to $100 per hour. Expect the following average price ranges for labor alone:
Replacing a tank-style water heater: $150–$450
Replacing a tankless water heater: $600–$1,850
Converting a tank-style water heater to a tankless system: up to $2,500
Labor may also depend on the cost of living where you live and the pro’s experience level.
Permits for a hot water heater replacement usually cost between $25 and $300, depending on the extent of the work and your local laws. At the very least, you’ll need a permit to install a gas appliance or alter plumbing and electricity. Permits for connecting your home to natural gas before the water heater replacement cost an additional $50 to $300. This is one area where installing a gas versus electric water heater is less expensive in most cases.
Like with many other home systems, the brand of water heater you choose can play a role in your overall water heater cost.
| Water Heater Replacement Brands | Average Cost |
|---|---|
| Rheem® | $600–$2,300 |
| A.O. Smith® | $800–$3,500 |
| Bradford White® | $400–$3,000 |
| Kenmore® | $350–$1,000 |
| Whirlpool® | $350–$1,500 |
You’ll spend more on water heater installation costs if you’re replacing a water heater in a difficult-to-reach area. For example, it will cost more if your contractor has to carry the unit up or down multiple staircases or maneuver it into tight areas.
Relocating your water heater costs more, falling at about $150 to $3,400, depending on the complexity of the move. If you choose a tankless unit, the installation location could also change, with additional costs for new venting, plumbing, or small carpentry projects. Your geographical location will also play a role, as labor costs in more expensive areas are usually higher to keep in line with the cost of living.
| City | Average Water Heater Replacement Cost |
|---|---|
| Austin, TX | $1,300 |
| Chicago, IL | $1,600 |
| Dallas, TX | $1,400 |
| Houston, TX | $1,300 |
| Los Angeles, CA | $1,900 |
| New York, NY | $1,800 |
| Philadelphia, PA | $1,500 |
| Phoenix, AZ | $1,300 |
| San Antonio, TX | $1,100 |
| San Diego, CA | $1,900 |
| Cleveland, OH | $1,165 |
| Indianapolis, IN | $1,500 |
| Denver, CO | $1,800 |
| Portland, OR | $1,675 |
| Charlotte, NC | $1,375 |
Most electric and gas water heaters cost between $550 and $1,500, but the unit type will significantly impact your cost. A light-duty commercial heater is more durable but costs about $1,000 more than a residential unit.
"Indirect-fired heaters use a coil inside the tank that connects to a boiler with piping, similar to a heating zone," says Botelho. "The heat radiating from the coil heats the water inside the tank. These tanks are more expensive than traditional gas or electric tanks and take about four to eight hours to install."
Here’s what you can expect for each type of water heater.
| Type of Water Heater | Average Cost | Best For |
|---|---|---|
| Electric | $600–$3,500 | Small apartments |
| Gas | $700–$2,700 | Areas with high electricity costs |
| Propane | $700–$2,500 | Rural or inaccessible areas |
| High Efficiency | $1,500–$3,000 | Energy savings |
| Indirect | $1,200–$3,500 | Flexible fuel source |
| Solar | $1,700–$5,500 | Energy efficiency in sunny climates |
| Hybrid Heat Pump | $1,200–$3,500 | Energy efficiency in garages or basements |
The installation is usually simple because the new unit already fits in the space, but if not, you’ll need additional work, leading to extra costs.
If you have to do any extra electrical work, expect to spend $50 to $130 per hour to hire a licensed electrician. This expense may be particularly high if you’re upgrading to an electric tankless model. These units use 120 to 160 amps, so you might have to upgrade your electrical service to 200 amps or more.
If you're converting from one fuel source to another, you’ll often need additional electrical wiring. Most homeowners spend $500 to $1,000 installing a new electrical line and a sub-panel if necessary, and total electrical wiring costs can be upward of $2,300.
Gas line installation costs an average of $260 to $820, but you can spend upwards of $1,500 switching from an electric water heater to a gas water heater. The gas line transports gas from the outdoor supply system to your unit.
Most of the time, if you’re replacing an old gas water heater with a new one, you can use your existing gas line. However, you may need to install a new gas line if:
You’re moving the location of your water heater.
You’re switching from an electric water heater to a gas water heater.
You’re installing a brand-new gas water heater.
Your existing gas line is damaged.
If your water heater installation requires a new water line, expect to spend an additional $400 to $2,000. You may need a new water line if you’re relocating your water heater, you’re installing additional POU water heaters or your existing water line is damaged.
Installing a water heater expansion tank costs $90 to $350. This is often a requirement in new construction and advisable in areas with freezing winters.
Water expands when it’s heated and when it freezes. If you’re using a traditional tank water heater and have a closed plumbing system, this expansion can potentially damage your plumbing and put stress on your pipes—particularly when numerous appliances start at once or there’s a spike in demand. A water heater expansion tank will literally take the pressure off.
Some water heaters come with a manufacturer’s warranty, but your contractor may offer additional coverage that further protects your investment for about $100 to $300. Sometimes, the added coverage even includes free inspections. Check the warranty of your current water heater to see if it covers repairs or replacements.
