How Much Does It Cost to Replace a Water Heater?

October 18, 2021 11:06 pm Published by Leave your thoughts

A water heater is an essential appliance in any home—unless you like bathing and cleaning with ice-cold water. If it’s time to invest in water heater replacement, you’re probably wondering how much you can expect to pay for the new appliance, including labor and materials. There are several factors to consider when it comes to water heater replacement. Read on to learn the important information you need to know before you make this investment.

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Tank vs. tankless

The style of water heater you choose is one of the most important factors that affect the overall price you’ll pay for water heater replacement. You have two main styles to choose from: tank and tankless. More than 90 percent of the homes in the country have tank-style heaters, but tankless models are gaining in popularity due to their efficiency.

If you choose a tankless heater, be prepared to spend about two to three times more than you would on traditional tank-style water heaters. Keep in mind that tankless heaters can last twice as long, up to 20 years in some cases, which makes them a sensible investment. Here’s a general breakdown of the difference in cost:

  • Tank-style: The average cost for tank-style water heater replacement, including labor and materials, runs between $700 and $2,000.
  • Tankless: The average cost for tankless water heater installation ranges between $1,000 and $3,000.


Another important factor to consider in terms of water heater replacement costs is the size of the new unit. Tank-style heaters range in size from 20-gallon capacity to 100-gallon. For most family homes, a 40-gallon water heater typically gets the job done. If you’re investing in a very large tank-style heater, expect to pay more not just for the unit itself, but also for installation.

Location of the system

Is your water heater in a hard-to-access place in your home like an attic or basement? Will your installation technicians need to carry the old and new units up or down several flights of stairs? The overall difficulty of the job directly affects the replacement price. Be prepared to pay more than the average if your job is a challenging one.


Interested in a natural gas water heater? You’ll have to pay more for it. Generally, a natural gas water heater costs up to $200 more than an electric one. In addition to the higher up-front costs, natural gas water heaters aren’t nearly as efficient as electric ones, but they do cost much less to power since gas is cheaper than electricity. Talk to your installation professionals to determine whether gas or electric is the best option for your property.

There are many factors to consider when it comes to investing in water heater replacement. Make the most of your investment and choose a professional water heater installation service provider with a proven track record of success, like Affordable Rooter. Our team has been installing and replacing water heaters for decades. Access to reliable hot water is just a phone call away!

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