Cost to Replace Water Heater: Tank, Tankless and Heat Pump Prices

The cost to replace water heater tanks and tankless units is usually $882 to $1,826 installed, and most homeowners pay about $1,348, according to HomeAdvisor’s 2026 cost guide. Your own number depends on the type you choose, the tank size, the fuel, and whether the job needs extras such as a permit, an expansion tank, new venting or a gas line. Use the free estimator below to see a ballpark for your home, then read on for what moves the water heater replacement cost up or down and how to compare plumbers’ quotes.

How Much Does It Cost to Replace a Water Heater?

Nationally, the water heater replacement cost for most homes runs $882 to $1,826, with an average of $1,348. That covers the new unit and the labor to install it. HomeAdvisor reports a much wider full range, from about $350 for a simple swap to $12,000 for complex projects, which usually means a type change, relocation or major gas, venting or electrical work.

Labor is a big share of the bill. HomeAdvisor estimates labor at about half of the total cost to replace a water heater: roughly $150 to $450 to install a tank, $600 to $1,900 for a tankless unit, and $150 to $2,500 to convert a tank system to tankless.

Water Heater Replacement Cost by Type

The type of water heater you choose sets the starting point. These are HomeAdvisor’s national installed ranges:

Type	Installed cost	Good to know
Electric tank	$600–$3,500	Cheapest to install if you already have electric; wide range because high-end models cost more
Gas tank	$700–$2,700	The most common choice in gas homes; needs venting
Propane tank	$700–$2,500	Like gas, for homes on propane
Hybrid heat pump	$1,200–$3,500	Costs more up front, uses far less electricity
Tankless	$1,400–$3,900	Endless hot water, longer life, higher install cost

Tank water heaters

Most homes have a tank water heater that keeps 30 to 80 gallons hot and ready. Tanks are the cheapest and fastest to replace, especially when the new one uses the same fuel and fits in the same spot. A like-for-like tank swap is the low end of the cost to replace water heater units.

Tankless water heaters

A tankless water heater heats water only when you turn on a tap, so you don’t run out during long showers. HomeAdvisor puts the tankless water heater cost at $1,400 to $3,900 installed. Tankless units usually last longer than tanks, often 20 years or more, but repairs can cost more and they need regular descaling where the water is hard. The biggest variable is the conversion work, which we cover below.

Hybrid heat pump water heaters

A heat pump water heater moves heat from the surrounding air into the water instead of making heat directly, so it uses much less electricity than a standard electric tank. ENERGY STAR estimates a certified heat pump water heater saves a household of four about $550 a year compared with a standard electric water heater, paying back the extra cost in about three years. It needs some space and works best in a basement, garage or utility room that stays above freezing.

How Tank Size Affects the Cost to Replace Water Heater Tanks

Bigger tanks cost more. HomeAdvisor’s national installed ranges by size are:

Tank size	Installed cost
30 gallons	$700–$2,100
40 gallons	$800–$2,300
50 gallons	$800–$2,500
75 gallons	$1,100–$4,000
80 gallons	$1,300–$7,500

The 40-gallon tank is the most common size. Bigger is not automatically better: a tank that is too large keeps extra water hot all day for nothing. If the old tank kept up with your household, the same size is usually the frugal choice. If you regularly run out of hot water, ask the plumber to size the new one to your peak use.

Extras That Raise the Water Heater Replacement Cost

Two quotes for “a new water heater” can be hundreds of dollars apart because one includes work the other leaves out. These are the common extras and HomeAdvisor’s national ranges:

Extra	National range	When it comes up
Permit	$25–$300	Required in many areas for any replacement
Gas connection permit	$50–$300	Connecting a new gas appliance
Expansion tank	$90–$350	Often required by code on closed plumbing systems
Power venting	$600–$1,100	Gas or propane units that can’t vent through a chimney
New gas line	$272–$936	Switching from electric to gas
Relocation	$150–$3,400	Moving the water heater to a new spot

A drain pan, seismic straps in some states and haul-away of the old tank are smaller items that may or may not be included. Ask, so you can compare quotes on the same basis.

Switching Types: Tank to Tankless or Electric to Gas

Keeping the same type and fuel is almost always the cheapest way to replace a water heater, because the fuel line, venting and space are already set up. Switching changes that.

