How Much Does A 40 Gallon Hot Water Heater Cost

2022 Cost to Replace a 40-Gallon Water Heater

Hot water heaters are an absolutely necessary component of any household. They are available in a variety of styles, techniques, and sizes to suit any residence, fuel type, or water requirement. With 3 to 4 persons in your home, a 40-gallon tank heater will be suitable for your water heating needs if your family has low-to-moderate water requirements. You want to be as near to your family’s demands as possible when installing tank-style heaters because they must keep water heated until it is needed.

The cost to install a 40-gallon tank water heater ranges from $750 to $2,000 on a national average basis, with the majority of consumers paying about $1,000 for a 40-gallon gas tank water heater that is a straight replacement for an existing type.

40-Gallon Water Heater Cost Calculator

Water heaters with a capacity of 40 gallons can cover the hot water requirements of families with three to four persons and low-to-moderate hot water requirements. This unit size can be powered by an electric motor or by gas/propane. The latter is available in a variety of efficiencies, making them more expensive up front but less expensive to operate over time. These considerations, as well as the project’s location, whether it is ready for installation, and tank insulation, all have an influence on the ultimate cost.

40-Gallon Water Heater CostsZip CodeGallons
Basic Standard Best Quality
40-Gallon Water Heater Cost (Material Only) $300 – $500 $500 – $900 $1,000 – $1,500
40-Gallon Water Heater Installation Cost (Labor Only) $270 – $350 $400 – $600 $600 – $1,500
Total Costs $570 – $850 $900 – $1,500 $1,600 – $3,000
40-Gallon Water Heater Cost per Gallon $14.25 – $21.25 $22.50 – $37.50 $40.00 – $75.00

When it comes to purchasing and installing a hot water heater, electric models are the least expensive option. Long-term operation, on the other hand, is typically more expensive. Water heaters powered by natural gas or propane1 are more expensive to acquire, set up, and install, but they have reduced running expenses. Gas and propane heaters are also available in a variety of efficiency levels, allowing you to save even more money in the long run. The least expensive electric heater will be one that is put in an area that has already been wired.

The most expensive versions are high-efficiency types put in regions that require modifications to make them fit properly.

Additional Considerations and Costs

  • Manufacturers of repute. There are a plethora of hot water heater manufacturers to choose from. Bosch, Reliant, Rheem, and Bradford White are just a few of the most well-known names in the industry. Lifespan. Water heaters should have a minimum lifespan of 10 to 15 years, while some may survive even longer than that. Maintenance. Water heater maintenance includes draining the tank on a regular basis to remove any sediment that may have accumulated on the bottom, as well as regular checks to ensure that it continues to operate as it should. Mounting. Tanks for 40-gallon hot water are large enough to be installed largely on the floor. It is uncommon to come across one of this size that can be wall-mounted
  • Piping. If you want additional plumbing to connect the unit to the water supply, you may anticipate to pay $8 to $10 per linear foot in additional expenditures
  • Permit. You do not require


The cost of the device itself ranges from $300 to $1,500 on average. The typical cost of installation is between $750 and $2,000.

  • Is a 40-gallon water heater sufficient for a household of four people?

If your water consumption is little to moderate, then sure. If you have a high-performance shower or if you have a lot of water usage, you should consider upgrading.

  • A 40-gallon water heater has a life lifetime of around 15 years.

The majority of heaters have a lifespan of 10 to 15 years, with some lasting much longer.

  • When using a 40-gallon water heater, how many showers can you take at a time?

This is dependent on a number of things. Taking a shower with only one head consumes around 2 liters of water per minute on average.

Considering that you will very certainly be mixing some cold water into your hot water, you may expect to take a single 40-minute shower, or perhaps two 20-minute showers, or four 10-minute showers before you run out of hot water.

Remodeling Terms Cheat Sheet

Definitions in layman’s words, cost considerations, illustrations, and other information you should be aware of. See the whole cheat sheet. 1Propane is a hydrocarbon gas that is commonly employed as a fuel source.

Average cost to install 40 gallon hot water heater

It is possible that your water heater is not the most expensive appliance in your home, but the mess it may generate when it breaks down might make it the most expensive item in your home. Thousands of water heaters are inspected annually by Comfort Heroes’ technicians. We find that many of the water heaters we evaluate are capable of being properly certified for an additional year of operation. Others, on the other hand, have rusted-out tanks, significant mineral deposits, depleted anode rods, and seized temperature and pressure safety relief valves, among other things.

“How long do water heaters typically last?” is a question we get asked a lot by our customers.

Electric vs. Gas Water Heaters

When it comes to heating water, gas (either natural gas or propane) and electricity are two of the most common options. Natural gas water heaters typically operate at a cost that is approximately one-third that of an electric water heater. Although an electric water heater may be marginally less expensive than a gas water heater, the total cost of ownership is significantly greater due to the higher utility bills per BTU of heat produced by the electric water heater. This criterion is only broken when it comes to hybrid electric water heaters, which use a heat pump to provide energy efficiency that is comparable to that of a gas-style water heater.

