How much does a tankless water heater cost?

Image of tankless water heater for marketing costs

Tankless water heaters are typically more expensive to install than standard water heaters.  The cost difference is due to the process to convert from tank to tankless.  Replacing tank water heaters is not difficult but does require a bit more work to retrofit.

Time to install

A Tankless water heater will take anywhere from 6-10 hours to install depending on the specific requirements and configuration of your home.

Relocating water heater

Since tankless water heaters are smaller sometimes homeowners consider relocating it in their home. However, this will add additional costs to install and may require plumbing, and gas line modifications.  Talk to your professional about options when getting an estimate if you’re considering this option.

Gas Upgrade

Sometimes it is necessary to upgrade the gas service to the unit.  This will need to be evaluated before installation.  Tankless units require higher gas pressure and sometimes your home’s gas line needs to be upgraded or a new line needs to be added to support the unit.

Condensation Drain Requirements

Condensation Drain lines are typically required in 99.9% of tankless water heater installations.  Standard water heaters don’t need a condensation drain line.  These are necessary because the condensation that is created within the gas is very corrosive.  A drain line or pump needs to be run from the unit to a drain line in your home.  Cost may fluctuate slightly based on the location of your water heater.  Our drain experts are able to provide this conversion when needed.


The venting for tankless is slightly different than a tank water heater, typically pvc or stainless steel and new venting usually needs to be run to the new unit to adequately vent the gas from the water heater.

Code Upgrades

Every installation is different and depending on your home there may be upgrades needed to bring your water heating system up to current code standards.  These items may include pressure or relief valves, expansion devices… These can vary from home to home so the costs are difficult to outline.  You should talk to your professional about all your options and gain a good understanding of the installation requirements for your specific home.

Sizing and costs comparisons  for a tankless water heater:


When determining how much a tankless water heater will be to install in your home you need to think about the water usage in your home to ensure that the unit can support your hot water needs.  Tankless water heater prices vary based on the flow rate needed to produce enough hot water to fulfill your demand, the higher the flow rate the more BTUs you’ll need.

It is difficult for us to give you a ballpark cost estimate in this guide due to the variables we’ve outlined in this chapter.  The graph above should give you an idea of how your hot water needs determine the size of unit you need to meet your demand.  Please note that in some cases if you have a large family or a large hot water demand it may be necessary to install two units to provide you with enough hot water to meet your demand.

This guide is intended to provide you with information so you can understand how tankless water heaters work and information that can help you make an informed decision if tankless is a good choice for you and your family. g