Water Heater Replacement Cost

Water Heater Replacement Cost Guide

By Sarah Collins, home-improvement cost analyst · Reviewed by Tom Reyes, licensed general contractor
Updated 2026-06-16

Estimate what it costs to replace your water heater based on the type, tank size, and any code upgrades, then see average US prices.

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Average cost

ScenarioRange
Tank water heater (40-50 gal)$1,200 – $2,500
Tankless (gas)$2,000 – $4,500
Hybrid / heat pump$1,800 – $4,000
Labor only$300 – $800
Permit + code upgrades$100 – $800

What affects the price

FAQ

How much does it cost to replace a water heater?

A standard tank runs $1,200 to $2,500 installed; tankless and hybrid units cost more.

Is a tankless water heater worth it?

Tankless costs more upfront but lasts longer and lowers energy bills, which can pay off over its life.

How long does a water heater last?

Tank units last about 8 to 12 years; tankless can last 20 years with maintenance.

Can I replace a water heater myself?

Electric tanks are sometimes DIY, but gas, venting, and permits usually call for a licensed plumber.

What size water heater do I need?

A 40 to 50 gallon tank suits most families; tankless is sized by flow rate and number of fixtures.

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