How Much Does a New Water Heater Cost? About $900 to $2,500 for a Tank
By Sharrk Team · November 2, 2026
A new tank water heater usually costs about $900 to $2,500 installed, with HomeAdvisor putting the national average at $1,333. A tankless water heater costs more, usually about $1,400 to $3,900 installed, because the unit costs more and the install often needs new venting, gas line or electrical work.
Those are the national figures from HomeAdvisor, HomeGuide and This Old House. The cost guides don't agree exactly, so the table below shows each one side by side. If you only need a part fixed, see our guide to water heater repair cost instead.
How much does a new water heater cost installed?
| Source | Tank, installed | Tankless, installed | Typical or average |
|---|---|---|---|
| HomeAdvisor | $600 to $2,500 | $1,400 to $3,900 | $882 to $1,810 typical; $1,333 average |
| HomeGuide | $600 to $3,100 (40 to 50 gallon) | $1,400 to $5,600 | $600 to $5,600 overall |
| This Old House | $1,200 to $2,300 | $2,100 to $4,000 | $1,950 average (Home Depot data) |
HomeAdvisor and Angi are the same company, and Angi's own water heater page shows nearly the same figures ($1,327 average, $883 to $1,807 typical), so count them as one data set. This Old House bases its numbers on Home Depot cost data and its own research, which is why its tank range starts higher.
A fair reading: a like-for-like swap of a standard 40 or 50 gallon tank lands somewhere between about $900 and $2,500 for most homes. Switching to tankless, moving the heater, or bringing an old install up to code pushes the bill higher.
What drives the price up?
Labor is about half of the total, according to HomeAdvisor. It lists labor at $150 to $450 for a tank replacement and $600 to $1,900 for a tankless unit. HomeGuide says a same-size tank swap takes 2 to 6 hours.
The extras are where quotes spread apart:
| Add-on | HomeGuide | This Old House |
|---|---|---|
| Remove and haul away old unit | $75 to $500 | $100 to $300 |
| Permit | $50 to $200 | $50 to $200 |
| Expansion tank | $100 to $400 | $40 to $150 |
| Code compliance upgrades | $75 to $500+ | not listed |
| Venting (gas units) | $500 to $1,500 first-time; $100 to $600 to replace | $300 to $500 tank; $500 to $1,000 tankless |
| Relocating the tank | $500 to $2,500 | not listed |
| Attic install | not listed | $200 to $1,000 extra |
| After-hours service | extra, no figure | $200 to $500 |
Switching fuel also costs real money. HomeGuide puts electric to gas at $400 to $2,000 or more and gas to electric at $250 to $1,000 or more. Tank size matters too: This Old House lists a 40 gallon at $600 to $1,200 installed and a 50 gallon at $700 to $1,800.
Emergency calls cost more. If a tank fails on a Saturday night, expect an after-hours charge on top of the install. Our post on plumber after-hours rates covers what plumbers charge for that.
How long does a water heater last?
| Type | HomeGuide | HomeAdvisor | This Old House |
|---|---|---|---|
| Tank | 8 to 12 years (up to about 15 with maintenance) | 6 to 15 years | 8 to 12 years |
| Tankless | 15 to 20 years | 20+ years | about 20 years |
Age is the main reason most tanks get replaced rather than fixed.
Should you repair or replace a water heater?
HomeGuide's rule of thumb: consider replacing a unit older than 10 years, and replace if the repair would cost more than 50% of a new installed heater. Use this checklist:
- Age: Tank is 10 years old or more. Replace is usually the better spend.
- Leaking tank: Water coming from the tank body itself (not a fitting or valve) means the tank has failed. Replace.
- Repair quote: Repair is more than half the price of a new installed unit. Replace.
- Rust: Rusty water from the hot side only, or rust on the tank. Lean toward replace.
- Single part: A thermostat, heating element, igniter or valve on a younger unit. Repair is usually fine.
- Not enough hot water: If the household outgrew the tank, a larger tank or tankless may make more sense than a repair.
The full breakdown of repair prices is in our water heater repair cost guide.
What should plumbers ask when someone calls about a new water heater?
Water heater calls are often urgent, and the caller is usually phoning several plumbers. The fastest way to win the job is to get the facts in one call and book a time. A short intake script:
- Greeting: "Thanks for calling [Company]. Are you calling about a water heater that's leaking or not heating, or are you planning a replacement?"
