Tankless Water Heater Cost (2026): $1,400–$4,500 Installed
Author: CostGuideHQ Editorial·✓ Fact-checked·Updated July 2026·6 min read·3 sources Quick answerQuick answer: A tankless water heater installation typically costs $1,400 to $4,500, averaging around $2,600 nationally. Electric units run $1,000–$3,000 installed, gas $1,400–$3,500, and solar $3,000–$8,000. Point-of-use units can cost as little as $1,058, while whole-house solar systems can reach $6,698 or more.
- ✓A full tankless water heater installation typically costs $1,400 to $4,500, averaging about $2,600 nationally.
- ✓Fuel type drives most of the price spread: electric runs $1,000–$3,000 installed, gas $1,400–$3,500, and solar $3,000–$8,000.
- ✓Point-of-use (single-point) units can cost as little as $1,058 installed, far less than a whole-house system.
- ✓Old water heater removal adds roughly $500 or more, and permits typically run $50–$100 on top of the installation price.
How much does tankless water heater cost?
National average
$2,600
total project
Typical range
$1,400–$4,500
Most projects
Whole project
$1,058–$6,698
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Cost by material / type
| Type | Low | High |
|---|
| electric | $1,000 | $3,000 |
| natural gas | $1,400 | $3,500 |
| propane | $1,000 | $1,500 |
| solar | $3,000 | $8,000 |
What affects the cost?
- Fuel type: electric units typically run $1,000-$3,000 installed, natural gas $1,400-$3,500, and solar $3,000-$8,000 installed (Fixr); propane runs $1,000-$1,500 (Bob Vila)
- Unit type: point-of-use/single-point units cost as little as $100-$300 for the unit alone, while whole-house units run $450-$1,500 for equipment before labor (Bob Vila)
- Home size and hot water demand: a small condo or apartment needs a lower-capacity unit than a larger home with 3+ bathrooms, which needs a higher-GPM unit and pushes total cost up (Today's Homeowner)
- Gas line or venting work: a gas connector kit runs $20-$40 and a termination vent kit $40-$100 when switching to or upgrading a gas-fired unit (Today's Homeowner)
- Old water heater removal, typically around $500 or more (Today's Homeowner)
- Permits, typically $50-$100 (Bob Vila)
- Electrical panel or circuit upgrades for electric tankless units, commonly billed at $50-$100 per hour for roughly 2 hours of work (Bob Vila)
- Brand and model: unit-only prices span roughly $280 to $2,600 depending on brand and capacity, for example Atmor $280-$1,600, EcoSmart $450-$680, Noritz $550-$2,600, and Navien $1,000-$2,000 (Bob Vila)
- Labor rate and installation time: plumbers typically bill $45-$200 per hour, with a standard installation taking around 3 hours (Bob Vila)
Why does a tankless water heater cost so much?
A full tankless water heater installation typically costs $1,400 to $4,500, averaging around $2,600 nationally (Fixr, Today’s Homeowner, Bob Vila). The biggest driver is fuel type. An electric unit generally installs for $1,000 to $3,000, a gas-fired unit runs $1,400 to $3,500 once venting and gas line work are included, and a solar system climbs to $3,000–$8,000 or more (Fixr). Unit type matters too: a single-point unit that serves one fixture can cost as little as $100 to $300 for the unit alone, while a whole-house unit runs $450 to $1,500 before labor (Bob Vila). Labor itself typically bills at $45 to $200 per hour for roughly 3 hours of work (Bob Vila). On top of the base install, most homeowners also budget for old water heater removal (about $500 or more) and permits ($50 to $100), which push the total above the bare unit-and-labor price (Today’s Homeowner, Bob Vila).
What affects the cost?
A handful of factors explain most of the spread between a $1,400 job and a $4,500+ one:
- Fuel type. Electric units run $1,000–$3,000 installed, natural gas $1,400–$3,500, and solar $3,000–$8,000 (Fixr); propane runs $1,000–$1,500 (Bob Vila).