Tank vs. Tankless Water Heaters

A tank model gas water heater will work at around 60% energy efficiency, however a tankless gas style water heater may function at up to 98 percent energy efficiency when properly installed and maintained. Thus, for every $100 spent on water heating, a gas tank style water heater will allow around $40 worth of heat to escape via the exhaust pipe, but the condensing tankless water heater will only allow approximately $2 worth of heat to escape through the exhaust pipe. This represents a significant energy reduction, and it is one of the primary reasons that more of our clients are switching to tankless water heaters.

What Are Water Heater Code Upgrades?

You may need to make some “extra additions” to your new water heater, depending on when it was initially built and whether or not it meets the current plumbing code criteria. The 2015 Uniform Plumbing Code has been accepted by the City of Sioux Falls as the plumbing code to be followed. What this means is that if your water heater is old enough to require replacement, there is a good chance that it will also require upgrading to bring it up to current standards.

What are some of the most common code upgrades?

As your water heater heats the water, the amount of the water increases. In order to prevent the additional pressure from causing unnecessary wear and tear on the water heater and other fixtures in the home, the thermal expansion tank’s purpose is to absorb the extra water volume.

It is possible that the cost of installing a new Thermal expansion tank will vary from $279 and $443.

Combustion Air

The National Fuel Gas Code specifies that gas appliances in an enclosed mechanical room must have a capacity of 50 cubic feet per 1,000 BTUs per hour. Therefore, if you have a mechanical room in your basement that contains a 40,000-BTU/hr water heater, an 80,000 BTU/hr furnace, and a 22,000-BTU/hr dryer, the mechanical room must be unobstructed, have 8-foot ceilings, and be at least 365 square feet. If the space is smaller than that, it will be necessary to bring in fresh air from outside the room in order for the gas to properly burn in the equipment and not cause a fire.

B Venting

There are several older plumbing and furnace exhaust vent systems that may not satisfy current code clearances or BTU requirements and may require replacement. One inch of clearance is required from a single wall exhaust pipe, but just one inch of clearance is required from a B vent exhaust pipe. However, if clearances cannot be achieved, it may become essential to tin the walls. Installing new b venting from a water heater or furnace might cost anywhere from $689 to $1,682 depending on the size of the system.

Gas Valve, Drip Leg, Union

With the installation of a new water heater, the gas piping must also be brought up to code. A gas shut off valve, drip leg, and union must all be present in order for this to be true. The gas valve’s primary function is to shut off the flow of gas in the case of a leak or future replacements of the valve. Water, mud, silt, pipe dope, and other contaminants that may make their way through the gas lines to the appliance are caught by the drip leg, which serves a protective function. The union makes it easy to provide service to the system.

Shut Off Valve –

Installing a new water heater home shut off valve at the same time as replacing a water heater is a great idea. A valve to cut off the water is not only required by code, but it is also quite useful in the event of a leaking water heater or other emergency. Modern ball valves are also far more dependable than earlier globe design valves, which are still in use today. The cost of installing a new water heater shut off valve ranges from $128 to $279.

Average Cost of A Water Heater Installation

As previously said, it is hard to provide an accurate estimate of the cost of an HVAC system without taking the size, design, and layout of the system into consideration. We can, however, get a good idea of where we’re going.

  • A tank style water heater will cost between $1,150 and $2,300
  • A tankless water heater will cost between $4,200 and $12,000 for a domestic hot water system
  • And a tankless water heater will cost between $1,150 and $2,300.

It is reasonable to expect a wide range of expenses for new water heaters as well as code upgrades. This is due to the wide variety of differences between homes and sizes, as well as the fact that what your home may require is not always what your neighbor’s house requires.


If you believe you may require a new water heater or an infinite hot water tankless system, contact our team and one of our registered service specialists will come to your home to assess the situation.

We can determine what type of water heater you require and go through all of the many options available to you in order to construct the most appropriate system for your family and your budget needs.

About Comfort Heroes

Alan Gentry launched Comfort Heroes, LLC in 2014, and the company has an A+ rating with the Better Business Bureau. In his mind, he wanted to create a home service firm that consumers could come to for virtually any problem that they would have as a homeowner. As a result of this expansion, Comfort Heroes now provides plumbing, heating and cooling services in addition to sewer and drain cleaning and remodeling and insulation. More information may be obtained by calling (605) 656-5737 or by visiting

Hot Water Heater Costs & Installation Prices

The average cost of purchasing a water heater is $1,190 dollars. Get quotations from as many as three professionals! Enter your zip code below to get matched with top-rated professionals in your area. Water heater installation, often known as hot water heater installation or just water heater installation, is one of the most popular (and vital!) house modifications. Hot water heater replacement costs can range from $810 to $1,570, and the cost is determined by whether you are performing a straightforward one-for-one exchange or a more involved upgrade to a tankless system.

How Much Does It Cost to Buy a Hot Water Heater?

Hot water heaters are crucial components of any household, whether you’re washing linens in hot water or resting in a nice bubble bath. When estimating the cost of replacing a water heater, consider the cost of the unit itself, as well as the time it will take your pros to install the unit. Water heaters range in price from $300 to $2,000 for the device alone, with labor costs ranging from $45 to $150 per hour. If the plumber does not need to make any changes to the system, such as switching from an electric to a gas system, the installation visit should take no more than two to three hours on average.