• Tank to tankless. A gas tankless unit often needs a larger gas line and new venting, and an electric tankless unit may need a much bigger electrical circuit, sometimes a panel upgrade. That is why conversions tend to land near the top of the tankless water heater cost range, or above it.
• Electric to gas. You will need a gas line to the water heater, a gas connection permit and venting. Running a new line costs $272 to $936 nationally before venting.
• Electric to heat pump. Usually the simplest upgrade for an electric home, as long as there is enough space and a suitable electrical circuit. Ask the plumber to check both.

The estimator adds the gas line and gas permit automatically when you switch from electric to gas or propane, and explains what a tankless conversion usually involves.

How the Water Heater Replacement Cost Estimator Works

The estimator is built to explain a quote, not replace one.

• What you have and what you want set the type and whether fuel-switching work applies.
• Tank size narrows the range for tank models to where HomeAdvisor’s type and size ranges overlap.
• Extras you tick are added at their national ranges.

The result is a ballpark range with a line-by-line breakdown, notes on what drives your number, and questions to ask every plumber. You can print it for plumber visits. Nothing you enter is saved or sent anywhere.

Gas vs. Electric Water Heater Replacement Cost

Gas, propane and electric tank water heaters all start at about $600 for basic models, according to HomeAdvisor. The difference shows up in three places.

• Installation. Gas and propane units need venting and a fuel connection, so the labor is a little more involved than an electric swap. Electric tanks need a dedicated circuit of the right size, which is usually already in place.
• Running cost. In many areas, heating water with natural gas costs less each month than heating it with standard electric resistance. A hybrid heat pump changes that math for electric homes because it uses far less electricity.
• Recovery. Gas tanks usually reheat a full tank faster than standard electric tanks, which matters for large households with back-to-back showers.

The cheapest option over the next 10 years depends on your local fuel prices, your household size and what is already installed. If you are replacing an electric tank, it is worth pricing a heat pump water heater alongside a standard electric one before deciding.

What a Standard Water Heater Installation Includes

A typical replacement covers draining and disconnecting the old unit, carrying it out, setting the new one, connecting the water lines, fuel or power and venting, filling and testing it, and checking the temperature and pressure relief valve. Many plumbers also replace the supply connectors and add or replace a drain pan. Removal and disposal of the old tank are often included, but not always, so ask. If your area requires a permit, a good plumber will pull it and arrange the inspection, which protects you if anything was installed incorrectly.

Water Heater Replacement Cost by Brand

Brand affects the price, but less than type and size do. HomeAdvisor lists these national ranges for common brands:

Brand	Typical range
Rheem	$600–$2,300
A.O. Smith	$800–$3,500
Bradford White	$400–$3,000
Whirlpool	$350–$1,500
Kenmore	$350–$1,000

Within any brand, the warranty length is a useful guide to quality. A tank with a longer warranty usually has a thicker tank lining or better anode rod. Compare warranties as carefully as prices.

Repair or Replace Your Water Heater?

Not every problem means a new water heater. A leak from the tank itself can’t be repaired, and the tank has to be replaced. But a bad thermostat, heating element, thermocouple, gas valve or relief valve usually can be. HomeAdvisor puts most tank repairs at $100 to $500, and a gas valve replacement at $150 to $500.

Age matters too. Tank water heaters typically last 6 to 12 years according to InterNACHI and Rheem, and tankless units 20 years or more with care. When a repair quote arrives for an older unit, run it through our free repair or replace calculator, which applies the 50% rule and an age check before you pay.

How to Compare Water Heater Quotes

Get two or three written quotes, then compare them on the same items:

1. The exact unit. Brand, model, size, fuel and efficiency rating, plus the warranty on the tank or heat exchanger.
2. What is included. Removal and haul-away, permit, expansion tank, drain pan and any venting, gas or electrical work.
3. Labor warranty. How long the installer guarantees their work.
4. Timing. Many like-for-like replacements are done the same day. Conversions can take longer.

A much lower water heater replacement cost often leaves something out, and a much higher one may include an upgrade you didn’t ask for. Once quotes are broken into the same pieces, the differences usually make sense.

