WATER HEATERS
How Much Does Water Heater Replacement Cost?
Estimate water heater replacement cost — tank, tankless, installation labor and disposal — with the free calculator.
Water heaters fail on their own schedule, so replacement is usually an emergency quote. This guide covers tank vs. tankless, what installation really costs and a calculator to budget the job.
THE SHORT ANSWER
The short answer
Tank water heater replacement runs $900–$1,800 installed. Tankless runs $2,000–$4,000. The tank is $500–$1,200, installation labor $300–$600, plus disposal.
Tank vs. tankless
Tank heaters are cheaper upfront and simpler to replace. Tankless units cost 2-3x more but last longer (20+ years vs. 10-15), save energy and take less space. The fuel type also matters: gas needs venting.
- Tank 40-50 gal: $900–$1,800 installed
- Tankless: $2,000–$4,000 installed
- Gas units add venting requirements and cost
- High-efficiency models add $300–$800
Installation and the extras
Labor runs $300–$600 and covers removal, haul-away, connections and code checks. Upgrading to a different size or fuel type adds materials and labor. Permits may be required.
When replacement makes sense
Tanks last 10-15 years. Rusty water, leaks, rumbling or inconsistent heat signal it's time. Emergency replacements cost the same as planned ones — the only difference is you can't shop around as much.
Try the calculator with your quote
Enter the unit price, installation labor and disposal to see the total replacement cost.