How much does it cost to replace a water heater?
Replacing a standard 40–50 gallon tank water heater typically runs about $1,200–$2,500 installed, with most homeowners landing near $1,700. Tankless conversions cost considerably more — often $3,000–$5,500 — because they usually require gas line, venting and electrical changes.
Where the money goes
Gas units generally cost more than electric
2–4 hours for a straightforward swap
Required in most jurisdictions
Expansion tank, pan, seismic strapping, venting
What changes the price
- Tank vs tankless — tankless costs more upfront and needs more infrastructure work
- Gas vs electric, and whether you're switching between them
- Capacity — 40, 50, 75 or 80 gallon
- Location and access — attic and crawlspace installs cost more than a garage
- Code upgrades triggered by replacing an older unit
- Regional labour rates, which vary substantially
- Emergency or after-hours replacement, which carries a premium
Repair or replace?
A useful rule: if the unit is under 8 years old and the repair is a valve, thermocouple or element, repair. If it's over 10 years old, or the tank itself is leaking, replace. Repairs on a tank near the end of its life often buy months, not years — and a tank that fails unattended can flood the space it's in.
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Last reviewed August 8, 2026. These are typical US ranges for orientation, not quotes. Pricing varies significantly by region, home and contractor — always get written estimates before committing.