How Much Does It Cost To Install A Water Heater?

ICON_PLACEHOLDEREstimated reading time: 5 minutes

If you need a new water heater, you should expect to pay between $400 to $900 for a 40-50 gallon tank, or $1,470 to $2,510 if you want a tankless one. A plumber will also charge about $250 to $500 for removal and disposal of the old water heater. Get estimates for new water heater installations.

Cost for Water Heater Replacement

The average cost of a traditional water heater is $650, while the average cost of a tankless water heater is $1,950. Your cost will depend on the type of water heater that you want. 

Cost of Labor for Water Heater Installation

While your water heater cost is dependent upon whether you get a traditional or tankless water heater, you will still need to pay your installer a fee for the labor. These labor costs typically run $250 to $500 for a traditional water heater, and $450 to $1,200 for tankless heaters. 

Which is Better: Tankless or Traditional?

There is a huge price difference between a tankless water heater and a traditional one. In fact, the tankless one tends to run two to three times more expensive than the traditional water heater. The main difference in operating is that the traditional heater stores 40 to 50 gallons of water that stays heated at your set temperature, while the tankless heater uses coils to heat water on-demand. Most people prefer the tankless option, making it a much more expensive choice. 

Cost of a New Water Heater

The traditional tanked water heater costs $260 to $610 on average, while the tankless one costs $215 to $1,615 on average. There are many positives of each type, as well as negatives.

Traditional, tank water heater

These traditional water heaters are also known as boilers. They are extremely common and can be used cohesively with central heating. They cost about $400 to $900. 

Traditional water heaters tend to cost less than tankless. They are easy to install in your closet, garage, or basement. These water heaters store water, and as the tanks are so large, they don’t really run out. These heaters are actually more expensive to use, as the many gallons of hot water need to be kept hot all the time. 

Tankless water heater

The tankless water heater doesn’t have a tank to store water in, and instead heats it on demand. These desired water heaters cost between $1,470 and $2,510. They are very energy efficient and compact, enabling them to be installed in almost any location you desire. They provide clean, unlimited hot water, and last for years. 

Gas or Electric Water Heaters

Both tankless and traditional water heaters come in gas and electric. The electric water heater is the most cost-effective on a long-term scale, however they tend to not be very fuel efficient. 

Cost of Gas Water Heaters

Gas-powered water heaters must be installed near a gas line. They have a higher cost of installation due to the need to connect to the line. Average costs are about $400 to $550, unless it is a first-time gas heater. The need to tap into the gas line brings the cost up to $1,500 to $2,300.

Cost of Electric Water Heaters

These heaters don’t last as long as the gas ones, however they are easier to install. Expect to pay $350 to $500 to have your electric water heater installed.

Additional Water Heaters

Cost of Heat Pump Water Heater

Having a heat pump water heater installed is costly. The water heater itself costs $1,800 to $5,000, while installation ranges from $1,300 to $3,600. They are so expensive because they work up to three times more efficiently than other water heater types. 

Cost of Propane Water Heaters

In remote locations, propane water heaters are a great option. They cost about $1,000 to $1,500, and come in both traditional and tankless designs. Keep in mind, you’ll also have to pay for propane, which runs at about $350 a year. 

Cost of Solar Water Heaters

Solar water heaters use the energy from the sun to operate. They cost about $2,000 to $5,500 and come either with pumps for water circulation or without. 

Size of Water Heater

Many people don’t consider the size when they’re buying a water heater, however, it is very important to do so in order to function smoothly for the intended period of time. 

You May Need a New Water Heater if…

Water heaters typically last 10 to 15 years. However, you should keep an eye on your water heater for these signs if you want to notice when it’s time to get a new water heater:

  • The age of the heater is nearing its end.
  • You’re not getting hot water anymore. 
  • The water is looking dirty.
  • You hear abnormal sounds coming from it. 

Other Potential Costs 

You may need to pay for various parts, ductwork, and plumbing when you have your water heater replaced. Keep in mind that your warranty may still cover parts of your water heater, so be sure to check into that before you call. 

A plumber will charge about $250 to $500 to remove and dispose of your old water heater. 

Other needs may be:

  • Ductwork replacement- $200 to $500
  • Plumbing replacement- $8 to $10 per foot
  • Electrical breakers- $250
  • Water heater expansion tank- $100

Water Heater FAQ

What is the cheapest water heater to buy?

Electric heaters are cheapest to buy but cost more to run.

What is the cheapest water heater to install?

Electric water heaters are cheapest to install because they don’t need to be connected to gas lines. 

What is the cheapest water heater to use?

The solar water heater is the cheapest to use.

How long will the water heater last?

A traditional water heater will last 10 to 13 years, while a tankless one will last up to 20.

Share this post


Your home is your pride and joy. We make maintaining it easy.
Single plan & easy to understand • Cover all your home essentials