- Safety check (if leaking): "Is water actively leaking right now? Do you know where the cold water shutoff on top of the tank is? If you smell gas, leave the house and call your gas company first."
- Unit details: "Is it gas or electric? Tank or tankless? Do you know roughly how old it is or the gallon size on the label?"
- Location: "Where is it installed: garage, basement, closet or attic?"
- Plans: "Are you replacing it with the same type, or thinking about tankless or switching fuel?"
- Contact and address: "What's the service address and the best number to reach you?"
- Book: "We have [time] or [time]. Which works? The tech will confirm the price on site before any work starts."
Capture the age, fuel type, size and location every time. Those four answers let the tech show up with the right unit and parts. If the caller wants a quote first and goes quiet, follow up the same day; see our tips on estimate follow-up.
How does Sharrk handle water heater calls?
Sharrk answers calls 24/7, asks your water heater intake questions (fuel type, age, size, location, leak or no leak), and books the estimate or job onto Sharrk's calendar, Calendly or Cal.com, or into ServiceTitan. It can live-transfer a caller to a person when needed, such as an active leak you want to dispatch on right away. New leads from Angi, Thumbtack, Networx, web forms and webhooks get a reply in under 30 seconds, and Jobber clients come in as leads. Strikes (automated follow-up sequences) chase replacement quotes that went quiet, and Hunts can reach out to past customers on lists you have consent to contact, for example owners of older tanks you installed years ago. See how it works for plumbing.
Mako, the AI assistant inside Sharrk, builds your agents, follow-up and campaigns from plain English. Tell it "answer water heater calls, ask gas or electric, tank or tankless, age and location, and transfer active leaks to my on-call plumber" and it drafts the agent; you approve the changes before anything goes live.
Sharrk Free is $0 with 2,500 one-time credits to build and test agents with Mako, no card needed. Core is $99 a month ($990 a year) with 47,500 credits a month. There are no contracts or setup fees. Start free or schedule a demo.
Related on Sharrk: AI receptionist for plumbing, AI answering service, plumbing emergency call script
Sources
- HomeAdvisor, How Much Does a Water Heater Replacement Cost in 2025?, no date shown (title says 2025), checked November 2, 2026.
- Angi, [How Much Does Water Heater Replacement and Installation Cost? [2024 Data]](https://angi.com/articles/how-much-does-water-heater-installation-cost.htm), no date shown (title says 2024 data), checked November 2, 2026. Angi and HomeAdvisor are one company and share cost data.
- HomeGuide, How much does water heater installation or replacement cost?, no date shown, checked November 2, 2026.
- This Old House, Water Heater Installation Cost, updated June 17, 2026, checked November 2, 2026. Based on Home Depot cost data and the publisher's own research.
Frequently asked questions
How much does a new water heater cost installed?
A new tank water heater usually costs about $900 to $2,500 installed, and HomeAdvisor puts the national average at $1,333 with a typical range of $882 to $1,810. HomeGuide lists $600 to $3,100 for a 40 to 50 gallon tank, and This Old House lists $1,200 to $2,300.
How much does a tankless water heater cost to install?
A tankless water heater usually costs about $1,400 to $3,900 installed, according to HomeAdvisor. HomeGuide gives a wider $1,400 to $5,600, and This Old House lists $2,100 to $4,000, because tankless installs often need new venting, gas line or electrical work.
How much of a water heater replacement is labor?
Labor is about half the total cost, according to HomeAdvisor. It lists $150 to $450 in labor for a tank replacement and $600 to $1,900 for a tankless unit.
Should I repair or replace my water heater?
Replace it if the tank is over 10 years old, the tank body is leaking, or the repair would cost more than 50% of a new installed heater, which is HomeGuide's rule of thumb. A single failed part on a younger unit is usually worth repairing.
How long does a water heater last?
A tank water heater usually lasts about 8 to 12 years, per HomeGuide and This Old House, while HomeAdvisor gives 6 to 15 years. Tankless units last about 15 to 20 years or more.
What extra costs come with a water heater replacement?
The common extras are removal of the old unit ($75 to $500), a permit ($50 to $200) and an expansion tank ($100 to $400), per HomeGuide. Relocating the tank ($500 to $2,500) or first-time venting ($500 to $1,500) cost more.