The job may require extra carpentry work if you’re installing a new water heater or relocating your current unit. Expect to spend $200 to $400 on the price of framing a wall for a water heater installation.
Sometimes, a contractor needs to open up a wall to properly install a replacement water heater or run the plumbing and electrical lines necessary for the installation. Drywall installation cost is $1,000 to $3,000 or $1.50 to $3 per square foot.
Removing your old water heater and hauling it away costs $100 to $500, depending on your contractor’s hourly rate. If the water heater is in an inaccessible area or is difficult to remove, costs will push toward the high end.
You might have to pay an additional cost to dispose of your old water heater. If you’re removing it yourself, consider taking it to a recycling company or scrapping it. If the unit still works, you might be able to sell it. Otherwise, check with your contractor, as sometimes the cost of your new water heater installation includes the disposal fees. Local dumping fees will play a role in most cases.
A flooded basement is one of the most unfortunate ways to discover you need a new water heater—but sometimes things happen. Generally, water damage repair costs $3.75 to $7 per square foot, with the average homeowner spending $1,300 to $5,550. Prices can push even higher if you need to pay for mold remediation. A local water damage restoration service can diagnose the severity of the issue and start making repairs.
First, rush to call an emergency plumber if your unit is displaying any of the signs your water heater is going to explode.
The average water heater lasts about ten years, though certain high-efficiency models can last more than 20. Luckily, severe water damage usually isn’t the first sign that your water heater is about to fail.
Discolored water coming from the tap when you run hot water
Water leaking from or pooling beneath your water heater tank
Unusually loud popping, banging, or rumbling sounds coming from your water heater
You're running out of hot water faster than normal
No hot water at all
Tepid or lukewarm water
A metallic taste in your water
Rising utility bill costs
Simply put, it’s not a good idea to install a water heater on your own—nor is it even legal in most cases. Since this project involves water and either gas or electrical lines, you’ll need a permit to do any work. Your city, state, or homeowner’s association will typically only grant permission to a licensed plumber or contractor.
There might even be insurance requirements. Regardless of the legalities, the list of what can go wrong is enormous. Something as simple as over-tightening a gas control valve can cause a gas leak and lead to a fire or carbon monoxide poisoning. For this job, skip the potential hazard and hire a water heater installer near you.
DIY water heater installation is an advanced project that most homeowners shouldn't take on themselves. In most cases, it's best to hire a professional water heater installer. Typically, pro water heater installation costs $850 to $1,700, including the heater itself. Depending on the complexity of the installation, you’ll likely spend anywhere from $150 to $2,500 or more on labor. Still, this is one job where hiring a professional is well worth the investment.
Replacing a water heater is often an emergency expense, so it’s not exactly the most budget-friendly project. Fortunately, there are a couple of ways you can save a little money on hot water heater costs.
Repair don’t replace: Water heater repair costs range from $100 to $1,300, and it could be a simple fix for something small like a valve replacement. For example, replacing a gas valve on a hot water heater costs between $100 and $200 plus the price of the part.
Keep the same type of water heater: Reduce installation costs by replacing it with a similar model, eliminating the expenses of switching fuel sources.
Purchase water heater directly: Instead of buying your hot water heater through your contractor, purchase it directly, if possible.
Schedule during off-hours: Some contractors charge more to work after hours or on weekends or holidays. You can save some money by scheduling a weekday replacement during typical work hours.
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Tank-style hot water heaters need replacing about every six to 15 years, while a tankless model can last 20 years or more. Over time, water heaters fill up with sediment that can start causing issues. If your unit is ten years old, start thinking about a possible replacement. Flushing your tank-style water heater annually and having routine maintenance done can increase the life span of the unit.
While uncommon, it's possible for a water heater to freeze due to cold temperatures. A frozen water heater is caused by standing water inside the tank or unit freezing and expanding. When this happens, the interior of the water heater is likely to be destroyed beyond repair. It's more likely that a water heater will freeze if it's installed outside. However, manufacturers generally include special freeze protection for the tankless units that are designed for outdoor use. Be sure to drain your water heater before a prolonged winter vacation to reduce freezing risks. Adding blanket insulation as part of preventative maintenance on a hot water heater can also help.
The time it takes to replace a water heater depends on the complexity of the job. Expect your contractor to spend:
One to three hours on a standard tank-style water heater replacement
Two to three hours on a tankless water heater replacement
Four to six hours replacing a tank-style water heater with a tankless water heater
One hour for each additional parallel or point-of-use water heater
Your project will take longer if you’re switching fuel sources, upgrading to tankless, or relocating your water heater.
Replacing an older water heater that requires frequent repairs is almost always worth it. If your fixture is nearing the end of its life span—around 10 to 20 years, depending on the model—replacing a water heater might save you money in the long run. Replacing a water heater generally costs less than repairing a fully flooded basement, and some high-efficiency units pay for themselves thanks to energy savings. Plus, installing a new water heater and upgrading to tankless will boost your home value and make your hot water more readily available, improving comfort for your family.
