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Water Heater Installation Cost Calculator

Estimate the total cost to install a new water heater including unit, labor, gas line work, and permits.

How It Works

1

Select water heater type

Choose tank (gas/electric), tankless, or heat pump water heater.

2

Enter household size

Tank capacity or flow rate requirements depend on how many people live in the home.

3

Add permits and gas line

New gas installations require a permit and may need gas line work (+$200–$800).

2026 Water Heater Installation Costs

TypeUnit CostInstalled
Gas Tank (50 gal)$500 – $850$750 – $1,350
Electric Tank (50 gal)$400 – $700$650 – $1,200
Heat Pump (50 gal)$900 – $1,500$1,150 – $2,000
Tankless Gas (medium)$700 – $1,300$950 – $1,800
Tankless Electric (medium)$300 – $700$550 – $1,200

Frequently Asked Questions

How much does water heater installation cost?

Water heater installation costs $650–$2,000 for most homes. A standard 50-gallon gas tank water heater costs $750–$1,350 installed. Electric tank units cost $650–$1,200. Heat pump water heaters cost $1,150–$2,000 but qualify for a 30% federal tax credit up to $600. Tankless gas units cost $950–$1,800. Installing a gas line where none exists adds $300–$1,000. Permits add $50–$200.

Tank vs. tankless water heater: which is better?

Tankless water heaters cost $500–$1,000 more upfront but last 20–25 years vs 10–12 years for tank units and save $100–$200 per year in energy costs. They also never run out of hot water. Tank water heaters have lower upfront costs and simpler maintenance. For households with high hot water demand or planning to stay long-term, tankless usually wins. For shorter time horizons, tank is more economical.

What size water heater do I need?

Water heater sizing by household: 1–2 people = 30–40 gallon tank or 6–8 GPM tankless. 2–3 people = 40–50 gallon or 7–9 GPM. 3–4 people = 50–60 gallon or 8–10 GPM. 4+ people = 60–80 gallon or 10+ GPM. For tankless, also consider simultaneous use — running a shower while a dishwasher runs requires more GPM capacity.

Is a heat pump water heater worth it?

Heat pump water heaters are 2–3x more energy efficient than electric tank units and save $300–$500 per year on electricity. They cost $1,150–$2,000 installed but qualify for a 30% federal tax credit up to $600, bringing net cost to $800–$1,400. Payback vs. electric tank is typically 3–5 years. They require 1,000+ sq ft of surrounding space above 40°F to function efficiently.

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Answer 5 quick questions for a cost range tailored to your project.

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