A 40-gallon water heater tank costs $800 – $1,900 and with the installation cost ranging between $850 – $2,800 depending on the model and configuration. The total national average is $2,600 for the unit with installation.
Propane and gas models tend to run $300 – $900 more than 40-gallon electric water heater tanks.
Use our helpful 40-gallon water heater replacement cost calculator below to get a ballpark price near you.
| 40-Gallon Water Heater Costs | Zip Code | Units | |
|---|---|---|---|
| Electric | Propane | Gas | |
| Unit Price | $330.00 – $450.00 | $550.00 – $750.00 | $800.00 – $1200.00 |
| Installation Cost | $750.00 – $900.00 | $1200.00 – $1450.00 | $1500.00 – $2350.00 |
| Total | $1080.00 – $1350.00 | $1750.00 – $2200.00 | $2300.00 – $3550.00 |
| National Average Cost Per Unit |
$1215.00 | $1975.00 | $2925.00 |
How much does it cost to install a 40-gallon water heater?
The average 40 gallon water heater installation cost is between $800 and $2,800 for a replacement tank that doesn’t require updating plumbing configuration or electrical panel upgrades. HVAC companies will normally charge between $75 to $150 per hr.
| National Average | $1,350 |
| Low | $650 |
| Mid-range | $1,200 |
| High-end | $1,850 to $3,850 |
40 Gallon Hot Water Heater Tank Cost By Type
The average cost to install a new hot water heater is $850 to $3,800. The cost depends entirely on the type of system and size you choose and the fuel source.
| Type | Unit Cost |
Average Installation Cost |
|---|---|---|
| Electric | $600 – $1,900 | $650 – $1,500 |
| Gas | $1,400 – $2,600 | $1,500 – $1,800 |
| Propane | $1,200 – $1,900 | $1,200 – $2,400 |
Electric Vs Gas Vs Propane Hot Water Tank – What The Difference?
There are a few things to think about when trying to decide which type of hot water tank is best for you and your home. The first thing to consider is the cost of each fuel type. Electricity, natural gas, and propane all have different costs associated with them.
Electricity is usually the most expensive option, followed by propane, and then natural gas. However, this is not always the case and it depends on where you live and the current market prices.
The second thing to consider is the efficiency of each fuel type. Electric water heaters are typically the most efficient, followed by propane, and then natural gas.
The third thing to consider is the environmental impact of each fuel type. Electric water heaters have no emissions, while propane and natural gas do release greenhouse gases into the atmosphere.
Now that you know the three main things to consider when choosing a hot water tank, let’s take a more in-depth look at each fuel type.
Electric Hot Water Tanks
Electric hot water tanks might be cheaper upfront, however, they are the most expensive option in the long run.
The main downside of electric hot water tanks is that they require a lot of energy to operate. This means that your electricity bill will be higher than if you were using a different fuel type.
The average 40-gallon hot water tank costs about $800 with installation coming in at $1200.
Natural Gas Hot Water Tanks
Natural gas hot water tanks are a good middle ground option. They are more expensive than electric tanks but cheaper than propane tanks.
The main downside of natural gas tanks is that they still release greenhouse gases into the atmosphere. However, they are much cleaner burning than propane tanks.
The average 40-gallon hot water tank costs about $900 with installation coming in at $1300.
Propane Hot Water Tanks
Propane hot water tanks are the cheapest option upfront but the most expensive in the long run.
The main advantage of propane tanks is that they are very clean burning. However, they do release greenhouse gases into the atmosphere.
The average 40-gallon hot water tank costs about $700 with installation coming in at $1100.
40 Gallon Hot Water Heater Tank Brand Prices
| Brand | Warranty |
*Unit Cost |
|---|---|---|
| Rheem | 6 – 12 years | $950 – $1,900 |
| A.O Smith | 6 – 12 years | $600 – $1,700 |
| American Standard | 6 – 12 years | $600 – $900 |
| Rinnai | 6 – 12 years | $750 – $2,400 |
| Kenmore | 6 – 12 years | $400 – $900 |
Average Labor Cost To Install a Water Heater
The typical price tag for a 40-gallon water heater installation by a local plumber is $800-$1,500. This varies based on the type of water heater and the difficulty of installation. Licensed & insured plumbers will either charge a minimum 4-hour rate ($85-$150/hour) they will let you know if this job is a quick and easy swap out or if you need to bring your plumbing up to code — click here for a free quote.
Water Heater Installation Cost By Service Provider
| Service Company |
Average Cost Installed |
|---|---|
| Plumber | $600 – $1,200 |
| Home Depot | $1,600 – $2,200 |
| Lowes | $1,900 – $2,600 |
Home Depot Water Heater Installation Cost
Home Depot’s installation of a tank water heater ranges from $1650 to $2900. This includes the hire of a licensed plumber, pulling permits (if needed), removal of your old water tank, and installation of the new system.
Lowe’s Water Heater Installation Cost
A typical water heater installation from Lowe’s costs approximately $800 to $2,100, which encompasses hiring a licensed plumber, pulling the relevant permits, removing your old water heater, and having a new system installed. However, if your home needs additional pipes to be code-compliant per industry standards (i.e., up-to-date), then Lowe’s will charge more for this service.