Ways to Lower the Cost to Replace Water Heater Equipment

• Replace before it fails. A burst tank adds water damage and leaves you taking the first plumber available. If your tank is near the end of its typical life, start collecting quotes now.
• Stick with the same fuel and size unless you have a good reason to switch.
• Check rebates. Many utilities offer rebates for heat pump and other efficient water heaters. Federal tax credit rules have changed, so confirm eligibility with a tax professional before counting on one.
• Maintain the new one. Flushing sediment once a year and checking the anode rod every few years can add years of life.
• Plan the money ahead. The free home system lifespan tracker shows when your water heater is likely to be due, and the home repair fund calculator turns your estimate into a monthly savings number.

Signs It Is Time to Replace a Water Heater

Watch for rusty or discolored hot water, a metallic taste, rumbling or popping from sediment, water pooling at the base, lukewarm water, rising energy bills and running out of hot water sooner than you used to. Water at the base is the most urgent sign. If it is coming from the tank, shut off the water supply and the gas or power to the unit and call a plumber, because a failing tank can let go without warning.

Frequently Asked Questions

What is the average cost to replace water heater tanks?

About $1,348 nationally, with most homeowners paying $882 to $1,826, according to HomeAdvisor’s 2026 data. Tank models typically cost $600 to $3,500 installed depending on fuel and size, and tankless models $1,400 to $3,900.

How much does a tankless water heater cost to install?

HomeAdvisor puts the tankless water heater cost at $1,400 to $3,900 installed. Converting from a tank can cost more if the job needs a larger gas line, new venting or a bigger electrical circuit.

Is it cheaper to replace a water heater with the same type?

Yes, almost always. A like-for-like replacement reuses the existing fuel line, venting and space, so the labor is simpler. Switching fuel or going tankless adds work that the national averages may not include.

Is a heat pump water heater worth it?

For many electric homes, yes. ENERGY STAR estimates savings of about $550 a year for a household of four compared with a standard electric tank, with the extra cost paid back in about three years. Savings are smaller for smaller households, and the unit needs space and a location that stays above freezing.

How long does it take to replace a water heater?

A straightforward tank-for-tank swap is often finished in a few hours. Tankless conversions, relocations and fuel switches can take a day or more, especially if a permit inspection is required.

Can I replace a water heater myself?

Some experienced homeowners do, but it is not a beginner project. It involves gas or high-voltage electrical connections, venting that must carry exhaust safely out of the house, a pressure relief valve that must be installed correctly, and often a permit and inspection. A mistake can cause a gas leak, carbon monoxide, scalding or water damage. For most people, the labor cost is worth paying.

How accurate is the water heater replacement cost estimator?

It uses published national ranges, so treat it as a ballpark for planning and for checking quotes. Local labor rates, permits, access and your home’s setup can put a real quote outside the national range. Always get written quotes from licensed local plumbers.

A Quick Water Heater Replacement Cost Checklist

Before you call plumbers, five minutes of prep makes every quote easier to compare and keeps the water heater replacement cost from creeping up.

• Note the brand, size, fuel and age of your current unit from the label on the tank.
• Decide whether you want the same type or a change, such as tankless or a heat pump, since switching affects the cost to replace water heater systems more than anything else.
• Run the estimator above so you know the national water heater replacement cost range for your choice.
• Ask each plumber for a written quote that lists the unit, permit, expansion tank, removal and any venting, gas or electrical work.
• Compare the tankless water heater cost and a tank quote side by side if you are undecided, including how long each is expected to last.

With that list in hand, you will know within a few minutes whether a quote is in line with the national water heater replacement cost or whether something needs a second look.

The Bottom Line

The cost to replace water heater tanks is about $1,350 for a typical swap, but type, size, fuel and extras can move it from a few hundred dollars to several thousand. Use the estimator to understand your range before the plumber arrives, compare quotes item by item, and replace on your schedule rather than after a leak. For warning signs, repair costs and a printable quote checklist, get our free Homeowner Repair Cost Playbook.

Sources: national cost ranges from HomeAdvisor’s water heater replacement and gas line cost guides (updated June 2026, checked 16 October 2026); heat pump water heater savings from ENERGY STAR; service life from the InterNACHI Standard Estimated Life Expectancy Chart and Rheem. This tool provides general information, not professional, financial or contracting advice.