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The Average Cost of Hot Water Heaters With Installation

  • 900 dollars for a 40- to 50-gallon tank
  • 3,000 dollars for a tankless system

Additional Hot Water Heater Costs

Assuming all goes smoothly, all you’ll need is a simple water heater exchange—out with the old, in with the new. Some households, however, will require additional services in order to complete the changeover appropriately. The requirements for residential water heaters change from time to time, necessitating frequent modifications. But try not to be concerned about these code upgrades; they are strictly for safety reasons. Your plumber will inform you of the code requirements (and may direct you to other local specialists such as an electrician), which is especially important if you want to convert from a gas to an electric water heater or if you want to relocate the water heater.

  • Electricians charge between $50 and $100 per hour
  • Additional wiring costs between $550 and $2,200
  • New gas lines cost between $250 and $800
  • New water lines cost between $350 and $1,900
  • Required permits cost between $100 and $1,500
  • Wall framing costs between $200 and $400
  • Drywall installation costs between $1,000 and $2,900
  • Water heater removal costs between $100 and $500

How Much Does It Cost to Buy a Hot Water Heater Near You?

Hot water heaters are high on the list of must-have items for each household! Americans pay various prices for their long, hot showers depending on where they live:

The City or State Average Cost Range

  • $750–$1,250
  • Dallas:$950–$1,675
  • Denver:$985–$1,900
  • Houston:$950–$1,600
  • Minneapolis:$715–$1,300
  • San Diego:$935–$1,600
  • San Francisco:$1,050–$1,850
  • Seattle:$1,050–$1,700
  • Atlanta:$775–$1,350
  • Austin, TX:$850–$1,650
  • Atlantic City, N.J.:$1,129

How Much Does It Cost to Buy a Hot Water Heater by Type?

Tank and tankless water heaters are the two types of water heaters available. Both types of water heaters generate hot water using either natural gas (natural gas or propane) or electricity. It’s not uncommon for a classic tank water heater to have a huge storage tank that may contain anywhere from 30 to 80 gallons of water. 90 percent of families have a tank hot water heater that is hidden away in a basement or laundry room, and you are not alone. A tankless water heater is about the size of a compact suitcase, and it heats water using a coil system instead of a tank.

As with a heating zone, indirect-fired heaters employ a coil within the tank that is connected to a boiler through pipework. The water contained within the tank is heated.

Gas Water Heater Costs vs. Electric Water Heater Costs

Natural gas units, on average, cost $100 to $200 more than electric units and operate at a lower efficiency than electric units. However, if your city’s electric rates are high, the gas alternative will be a more cost-effective option in the long run. In an apartment or a compact area, electric water heaters (both tank and tankless) are the most efficient option since they do not require various types of venting.

Gas Water Heater

  • Over a 12-year period, the cost is $5,000. The device ranges in price from $250 to $1,800.

Electric Water Heater

  • A total of $5,000 will be spent during a 12-year period. Approximately $250–1,800 for the unit
Type Cost
Gas Water Heater $250 – $1,800
Electric Water Heater $200 – $2,880

Average Cost of a High-Efficiency Water Heater

Despite the fact that you use your water heater on a regular basis, you may not be aware that it is the second-highest source of energy usage in your house (an HVAC ranks first). Investing in a high-efficiency water heater is both a cost-effective and ecologically responsible decision. High-efficiency water heaters typically cost between $1,000 and $3,000, including the equipment and installation labor. Their energy efficiency ranges from 100 percent to 300 percent more than that of typical water heaters, and they include features such as high-quality insulation, plastic tanks, and sophisticated controls that detect leaks.

Tankless Hot Water Heater Costs

If you decide that the expense of a tankless water heater is a suitable long-term investment, you’ll spend more up front (about $1,000 to $3,000), but you’ll make up for it in energy savings during the heater’s 20-year life span. Tankless heaters have an additional benefit: they provide on-demand hot water with no waiting time, which is ideal after a chilly day of skiing. But keep in mind that this is not a do-it-yourself job. Because of the gas lines, electrical, and venting involved, it is advisable to leave the installation of a tankless water heater to local experienced installers.

This is a reasonably easy activity that will help to extend the life of the heater while also ensuring that it operates safely.

Solar Water Heater Costs

You’ll see a solar water system on any “off the grid” home-building show if you pay attention. The owners save money over time as a result of this technology, although the initial investment is substantial. It costs between $1,800 and $5,500 to install a solar water heater; however, the price can rise to as much as $13,000 depending on the product, installation fees, maintenance expenses, and the availability of a qualified contractor.

Hybrid Heat Pump Water Heaters Costs

If you don’t care about saving space or money, a hybrid heat pump water heater is the best option for your home. This is the most costly choice, with prices ranging from $1,200 to $3,500. However, hybrid water heaters are the most energy-efficient, thus they are the most expensive. However, small dwellings (sorry, tiny-house people) are not the ideal prospects since the water heater requires 7 feet of space from the floor to the ceiling, as well as 1,000 cubic feet of surrounding air to function properly.

