How much does it cost to install a tankless water heater?

A tankless water heater typically runs $1,100–$5,500 installed, averaging around $3,000. Gas units cost more ($2,100–$5,600) because of venting and gas-line work; electric on-demand units are cheaper ($1,400–$3,000) but may need an electrical upgrade.

Gas vs. electric tankless — which costs more?

Gas tankless units cost more to buy and install (venting and gas-line work), but often cost less to run and suit whole-home demand. Electric tankless units are cheaper to install but can need a significant electrical upgrade for whole-home use.

Is a tankless water heater worth it versus a tank?

Tankless units cost more upfront than a standard tank ($1,200–$2,500) but last longer (often 20+ years), save space, and only heat water on demand. The energy savings are real but modest for most homes; endless hot water and longevity are the bigger draws.

Why is switching from a tank to tankless more expensive?

A first-time conversion usually needs new venting, a larger gas line, or upgraded electrical to support the on-demand unit — work you don't need when simply swapping one tankless for another.

Tankless water heater installation cost

Tankless water heater installation costs about $1,100 to $5,500, with a typical price around $3,000 (as of June 2026).

Installing an on-demand tankless water heater, gas or electric.

A tankless (on-demand) water heater runs about $1,100–$5,500 installed, with a typical project around $3,000. Gas units cost more ($2,100–$5,600) and may need new venting or a larger gas line; electric on-demand units are cheaper ($1,400–$3,000) but can require an electrical upgrade.

Low

$1,100

Typical

$3,000

High

$5,500

Estimate your tankless water heater installation

Adjust for fuel and your install. The estimate starts from our published range.

Your area

Adjusts the estimate to local cost levels. Pick a metro or leave on national.

Fuel & type

Existing setup

Household demand

Estimated cost for your options

$880 – $4,400

Typical: $2,400

How we got this

Starts from our published tankless water heater installation range of $1,100–$5,500, adjusted for:

Fuel & type: Gas tankless×1
Existing setup: Replacing an existing tankless×0.8
Household demand: Standard whole-home×1

These figures are planning estimates compiled from public cost data on the dates shown — not quotes, bids, or guarantees. Real prices vary widely with your home, location, materials, permits, and contractor. Always get itemized written quotes from licensed local pros before budgeting or hiring.

Where the money goes

Tankless unit
Gas condensing units cost more than electric.
≈ 35%–55%
Labor & modifications
Venting, gas-line or electrical upgrades, mounting, permit.
≈ 45%–65%

What changes the price

Fuel type — Varies
Gas units cost more and need venting; electric units are cheaper but can require an electrical upgrade.
Switching from a tank — Raises cost
First-time conversions need new venting, gas-line, or electrical work, which adds cost.
Unit capacity — Raises cost
Higher flow-rate units for big households cost more.
Venting & gas line — Raises cost
Condensing/non-condensing venting and gas-line sizing affect the labor.
Rebates — Lowers cost
High-efficiency models may qualify for utility or federal incentives — confirm current eligibility.

Get real quotes for your tankless water heater installation

Our ranges are for planning. The only way to know your real price is itemized quotes from licensed local pros — always get at least three before you hire.

Tip: search for licensed, insured tankless water heater installation contractors in your area, check reviews and references, and compare written itemized bids — not just bottom-line numbers.

Tankless water heater installation cost — FAQ

How much does it cost to install a tankless water heater?: A tankless water heater typically runs $1,100–$5,500 installed, averaging around $3,000. Gas units cost more ($2,100–$5,600) because of venting and gas-line work; electric on-demand units are cheaper ($1,400–$3,000) but may need an electrical upgrade.
Gas vs. electric tankless — which costs more?: Gas tankless units cost more to buy and install (venting and gas-line work), but often cost less to run and suit whole-home demand. Electric tankless units are cheaper to install but can need a significant electrical upgrade for whole-home use.
Is a tankless water heater worth it versus a tank?: Tankless units cost more upfront than a standard tank ($1,200–$2,500) but last longer (often 20+ years), save space, and only heat water on demand. The energy savings are real but modest for most homes; endless hot water and longevity are the bigger draws.
Why is switching from a tank to tankless more expensive?: A first-time conversion usually needs new venting, a larger gas line, or upgraded electrical to support the on-demand unit — work you don't need when simply swapping one tankless for another.

Tankless water heater installation cost by city

Costs vary by metro. See tankless water heater installation pricing adjusted to local levels:

Cost data compiled June 13, 2026.

Sources (3)

How Much Does a Tankless Water Heater Cost? (2026) — HomeGuide
How Much Does a Tankless Water Heater Cost? [2026 Data] — Angi
Cost to Install Tankless Hot Water Heater 2026 — Homewyse

Ranges synthesize several public 2026 cost guides into a low–typical–high band rather than reproducing any single source's table. Metro-level breakdowns are coming as we verify local data.

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