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Cost To Replace a Water Heater

what is the average cost to replace a hot water heater?Water heater replacement costs typically run between $800 – $1,900 for a tank, or $1,000 – $3,800 for a tankless. The vast majority of these costs is the price of the unit itself, with plumber labor to install costing an additional $600 – $1,500.

Gas water heaters tend to cost $300 – $900 more than electric ones to install. However, gas models may have lower operating costs in the long run.

Use our helpful water heater replacement cost calculator below to get a ballpark price near you.

Hot Water Heater Costs Zip Code Units
Basic Better Best
Hot Water Heater – Material Prices $330.00 – $450.00 $550.00 – $750.00 $800.00 – $1200.00
Hot Water Heater – Installation Cost $750.00 – $900.00 $1200.00 – $1450.00 $1500.00 – $2350.00
Hot Water Heater – Total $1080.00 – $1350.00 $1750.00 – $2200.00 $2300.00 – $3550.00
Hot Water Heater – Total Average Cost per Unit $1215.00 $1975.00 $2925.00

How much does it cost to install a water heater?

The average water heater installation cost is between $800 and $1,200, not including the hot water tank. Depending on if you choose a 40 or 50 gallon tank size, a water heater cost $600 and $1,900 on the low and high-end. Labor costs of a HVAC company ranges between $75 to $150 per hr.

Very few home owners don’t realize how important a solid working water heater is, until it stops working – hopefully, not in the middle of a shower… Having said that, a general rule of thumb is to know that the life-span of a water heater is roughly 10-15 years.

Save money by checking for possible Federal tax rebates on energy efficient water heater systems.
Average Water Heater Replacement Cost (*unit only)
National Average $1,350
Low $650
Mid-range $1,200
High-end $1,850 to $3,850

Hot Water Heater 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
Standard Tank (Electric) $600 – $1,900 $650 – $1,500
Tankless (Electric) $1,200 – $2,400 $1,200 – $2,400
Standard (Gas) $1,400 – $2,600 $1,500 – $1,800
Tankless (Gas) $1,200 – $3,800 $1,800 – $2,800
Standard (Propane) $1,200 – $1,900 $1,200 – $2,400
Tankless (Propane) $1,400 – $2,800 $1,200 – $2,800
Indirect $1,200 – $2,300 $1,700 – $3,200
Hybrid Heat Pump $1,100 – $2,600 $1,200 – $2,800
Solar $1,800 – $2,600 $2,900 – $4,800

Standard Hot Water Tank Cost vs Tankless

A tankless water heater installation costs $1,200 to $2,400 total on average. Tankless water heaters are more energy-efficient, last longer, and provide an unlimited supply of hot water on-demand. The average household spends $600 to $1,800 annually on water heating or about 21% of their total energy bill.

If you have a family of four and use 80 gallons of hot water each day, tankless water heaters can save you $100 or more per year on your energy bill. And since they last up to 20 years, compared to just 10 years for a standard storage tank model, you’ll come out ahead in the long run, too.

Standard Gas Water Heater Cost Vs Electric

The average cost to install a gas water heater will run $1,200 – $1,800 for a traditional tank or $1,500 – $2,800 for a tankless model. This does not include the price of the unit itself which can range from $600 – $1,800 more than an electric heater. However, gas heaters are less expensive to operate, costing about $220 per year less on average.

Electric water heaters have a slightly lower installation cost, typically running $600 – $1,900 for a tank or $1,200 – $2,400 for a tankless. Electric heaters also last 2-3 years longer on average than gas models. So while the initial investment is higher for a gas water heater, it will typically pay off in the long run.

Tank vs Tankless systems

Tankless water heater systems are considered to be the top-dogs in energy efficiency, however, there are some pros and cons to owning one and I personally do. For one, the cost of tankless water heater installation is about 3x that of traditional hot water tank.  Secondly, you’ll find it hard to run multiple appliances at once consuming hot water – tankless just can’t keep up with a large family. I own a Rinnai tankless gas heater system with a family of four it works perfectly fine with the occasional loss of hot water – not enough to be upset about. I do however, save on average $100 per year over a traditional water tank setup.

