Cost to Install a Tankless Water Heater
The average cost to install a tankless water heater is $2,640, with most homeowners paying between $1,406 and $3,901 depending on fuel type and installation complexity. Every figure on this page is sourced — see below.
What's included in the cost
| Item | Typical cost |
|---|---|
| Unit / equipment | $100–$2,000+ |
| Permits | $50–$500 |
Cost by fuel type
| Fuel type | Typical installed cost |
|---|---|
| Electric | $450–$1,500 |
| Natural gas | $1,000–$1,500 |
| Propane | $1,000–$1,500 |
| Solar | $1,800–$6,000 |
Source: HomeAdvisor (updated June 17, 2026).
What affects the cost
- Fuel type. As shown above, electric units are the cheapest to install, while gas, propane, and especially solar-assisted systems cost more due to venting and fuel-line work, per HomeAdvisor.
- Installation accessibility. HomeAdvisor notes that hard-to-reach installations can add 10% to 15% to labor costs on top of the base range.
- Brand and unit quality. HomeAdvisor's pricing for the units themselves spans a wide range across manufacturers, from around $150–$1,600 for budget brands like EcoSmart to $900–$3,000 for premium brands like Takagi.
- Permits. Most jurisdictions require one, and HomeAdvisor prices tankless water heater permits at $50 to $500 depending on local building codes.
Why this isn't a DIY project
HomeAdvisor is blunt about this one: installing a tankless water heater "isn't a DIY project for the average homeowner." Most installations require new wiring, gas lines, piping, or drywall work, and local codes govern carbon monoxide emissions, venting, thermal resistance, and region-specific rules like earthquake strapping in California — all things a licensed plumber navigates as part of the job.
The other mistake HomeAdvisor flags is getting the sizing wrong: an oversized unit costs more than it needs to, while an undersized one won't keep up with your household's hot water demand. Since sizing depends on your fixture count and flow rate, not just square footage, it's worth having a plumber size the unit for your specific home rather than guessing from an online chart.
Frequently asked questions
How much does it cost to install a tankless water heater on average?
The average cost to install a tankless water heater is $2,640, with most homeowners paying between $1,406 and $3,901, according to HomeAdvisor (updated June 17, 2026).
How much does a tankless water heater cost by fuel type?
Per HomeAdvisor, an electric tankless system typically costs $450-$1,500 installed, natural gas $1,000-$1,500, propane $1,000-$1,500, and solar $1,800-$6,000.
Do I need a permit to install a tankless water heater?
In most areas, yes. HomeAdvisor lists permit costs at $50 to $500 for a tankless water heater installation.
How long does a tankless water heater last compared to a tank model?
HomeAdvisor reports that a well-maintained tankless water heater lasts around 20 years, significantly longer than traditional tank water heaters, which typically last 8 to 12 years. Forbes Home corroborates this independently, reporting that tankless units generally last 20 years or more (some gas-powered models 20-30 years) versus 8-12 years for tank-style heaters.
How much more energy-efficient is a tankless water heater?
According to the U.S. Department of Energy, demand (tankless) water heaters can be 24% to 34% more energy efficient than conventional storage tank water heaters in homes that use 41 gallons or less of hot water per day. For homes with heavier use, around 86 gallons per day, the efficiency gain is smaller, at 8% to 14%.
What affects the cost of a tankless water heater installation?
HomeAdvisor identifies system type (single-point vs. whole-house), flow rate capacity, installation accessibility, brand, and local permit requirements as the main cost drivers. Gas line or electrical upgrades and new venting, when needed, add to the total.
Is a whole-house unit more expensive than a single-point unit?
Generally yes. HomeAdvisor lists system type -- single-point versus whole-house -- as one of the key factors that determines where a project lands within the $1,406-$3,901 typical range, since whole-house units need more capacity and often more extensive gas, electrical, or venting work.
Can I install a tankless water heater myself?
HomeAdvisor explicitly advises against DIY installation for most homeowners, since it typically involves gas line, electrical, or venting work governed by local codes -- including region-specific rules like earthquake strapping in California. A licensed plumber handles the permit and code compliance as part of the installation.
Related projects
Have a specific tankless water heater question, or think one of these numbers is out of date? Contact us and we'll look into it.