Indirect Water Heater Installation Costs

Indirect water heaters range in price from $800 to $1,500 and are a versatile and efficient option. This function is the most popular since it allows you to use a variety of energy sources from a local source. These include gas, oil, propane, electric, solar, or any combination of these. Indirect water heaters generate heat by heating water in a coil within the tank’s interior. Even though the water used to heat that water may be heated by a direct fuel source such as natural gas, oil, or propane, that water that is used to heat the water distributed to your fixtures is heated by the internal water coil (which is typically made of copper, stainless steel, or nickel-plated copper), not by a direct fuel source (hence the term “indirect” heater).

Type Cost
High-Efficiency Hot Water Heater $1,000 – $3,000
Tankless Hot Water Heater $1,000 – $3,000
Solar Water Heater $1,800 – $13,000
Hybrid Heat Pump Water Heater $1,200 – $3,500
Indirect Water Heater $800 – $1,500

What Factors Influence the Cost of a Hot Water Heater?

Hot water heaters require a lot of space in order to function properly. If you’ve been thinking about having a yard sale to clear out the basement, there’s no better time than now to do it in order to create way for an upgraded water heater. The gallon size is another element that determines the cost of the unit and the installation.

Location of the Hot Water Heater

Most homeowners purchase a new water heater only after their current one fails, and this usually occurs at an inconvenient time—for example, when you have houseguests who love hot showers. A hot water heater upgrade or a relocation of your hot water heater is most likely in order. The position of the hot water heater might be changed by homeowners in order to conserve space or make way for additional changes. If you choose for a tankless unit, the position of the installation may be altered as well.

Water Heater Sizes

The simplest way to determine what size water heater you’ll need is to count the number of people who live in your home. Calculate your first-hour rating (FHR), also known as peak hot water demand, as well as the recovery rate of your tank to become more specific. As an illustration: Gallons consumed in one hour using the function XPeak Use during one hour = Gallons consumed in one hour Showering for 10 gallons on average each hour multiplied by three hours is 30 gallons.

Tank Water Heater Measured by Gallons

  • 1 person need 20–30 gallons
  • 2–3 people require 30–40 gallons
  • 4–5 people require 40–50 gallons
  • And 6 or more people require 55 gallons or more.

Tankless Water Heaters Measured by Gallons Per Minute

  • For one individual, 20–30 gallons of water will be used in 2–3 minutes. 2–3 people: 30–40 gallons in 3–5 minutes
  • 4–5 people: 40–50 gallons in 4–6 minutes
  • 6+ people: 55 gallons in 5–6 minutes

Getty Images photo by brizmaker from the iStock collection.

FAQs About Water Heater Costs

Even though most people wait until the last minute, you should consider purchasing a hot water heater if you begin to see the telltale indications of approaching failure. Keep in mind that the lifespan of a normal tank water heater is eight to twelve years, depending on the model. Here are a few red flags to look out for:

  • Metallic aftertaste water that is rusty or stained
  • Water does not heat sufficiently, but just warms
  • Pops and cracks that make a lot of noise
  • Leaks

How can I extend the life of my water heater?

The longevity of a tank-type heater is determined by the anode rod that is put within the tank. This rod is intended to attract corrosive substances and pull them away from the metal components of the tank’s metal components. Anode rods have a lifespan of around five years. Replacing the anode every three to four years may effectively double the tank’s lifespan, effectively doubling it practically indefinitely. In addition, the anode rod is one of the least costly changeable elements of a heater (costing on average approximately $30).

How do I find a professional to install my hot water heater?

The sort of unit that your home requires is something you’re looking for in a trained, local, and licensed plumber with expertise installing that type of unit. Not every contractor or plumber have the necessary expertise to install these systems. Consult with each professional to determine whether they have previous experience dealing with your particular scenario, particularly if you want skills for an electric to gas conversion or a complex tankless or solar heating system.

Water Heater Installation Cost Guide (2022)

A comparison of the costs of a tank and a tankless water heater, gas versus electric water heaters, energy-efficient water heaters, signs of a failing water heater, how to choose a water heater, when to call a plumber, and frequently asked questions In practically every family, having access to clean, hot water has become a luxury. While the requirement for hot water in a home is constant, the methods by which it is produced are constantly evolving, with a wide range of tanks and fuel sources accessible to homeowners.

If you’re buying a water heater for the first time or replacing an old one, it’s crucial to understand the different types of water heaters available and how much each one costs.

Tank vs. Tankless Water Heater Costs

In terms of water heaters, the tank and tankless water heaters are two of the most popular options available.

Tank Water Heaters

Storage tank water heaters are a popular alternative for households because they can keep and heat large amounts of water on a continuous basis. Water heaters are often situated out of sight, in a garage, basement, or utility closet, among other places. Tank water heaters generally utilize electricity or natural gas to heat the water they produce. The installation of a storage tank water heater is less difficult than the installation of a tankless water heater, needing just roughly three hours of effort.

Tank heaters, although being a more inexpensive choice, are less energy-efficient due to the fact that they must operate continuously in order to maintain the target tank temperature.