Tank water heaters these are your traditional heater systems that hold a large reserve of water that’s being constantly heated to maintain hot water. They are cheaper to purchase and install, but this system will cost you more energy in the long-run. Generally, a 40-gallon tank will provide enough hot water for 2-3 people and a 50-gallon will work for 3-4 people. 80-gallon systems are usually for a family of 5 or more.

The Average Cost to Install a High-Efficiency Water Heater Tank

A high-efficiency water heater costs on average $800 – $1,600 for the unit not including installation. High-efficiency systems not only help you save money on your energy bill but they also heat water quickly and minimize heat loss. These types of water heaters are up to 300% more energy-efficient than standard tank water heaters, making them a great choice for eco-conscious homeowners.

Type Average Cost Installed
Solar $1,800 – $4,900
Indirect $1600 – $4,800
Hybrid Heat Pump $1,400 – $2,600

Solar Water Heater Cost

Solar water heaters are a great way to save on energy costs. They can range in price from $3,700 to $6,000 installed. However, with federal tax rebates, you might be able to reduce that cost by 1/3rd. Solar water heaters work by using the sun to heat water. This can reduce your energy costs by up to 80% and they also work with either gas or electric water heaters.

Indirect Hot Water Heater Installation Cost

The average installation cost of Indirect water heater is $1,650 – $3,300 for labor and the unit itself will run you about $1,300 – $2,500. These types of systems are very efficient given that it piggybacks off of your existing boiler tank as a source of heat.

Hot Water Heater Tank Prices

Different models of water heaters come in sizes ranging from small 20-gallon models to larger 80-gallon units. The smaller models are more efficient for smaller homes with one or two people, meanwhile, the larger units are perfect for families of 4+ or more.

The cost of a water heater will also differ based on the type of fuel it uses. Gas models tend to be more expensive than electric models, but they are also more energy-efficient. Solar-powered water heaters are the most expensive option, but they are also the most environmentally-friendly.

Water Heater Cost By Gallon

Tank Size Unit Cost
30-gallon $450 – $600
40-gallon $550 – $700
50-gallon $650 – $850
60-gallon $750 to $1,100
75-gallon $800 to $1,250
80-gallon $1,250 to $1,950

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 average local plumbers labor cost to install a water heater is $700 to $1,500. This will depend on the type of water heater that needs to be installed and the complexity of the installation. Licensed & Insured plumbers will either charge a minimum 4-hour rate if it’s a basic install at $85 – $150 per hour or quote the job if it’s complex — 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 charges anywhere from $1750 to $2,400 for the installation of a tank water heater. This usually covers everything from hiring a licensed plumber, pulling permits if required, removing the existing water tank, and installing a new system.

Lowe’s Water Heater Installation Cost

Lowe’s usually charges around $800 to $2,100 for a typical water heater installation. This would include hiring a licensed plumber, pulling the necessary permits, removing your old water heater, and having a new system installed. However, if your home needs to have new pipes installed to be code-compliant, Lowe’s will charge additional money for this service.

Both of these stores typically offer a free in-home assessment to determine which system would be best for your home as well as provide you with a more accurate quote.

How To Choose The Right Water Heater Tank Size

When searching for the right water heater, one of the most important factors to consider is the first-hour rating (FHR). The FHR is a measure of how much hot water the tank can produce in an hour and reflects the appliance’s efficiency. It’s important to choose a water heater with an FHR that meets or exceeds the peak hour usage needs.

For example, if you have a family of four and everyone is doing something with hot water at the same time during the busiest hour of the day. When estimating your family’s peak hour usage, keep the following numbers in mind:

  • Taking a shower: 20 gallons
  • Running a dishwasher: 14 Gallons
  • Running a washing machine: 20 gallons
  • Washing hands: 3 gallons
  • Washing Dishes by hand: 7 gallons
  • Shaving: 3 gallons

In the example above, you’ll need at least 80 gallons of hot water. If you choose a water heater with an FHR of 90 gallons, you’ll have plenty of hot water to go around.

Water Heater Installation Cost by Type of Vent

There are three main types of vents that can be used for a water heater: atmospheric, direct, and power. The installation cost will vary depending on the type of vent you choose.