- Unit type. Point-of-use/single-point units cost just $100–$300 for the unit, while whole-house units run $450–$1,500 before labor (Bob Vila).
- Home size and hot water demand. Larger homes with more bathrooms need a higher-capacity, higher-GPM unit, which pushes the total cost up (Today’s Homeowner).
- Gas line or venting upgrades. A gas connector kit runs $20–$40 and a termination vent kit $40–$100 when a home is switching to or upgrading a gas-fired unit (Today’s Homeowner).
- Old heater removal. Typically about $500 or more (Today’s Homeowner).
- Permits. Usually $50–$100 (Bob Vila).
- Electrical upgrades. Panel or circuit work for electric units commonly bills at $50–$100 per hour for around 2 hours (Bob Vila).
- Brand and model. Unit-only prices span roughly $280 to $2,600 depending on brand and capacity (Bob Vila).
How to lower your tankless water heater cost
- Consider an electric unit if your household demand allows it. At $1,000–$3,000 installed, electric is typically the cheapest whole-house option compared with gas or solar (Fixr).
- Install a point-of-use unit for a single fixture instead of a whole-house system. These can cost as little as $100–$300 for the unit itself, a fraction of a whole-house install (Bob Vila).
- Ask what’s included in your quote. Confirm whether old heater removal (about $500+) and permits ($50–$100) are bundled in or billed separately (Today’s Homeowner, Bob Vila).
- Compare labor rates. Plumber hourly rates range from $45 to $200, so getting a few quotes on a roughly 3-hour install can meaningfully change the final bill (Bob Vila).
- Check your existing gas line and electrical panel first. If either needs upgrading, budget separately for a connector or vent kit ($20–$100) or electrical work ($50–$100 per hour), since these add-ons are a major reason gas and electric installs can end up on opposite ends of the price range (Today’s Homeowner, Bob Vila).
- Shop by brand and capacity rather than assuming all tankless units cost the same. Unit-only pricing spans roughly $280 to $2,600 across common brands, so matching capacity to actual household need avoids overpaying (Bob Vila).
Prices vary by region, fuel type, and the scope of any gas line or electrical work involved, so treat the figures above as a planning budget. Get two or three local quotes before committing to a final number.
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Frequently asked questions
How much does it cost to install a tankless water heater?+
A tankless water heater installation typically costs $1,400 to $4,500, averaging around $2,600 nationally. Three major cost-estimator sites cluster closely around this figure: Fixr reports a $2,811 average, Today's Homeowner reports $2,600, and Bob Vila reports $2,527, so $2,600 is a reliable planning number for a standard installation.
Is an electric or gas tankless water heater cheaper to install?+
Electric is generally cheaper. A full electric tankless installation typically runs $1,000 to $3,000, while a gas-fired unit runs $1,400 to $3,500 once venting and gas line work are factored in (Fixr). Propane installations land in a similar range to electric at $1,000 to $1,500 for materials and labor combined (Bob Vila).
How much does a solar tankless water heater cost?+
Solar tankless systems are the most expensive option, typically running $3,000 to $8,000 installed (Fixr), and can reach $13,000 or more for larger systems (Bob Vila). That wide range reflects differences in system size and how much solar equipment is bundled into the install.
What's the cheapest type of tankless water heater to install?+
A single-point (point-of-use) electric unit is the cheapest option, with installed costs as low as $1,058 (Fixr) and unit prices alone as low as $100 to $300 (Bob Vila). These units serve just one fixture, such as a single sink, rather than supplying hot water to the whole house.
Does the installation cost include removing the old water heater?+
Not always. Removing an old water heater typically adds about $500 or more on top of the installation price, and permits usually run another $50 to $100 (Today's Homeowner, Bob Vila).
