How much does a tankless water heater cost?

A tankless water heater runs about $1,400 to $5,000 installed, with gas conversions on the higher end because of venting and gas-line work. The unit itself is roughly $1,000 to $2,500.

Can I install a tankless water heater myself?

Swapping like-for-like is doable for a confident DIYer, but converting from a tank usually means new gas, venting, or a heavier circuit, which is advanced and code-regulated. Many DIYers do the plumbing and hire the gas or electrical.

Tankless or tank water heater?

Tankless heats on demand, saves space, lasts longer, and gives endless hot water, but costs more up front and may need gas or electrical upgrades. A tank is cheaper to install but uses standby energy and runs out during heavy use.

Does a tankless heater really give endless hot water?

Yes, it heats water as it flows, so it does not run out, but it has a flow-rate limit. Size the unit to your peak demand (showers plus appliances at once) or you can outrun a too-small unit.

How long does a tankless water heater last?

About 15 to 20 years, notably longer than a tank's 8 to 12 years, especially with annual descaling in hard-water areas. The isolation valve kit makes that flushing easy.

PROJECT GUIDE · UPDATED JUNE 2026

Tankless Water Heater Cost & Project Guide

Everything for your Tankless Water Heater in one place: cost by state, DIY vs. hire, the tools and materials, and a local pro if you want one.

NATIONAL AVERAGE · UPDATED JUNE 2026

HIRE A PRO

$1,400–$5,000

DIY COST

$1,000–$2,500

Typical project: A tankless (on-demand) water heater, gas or electric

Skill levelAdvancedAnyone can take this on. The Blueprint walks you through it, step by step.

Get the Tankless Water Heater Blueprint →

Exact cost by zip →Tools & materials →Find a pro →

Source: 3+ benchmark aggregations (RSMeans, Angi, Fixr, HomeGuide) plus Submitted Quotes data

Plan your Tankless Water Heater

A quick checklist to get from idea to done. Want it as a printable PDF? Grab the full free version, emailed to you.

1Set a realistic budget using the cost range above.
2Check whether your project needs a permit in your state.
3Decide DIY or hire (see the breakdown below).
4Make your materials and tools list.
5If hiring, get three quotes and compare them like-for-like.
6Plan the timeline and order materials with a 10 percent buffer.

Get the full free Tankless Water Heater checklist, emailed as a PDF →

Tools and materials for a Tankless Water Heater

What you will actually buy. We flag what to rent versus own so you do not overspend on a one-time tool.

Materials

Tankless water heater unit · 1 unit
Venting (gas) or wiring (electric) · 1 set
Gas line upgrade or breaker · 1 set
Valves, fittings, and isolation kit · 1 set

Tools

Pipe wrenches and tubing tools · you likely own
Drill and hole saw (for venting) · rent or buy
Multimeter and electrical tools · you likely own

See all the tools and materials worth buying →

Pro tips for your Tankless Water Heater

The mistakes that cost DIYers the most, and how to stay ahead of them.

Undersized gas line or wiring

Improper venting on gas units

Skipping the isolation valves for maintenance

Buying a unit too small for peak demand

Should you DIY or hire for Tankless Water Heater?

It depends on three things: your skill level, your time, and your tolerance for the riskiest parts of the project.

When DIY makes sense

→You have trade-level experience or have completed this type of project before
→You own or can rent the specialized tools required
→You've read the local code requirements and understand the permit process
→A trusted helper with relevant experience is available for the critical phases

When to hire

→The project involves significant fall risk, high voltage, or gas lines
→Your jurisdiction requires a licensed contractor, no exceptions
→A DIY mistake could void your homeowner's insurance or mortgage terms
→You lack the specialized tools and can't justify renting them for a one-time job
→The project scope is large enough that crew efficiency outweighs DIY savings

DifficultyHard

Advanced, but within reach with the right prep. The Blueprint covers the safety-critical phases step by step, and a pro is there if you would rather not.

Not planning to DIY? Find a local Tankless Water Heater pro →

What drives the cost of Tankless Water Heater

Materials

The single biggest material variable is your product choice. Gas tankless and Electric tankless sit at opposite ends of the price spectrum, a decision that can shift your materials budget by 40–60%. Key line items include tankless water heater unit, venting, gas line upgrade or breaker, each priced per unit and sensitive to regional supply-chain conditions. Bulk purchasing and timing your order outside peak season (spring and early summer) can reduce material costs by 10–15%.

Labor

BLS occupational wage data shows systems-trade crews earn $28–$52/hour depending on metro area, and most tankless water heater jobs require a two- to three-person crew for at least one full day. Labor typically accounts for 40–60% of the total project cost. Project complexity, custom details, tight access, or non-standard configurations, adds crew time and can push labor costs well above the national average.

Site conditions

Slope, soil type, and existing-structure condition are the three site factors contractors price most aggressively. Demolition or removal of old materials adds dumpster and disposal fees that rarely appear in online estimates. Local code requirements, permit fees, required inspections, and jurisdiction-specific material standards, can add $200–$1,500 to any project before a single tool is lifted.

Rather hire it out?

Find a vetted Tankless Water Heater pro near you. We never sell your info and never take kickbacks.

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Tankless Water Heater cost in your state

Tankless Water Heater cost varies a lot by state. Open your state for locally calibrated hire and DIY numbers.

Tankless Water Heater cost in Michigan →Tankless Water Heater cost in California →Tankless Water Heater cost in Texas →Tankless Water Heater cost in Florida →Tankless Water Heater cost in New York →Tankless Water Heater cost in Pennsylvania →Tankless Water Heater cost in Ohio →Tankless Water Heater cost in Georgia →

See all home improvement costs by state →