The Forbes Home editorial team is independent and objective. To help support our reporting work, and to continue our ability to provide this content for free to our readers, we receive compensation from the companies that advertise on the Forbes Home site. This compensation comes from two main sources. First, we provide paid placements to advertisers to present their offers. The compensation we receive for those placements affects how and where advertisers’ offers appear on the site. This site does not include all companies or products available within the market. Second, we also include links to advertisers’ offers in some of our articles; these “affiliate links” may generate income for our site when you click on them. The compensation we receive from advertisers does not influence the recommendations or advice our editorial team provides in our articles or otherwise impact any of the editorial content on Forbes Home. While we work hard to provide accurate and up to date information that we think you will find relevant, Forbes Home does not and cannot guarantee that any information provided is complete and makes no representations or warranties in connection thereto, nor to the accuracy or applicability thereof.

On average, the cost to replace a water heater is $1,200, including the price of the new unit and labor. At the low end, bargain hunters can get it done for as little as $815. High-end systems can cost up to $10,000 or more, depending on the water heater type, location of the installation and other variables that we’ll explore just ahead.

You May Also Be Interested In Tankless Water Heaters Available On Home Depot

Rheem Performance Platinum 9.5 GPM Liquid Propane

Rheem Performance Platinum 9.5 GPM Liquid Propane

Rinnai RU199iP RU Model Series

Rinnai RU199iP RU Model Series

Rinnai V53DeP V Model Series

Rinnai V53DeP V Model Series

Rinnai RL75eP RL Model Series

Rinnai RL75eP RL Model Series

If you’re thinking about buying a propane tankless water heater, you may be overwhelmed by the choices. We created a top-five list here based on factors like pricing, customer rating, max GPM, heating capacity (BTUs) and Energy Star certification.

Replacing a water heater involves a range of variables that affect the final project cost, beginning with the size and type of unit.

Tank-type water heaters have been the industry standard for more than a century. They store the hot water in 30 to 80-gallon tanks. This style represents more than 85 percent of all household water heaters in the United States. Tank-style hot water heater installations average between $650 and $2,100, including the new water heater, materials and labor. They run on electricity, gas, propane or fuel oil, and last 10 to 12 years.

In the past few decades, tankless water heaters have proven to be highly efficient. They provide an unlimited supply of hot water on demand by heating it as it flows through the waterline, rather than storing hot water and burning energy to keep it hot. Tankless water heaters run between $1,000 and $3,500 installed. They can be powered by gas, or electricity and often last longer than 20 years.

(Note: Product details and prices are accurate as of publication and are subject to change.)

The size of the water heater also plays into the cost. Tank-style heaters range in size from 20 to more than 80 gallons of storage, with most homes using either a 40 or 50-gallon size. Tankless water heater size is measured in a flow rating of between two- and six gallons-per-minute (gpm). A higher flow rate of four- to six-gpm is recommended for most homes.

Be sure to choose a new unit that will supply enough hot water for the number of individuals in the house. The average prices shown below reflect the unit price only, not including labor or additional costs.

Water heaters are powered by either gas (natural gas or propane) or electricity. Heat is delivered either by a gas flame or an electric coil. Electric water heaters cost $100 to $200 less than gas water heaters.

However, due to the higher cost of electricity and lower cost of natural gas and propane in much of the country, gas water heaters are often more affordable over the life of the unit. Electric water heaters are still a great choice for small or confined locations because they do not require venting.

Gas water heaters produce exhaust that must be discharged either directly overhead through a vent flue, or by a power vent blower. Direct vent water heaters discharge exhaust through a flue pipe above the unit. If you replace an electric water heater with a direct vent gas model, expect to pay an additional $500 to $1,000 to install the vent pipe.

Power vent water heaters use a fan to force exhaust out through vent pipes. They can discharge exhaust horizontally or vertically, utilizing inexpensive PVC pipe instead of more expensive metal flue pipe. This system offers more flexibility in locating the unit compared with a direct vent model, and it is more energy-efficient. Power venting units cost $300 to $600 more than direct vent units, and the wiring and electrical work adds another $300 to $500 to the installation cost.

In addition to the price of the unit, a major portion of the installation cost is the labor charge. Labor costs could be as low as $150 or up to $1,000 or more. They vary based on the installer’s hourly rate, the size and type of water heater and the location of the installation.

Plumbers can perform most of the work of installing gas or electric water heaters. Their labor rates range between $45 and $150 per hour. If the job includes major electrical work, such as adding a new circuit or converting from gas to electric, you’ll also need to hire an electrician at $50 to $100 per hour.

