ServiCover📌 Key Takeaway: A tank water heater typically costs $800-$2,500 installed; a tankless unit runs $1,500-$4,500 because gas models often need venting, gas line or electrical upgrades. Tank units usually last 8-12 years, tankless up to around 20.
Installed Price by Type
| Type | Installed Cost | Typical Lifespan |
|---|---|---|
| Electric tank (40-50 gal) | Low-to-mid of $800-$2,500 | 8-12 years |
| Gas tank (40-50 gal) | Mid-to-high of $800-$2,500 | 8-12 years |
| Tankless (gas or electric) | $1,500-$4,500 | Up to ~20 years |
| Heat pump (hybrid) water heater | Typically above standard tanks | 10-15 years |
Extras That Show Up on the Bill
- Haul-away of the old unit
- Permit and inspection — required in many areas for water heater replacement
- Code upgrades — expansion tanks, seismic straps, drain pans or new relief valves
- Venting changes — especially when switching to a high-efficiency or tankless gas unit
- Gas line or electrical upgrades — tankless units often need larger gas lines or dedicated circuits
Signs It's Time to Replace
- The unit is over 10 years old (check the serial number for the manufacture date)
- Rusty or discolored hot water
- Water pooling around the base — a leaking tank can't be repaired
- Rumbling or popping from sediment buildup
- Hot water running out faster than it used to
Repair or Replace?
Repairs typically cost $150-$600. Replacing a heating element, thermostat or thermocouple on a younger unit is usually worthwhile. A leaking tank, or any major repair on a unit near the end of its life, generally points to replacement.
Frequently Asked Questions
Can I install a water heater myself?
Some homeowners do, but many jurisdictions require a permit and inspection, and gas connections carry real safety risks. A licensed plumber also protects the manufacturer warranty in many cases.
What size water heater do I need?
A 40-50 gallon tank suits most households of two to four people. For tankless units, sizing is based on flow rate (gallons per minute) and incoming water temperature.
🔎 How we research: The ServiCover Editorial Team compiles prices and guidance from published 2026 cost guides, manufacturer information and industry sources. Prices are national ranges and vary by location, home and provider, so always compare written quotes. We don't perform the work ourselves, and we may earn a commission when you request quotes through our partners — see our Advertiser Disclosure.