Tankless water heater installation cost

A tankless water heater costs $1,400 to $5,600 installed. Electric models are cheapest to put in; natural gas models cost the most because they often need a larger gas line and new venting. Here is what drives the price.

Quick answer

$1,400 – $4,500most whole-house installs

Simple jobsWhat most people payComplex or emergency jobs

Most whole-house tankless installations cost $1,400 to $4,500. Simple electric swaps can come in lower, while gas conversions that need a new gas line, venting and electrical work reach $5,600.

Cost by fuel type

Point-of-use units that serve one sink cost about $150 to $250 each; the prices below are for whole-house units.

Tankless cost by fuel type
FuelUnit onlyInstalled
Electric$600 – $1,000$1,400 – $3,000
Propane$1,000 – $2,000$1,600 – $4,500
Natural gas$1,500 – $2,600$2,100 – $5,600

Retrofit and installation costs

Switching from a tank is what makes tankless installs expensive. Gas tankless units need more gas flow than a tank, so many homes need a larger gas line. Electric tankless units draw a lot of power and may need a new circuit or panel.

Retrofit costs when replacing a tank
ItemTypical cost
Installation labor (3–10 hours)$600 – $2,500
Pipes, connectors and valves$150 – $300
Permit$50 – $200
Gas line upgrade$350 – $2,000
Gas exhaust vent replacement$100 – $600
Dedicated electrical circuit$250 – $900
Electrical panel replacement$850 – $1,700
Old water heater removal$75 – $500

Condensing gas units cost about 25% more to install than non-condensing models but run more efficiently and can vent through PVC pipe.

What plumbers charge for this job

Most of the price of a plumbing job is labor. Licensed plumbers in the U.S. typically charge $45 to $150 per hour, and many add a $50 to $200 service call fee that often covers the first hour. Expect evening, weekend and holiday visits to cost noticeably more; emergency hourly rates commonly run $150 to $350. Master plumbers and plumbers in high-cost metro areas sit at the top of these ranges.

Before work starts, ask whether the quote is a flat price for the whole job or an hourly estimate, and whether parts, permits and haul-away are included. See Plumber rates per hour and Emergency plumber cost for the full breakdown.

Is tankless worth the cost?

Tankless heaters save money on energy and last longer, but the payback period depends on your hot water use and energy prices. See the full comparison in Tank vs. tankless water heater cost.

Pros

  • Endless hot water
  • Lifespan up to about 20 years
  • Lower yearly energy cost
  • Saves floor space

Cons

  • Higher upfront cost
  • May need gas or electrical upgrades
  • Needs yearly descaling in hard water
  • Flow limits if many fixtures run at once

DIY or professional installation?

Tankless installation requires gas sizing, venting and electrical work that most codes reserve for licensed pros. Many manufacturers also require professional installation to honor the warranty.

How to lower the cost

  • Choose electric if your panel already has capacity and you lack a large gas line.
  • Pick a non-condensing gas unit if your existing venting can be reused.
  • Ask for a quote that includes all gas, vent and electrical work so there are no surprises.
  • Check state and utility rebates for high-efficiency units.

Frequently asked questions

How much does it cost to convert from a tank to tankless?

Expect $1,400 to $5,600 total. The upgrade labor alone runs $600 to $2,500, and gas or electrical upgrades can add $350 to $2,000 or more.

How long does a tankless water heater last?

Up to about 20 years with yearly descaling, roughly twice as long as a typical tank.

Do tankless water heaters need maintenance?

Yes. They should be flushed or descaled about once a year, more often with hard water. Professional maintenance costs about $75 to $300.

Sources

Prices are national estimates for 2026 based on published cost surveys and labor data. Your local price can be higher or lower. FairFix Costs is not a plumbing contractor; read our disclaimer.