Tankless Water Heaters

Tankless water heaters function by heating water only when it is required. The technology heats the water pipe with either a gas burner or electricity, allowing it to furnish water on demand. A tankless device, like a hot water storage tank, can be kept in a basement or utility closet for easy access. Tankless heaters are less bulky than tank units and may be placed on the wall of a bathroom or bedroom, for example. Tankless water heaters are more expensive to purchase up front than tank water heaters, with prices ranging from $1,200 to $3,500 for homes.

Electric tankless heaters will require the installation of brand new electrical wiring.

See also:  Why Is My Gas Hot Water Heater Chirping

Gas vs. Electric Water Heater Costs

Tankless and tank water heaters are both available in gas and electric variants, with each offering its own set of advantages and disadvantages to homes.

Electric Water Heaters

An electric tank is less expensive to purchase and install than a gas tank, with a household 50-gallon tank water heater costing roughly $500 to purchase and put in place. The overall cost of operation on a monthly basis, on the other hand, is typically more than the cost of operating a gas heater. Because there is a lower danger of a leak or combustion with this heat source than with gas, it is regarded to be safer than gas. The disadvantage of using an electric heater, which is more ecologically friendly, is that if the power goes out, so does the hot water.

Gas Water Heaters

Gas heaters are more expensive to acquire, with a 50-gallon tank costing around $700. The operating costs of these heaters, on the other hand, are less expensive than those of an electric type. Despite the fact that natural gas is more likely to combust or leak, a gas-powered water heater produces hot water without the use of electricity.

The most significant disadvantage of using a gas water heater is the harm it causes to the environment via the release of carbon dioxide. More information may be found at: How to Choose the Most Appropriate Water Heater Warranty

Energy-Efficient Storage Tank Water Heater Costs

If you want to be more ecologically concerned, you might consider purchasing one of these energy-efficient water heaters instead.

Solar Water Tank Heaters

Natural sunlight is used to heat the water in these water heaters. A solar water heater system is made up of two parts: a storage tank that retains water and solar collectors that produce heat. In most cases, a solar water heater will rely on a standard water tank in the event of a power failure. Active solar water tank systems and passive solar water tank systems are the two main types of solar water tank systems. An active system provides water to residences through the use of a pump, whereas a passive system circulates water around the home through the use of natural convection.

The increased expense is due to the considerable amount of labor required as well as the requirement for a backup water heater.

Indirect Water Heaters

Heat is provided to the tank by an existing furnace or boiler, which is powered by the energy from the furnace or boiler. The water from the boiler is cycled into the tank’s coils, where it is heated by the water contained within. This water heater style is energy efficient, as it relies on heat generated by a boiler or furnace to heat the water. Although the monthly cost of an indirect water heater is low, the initial purchase and water heater installation costs are more than those of traditional heaters, and are around $1,500 in comparison to the latter.

Signs of a Failing Water Heater

You should be on the lookout for warning indicators (such as the ones listed below) that indicate that you need to replace your water heater if you already have one on your property. You may also avoid these problems by keeping your system in good working order using items from reputed firms such as Corro-Protec.

  • Water that is discolored or has an unusual flavor
  • It is possible to have water that takes longer to heat than usual or does not heat at all. Noises originating from your water heater that are loud or unusual
  • Leaks
  • A hot water heating system that has been in operation for more than 15 years

Selecting Your Water Heater

Keep the following considerations in mind when selecting a water heater for your residence:

  • Prior to purchasing a water heater for your house, examine whether or not the required fuel type is readily available. For example, if you’re considering a natural gas water heater, ensure sure your home already has or is capable of receiving a natural gas connection before proceeding. Household size and number of people in your house should be taken into consideration when purchasing a gas tank. Size of your home— For example, a family of two people need a 30–40 gallon tank, but a household of four people requires a 50–60 gallon tank. Savings on both costs and energy— Consider the price of each water heater as well as the cost of the fuel it uses. However, while certain heaters may be more expensive up front, their energy efficiency may allow you to save money in the long term.

When You Should Call a Plumbing Professional

It is suggested that you contact a professional if your water heater is showing symptoms of wear or if it has abruptly failed. Despite the fact that you may opt to replace a water heater as one of your home improvement projects, the intensive work and extensive expertise required to install a system make water heater repairs and replacement a job that is best left to a professional plumber.

Frequently Asked Questions About Water Heaters

After installation, a gas heater will take around 40 minutes to reach full temperature, but an electric heater may take an hour or longer. The length of time it takes for the heater to begin supplying hot water to your house is also dependent on the size and kind of water heater you have.

How many hours a day does a water heater run?

The size, style, and fuel source of a water heater all influence how long it will operate. A tankless water heater typically runs for around an hour per day, but a tank water heater may run for four hours or more each day.

Immediately contact a licensed plumber if you find that your water heater is operating more frequently than normal. The plumber will evaluate your heater for any faults.

How much does it cost to replace a 50-gallon water heater?

For an electric water heater of the same size, the cost is around $1,000, while a natural gas water heater of the same capacity is approximately $1,200. Send an email to our Reviews Team if you have any comments or questions regarding this post.

How Much Does It Cost to Replace a Water Heater?

