Average Cost to Install a Water Heater

as of January, 2018 $1040 40 gallon, standard quality

How Much Does it Cost to Install a Water Heater?

When you're planning to install a new water heater, expect to pay in the range of $775 - $1300, including the heater itself, supplies, and labor.

Cost to install a water heater varies according to several factors:

  1. size
  2. power source -- electricity, natural gas, or solar
  3. style -- tank or tankless
  4. quality
  5. any necessary upgrades

Size a Tank (Conventional) Water Heater

Number of People in Household

Water Heater Capacity


Up to 30 Gallons


40 Gallons


50 Gallons


60 Gallons or More

Size a Tankless (Demand) Water Heater

See the chart below to find the GPM (gallons per minute) requirements of major water-using fixtures and appliances. Add the GPMs of the ones you would like to be able to run at the same time.

The total will tell you the gallons-per-minute heating capacity you need for your tankless water heater.

Fixture or Appliance

GPM Flow Rate


0.5 - 1.5


1.0 - 2.5  


1.0 - 2.5  


1.5 - 3.0  


1.5 - 2.2 

Cost Breakdown

The cost to install a water heater will normally include:

  • Materials and Supplies -- Tank style is the traditional type of water heater; 40-50 gallons is the commonest size. A tankless (also called "demand") model will cost more initially to purchase and install, but will save you money in the long run, since it does not require constant power to keep the water hot. A solar heater, powered by the sun's rays, is the greenest of all. However, you will need a backup hot water source for cloudy days.
  • Labor -- Labor includes the basic water heater installation by a licensed plumber. If you need upgrades, for example to the gas supply or electrical panel, that will add to the expense.
  • Cleanup -- If you need a water heater replacement, there may be an additional charge to remove and dispose of the old heater.

Get the Most for Your Money

Use up to 50 percent less energy by installing an Energy Star certified water heater.

Save even more by applying for a federal tax credit for your energy-efficient water heater installation.

Reduce the amount of both hot and cold water you use by having your plumber fix leaky faucets and install low-flow bathroom fixtures.

Cost to Hire a Plumber

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