Water Heater Replacement Cost Calculator

A like-for-like tank swap is the cheapest option. Switching to tankless or a heat pump model usually adds venting, gas, or electrical work. Enter your tank size to see a planning range.

Typical cost (US average)$2,600 – $3,50050 gallons, mid-range finishes. Includes labor, permits, disposal, tax, and a 10% contingency.

Your project

Your citySets local labor rates, permit costs, and sales tax

Project size (gallons)

gallons

Contingency cushion

Finish level

Scope included in estimateUncheck items you plan to keep or handle yourself

Water Heater UnitThe tank or tankless unit itself, sized to household demand.

Drain, Remove & Dispose of Old UnitDraining the old tank, disconnecting, and hauling it away.

Venting & Gas / Electrical ConnectionFlue or PVC vent connection, gas flex line and sediment trap, or electrical whip.

Code Upgrades (Expansion Tank, Pan, Straps)Thermal expansion tank, drain pan, seismic straps, and T&P discharge line where required.

Often forgotten

What am I forgetting?

Gas line upsizing for tankless units ($500 - $1,500): Tankless heaters need far more gas at once; many homes need a larger line from the meter.
New dedicated circuit for heat pump or electric tankless ($400 - $2,500): Electric tankless units can require 120A+ of capacity and sometimes a panel upgrade.
Attic or closet access and drain pan plumbing ($200 - $600): Units in attics need a drain pan piped outside and safe access for the crew.

Quote checklist

Your contractor's quote should list

Exact brand, model, capacity (gallons), and first-hour rating
Warranty length on the tank and on labor
Plumbing permit and inspection included
Expansion tank, drain pan, and T&P discharge line addressed
Removal and disposal of the old unit

Water heater cost by tank size

Household	Size	Mid-range cost
1–2 people	40 gallons	$2,100 – $2,900
3–4 people	50 gallons	$2,600 – $3,500
5+ people	75 gallons	$3,800 – $5,200

National-average prices from our calculator with its default scope. Your quotes will vary with site conditions and exact products.

Water heater cost by type

Finish level	50 gallons total
Standard Tank (Gas or Electric)Atmospheric-vent gas or standard electric tank, 6-year warranty, like-for-like swap in the same spot.	$1,600 – $2,200
High-Efficiency or Heat Pump Hybrid TankPower-vent gas or hybrid heat pump electric tank, 10–12 year warranty, may qualify for rebates.	$2,600 – $3,500
Tankless (On-Demand)Condensing tankless gas unit with new PVC venting, upsized gas line, and recirculation-ready plumbing.	$4,000 – $5,400

Water heater quote watchouts

Permit and inspection Most cities require a plumbing permit for water heater replacement. Skipping it can cause problems when you sell.
Code upgrades An expansion tank, drain pan, or earthquake straps may be required. They should be in the quote, not surprise extras.
Tankless gas supply Tankless units need much more gas at once; many homes need a larger gas line.

Questions

Water Heater Replacement cost FAQ

How much does a new water heater cost in 2026?

Our calculator puts a new water heater (50 gallons, mid-range finishes) at about $2,600 – $3,500 at national-average prices. Size, finish level, and local labor rates move the total, so enter your own numbers above for an itemized range.

How long does a water heater last?

Tank water heaters usually last 8–12 years. Tankless units can last 20 years with yearly descaling.

Is a tankless water heater worth it?

Tankless units cost more to install but give endless hot water and use less energy. They pay off best in larger households that plan to stay in the home.