Tankless Water Heater Cost

Tankless Water Heater Cost Guide

By Sarah Collins, home-improvement cost analyst · Reviewed by Tom Reyes, licensed general contractor
Updated 2026-06-16

Estimate what a tankless water heater will cost installed based on fuel type, sizing, and any venting or gas upgrades.

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Average cost

ScenarioRange
Electric tankless (installed)$800 – $2,500
Gas tankless (installed)$2,000 – $4,500
Unit only$500 – $1,500
Gas line / venting upgrade$300 – $1,500
Point-of-use unit$200 – $800

What affects the price

FAQ

How much does a tankless water heater cost?

Installed, gas units run $2,000 to $4,500 and electric units $800 to $2,500.

Is a tankless water heater worth it?

It costs more upfront but lasts about 20 years and lowers energy bills, often paying off over time.

Do I need to upgrade my gas or electrical?

Often yes. Gas units may need a larger line and new venting; electric units need adequate amperage.

How much can a tankless heater save?

Households commonly save 10 to 30 percent on water heating versus a standard tank.

Tankless vs tank: which is better?

Tankless saves space and energy and lasts longer; tanks cost less upfront and are simpler to install.

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