Type Average Cost Installed
Atmospheric Vent $350 – $500
Direct Vent $350 – $700
Power Vent $600 – $900

Atmospheric Vent

An atmospheric vent is the most common type of vent and is typically used for standard tank or gas water heaters. This type of vent pulls indoor air from around the water heater and vents it through a vertical duct. This vent can be installed to use either an existing duct or a chimney that is already in place, saving the homeowner money. The installation cost for this type of vent is roughly $350 – $500.

Direct Vent

A direct vent is less common than an atmospheric vent but can be used for both tank and tankless water heaters. This type of vent, just like the Atmospheric uses the air surrounding the unit and safely vents gases through the exterior wall by PVC pipe kit. The installation cost for this type of vent is typically $350 – $700.

Power Vent

A power vent is typically used for tankless water heaters and similarly, as other types of water heater vents, uses the air surrounding the unit to help flush out gasses using an electric blower motor fan that either vents horizontally or vertically. The installation cost will run you about $600 – $900.

Water Heater Replacement Cost Factors & Considerations

With the average water heater replacement costing between $600 – $1,900 for a standard tank water heater and about $1,200 – $3,600 for a tankless setup, other factors contribute to the cost of installation.

Additional costs include: Permits, bringing plumbing up to code, modifying fuel sources, or the need for electrical or carpentry work all play a role in additional costs and the plumber you decide to hire should be competent enough to foresee this when quoting you a price.

Water Heater Replacement Costs By Item

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 costs can vary from state to state, however, most charge between $10 – $25 per $1,000 of the total job cost. For example, if your new water heater total installation cost is $4,000 – expect your permit fees to be roughly $40 – $200. This covers the costs of having a local plumbing inspector to ensure your job is being done properly and to code – this is the cheapest bit of insurance anyone could get, so avoid any plumbing company who tries to work without one.

Removal Of Old Hot Water Tank

The cost to remove an old hot water heater tank is $150 – $300 and this covers the plumbers time to safely and properly dispose of your old system.

Water Heater Expansion Tank Cost

The cost of a water heater expansion tank can range from $150 – $250. This cost includes the price of installation. An expansion tank is beneficial because it provides the needed space to relieve the pressure inside the system – you will also help extend the life of the system and prevent costly damage by doing so.

Many local and state codes require an expansion tank when upgrading a water heater tank. Additionally, if you don’t have an expansion tank, most manufacturers will void your warranty. So it’s a good idea to have one to protect your investment.

Cost To Convert From Electric To Gas Water Heater

If you have an existing gas supply line, the cost to convert from an electric to a gas water heater is generally $350 – $900. However, if you don’t have a gas supply line, the cost can be significantly higher. Converting from gas to electric water heater is going to cost you $450 – $750 for having an electrician wire up a dedicated panel to supply your new tank.

 Hot Water Heaters – 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.

How to know when your water heater needs replacing?

  1. There isn’t enough hot water
  2. The water appears rusty – this is due to sediment buildup from over the years
  3. Noises, as sediment builds up the contaminants in the tank heat and cool causing noises in the tank.
  4. Leaks – this happens a lot in older units as the tanks age, the base begins to rot out and leak
  5. Check the age of your unit by looking at the first two serial numbers on your tank, this will represent the year manufactured. If not, look up the model unit.

View Other Water Heater and Filtration Costs: From Gas, Electric, Tankless & More

  • Electric
  • Gas
  • Water Filtration

Whats the Average Cost of Electric Hot Water Heater?
How much does an Electric Tankless Water Heater Cost?
Average cost of Energy Efficient Water Heater

How much does a Gas Hot Water Heater Cost?
Whats the average cost of Gas Tankless Water Heater With Installation?
Heat Pump Water Heater installation cost
High Efficiency Water Heater Cost
Cost of Tankless Hot Water System Installed

How much does a Water Filtration system cost?
Average cost of Water Softener
Water Ultrafiltration Prices

External References:

  1. Energy.gov — Energy Cost Calculator for Electric and Gas Water Heaters. Added July 17, 2015
  2. Hud Path — Volume 8 Rehab guide – Estimating HVAC/ Plumbing
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Remodeling Expenses provides homeowners with accurate cost information on home services and level the playing field for consumers and service professionals. We aim to have data on all US zip codes, so homeowners from all over the country can lookup accurate and up to date pricing information.

Last Updated: 1/13/22

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