How To Choose The Right 40-gallon Water Heater
When choosing a 40-gallon water tank, you need to be aware of FHR (First Hour Rating). This is the amount of hot water your tank can provide in an hour and will be determined by your family’s needs.
What is a good FHR rating on a 40-gallon tank?
The answer to this question largely depends on the size of your family and how much hot water you use in a day. If you have a family of four, you will likely need a tank with an FHR of around 56 gallons.
There are a few factors that affect the FHR rating of your 40-gallon tank.
- The first is the size of the burner. A larger burner will heat the water faster, resulting in a higher FHR.
- The second factor is the insulation of the tank. A well-insulated tank will maintain the heat of the water for longer, again resulting in a higher FHR.
- The last factor is the height of the water heater. A taller tank will have a higher FHR than a shorter tank.
Keep these factors in mind when choosing your 40-gallon water heater to ensure you get the best possible FHR rating.
You also need to decide whether you want a gas or electric model. Gas models will cost more upfront but may save you money in the long run. Electric models are less expensive to purchase but may cost more to operate.
Once you’ve decided on the type of water heater, you need to choose a brand. There are many reputable brands on the market, so do some research to find one that fits your needs and budget.
When choosing a 40-gallon water tank, be sure to consider FHR, for gas or electric models, and a reputable brand. With a little research, you can find the perfect water heater for your home.
40 Gallon Water Heater Replacement Cost Factors & Considerations
With the average water heater replacement costing between $600 – $1,900 for a standard 40 gallon electric tank water heater and about $1,200 – $3,600 for a gas setup, other factors contribute to the cost of installation.
Replacement 40-gallon water tank costs can unexpectedly skyrocket when you factor in unanticipated fees, like permits, code updates, or the re-routing of electrical lines. A qualified HVAC contractor will account for these contingencies in their quote.
| Water Heater Tank |
$600 – $2,800 |
| Permit & Local Fees | $40 – $150 |
| Removal of old hot water tank | $150 – $300 |
| Labor Cost | $650 – $1,850 |
| Updating Plumbing to Code | $400 – $900 |
| Extended Warranty Cost | $75 – $150 |
| Expansion Tank | $150 – $250 |
| Electrician | $450 – $750 |
| Converting Fuel Source | $350 – $900 |
Permit & Local Fees
The cost of a plumbing permit varies from state to state, but most permits cost between $10 and $25 per $1,000 spent on the project. So, if your new water heater will cost a total of $4,000 to install, you can expect your permit fees to be around $40-$200. This covers the costs of having a local plumbing inspector come out and make sure that the job is being done properly and up to code.
Removal Of Old 40 Gallon Hot Water Tank
The cost to have an old hot water heater tank removed and disposed of by a professional plumber is $150 – $300.
Water Heater Expansion Tank Cost
An expansion tank for a water heater, which helps to extend the life of the system by preventing costly damage, costs anywhere from $150-$250 and that includes installation.
Most local and state codes requires an expansion tank when upgrading a water heater tank. Additionally, without an expansion tank, your warranty from most manufacturers will be void. So it’s beneficial to have one to protect your investment.
Cost To Convert From Electric To Gas Water Heater
Generally, if you already have a gas supply line, it will only cost $350-$900 to convert from an electric to a gas water heater. However, not having a gas supply line can make the price jump significantly. To convert from gas to electric in this case will be about $450-$750 because you’ll need an electrician to wire up a new dedicated panel for your tank.
40 Gallon Hot Water Heater Tank – Pricing and Installation Cost Checklist
- Expect the prices to fluctuate between various companies – each and every company have different operation expenses and over-head.
- Try to get prices in the spring – you should expect aggressive pricing discounts by waiting for a contractor’s down season.
- Try to budget and additional 7-15% more on top of what our calculator gives out for hot water heater costs.
- Visit every supply house that sell your particular brand of hot water heater and try to negotiate a better price with each supplier – I save on average 20%.
- A hot water heater installation isn’t an easy task to perform and can leave you with a sore back. You might find it more cost effective to hire a HVAC contractor to perform the work for you. HVAC companies will most always get better prices on Hot Water tanks — saving your back and additional costs of hot water tank, so shop around, ask your neighbors if they can recommend someone.
Frequently Asked Question
How much should a 40-gallon water heater cost?
There is no definitive answer to this question since the cost of a 40-gallon water heater can vary depending on the type of heater, the brand, and where you purchase it from. However, as a general guide, a 40-gallon water heater should cost anywhere between $200 and $60.
Is a 40-gallon water heater enough for a family of 4?
A 40-gallon water heater is typically enough for a family of four, but this can vary depending on your specific needs and usage. If you have a large family or use a lot of hot water, you may need a larger-capacity water heater.
How long does it take for a 40 gallon hot water tank to heat up?
It takes between 30 and 60 minutes for a 40 gallon hot water tank to heat up. The exact time will depend on the factors listed above.
What is the life expectancy of a 40-gallon water heater?
The average lifespan of a 40-gallon water heater is around 8 to 12 years. However, this can vary depending on the quality of the water heater and how well it is maintained. If you have your tank regularly serviced, it’s a good possibility it will last double that.
How many showers can you take with a 40-gallon water heater?
This will depend on the flow rate of your shower head. However, as a general guide, you should be able to take around 10 showers with a 40-gallon water heater. If you have a low-flow shower head, you may be able to take even more showers.
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