The good news is that, with any luck, you will not have to replace your water heater for at least a decade after this. In light of this, we believe the bad news is rather obvious: Please accept our apologies for informing you that your outdated water heater will no longer be able to provide you with additional time. It is past due for a complete overhaul. It is natural for you to ask yourself, “How much will this cost me?”. And, of course, we have the solution to your question. This Might Also Be of Interest to You: If the hot water runs out while you’re in the shower, what should you do?

  • The purchase price of the unit itself
  • Materials needed for the installation. Plumbing services provided by a qualified plumber
  • Permits for the installation of equipment
  • The current condition of your plumbing system
  • You should consider the placement of your pipes. It is optional for us to remove your old unit. Whether you want to install a water heater in a new location or relocate an existing one, we can help. If you want to make the switch from electric to gas, or from tank to tankless, you’ll need to rewire your home or install a gas line, among other things. Anything else that adds to the amount of hours it takes to finish the project is prohibited.

According to research from HomeServe, the national average cost to replace a water heater is more than $1,700 on average. Keep in mind that your selected contractor will almost definitely charge you an additional hundred dollars or so for a diagnosis fee, which will be charged regardless of what you decide to do when he or she comes to your home and determines the nature of the problem. The type of water heater you choose to install has the greatest impact on the cost of water heater replacement.

Additional expenditures, for example

National Average Job Cost for Water Heater Diagnoses and Replacement

  • Insufficient data is the diagnosis
  • Insufficient data is the replacement.

3. Arizona

  • There is insufficient data for a diagnosis
  • Thus, there is no replacement.

4. Arkansas

  • Insufficient data was the diagnosis
  • Insufficient data was the replacement.

13. Idaho

  • Diagnosis: insufficient data
  • Replacement: insufficient data

21. Maryland

  • Insufficient data is the diagnosis
  • Insufficient data is the replacement.

47. Virginia

Additional Related Articles:

  • Do not forget to flush your hot water heater! How to Maintain a Hot Water Heater
  • Don’t Forget to Flush! The following is a 6-Step Guide for Flushing Your Gas or Electric Water Heater: There are several different types of hot water heating systems. The following are the costs of installing a water heater: What’s the difference between a tank and a tankless system? Determine whether or not a tankless water heater is appropriate for your home. What is a Smart Water Heater and how does it work?

Water Heater Price Ranges by Type

  • Natural gas tankless water heaters range in price from $4,211.67 (7.5 gallons per minute) to $4,703.04 (9.4 gallons per minute)
  • Tankless water heaters range in price from $3,743,85 (7.5 gallons per minute) to $4,404.52 (9.4 gallons per minute)
  • Electric water heaters range in price from $928.20 (30 gallons) to $1,327.86 (80 gallons)
  • Propane water heaters range in price

Additional Expenses Contributing to Water Heater Replacement Costs

  • Expansion tank:$118.60
  • Water heater stand or platform:$151.61
  • Drain pan:$94.04
  • Earthquake strapping:$129.26
  • Exhaust venting:$114.77
  • Expansion tank:$118.60

What Goes Into the Price You Pay for Installation?

As you can see, the unit itself is the most expensive component of a water heater. However, while determining total expenditures, it is important to take into consideration the cost of installation. The price of components such as pipe fittings, the cost of permits, and the cost of labor will all be included in the installation expenses for a water heater replacement project. When purchasing supplies such as pipe fittings, valves, and connections, expect to pay an additional $8 to $10 per foot in addition to the base price.

Some jurisdictions may not require a permission at all, but others may charge a cost of up to a few hundred dollars to get a permit for the installation of solar panels.

Which Water Heater Brands Cost the Most to Install?

Varying manufacturers charge different costs for their heaters, although some brands may design heaters that are more powerful than others.

The brands you choose should be ones that offer a good combination of cost, dependability, and durability; this is especially true when it comes to electronics. Consumer Reports has awarded good ratings to A.O. Smith, Rheem, Whirlpool, GE, and Kenmore, among other brands of appliances.

  • Rheemhas a reputation for being a company that allows you to save money, with tank water heaters ranging in price from $400 to $2,300. A.O. Smithheaters are comparable in performance, however they may cost up to $3,500
  • Noritz appeals to people who are looking for a more affordable tankless water heater, with units starting as low as $515 on Amazon. Tankless heaters from the Rinnai brand, on the other hand, may cost anywhere from $900 to $1,995 depending on the model.

Are Energy-Efficient Models Worth It?

While attempting to determine water heater pricing, many homeowners question if it is really necessary to consider energy efficiency when making their decision. Most energy-efficient versions will be a bit more expensive than normal ones, but they will promise to make up for that difference in price through lower monthly utility expenses. If you want to know if an energy-efficient model is worth the investment, you should compare its yearly operating expenditures to the operating expenses of cheaper, non-energy-efficient versions that are less expensive.

In general, the amount of money you save will be determined by factors such as your local energy costs and the level of energy efficiency.

How Long Before You Need to Replace Your Water Heater Again?

When estimating overall water heater expenses, it’s beneficial to consider the product’s typical lifespan, which may be found on the manufacturer’s website. The standard hot water heater tank has an expected lifespan of eight to twelve years. Meanwhile, the average tankless water heater has a lifespan of 15 to 18 years on average. Because tankless water heaters do not corrode as much as traditional water heaters, they last far longer. Due to the tank’s extended life duration, you may discover that paying a greater price up front results in a cheaper cost per gallon over the course of the tank’s whole life cycle.

