ServiCover📌 Key Takeaway: A tank water heater typically costs $800-$2,500 installed; a tankless unit runs $1,500-$4,500 because gas models often need venting, gas line or electrical upgrades. Tank units usually last 8-12 years, tankless up to around 20.
Installed Price by Type
| Type | Installed Cost | Typical Lifespan |
|---|---|---|
| Electric tank (40-50 gal) | Low-to-mid of $800-$2,500 | 8-12 years |
| Gas tank (40-50 gal) | Mid-to-high of $800-$2,500 | 8-12 years |
| Tankless (gas or electric) | $1,500-$4,500 | Up to ~20 years |
| Heat pump (hybrid) water heater | Typically above standard tanks | 10-15 years |
Extras That Show Up on the Bill
- Haul-away of the old unit
- Permit and inspection — required in many areas for water heater replacement
- Code upgrades — expansion tanks, seismic straps, drain pans or new relief valves
- Venting changes — especially when switching to a high-efficiency or tankless gas unit
- Gas line or electrical upgrades — tankless units often need larger gas lines or dedicated circuits
Signs It's Time to Replace
- The unit is over 10 years old (check the serial number for the manufacture date)
- Rusty or discolored hot water
- Water pooling around the base — a leaking tank can't be repaired
- Rumbling or popping from sediment buildup
- Hot water running out faster than it used to
Repair or Replace?
Repairs typically cost $150-$600. Replacing a heating element, thermostat or thermocouple on a younger unit is usually worthwhile. A leaking tank, or any major repair on a unit near the end of its life, generally points to replacement.
Frequently Asked Questions
Can I install a water heater myself?
Some homeowners do, but many jurisdictions require a permit and inspection, and gas connections carry real safety risks. A licensed plumber also protects the manufacturer warranty in many cases.
What size water heater do I need?
A 40-50 gallon tank suits most households of two to four people. For tankless units, sizing is based on flow rate (gallons per minute) and incoming water temperature.