How Much Does It Cost To Install A Tankless Water Heater ?


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Tankless Water Heater Installation Costs

Indoor Cost Guides      Water Heaters      Tankless Water Heater Installation Costs

Tankless water heaters are an energy-efficient upgrade for any home or commercial space. Many consumers are choosing these models because they don’t continuously heat and cycle water. Instead, they have a heating system that allows for on-demand hot water. This results in reduced water usage and significant energy savings.

Small apartments or limited use, such as in the case of having a single source for hot water access, may benefit from a single-point hot water tank. However, these systems can only pump half a gallon to two gallons of water per minute, so that might not be able to keep up with the needs of the average home.

A whole-home tankless water heater can pump out 5-10 gallons per minute, which is significantly more hot water in between heating cycles, guaranteeing that you will never run out of water whenever you need it. Consider both options when discussing your installation with a plumber to determine which solution is best based on usage, cost, and other important factors.

In addition to tank heaters and tankless systems, there are also multiple fuel sources for your water heater. The type of fuel required will affect not only the operating costs but also the purchase price of your tankless water heater. For example, electric and natural gas models are the most affordable because they are the most common. Solar, tankless systems and fuel oil systems, however, can cost as much as $1,000 or more to install.

The Cost of Tankless Water Heater Installation

Item Cost
1. Tankless Water Heater Unit $450-$1,050
2. Installation Labor $90-$1,200
3. Optional Gas Line Installation/Replacement $500
Total Average Installation Cost $540-$2,750

Other considerations and costs

  • If drywall needs to be removed or access panels need to be created, you may need to hire a handyman or carpenter, which will incur an additional charge.
  • Other materials, including heat pumps and pipes, are not included in standard installation costs.
  • Permitting fees and taxes are not included.

Check out our guide if you need a loan for your home improvement project.

DIY considerations

  • You can save a lot of money on labor costs by installing this system yourself, but tankless systems require knowledge of their unique installation needs.
  • Even if you install your own system, you will have to schedule periodic maintenance with a plumber or maintenance company.
  • Make sure that there is no major reconfiguration required before you opt to take on the installation yourself.


  • Craftsman Estimator Costbook, complete series year 2019.
  • Latest prices found on Home Depot and other vendor Web sites.
  • Literature review of DIY Websites.
How much does it cost to install a tankless water heater in your city?
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Cost by city

  • New York, NY$2,642
  • Bronx, NY$2,171
  • Brooklyn, NY$1,810
  • Philadelphia, PA$2,258
  • Washington, DC$1,959
  • Atlanta, GA$1,773
  • Miami, FL$1,612
  • Fort Lauderdale, FL$1,689
  • Minneapolis, MN$1,981
  • Chicago, IL$2,308
  • Houston, TX$2,381
  • San Antonio, TX$1,598
  • Austin, TX$1,810
  • Denver, CO$1,529
  • Phoenix, AZ$1,613
  • Las Vegas, NV$1,770
  • Los Angeles, CA$1,995
  • San Diego, CA$1,810
  • San Jose, CA$2,187
  • Seattle, WA$1,601

Local costs have been calculated by accounting for labor and material cost differences across different cities. To get accurate cost estimates, indicate yours: