tankless water heater installation cost

Don’t let your remodeling budget go over-board by hidden surprises – understand what the average installed costs for Tankless Water Heater is in your zip code by using our handy calculator. If you’re looking for the Cost of Tankless Water Heater materials and what installation cost might be, you’ve come to the right place.

As an experienced licensed home improvement contractor, I know first hand what it should cost for various levels — from Basic, Better, and of course the best. The Tankless Hot Water System estimator will provide you with up to date pricing for your area. Simply enter your zip code and the square footage, next click update and you will see a breakdown on what it should cost to have Tankless Water Heater installed onto your home

Tankless Water Heater System Costs Zip Code Units
Basic Better Best
Tankless Water Heater System – Material Prices $350.00 – $645.00 $757.00 – $965.00 $1200.00 – $3500.00
Tankless Water Heater System – Installation Cost $500.00 – $650.00 $800.00 – $1200.00 $1500.00 – $1800.00
Tankless Water Heater System – Total $850.00 – $1295.00 $1557.00 – $2165.00 $2700.00 – $5300.00
Tankless Water Heater System – Total Average Cost per Units $1072.50 $1861.00 $4000.00

How much will it cost me to install a tankless water heater in my home?

Since their creation around 1850, water heaters have been an important part of homes and commercial buildings. Home builders and consumers have slowly been turning towards the newest trend in water heating- tankless water heaters. Tankless water heaters use high end heating elements that are placed close to the water that needs to be warmed. Regular tank storage style water heaters use a constant flow of electricity to store and heat the water, but tankless water heaters only heat water when it is necessary to do so.

On average, a tankless water heater will cost $1,500-$3,000 for installation.

Tankless Water Heater Prices By Brand:

  • Rinnai – $500 – $4,250
  • Rheem – $350 – $2,500
  • AO Smith – $600 – $4,000
  • EcoSmart – $300 – $850.00
  • Takagi – $500 – $6,700
  • Bradford White – $650 – $2,300

Are whole house or single point water heaters better and what’s the difference?

Water heaters without tanks can be installed inside or outside of a building near its water use point and at a distance of no more than 50 feet away from a direct power source. It is necessary to have a tankless heater for each water source, so if you had three bathrooms and a dishwasher, you’d need to purchase and install 4 tankless units, unless each water source location were close together.

The amount of water that a tankless system can heat varies from how much a traditional heater can heat. A tankless unit can heat up to 5 gallons per minute. This fact comes into play when deciding which kind of unit to use. Most single-family homes do well with a whole house heating system, which allows multiple people to bathe, a dishwasher to run, and the sink to be used all at the same time.

If you were to use a single point system in the same single-family home, you would have to install multiple heating systems or use one system at a time.

The lifespan of water heaters is an important factor to think about when you’re deciding which type of heater to buy. Traditional water heaters typically last from 10-15 years, whereas tankless water systems can be used for up to 20.

How to choose the Right Tankless Water Heater?

Tankless water heaters don’t come labeled with gallon capacities like traditional water tanks. However, to choose which tankless water system is right for you, you need determine what your water demands are for either Gas or Electric.

Water flow rates are measured and calculated by “gallons per minute” (GPM). To understand which system is right for you, you need to figure out how many appliances/water sources you run at the same time. See the list below to help you figure GPM.

Average Water Usage for Common Household Appliances & Water sources:

  • Washing machine — 1.5 to 3.0 gpm
  • Dishwasher — 1.0 to 2.5 gpm
  • Kitchen faucet — 3.0 to 9.0 gpm
  • Bathroom faucet — 0.5 to 1.5 gpm
  • Shower — 1.0 to 2.0 gpm

Installing a Tankless water heater

After you have chosen which type of system you want to use, a plumber will have to remove your old heating system and then install new gas lines or heat source access. This process may include having to open up walls or part of the ceiling, depending on where your home’s pipes run. After this is done, the new system is then set into place and installed and connected to the new gas lines.

