Key takeaways
- Typical cost: $882–$1,826 per installed unit, about $1,348 on average.
- Average replacement: about $1,348
- Tank: $600–$2,500; tankless $1,400–$3,900
- Tank heaters last about 8–12 years
- Timeline: A tank-for-tank swap is usually done in a day; converting to tankless takes about twice as long.
- Permits: Most areas require a permit for water heater replacement, typically $25–$300.
Water Heater Replacement Cost at a glance
Water heater replacement typically costs $882–$1,826, with an average around $1,348. Tankless and solar units cost more, and converting from tank to tankless adds labor.
| Item | Typical cost | Notes |
|---|---|---|
| Tank water heater (gas or electric) | $600–$2,500 | Installed |
| Tankless water heater | $1,400–$3,900 | Installed |
| Hybrid heat pump water heater | $1,200–$3,500 | Installed |
| Solar water heater | $1,700–$5,500 | Installed |
| Labor, tank-for-tank swap | $150–$450 | Tankless swap $600–$1,900 |
| Tank-to-tankless conversion labor | $150–$2,500 | About twice as long as a swap |
Prices run lowest in states like Arkansas, Mississippi and Alabama and highest in Hawaii, California and Alaska. See the full breakdown and cost by state →
Water Heater Replacement cost questions
- What is the cost of tank water heater (gas or electric)? The typical cost of tank water heater (gas or electric) is $600–$2,500. Installed.
- What is the cost of tankless water heater? The typical cost of tankless water heater is $1,400–$3,900. Installed.
- What is the cost of hybrid heat pump water heater? The typical cost of hybrid heat pump water heater is $1,200–$3,500. Installed.
- What is the cost of solar water heater? The typical cost of solar water heater is $1,700–$5,500. Installed.
- What is the cost of labor, tank-for-tank swap? The typical cost of labor, tank-for-tank swap is $150–$450. Tankless swap $600–$1,900.
- What is the cost of tank-to-tankless conversion labor? The typical cost of tank-to-tankless conversion labor is $150–$2,500. About twice as long as a swap.
- What is the cost of permit? The typical cost of permit is $25–$300. Plus $50–$300 for natural gas work.
- What is the cost of old unit haul-away? The typical cost of old unit haul-away is $100–$500.
- What is the cost of expansion tank? The typical cost of expansion tank is $90–$350.
- What is the cost of new gas line? The typical cost of new gas line is $260–$820. Electric tankless may need a new circuit or subpanel ($500–$1,000).
Signs you need a new water heater
- Rusty or discolored hot water
- Leaks or water pooling around the base
- Popping or banging noises
- Hot water runs out faster than it used to
- Lukewarm or no hot water
- The tank is 10 or more years old
Tank vs. tankless vs. heat pump
| Type | Installed cost | Typical lifespan |
|---|---|---|
| Tank | $600–$2,500 | 8–12 years |
| Tankless | $1,400–$3,900 | 20+ years |
| Hybrid heat pump | $1,200–$3,500 | About 13 years |
ENERGY STAR estimates a heat pump water heater can save a family of four about $550 a year in energy costs compared with a standard electric tank.
Repair or replace?
Repairs typically cost $230–$1,000, so it makes sense to fix a valve or element on a younger unit. If the tank is about 10 years old or more and shows rust, leaks or noise, replacement is usually the better choice.
A leaking tank can cause water damage costing far more than the heater itself. Replace an aging tank before it fails.
Common water heater replacement questions
How much does it cost to replace a water heater?
Most water heater replacements cost about $882–$1,826. Tank units run $600–$2,500 installed and tankless units $1,400–$3,900.
Is a tankless water heater worth the cost?
It can be if you'll stay long enough: tankless units cost more up front but typically last 20+ years versus 8–12 for a tank.
How much does a tank-to-tankless conversion cost?
Conversion labor alone runs $150–$2,500 because it takes about twice as long as a standard swap, and gas lines or electrical upgrades may add more.
Should I repair or replace a leaking water heater?
A leak from the tank itself usually means replacement. Leaks from valves or fittings can often be repaired for $230–$1,000.
Timeline, permits and DIY
How long it takes
A tank-for-tank swap is usually done in a day; converting to tankless takes about twice as long.
Permits
Most areas require a permit for water heater replacement, typically $25–$300.
DIY or hire a pro?
Hire a licensed plumber: gas lines, venting and carbon monoxide risks make DIY replacement dangerous.
Questions to ask contractors
Ask every bidder the same questions so you can compare quotes apples to apples.
- Does the quote include permit, haul-away and an expansion tank?
- Is my gas line or electrical circuit sized for the new unit?
- What is the tank and parts warranty?
- Would a heat pump or tankless unit pay off for my household?
Maintenance that prevents costly repairs
- Flush the tank once a year
- Test the pressure-relief valve yearly
- Check the anode rod every few years
Frequently asked questions
How long does a water heater last?
Tank water heaters typically last 8–12 years, tankless units 20 years or more, and heat pump water heaters about 13 years.
Do I need a permit to replace a water heater?
Usually yes. Permits typically cost $25–$300, plus $50–$300 for natural gas work.
Do heat pump water heaters save money?
ENERGY STAR estimates about $550 a year in savings for a family of four compared with a standard electric tank.
Does the plumber haul away the old water heater?
Usually, for about $100–$500. Confirm it's included in your quote.
Can I replace a water heater myself?
It's best left to a licensed plumber. Gas lines, venting and carbon monoxide risks make mistakes dangerous, and most areas require a permit and inspection.
In-depth water heater replacement guides
Water Heater Replacement by city
Sources: Angi — Water heater replacement cost · Bob Vila — Water heater replacement cost · ENERGY STAR — Heat pump water heater savings. Ranges are rounded estimates; see our editorial policy.