Tankless Water Heater Cost
A tankless water heater usually costs about $1,500 to $5,000 installed. Electric units are cheaper to buy and install but may need an electrical panel upgrade. Gas units cost more because they often need new venting and a larger gas line. Switching from a tank adds more labor than replacing an existing tankless unit.
Typical pro cost
$1,500 to $5,000
- Urgency
- Plan ahead
- DIY difficulty
- Hard
- Time to fix
- Half a day to 1 day (pro)
- Prices
- US typical range
Last reviewed September 2026
Signs it's this problem
- Your tank heater is 10 or more years old
- You run out of hot water often
- You want to free up floor space
- Your energy bills are high from standby heat loss
Common causes
Fuel type
Gas units need venting and often a bigger gas line; electric units need large dedicated circuits.
Unit size
Flow rate in gallons per minute sets the price. Whole-house units for several showers cost more.
Conversion from a tank
Moving from tank to tankless adds venting, gas, electrical and mounting work.
Location
Outdoor units save on venting but need freeze protection in cold climates.
Permits and code
Local permits, gas pressure tests and venting rules add cost.
How to fix it, step by step
- 1
Count how many fixtures you run at once and pick a unit sized for that flow rate.
- 2
Check your fuel: gas line size for gas units, or panel capacity for electric units.
- 3
Get 2 to 3 quotes that list the unit model, venting, gas or electrical upgrades, permit and haul-away.
- 4
Ask about a water softener or scale filter if you have hard water; scale is the main cause of tankless problems.
- 5
Plan for yearly descaling to protect the warranty.
- 6
Compare the total installed price with a new high-efficiency tank before deciding.
Tools and materials
- None for homeowners: installation is a pro job
Approximate DIY cost: Not a DIY job
Call a pro when
- Any gas tankless installation
- Converting from a tank heater
- Upgrading the electrical panel or gas line
Tankless Water Heater Cost cost
| Job | Typical cost |
|---|---|
| Electric tankless water heater, installed | $1,500–$3,500 |
| Gas tankless water heater, installed | $2,500–$5,000 |
| Gas line upgrade | $300–$1,000 |
| Electrical panel upgrade for electric tankless | $1,500–$4,000 |
| Yearly descaling service | $100–$250 |
Ranges are typical US prices compiled by FixHomeCost. Prices vary by region, home and contractor, so compare 2–3 local quotes.
Common questions
Is a tankless water heater worth it?
It can be if you use a lot of hot water, want endless hot water or plan to stay in the home 10 or more years. Energy savings alone may take many years to cover the higher upfront cost.
How long does a tankless water heater last?
About 15 to 20 years with regular descaling, longer than most tank heaters.
Can a tankless water heater run out of hot water?
It will not run out, but it can only heat a certain flow at once. Running several showers and appliances together can exceed its capacity.
Do tankless water heaters need maintenance?
Yes. Flush or descale them about once a year, and clean the inlet filter, especially with hard water.
Related guides
This is general information, not a professional inspection. See how we research costs.