Key takeaways
- Short answer: A tank water heater costs less up front, about $600–$2,500 installed, versus $1,400–$3,900 for tankless.
- Tank: $600–$2,500 installed
- Tankless: $1,400–$3,900 installed
- Lifespan: 8–12 vs. 20+ years
- Typical water heater replacement cost: $882–$1,826 per installed unit.
Side-by-side
| Tank | Tankless | Heat pump | |
|---|---|---|---|
| Installed cost | $600–$2,500 | $1,400–$3,900 | $1,200–$3,500 |
| Typical lifespan | 8–12 years | 20+ years | About 13 years |
Which should you choose?
- Tank: lowest upfront cost and simplest swap.
- Tankless: longest life and endless hot water; best if you'll stay many years.
- Heat pump: ENERGY STAR estimates about $550/year savings for a family of four versus a standard electric tank.
Related questions
Does tankless really save money?
It can over its long life, but the higher upfront and conversion costs mean payback depends on your usage and how long you stay.
Can a tankless heater run out of hot water?
It won't run out, but an undersized unit can't keep up with several showers and appliances at once.
Do I need a permit to switch to tankless?
Usually yes, especially for gas and electrical changes.
Other water heater replacement questions homeowners ask
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 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.
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.
Water Heater Replacement at a glance
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.
DIY or pro?
Hire a licensed plumber: gas lines, venting and carbon monoxide risks make DIY replacement dangerous.
What water heater replacement costs
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.
Keep reading
Sources: Angi — Water heater replacement cost · ENERGY STAR — Heat pump water heater savings. Ranges are rounded estimates; see our editorial policy.