Water Heater Replacement Cost: Tank vs Tankless
Most water heater replacements cost $882 to $1,826 with averages from $1,293 to $1,347. Standard tanks run $600 to $3,100 installed, while tankless units cost $1,400 to $5,600.
What water heater replacement costs
Water heater replacement cost depends mostly on whether you choose a tank or tankless unit. HomeAdvisor reports most homeowners pay $882 to $1,826 with an average of $1,347. Bob Vila, citing Angi and HomeAdvisor, gives $874 to $1,765 with a national average of $1,293. HomeGuide splits by type: $600 to $3,100 for a standard tank and $1,400 to $5,600 for tankless, with installation included.
The full spread is much wider. HomeAdvisor says replacement can cost as little as $350 and as much as $12,000 once labor and the unit are counted, which shows how much type, size and fuel change the bill.
Cost by type of water heater
| Type | HomeGuide (installed) | HomeAdvisor (installed) |
|---|---|---|
| Standard tank | $600 – $3,100 | $600 – $2,500 |
| Tankless | $1,400 – $5,600 | $1,400 – $3,900 |
| Hybrid heat pump | $2,000 – $4,600 | $1,200 – $3,500 |
| Indirect | $2,000 – $4,500 | $1,200 – $3,500 |
| Solar | $3,000 – $9,000 | $1,700 – $5,500 |
Bob Vila says more than 90 percent of water heaters installed in the United States are tank style. Tankless units heat water on demand, take up less space and usually cost around $2,500, but they cost more up front and may need venting or gas line changes.
Cost by tank size
| Tank size | HomeGuide installed | HomeAdvisor |
|---|---|---|
| 30 gallon | $500 – $1,900 | $700 – $2,100 |
| 40 gallon | $600 – $3,000 | $800 – $2,300 |
| 50 gallon | $700 – $3,100 | $800 – $2,500 |
| 75 gallon | $1,100 – $3,600 | $1,100 – $4,000 |
| 80 gallon | $1,200 – $4,000 | $1,300 – $7,500 |
HomeGuide says a 40-gallon heater suits one or two people with low water use, and a 50-gallon heater suits families of three or four. Larger tanks cost more to buy and to install.
Cost by fuel type
| Fuel | Installed cost (HomeAdvisor) |
|---|---|
| Natural gas | $700 – $2,700 |
| Propane | $700 – $2,500 |
| Electric | $600 – $3,500 |
| High-efficiency | $1,500 – $3,000 |
HomeAdvisor says gas, propane and electric heaters all start at about $600 for basic models, and the price rises significantly when a home needs new infrastructure to support the fuel type.
Labor, permits and removal
- Labor: Bob Vila says $150 to $450 for a standard replacement. Converting from tank to tankless can raise it to $2,500.
- Permits: $25 to $300 depending on the type of heater, and either you or the contractor can pull the permit.
- Removing the old unit: $100 to $500 depending on the contractor's rate and how hard the heater is to reach.
- Power vent upgrade: $300 to $600 more than direct venting, plus $300 to $500 for added wiring and electrical work.
Extra work that changes the total
| Item | Typical cost (Bob Vila) |
|---|---|
| Adding electrical wiring | $550 – $2,300 |
| Adding a water line | $350 – $1,900 |
| Adding a gas line | $275 – $825 |
| Gas to electric conversion | $500 – $1,000+ |
| Electrician hourly rate | $50 – $130 per hour |
Bob Vila adds that many building codes now require an expansion tank when you replace an old water heater, because pressure from heated water can burst pipes. If you have hard water, a softener protects the new unit; see our water softener cost guide.
Cost by city
| City | Average cost (Bob Vila) |
|---|---|
| Austin | $1,300 |
| Phoenix | $1,300 |
| Dallas | $1,400 |
| Philadelphia | $1,500 |
| Chicago | $1,600 |
| New York City | $1,800 |
| Los Angeles | $1,900 |
| San Diego | $1,900 |
When to replace instead of repair
HomeGuide notes that same-for-same replacements are typically cheaper than retrofits that change fuel type, tank size or venting. A tank heater that leaks, rusts or no longer produces enough hot water usually needs replacing rather than repair. If the unit is near the end of its life and repair costs approach the price of a new one, replacement is the better choice.
Is your quote reasonable?
For a standard 40 or 50 gallon gas or electric tank heater with a same-for-same swap, a quote between $900 and $2,500 is in line with the sources. A tankless installation at $1,400 to $3,900 is normal when the house needs some new venting or gas work. A quote above $5,000 should name a large capacity, a solar or hybrid model, or major new plumbing and electrical work.
Ask each plumber which model and efficiency rating they quote, whether permits, an expansion tank, old unit removal and any code upgrades are in the price, and what warranty covers the tank and the labor. Get at least three written quotes and compare the same scope.
Water heater replacement cost calculator
Pick the heater type, then add any extra work your home needs. Type ranges are installed prices from HomeGuide and HomeAdvisor.
Installed prices may already include some of the optional items, so only tick extras your quote does not list. Many codes now require an expansion tank on replacement. A planning range, not a quote. Get at least three written quotes.
Last updated: October 2026