Water Heater Replacement Cost Calculator
What a replacement costs installed — and what you would still owe the plumber if you supplied the unit yourself.
Installed cost
$2,035.00
- Equipment
- $1,035.00
- Labor (3.5 h)
- $385.00
- Permit, disposal and trades
- $430.00
- Contingency (10%)
- $185.00
- Install only, unit supplied by you
- $815.00
A leaking tank cannot be repaired, only replaced. Prices vary by market; use this to read a quote line by line.
Working through the rest of the house? Price insulation next →
How this is calculated
equipment = base price for the type × tank size factor
labor = hours × rate
extras = permit + disposal + expansion tank + pan
+ venting + gas line + electrical
total = (equipment + labor + extras) × (1 + contingency%)The tank size factor only applies to types that have a tank. Selecting 80 gallons with a tankless unit changes nothing, which is correct and worth stating, because tankless units are sized on flow rate in gallons per minute rather than on stored volume. That is also why a tankless cannot be compared to a tank on capacity alone — one stores hot water and the other makes it on demand.
The extras are separated out because they are where quotes actually differ. Two plumbers pricing the same 50 gallon gas tank will land within a couple of hundred dollars on equipment and labor, then diverge by a thousand depending on whether the quote includes the permit, an expansion tank the old install never had, and bringing the venting up to current code. The last line shows install-only, for comparing against a quote where you buy the unit.
Installed cost by heater type
| Type | Equipment | Labor | Typical extras | Installed |
|---|---|---|---|---|
| Tank — electric | $747.50 | 3.0 h — $330.00 | $430.00 | $1,658.25 |
| Tank — gas | $1,035.00 | 3.5 h — $385.00 | $430.00 | $2,035.00 |
| Tankless — gas | $1,400.00 | 8.0 h — $880.00 | $1,630.00 | $4,301.00 |
| Tankless — electric | $800.00 | 6.0 h — $660.00 | $1,130.00 | $2,849.00 |
| Heat pump (hybrid) | $2,185.00 | 5.0 h — $550.00 | $1,130.00 | $4,251.50 |
Every figure comes from the same function the calculator runs, at a 50 gallon equivalent, $110 an hour and a 10% contingency. Read the extras column rather than the equipment one: the gas tankless is only about $500 dearer than a gas tank in equipment, and roughly $1,200 dearer once the vent and the gas line are counted. That gap, not the unit price, is what surprises people.
Tank cost by size
| Size | Electric equipment | Gas equipment | Electric installed | Gas installed |
|---|---|---|---|---|
| 30 gallon | $552.50 | $765.00 | $1,443.75 | $1,738.00 |
| 40 gallon | $650.00 | $900.00 | $1,551.00 | $1,886.50 |
| 50 gallon | $747.50 | $1,035.00 | $1,658.25 | $2,035.00 |
| 65 gallon | $942.50 | $1,305.00 | $1,872.75 | $2,332.00 |
| 80 gallon | $1,137.50 | $1,575.00 | $2,087.25 | $2,629.00 |
Gas costs more to buy and takes slightly longer to install, but recovers far faster, so a 40 gallon gas tank serves a household that would need 50 gallons of electric. Comparing the two on installed price at the same capacity therefore overstates the gas premium — compare the sizes you would actually buy, not the sizes that match on the label.
Frequently asked questions
How much does it cost to replace a water heater?
A like-for-like tank swap usually runs $1,200 to $2,500 installed, with electric at the lower end and gas at the upper. Tankless costs more, typically $3,000 to $5,500, because the venting, gas line or electrical service usually has to be upgraded at the same time. A heat pump unit lands between them on equipment but often needs a circuit and a condensate route.
Why is a tankless replacement so much more expensive?
The unit itself is only part of it. A gas tankless fires at three to five times the input of the tank it replaces, so it frequently needs a larger gas line and its own stainless or PVC venting, neither of which the old tank had. An electric tankless can need a service upgrade outright. The plumbing is the easy part; it is the other two trades that move the number.
Can I supply my own water heater?
Often yes, and the calculator shows what you would still owe as install-only. The catch is warranty: many manufacturers offer a longer warranty on units bought through a contractor, and most plumbers will not warrant labor on equipment they did not supply. Weigh the saving against who you will call when it leaks in year three.
Do I need a permit to replace a water heater?
In most US jurisdictions, yes, even for a straight swap — it involves gas, water and often electrical work. Permit fees range from about $50 to several hundred dollars, and an inspection may require items the old install lacked, such as seismic strapping, a drain pan, an expansion tank or a temperature and pressure discharge line routed correctly. Budget for the code catch-up, not just the fee.
What size tank do I need?
A rough guide is 30 to 40 gallons for one or two people, 40 to 50 for three or four, and 50 to 80 above that, with gas recovering faster than electric at the same capacity. Sizing on household size alone is crude, though: simultaneous demand matters more than headcount, so a house with two showers used at once needs more than the number suggests.
How long does a water heater last?
Eight to twelve years for a standard tank, longer with an anode rod that is actually replaced and shorter on hard water. Tankless units commonly last twenty, provided they are descaled on schedule. If yours is past ten and the tank is leaking rather than a fitting, replacement is the only option — a leaking tank cannot be repaired.
Results are planning estimates built from typical price ranges, not quotes. Equipment prices move with the market, labor rates vary by more than double between regions, and an inspection can require code catch-up the old installation never had. Gas, venting and electrical work should be done by licensed trades and permitted where required.