Calculator
Water Heater Cost Calculator
Compare installed cost and yearly operating cost for tank and tankless water heaters.
Verified August 2026
Installed cost estimate
$1,632 – $2,400
- 10-year cost of ownershipPurchase plus energy
- $7,120
- Permit + code upgrades
- $470
Estimates only. Local pricing, site conditions and code requirements change the real number.
The formula
Installed cost = unit cost + labor + code upgrades + permit; Annual cost = energy use x local rate
Tankless units cost more up front and usually need gas line or electrical upgrades, but they last longer and use less energy standby.
Worked example
A 50-gallon electric tank swap runs about $1,700 installed. A gas tankless conversion typically runs $3,800 to $5,500.
Frequently asked questions
Is tankless worth it?
Tankless makes sense when you have gas service, need endless hot water, or plan to stay 10+ years. The payback on an electric-to-tankless conversion is usually poor because of the required panel and wiring upgrades.
Sources
Sources & verification
Last verified August 2026. Cost figures are modeled estimates based on national baselines adjusted for local labor and material pricing — they are not quotes. Permit rules change; confirm with the building department before starting work.