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Signs of Trouble (and How to Avoid Them)

The following are examples of warning indications that your water heater is about to fail:

  • The tank is emitting banging or rumbling noises. Water that is hot and appears red or yellow
  • Energy bills that are unusually high
  • A abrupt drop in the temperature of the hot water
  • Leaking from the tank’s perimeter

Maintaining your hot water tank on a regular basis, such as flushing it and changing the sacrificial anode rod, can help it survive as long as possible. If you discover any difficulties with your water heater, contact a water heater repair service right enough to avoid more damage. With a little regular maintenance on your tank, you can avoid having to pay for water heater replacement prices any more frequently than is really required in most cases.

How Much Does Water Heater Installation And Replacement Cost?

Note from the editors: We receive a commission from affiliate links on Forbes Advisor. The thoughts and ratings of our editors are not influenced by commissions.

Water Heater Costs

Replacement of a water heater typically costs $1200, which includes both the cost of the new unit and the cost of labor. As cheap as $815 might be obtained by bargain hunters who are looking for a good deal. High-end systems can cost upwards of $10,000 or more, depending on the type of water heater used, the location of the installation, and other factors that we’ll discuss in further detail later. Additionally, you may be interested in the tankless water heaters available at Home Depot. Testimonials from customers Exceptionally well-written Performance Platinum 9.5 GPM Liquid Propane Water Heater by Rheem Performance Platinum 9.5 GPM Liquid Propane Water Heater by Rheem 3Rinnai RU199iP RU Model Series 3Rinnai RU199iP RU Model Series 3Rinnai RU199iP RU Model Series 3Rinnai RU199iP RU Model Series 3Rinnai RU199iP RU Model Series Testimonials from customers Exceptionally well-written 3Rinnai RU199iP RU Model Series 3Rinnai RU199iP RU Model Series 3Rinnai RU199iP RU Model Series 3Rinnai RU199iP RU Model Series 3Rinnai RU199iP RU Model Series 4Rinnai V53DeP V Model Series 4Rinnai V53DeP V Model Series 4Rinnai V53DeP V Model Series 4Rinnai V53DeP V Model Series Model Series: Rinnai RL75eP RL Model Rinnai RL75eP Testimonials from customers Exceptionally well-written Model Series: Rinnai RL75eP RL Model Rinnai RL75eP If you’re considering about purchasing a propane tankless water heater, you might be wondering if you should.

Hot Water Heater Installation Prices

Replace a water heater entails a number of elements that all influence the ultimate project cost, starting with the size and kind of unit that is used and progressing from there.

Tank vs. Tankless

For more than a century, tank-type water heaters have been the industry standard for heating water. They keep the hot water in tanks ranging from 30 to 80 gallons. In the United States, this form of water heater accounts for more than 85 percent of all domestic water heaters. A tank-style hot water heater installation costs on average between $ 650 and $2,100, which includes the cost of the new water heater, supplies, and installation labor. They can be powered by electricity, gas, propane, or fuel oil, and they have a lifespan of 10 to 12 years.

The water is heated as it passes through the waterline, rather than being stored and kept hot by using energy to maintain the temperature of the water.

They have the ability

Tank Size or Tankless Water Heating Capacity

The size of the water heater has an impact on the cost as well. Typical tank-style heaters have storage capacities ranging from 20 to more than 80 gallons, with most households opting for a 40 or 50-gallon capacity. The size of a tankless water heater is measured in gallons per minute, with a flow rate ranging between two and six gallons per minute (gpm). For the majority of households, a greater flow rate of four to six gpm is advised. Make certain that the replacement unit you purchase will provide adequate hot water for the amount of people who will be living in the house.

Gas vs. Electric

Depending on the model, water heaters are powered by gas (natural gas or propane) or electricity. Heat is given either by a gas flame or by an electric coil, depending on the application. Compared to gas water heaters, electric water heaters cost between $100 and $200 less. Nonetheless, because of the greater cost of electricity and the lower cost of natural gas and propane in many parts of the nation, gas water heaters are frequently more cheap over the course of the unit’s useful life. Electric water heaters are still an excellent solution for tiny or limited spaces since they do not require any venting to function properly.

Direct Vent vs. Power Vent

Gas water heaters create exhaust that must be vented either directly overhead through a vent flue or through a power vent blower to provide proper ventilation. Unlike indirect vent water heaters, direct vent water heaters exhaust through a flue pipe located above the device. You should budget an additional $500 to $1,000 to build the vent pipe if you are replacing an electric water heater with a direct vent natural gas water heater. Power vent water heaters employ a fan to blast exhaust out through vent pipes, which is a more environmentally friendly option.

When compared to a direct vent system, this method provides greater flexibility in terms of where the unit may be installed while also being more energy efficient.

Power venting devices are $300 to $600 more expensive than direct venting equipment, and the cabling and electrical work are more complicated.

Labor Cost to Install a Hot Water Heater

In addition to the cost of the device, the labor fee accounts for a significant amount of the total installation cost. Prices for labor might range from $150 to $1,000 or even more per hour. They vary depending on the hourly rate of the installer, the size and kind of water heater being installed, and the location of the installation.

