Tankless Water Heater Cost Guide
Estimate what a tankless water heater will cost installed based on fuel type, sizing, and any venting or gas upgrades.
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Average cost
| Scenario | Range |
| Electric tankless (installed) | $800 – $2,500 |
| Gas tankless (installed) | $2,000 – $4,500 |
| Unit only | $500 – $1,500 |
| Gas line / venting upgrade | $300 – $1,500 |
| Point-of-use unit | $200 – $800 |
What affects the price
- Fuel type. Gas units need venting and possibly a larger gas line; electric needs sufficient amperage.
- Sizing. Higher flow rates and whole-house coverage cost more.
- Install upgrades. New venting, gas, or electrical work raises the price.
- Condensing vs non-condensing. Condensing units cost more but are more efficient.
- Labor. Licensed plumbers and electricians charge more but ensure code compliance.
- Location. Permit fees and labor rates vary.
FAQ
How much does a tankless water heater cost?
Installed, gas units run $2,000 to $4,500 and electric units $800 to $2,500.
Is a tankless water heater worth it?
It costs more upfront but lasts about 20 years and lowers energy bills, often paying off over time.
Do I need to upgrade my gas or electrical?
Often yes. Gas units may need a larger line and new venting; electric units need adequate amperage.
How much can a tankless heater save?
Households commonly save 10 to 30 percent on water heating versus a standard tank.
Tankless vs tank: which is better?
Tankless saves space and energy and lasts longer; tanks cost less upfront and are simpler to install.