How Much Does a Water Heater Cost to Install or Replace? (2026)
Compare water heater costs by type: gas tank, electric, tankless, and heat pump. When to repair vs. replace, with cost breakdowns for every option.
Repair vs. Replace — The 50% Rule
Repair Makes Sense When:
- Heater is under 7 years old
- Repair cost is less than 50% of new unit
- Problem is isolated (e.g., faulty heating element)
- Unit is under manufacturer warranty
- No rust in the water
Replace When:
- Heater is 10+ years old
- Repair cost exceeds 50% of new unit
- Rusty water coming from hot tap
- Tank is leaking from the bottom
- You're replacing major components for the 2nd time
Compare Water Heater Types
Gas Tank Water Heater
$600 – $1,200
Lifespan: 8-12 years
Moderate
Most homes with gas service
Full details
Electric Tank Water Heater
$400 – $900
Lifespan: 10-15 years
Moderate
Homes without gas service
Full details
Tankless Gas Water Heater
$1,500 – $3,500
Lifespan: 15-20 years
High
Homes with high hot water demand
Full details
Tankless Electric Water Heater
$800 – $2,500
Lifespan: 15-20 years
Very High
Point-of-use or small homes
Full details
Heat Pump Water Heater
$1,000 – $3,000
Lifespan: 10-15 years
Very High
Energy-efficient homes in warm climates
Full details
Solar Water Heater
$2,000 – $6,000
Lifespan: 20+ years
Highest
Sunny climates with high energy costs
Full details
Water Heater Service Costs
| Service | Low | High | National Avg |
|---|---|---|---|
| Tank Water Heater Repair | $100 | $600 | $300 |
| Tankless Water Heater Installation | $800 | $3,500 | $1,800 |
| Anode Rod Replacement | $75 | $200 | $120 |
| Tank Water Heater Installation | $400 | $1,200 | $750 |
| Water Heater Flush & Maintenance | $80 | $200 | $120 |
| Expansion Tank Installation | $100 | $300 | $175 |