Cost Per Hour

The majority of the work involved in installing a gas or electric water heater may be completed by a plumber. Their labor charges range from $45 and $150 per hour depending on the position. An electrician will be required if the task involves extensive electrical work, such as the installation of a new circuit or the conversion from gas to electricity. The cost of an electrician’s services will range from $50 to $100 per hour.

Average Hours Per Water Heater Type

Replacement of tank-type water heaters, whether gas or electric, takes around three hours in most cases. The installation of a tankless water heater will take between eight and ten hours. If you are switching from a gas to an electric water heater, or vice versa, or if you are moving the water heater to a new location in the house, this can significantly increase the length of the job and may even necessitate the hiring of additional types of labor, such as carpenters or drywall installers, to complete the project.

Additional Water Heater Replacement Cost Factors

In addition to the cost of the appliance and the work of the installation, there may be other fees associated with replacing a water heater. Included in this are permit fees, the installation of an expansion tank, the removal and disposal of the old water heater, the installation of water or gas lines, electrical or carpentry work, and the price of materials and labor.


A plumbing permit is usually required when replacing a hot water heater in most areas. The permit is necessary so that an inspection may be carried out to check that the work was completed in accordance with current safety and quality standards and regulations. Depending on the specifics of the project, many permissions may be necessary, with total permit charges ranging between $50 and $500, and perhaps as high as $1,500.

Expansion Tank

The use of an expansion tank is a safety feature that protects pipes from collapsing in the event that the water heater’s tank malfunctions. However, while many older homes do not include one, it is sometimes required by local building requirements that one be added when a water heater is replaced. The cost of installing a new expansion tank ranges from $40 to $350.

Tank Removal

The old tank must be removed in order for the new one to be installed. The cost of removing the old tank will range from $100 to $500, depending on the contractor’s rate, the size of the tank, and the ease with which it can be reached. Expect to pay more if the object is large and difficult to remove.

Relocating the Unit or Fuel Conversion

Moving a water heater to a different place in the house, switching from one fuel type to another, or even upgrading to a larger tank can all increase the cost of installation dramatically. Water line rerouting ($350 to $1,700), framing a wall ($200-$400), installing drywall ($800-$2,500), adding a gas line ($250 to $800), or extending electrical wiring ($500 to $1,500) are all possible requirements for your project.

You should consult with your installer if you are considering anything other than a direct replacement.


In addition to incidental materials such as solder and pipe thread compound, replacing a water heater may necessitate the purchase of other things such as venting pipes, connectors, water or gas piping, pipe fittings, and other related products. Depending on the specifics of the project, these elements might represent anything from a little to a major increase in expenses. Replacing a water heater is not a do-it-yourself activity, and it is slightly more expensive than replacing other equipment.

There are numerous variables that influence the time it takes to complete the installation, including the cost of materials and labor, the availability of permits, the labor of a licensed plumber, the removal of an old unit, the ease of access, and other factors that may prolong the time it takes to complete the job.

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Frequently Asked Questions (FAQs)

Traditional tank-style water heaters have a lifetime of eight to thirteen years. They are not energy efficient. Tankless water heaters have a lifespan of 20 years or longer.

Can I install a water heater myself?

It is conceivable for an experienced, highly-skilled DIYer to obtain the necessary licenses from the local authorities and install a water heater in their own house, but making mistakes may be both costly and potentially deadly. The expense of cleanup and repairs, if anything goes wrong, can rapidly become more expensive than the cost of hiring a professional in the first place.

Should I buy a water heater from a plumber?

It’s common to be offered a labor warranty when working with an experienced plumber. An additional guarantee offered by the plumber, in addition to any parts or equipment warranty provided by the appliance’s manufacturer, may cover the cost of any repairs necessary as a result of incorrect installation work.

What are the signs your hot water heater is going out?

The majority of people will wait until their water heater has fully failed before they replace it. Avoiding this tension by arranging an inspection or replacement when any of these symptoms appear can help to alleviate it.

  • The water heater has reached or is nearing the end of its expected service life
  • The hot water is rapidly depleted. The temperature of your shower is uneven
  • It appears that water is seeping from the tank. Water that is discolored comes from the faucets. The pressure of the water has reduced
  • The water does not get heated
  • Instead, it remains cool. Noises emanating from the heater, such as loud cracks or pops, for example

Why do water heaters fail?

Premature failure of a water heater can occur for a variety of causes that can be avoided. Keep an eye out for these concerns and be prepared to take action if they develop.

  • Internal corrosion as a result of a worn-out anode rod Check the anode rod once a year and replace it if it appears to be worn
  • Because of the high mineral concentration of the water, sediment accumulates inside the tank. Annual tank cleaning is recommended to prevent sediment accumulation. Excessive water pressure can cause damage to the water heater as well as other components of the water system. If the pressure of the water entering the home is more than 80 psi, the pressure release valve should be adjusted or replaced. A water heater that is not properly sized will be overworked, leading components to wear out sooner than they should. Install a new hot water heater that is appropriate for the number of people living in the house
  • And

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