How much does labor cost for a tankless water heater installation?+
Plumbers typically charge $45 to $200 per hour for tankless water heater installation, and a standard install takes about 3 hours, putting typical labor costs in the $600 to $1,850 range. Gas and solar installs tend to need more labor time than electric because of venting and gas line work (Bob Vila).
Sources
Figures synthesized and cross-checked across these sources (retrieved 2026-07-24):
- Fixr — National average $2,811 for an installed 150,000 BTU whole-house gas model; national range $2,500-$4,500. Low end $1,058 for a single-point installed 240v electric model; high end $6,698 for an installed 80-gallon whole-house solar system. Installation labor totals: Electric $1,000-$3,000 total installed; Gas $1,400-$3,500 total installed; Solar $3,000-$8,000 total installed. By unit type: single-point unit cost $150-$300; whole-house unit cost $450-$1,500. Annual operating cost: gas ~$250/year, propane ~$350/year, electric ~$600/year.
- Today's Homeowner — National average cost $1,400-$4,000, with homeowners paying around $2,600 on average. By fuel type (equipment): electric $500-$1,200, natural gas $750-$1,800, oil $1,000-$2,500, propane $500-$1,800, solar $1,500-$3,800. Labor costs by type: electric $150-$800, natural gas $800-$1,300, oil $1,000-$1,800, propane $800-$1,300, solar $1,800-$3,500. Additional costs: gas connector kit $20-$40, termination vent kit $40-$100, piping/insulation $10 per foot, old heater removal around $500 or more.
- Bob Vila — National average $2,527; range $1,333-$3,721. By fuel type (materials and labor): electric $800-$1,500, natural gas $1,000-$1,500, propane $1,000-$1,500, solar $1,700-$6,000 (can reach $13,000+). By system type: single-point/point-of-use unit $100-$300; whole-house system unit $450-$1,500. Labor: hourly rate $45-$200, typical installation labor $600-$1,850, installation time about 3 hours. Brand unit-only pricing: Atmor $280-$1,600, EcoSmart $450-$680, Noritz $550-$2,600, Navien $1,000-$2,000. Additional: old heater removal $500+, permits $50-$100, electrical updates $50-$100/hour for about 2 hours, pipe insulation $10/foot, gas line installation up to $1,000 additional.
Three independently fetched cost-estimator sites converge in a similar band for a full tankless water heater installation: Fixr ($2,811 average, $2,500-$4,500 typical installed range, with extremes from $1,058 for a single-point electric unit up to $6,698 for an 80-gallon whole-house solar system), Today's Homeowner ($2,600 average, $1,400-$4,000 range), and Bob Vila ($2,527 average, $1,333-$3,721 range). $2,600 is used as the consensus national average, with $1,400-$4,500 published as a synthesized typical total-project range per CostGuideHQ policy on cross-source consensus ranges: $1,400 is Today's Homeowner's low end and $4,500 is Fixr's high end, and both numbers individually appear in the cited source figures above even though no single source states this exact pair. $1,058-$6,698 is kept as the outer project range to capture single-point electric units on the low end and whole-house solar systems on the high end (both from Fixr). Figures generally cover the tankless unit itself plus standard installation labor. They typically exclude old tank/heater removal (about $500+ per Today's Homeowner), permits ($50-$100 per Bob Vila), and gas line or electrical panel upgrades, which most sources call out as separate add-on costs. Gas and propane installs tend to cost more than electric because of venting and gas line requirements, and solar systems show by far the widest spread across sources due to variation in system size and any solar equipment bundled in. Fuel-type installed totals (electric $1,000-$3,000, gas $1,400-$3,500, solar $3,000-$8,000) are Fixr's figures specifically; Bob Vila's fuel-type figures differ (electric $800-$1,500, gas $1,000-$1,500, solar $1,700-$6,000) and are not blended into these totals except for propane, where Fixr gives no total-installed figure and Bob Vila's $1,000-$1,500 is used directly.