Tank type water heaters, both gas and electric, typically take three hours to replace. Installing a tankless water heater requires eight to 10 hours. If you are converting from gas to electric, or vice versa, or if you are moving the water heater to a new location in the house, these can add significantly to the length of the job and may even require additional types of labor, such as carpenters or drywall installers.

Beyond the price of the appliance and the installer’s labor, other costs may be involved in replacing a water heater. These could include permit fees, installation of an expansion tank, removal and disposal of the old water heater, installation of water or gas lines, electrical or carpentry work and materials costs.

Most jurisdictions require a plumbing permit to replace a hot water heater. The permit is required so that an inspection can be done to ensure the work was performed according to current safety and quality standards. Multiple permits may be required, depending on the project details, with total permit costs between $50 and $500, and possibly as high as $1,500.

An expansion tank is a safety system that prevents pipes from bursting in the event that the water heater’s tank fails. Many older homes do not have them, but in many places building codes require that one be installed when water heaters are replaced. Installation of a new expansion tank will cost $40 to $350.

Before the new tank can go in, the old one must come out. Removal of the old tank will cost $100 to $500, depending on the contractor’s rate, size of the tank and ease of access. If it’s big and hard to remove, expect to pay more.

Moving a water heater to a new location in the house, changing from one fuel type to another, and even upgrading to a larger tank could add significantly to the cost of installation. You may need to reroute a water line ($350 to $1,700), frame a wall ($200 to $400), install drywall ($800 to $2,500), add a gas line ($250 to $800) or extend electrical wiring ($500 to $1,500). Consult your installer if you are considering anything more than an exact replacement.

Replacing a water heater requires additional incidental materials such as solder and pipe thread compound, and possibly other items like venting pipes, connectors, water or gas piping, pipe fittings and more. Depending on the project details, these items may be anywhere from minor to significant added costs.

Replacing a water heater is not a DIY project, and runs a bit more expensive than other appliances. The good news is that it’s a once in a decade project that you can plan for. Installation involves a variety of different variables including the price of the water heater and materials, permitting, labor of a licensed plumber, removal of the old unit, ease of access and other variables that may increase the time it takes to finish the job. Advertisement THIS IS AN ADVERTISEMENT AND NOT EDITORIAL CONTENT. Please note that we do receive compensation for any products you buy or sign up to via this advertisement, and that compensation impacts the ranking and placement of any offers listed herein. We do not present information about every offer available. The information and savings numbers depicted above are for demonstration purposes only, and your results may vary. Compare Quotes From Top-rated Water Heater Installers Free, No-commitment Estimates Find a Water Heater Installer Your Home. Your Decisions. Our Support. Get expert advice on your home, design tips, how much to pay for pros and hiring experts, delivered to you daily.{{ newsletterState.emailErrorMsg }}Thanks & Welcome to the Forbes Home Improvement Community!{{ newsletterState.emailErrorMsg }}I agree to receive the Forbes Home newsletter via e-mail. Please see our Privacy Policy for more information and details on how to opt out.

Compare Quotes From Top-rated Water Heater Installers

Traditional tank-style water heaters have a lifespan of eight to 13 years. Tankless water heaters last 20 years or more.

It is possible for an experienced, highly-skilled DIYer to pull the permits with the local jurisdiction and replace a water heater in their own home, but mistakes can be expensive and dangerous. If anything fails, the cost of cleanup and repairs can easily be more costly than hiring a professional in the first place.

Working with a plumber often comes with the added benefit of a labor warranty. In addition to any parts/equipment warranty provided by the manufacturer of the appliance, the plumber may offer a warranty that protects you from repair costs associated with faulty installation work.

Most consumers wait to replace their water heater until the time that it completely fails. You can prevent this stress by scheduling an inspection or replacement when any of these symptoms arise.

Water heaters can fail prematurely for a variety of preventable reasons. Be on the lookout for these issues and take action if they arise.

Mark is a seasoned green industry veteran and freelance writer based in Georgia. His work encompasses all things garden, landscape, home improvement, and DIY, with a focus on sustainability. Mark writes for dozens of leading online media outlets, like HGTV, WORX Tools, Dave’s Garden, DIY Network, BobVila.com, and more. He occasionally blogs about his gardening adventures at theprudentgarden.com.

Samantha is an editor who covers all topics home-related including home improvement and repair. She edited home repair and design content at websites like The Spruce and HomeAdvisor. She also has hosted videos on DIY home tips and solutions and launched multiple home improvement review boards staffed with licensed pros.