Cost to have tankless water heater installed

July 2022

Table of Contents Show

Custom Calculators with Homewyse Lists
Unit Costs: How Pros Price
Cost to Install a Tankless Hot Water Heater - Notes and General Information
References - Tankless Hot Water Heater Installation
Tankless Hot Water Heater Installation Budget Management
Hiring Local Professionals
Make Homewyse better
What is the downside of a tankless water heater?
How much does it cost to install tankless?
Is a tankless water heater worth the cost?
Why are tankless water heaters so expensive?

	Item details	Qty	Low	High
	Tankless Water Heater Cost Non-discounted retail pricing for: 8.5 gpm tankless gas water heater at 35F temperature rise. 0.92 energy factor. Digital controller. Requires natural gas supply and 3" vent connection at unit. 5 yr limited warranty.	1 heater	$1,467.49	$1,649.77
	Tankless Hot Water Heater Installation Labor, Basic Basic labor to install tankless hot water heater with favorable site conditions. Mount and secure new heater. Connect vent to existing vent ducting. Connect water to existing supply lines. Leak and cycle test. Any surface demolition, structural modifications and restoration if needed is extra. Includes planning, equipment and material acquisition, area preparation and protection, setup and cleanup.	1 heater	$1,467.49	$1,649.77
	Tankless Hot Water Heater Installation Job Supplies Cost of related materials and supplies typically required to install tankless hot water heater including: connectors, fittings and mounting hardware.	1 heater	$1,467.49	$1,649.77
	Option: Remove Water Heater Detach and turn off connections. Drain unit. Remove from premises. Disposal costs/fees not included.	1 heater	$1,467.49	$1,649.77
	Tankless Water Heater Debris Disposal Costs to load and haul away old materials, installation waste and associated debris.	1 heater	29.53125	33.59375
	Unused Minimum Labor Balance of 2 hr(s) minimum labor charge that can be applied to other tasks.


Totals - Cost To Install Tankless Hot Water Heater
Average Cost per Heater

Custom Calculators with Homewyse Lists

Service Professionals: create a reusable estimating app that is 100% customized to your business. Start with a template or build your own (free; Account sign up required):

For a basic project in zip code 47474 with 1 heater, the cost to Install a Tankless Hot Water Heater starts at $2,500 - $2,898 per heater. Actual costs will depend on job size, conditions, and options.

To estimate costs for your project:

1. Set Project Zip Code Enter the Zip Code for the location where labor is hired and materials purchased.

2. Specify Project Size and Options Enter the number of "items" required for the project.

3. Re-calculate Click the "Update" button.

Unit Costs: How Pros Price

Unlike other websites that publish pricing from unrelated jobs in the past, Homewyse creates up-to-date estimates from current Unit Costs. The Unit Cost method delivers high accuracy by using location, details and options for the unique requirements of each job. Contracting, trade, design and maintenance businesses rely on the Unit Cost method for transparency, accuracy and fair profits.

Cost to Install a Tankless Hot Water Heater - Notes and General Information

These estimates are for BASIC work performed in serviceable conditions by qualified trade professionals using MID GRADE materials. Work not mentioned on this page and/or work using master craftsman, premium materials and project supervision will result in HIGHER COSTS! Explore the full range of gas tankless water heater new installation labor options and material prices here.

These estimates are NOT substitutes for written quotes from trade professionals. Homewyse strongly recommends that you contact reputable professionals for accurate assessments of work required and costs for your project - before making any decisions or commitments.

The cost estimate includes:

Costs for local material / equipment delivery to and service provider transportation to and from the job site.
Costs to prepare the worksite for Tankless Hot Water Heater Installation, including costs to protect existing structure(s), finishes, materials and components.
Labor setup time, mobilization time and minimum hourly charges that are commonly included for small Tankless Hot Water Heater Installation jobs.

The cost estimate does NOT include:

Costs for removing, relocating, repairing, or modifying existing framing, surfacing, HVAC, electrical, and plumbing systems - or bringing those systems into compliance with current building codes.
Costs for testing and remediation of hazardous materials (asbestos, lead, etc.).
General contractor overhead and markup for organizing and supervising the Tankless Hot Water Heater Installation. Add 13% to 22% to the total cost above if a general contractor will supervise this project.
Sales tax on materials and supplies.
Permit or inspection fees (or portion thereof) required by your local building department for your overall project.

References - Tankless Hot Water Heater Installation

Product and Supplies Data: Faucet Direct Plumbing Fixtures and Supplies Faucet Direct, Jul 2022, Website
Product and Supplies Data: Kitchen Source Plumbing Products and Supplies Kitchen Source, Jul 2022, Website
Product and Supplies Data: Plumbers Stock Products and Supplies Plumbers Stock, Jul 2022, Website
Product and Supplies Data: Lowes Plumbing Products and Supplies Lowes , Jul 2022, Website
Product and Supplies Data: Plumbing Components and Supplies McCoys, Jul 2022, Website
The HUD PATH Rehab Guide Volume 8: HVAC/Plumbing U.S. Department of Housing and Urban Development Office of Policy Development and Research, Mar 2011, Editorial Staff
The Building Estimator's Reference Book , Mar 2012,
Home Improvement 1-2-3: Expert Advice from The Home Depot Homer, TLC, Jul 2022, Editorial Staff, ISBN 696213273
Carpentry and Building Construction, Student Text Glencoe/McGraw-Hill; 6th edition, Jan 2003, Mark Feirer, John Feirer, ISBN 007822702X
Labor Wages and Costs: CPWAR Construction Cost Book The Center for Construction Research and Training, Jul 2022, Staff
Project Spending Data: Harvard University JCHS Homeowner Expenditures Harvard University, Jul 2022, Website

Tankless Hot Water Heater Installation Budget Management

This infographic highlights decisions and site issues that can cause large cost variances in the typical Tankless Hot Water Heater Installation budget.

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What is the downside of a tankless water heater?

A tankless water heater can only heat so much water at a time. If you demand more hot water than the unit can generate—for instance, if you run the dishwasher, washing machine and shower at the same time—the temperature of the water will fluctuate since the heater is trying to provide for all three locations at once.

How much does it cost to install tankless?

The typical range for tankless heater installation is between $4,500 and $6,500, averaging out to around $5,500 (including the water heater, warranty and tune ups). The tankless heater installation without the unit can cost between $1800 and $3500, averaging out to around $2650.

Is a tankless water heater worth the cost?

According to the U.S. Dept. of Energy, a tankless water heater is more efficient and uses less energy than a conventional water heater, providing a $25 to $107 in annual savings. If your hot water use is low (less than 41 gallons per day), a tankless water heater will be 24% to 34% more efficient.

Why are tankless water heaters so expensive?

Tankless water heaters have a higher initial price compared to tank heaters, costing homeowners between $1,200–$3,500. The higher cost is a result of a more labor-intensive set-up, as new gas and water lines are required for installation. For electrical tankless heaters, new electric wiring will need to be installed.