Water heater cost

The headline price on a water heater is the least useful number in the quote. Two homes on the same street can pay $900 and $2,600 for the same 50-gallon tank, and both quotes can be fair. What moves the price is access (a basement with a floor drain is cheap, a third-floor closet is not), whether the gas or electrical supply already suits the new unit, and whether the installer has to bring old venting or seismic strapping up to current local code.

Tank size drives price more than brand does. NerdWallet's 2026 figures put a 30-gallon unit at $430-$2,100, a 40-gallon at $440-$2,300, a 50-gallon at $530-$2,900, and a 75-80 gallon at $1,100-$3,100 - those spans cover unit plus installation. Permits, where required, add roughly $25 to $300.

The number that catches people out is tank-to-tankless conversion. Going tankless is not a like-for-like swap. NerdWallet puts the conversion premium at $150 to $2,500 on top of the tankless install, because a gas tankless unit usually needs a larger gas line, different venting, and a dedicated electrical circuit. Get that scoped in writing before you sign, not discovered on install day.

Water heating is about 20% of the average home's energy use and the typical second-largest energy expense in the house, per the Department of Energy. That is why operating cost matters as much as install cost over a 10-to-20-year life - but it is also why a contractor can talk you into a much bigger spend on payback that may not arrive.