Tank or tankless, gas or electric — know what to expect before you call. Our guide breaks down every cost factor.
Get a Free EstimateWater heater replacement is one of the most common major plumbing expenses homeowners face. With the average water heater lasting 8–12 years, most homeowners will replace at least one during their time in a home. Costs depend on the type of heater, fuel source, tank size, and installation complexity.
| Water Heater Type | Unit Cost | Installation | Total |
|---|---|---|---|
| Gas tank (40–50 gal) | $400–$900 | $300–$600 | $700–$1,500 |
| Electric tank (40–50 gal) | $300–$700 | $250–$500 | $550–$1,200 |
| Gas tankless | $800–$2,500 | $800–$2,500 | $1,600–$5,000 |
| Electric tankless | $500–$1,500 | $500–$1,500 | $1,000–$3,000 |
| Heat pump (hybrid) | $1,200–$2,500 | $500–$1,000 | $1,700–$3,500 |
Traditional tank heaters are the most affordable option upfront. They store 30–80 gallons of pre-heated water ready for use. The tradeoff: higher ongoing energy costs (heating water 24/7) and a shorter 8–12 year lifespan.
Tankless units heat water on demand, offering endless hot water, smaller footprint, and 15–20 year lifespan. Higher upfront cost includes potential gas line upgrades, new venting, and electrical work. The long-term savings in energy and longevity often justify the investment.
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