Here’s the Average Cost to Install a Water Heater Today

You feel a chill run up your spine as you step into the ice-cold shower. You hop out about as fast as you got in. It might be time for you to get a new water heater. 

It’s one of the most essential appliances in your home. Without it, you won’t be able to wash dishes, bathe, or do any of your hardcore cleanings. Well, you can, but you would have to boil water on the stove, and nobody has time for that. 

The question is, what’s the average cost to install a water heater? It can be a hefty or cheaper expense depending on a number of factors. Check out this guide to learn what you should prepare your wallet for. 

Tank Water Heater

The cheapest type of water heater is the tank one. It can store up to 80 gallons of water, depending on what size you shoot for. They’re easy to install, so you don’t have to worry about high labor costs. 

What you will have to worry about is your energy bill. Tank water heaters stay on 24 hours a day. They can take up a large chunk of your utility payments.

Tankless Water Heater 

Whereas the tank water heater will cost you around 2,000 dollars to install, a tankless one will run about 3,000. The reason they cost so much is because of how long they take to put in. You may have the water heater install company at your home for up to ten hours. 

On the bright side, they last about 5 years longer than tank heaters, they don’t take up near as much room, and they don’t use that much energy. 

The downside is that if you have a larger home, you may need to have more than one unit put in. They’re also not a good choice if you live in a colder environment. 

Common Cost Factors

The system you choose isn’t the only cost factor that you’ve got to worry about. The price of your hot water heater installation can vary depending on your geographical area, the place in your house where you put the heater, the size of the water heater, and the warranty. 


Before you have the installers come in, you need to decide where you want to put your water heater. The location you choose can have an impact on the price.

For example, let’s say that you decide to place it upstairs in the small laundry room. That’s all well and good, but it means that the workers will have to carry a potentially heavy appliance up a flight of stairs. It’s going to drive up the labor cost. 

You also have to ask yourself how hard it is to get to your chosen location. Will the installers have to move a bunch of stuff out of the way to clear out a spot? 

You’ve got to account for leaks too. You don’t want to put it in a spot where it could destroy a bunch of your expensive belongings. That can subtract money from your piggy bank as fast as the installation fee can. 

Geographical Area

You don’t only have to worry about the location of your system. You’ve also got to consider your geographical region. You see, the water that goes into the hot water heater is cold. 

The colder it is when it enters the system, the harder the appliance is going to have to work to get things hot. The harder the appliance has to work, the bigger strain it’s going to put on your utility bill. 

Ice cold water will put a lot of wear and tear on the heater as well. If you live in a location that sees a lot of snow, you may end up having to replace your device faster than you would like to. 

Types of Water Heaters 

All tank and tankless water heaters either run off of electricity or natural gas. The latter is going to cost around 200 dollars more than the former. 

The high price of the gas water heater is offset by the utility savings. Since you’re not using a lot of energy, you won’t have to worry about getting slapped with a high power bill. 

Still, electric water heaters aren’t as expensive to install, and they don’t need to vent. That means you can stuff them into a smaller space. 


Even though tankless water heaters are cheaper to install, they can quickly climb up in price due to their size. The most common size that people go with is 40 gallons. It can serve the needs of two people, and it only costs a little over 300 on average to put in. 

Unfortunately, if you have a large family, you’re going to end up paying more. You won’t be able to get by with anything less than a 60-gallon tank, which can run you up to 900 bucks or so. 


The last thing you need to worry about is the warranty. Most water heaters come with a 12-year warranty. You do have the option to increase it, but you’ll have to pay a bit more. 

Understanding the Average Cost to Install a Water Heater 

Is your old water heater on the fritz? It might be time for you to get a new one put in. Without it, you won’t be about to clean your dishes or yourself. 

As you can see, the average cost to install a water heater can vary depending on a lot of factors. We hope that you’re able to use this guide to make a buying decision. For more tips that will help you update things around your house, visit the Home Improvement section of our blog. 

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