How much does tankless water heater installation cost?
Installing a tankless water heater costs $1,400 to $5,600 on HomeGuide's published range — $2,100 to $5,600 for gas, $1,400 to $3,000 for electric.
The cross-checks bracket the same territory rather than repeating it. Fixr's national average is $2,811 on a range of $2,500 to $4,500. NerdWallet publishes $1,400 to $3,900 including installation, and notes Home Depot lists its average tankless installation at $4,300. Different databases, one message: this is a four-figure job, and the fuel type decides which half of the band you are in.
Sources: HomeGuide, Fixr, NerdWallet
This page is general information, not professional advice. Prices move with your home, your region and the season, and the only number that counts is a written quote from a licensed plumber who has looked at the job.
What the total is made of
| Line | Published cost |
|---|---|
| The tankless unit | $600 – $2,600 |
| Installation labor (3 – 10 hours) | $600 – $2,500 |
| Supplies: pipes, connectors, valves | $150 – $300 |
| Permits | $50 – $200 |
| Total installed | $1,400 – $5,600 |
Source: HomeGuide
Why the labor line is so wide: the upgrades. HomeGuide prices a new dedicated electrical circuit at $250 to $900, a larger gas supply line at $350 to $2,000, and first-time venting for a gas unit at $500 to $1,500. A house that already has the gas line and the venting skips most of that, which is exactly the question to ask before believing any quote.
Source: HomeGuide
Tankless water heater replacement cost
Swapping a worn-out tankless unit for a new one costs less than a first conversion, because the gas line, venting and mounting already exist. The published band is the same $1,400 to $5,600, but HomeGuide notes same-for-same replacements are typically cheaper than retrofits that need plumbing or electrical modifications — your job should price toward the bottom of its fuel's band.
Is tankless worth it against a tank?
HomeGuide's own comparison: a standard tank costs $600 to $3,100 installed and lasts 8 to 12 years, while a tankless unit costs $1,400 to $5,600 and lasts 15 to 20. On running costs it publishes $220 to $480 a year for gas tankless against $250 to $420 for a gas tank, and $340 to $540 for electric tankless against $530 to $600 for an electric tank.
Source: HomeGuide
So the honest arithmetic is upfront money against lifespan and monthly burn. A household that runs out of hot water every morning buys something real. A one-person household mostly buys a longer warranty period on a pricier box.
To put your own size and fuel into the published tables and see both totals side by side: the water heater cost calculator.
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Questions people ask next
- How much is a gas tankless water heater installed?
- HomeGuide publishes $2,100 to $5,600 for a gas tankless unit including labor and required modifications. Gas runs higher than electric because of the gas line, combustion venting, and the extra labor hours those bring.
- How much is an electric tankless water heater installed?
- HomeGuide publishes $1,400 to $3,000 installed and calls electric units cheaper and easier to install than gas. The catch is capacity — the electrical panel has to carry the load, and HomeGuide prices a new dedicated circuit at $250 to $900 if yours cannot.
- How long does tankless water heater installation take?
- HomeGuide says 3 to 10 hours of labor depending on the upgrades involved, and Fixr reads 6 to 10 hours at $75 to $130 per hour. A first-time conversion from a tank sits at the long end; a same-for-same swap at the short end.
- Does a tankless water heater need a permit?
- Commonly yes — HomeGuide lists permits at $50 to $200 as a standard line of the project. The rules and the fee are set by your city's building department, and they differ enough by place that we wrote a separate page on water heater permits.
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