An average plumbing company will charge $75- $125 for this service, and installation will usually take a full working day to install and properly test the system performance throughout the home; so expect the installation cost to be around $600 – $1,000. Other costs that may arise include the costs of heat and water pumps, new pipes, and costs that might be associated with permitting. With this in mind, your total cost for installation and other materials can be upwards of $1,000.

Miscellaneous costs and things to consider

  • Maintenance: if your water heater needs any maintenance, you can expect to pay the fees of a standard plumbing project ($75-$125 an hour). Typically, the maintenance project takes about 3 hours. Most plumbing companies charge a standard minimum of 4hrs.
  • Extra material: occasionally, tankless water heating units aren’t compatible with the location in which older heating models had been installed. This can require a bit of problem solving and can cost money for extra materials such as pipes and insulation, both of which sell for about $12 per foot.
  • Configuration and updates: certain electrical systems will need to be updated in order to work with the new tankless heater. This isn’t always required but is a potential cost that includes the cost of materials for the updates and the price of the electrician.
  • Old system removal: in order to install a new heating system, you must first have the old system removed and disposed of. This can cost up to $300-$600 depending on how difficult the existing system is to remove.
  • Permitting: depending on the laws in your area, a permit could be required to install a water heater. This should be kept in mind to make sure that the project was done correctly and up to code. The permit fee’s normally run $5-$10 per thousand of the total job cost.
  • Energy savings: the average tankless water heater costs $170 per year, according to EnergyStar.gov. This makes them cheaper and easier on energy than their traditional counterparts.


How much does a tankless water heater cost?

On average, a tankless water heater costs $1,500- $3,000. If it is a gas-powered heater, it will cost roughly $430 without the cost of installation.

How do tankless water heaters function?

Tankless water heaters are always installed near where the water will be used. When it is needed, a heating element heats the cold water as it passes through, instead of keeping the water hot all the time like traditional water heaters.

Are tankless water heaters good?

A tankless water heater can heat up to 5 gallons of water per minute, which is more than enough water for most uses.

How long will a gas water heater work?

A gas water heater that is tankless will last up to 20 years.

How much water does a 20-minute shower use?

An average shower uses roughly 2.5 – 3.0 gallons per minute and amounts to 50-60 gallons of water usage. However, tankless water heaters can handle heating water at a rate of 4-8 gallons per minute.

What temperature should you set a tankless water heater?

Manufacturers recommend a temperature to be set at 120 degrees for safety and efficiency. However, in the image above, I have mine set at a 125 degrees during the winter months and I drop it down to 115-120 in the warmer months.

How much does a new hot water heater cost?

A tankless water heater that is purchased brand new will cost up to $2,000, and a whole house water heater tank costs anywhere from $600-$800. The low-end tankless model costs about $430 minus installation, while the average purchased model costs around $1,200

Tankless Hot Water System – Pricing and Installation Cost Checklist

  • Expect the Tankless Hot Water System prices to fluctuate between various companies – each and every company have different operation expenses and over-head.
  • Try to get prices in late Fall, early winter – you should expect aggressive pricing discounts by waiting for a contractor’s down season.
  • Try to budget and additional 7-15% more on top of what our calculator gives out for Tankless Hot Water System costs.
  • Visit every supply house that sell your particular brand of Tankless Hot Water System and try to negotiate a better price with each supplier – I save on average 20%.
  • Tankless Hot Water System isn’t an easy task to perform and can leave you with a sore back. You might find it more cost effective to hire a Electrician contractor to perform the work for you. Electrical companies will most always get better prices on Tankless Hot Water System — saving your back and additional costs of Tankless Hot Water System, so shop around, ask your neighbors if they can recommend someone.

View Other Water Heater and Filtration Costs: From Gas, Electric, Tankless & More

  • Electric
  • Gas
  • Water Filtration

External References:

  1. Energy.gov — Energy Cost Calculator for Electric and Gas Water Heaters. Added July 17, 2015
  2. Hud Path — Volume 8 Rehab guide – Estimating HVAC/ Plumbing

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