Water Heater Replacement Cost Calculator

At the calculator's default assumptions (a 4-person household, $0.16/kWh electricity, $1.40/therm gas), 10-year operating cost works out to about $1,900 for HPWH ($190/yr), $2,000 for a gas tank ($200/yr), $1,700 for tankless gas ($170/yr), and $6,100 for an electric tank ($610/yr) - so a standard electric-resistance tank costs far more to run, while HPWH, gas tank, and tankless gas land in a similar range. Installed cost still varies a lot by type: HPWH $2,500-$6,000 (assumes a gas-to-electric fuel switch), electric tank $1,200-$3,000 (assumes replacing an existing electric tank, no fuel switch; if switching from gas, expect $1,700-$4,000 due to the fuel-switch install premium), gas tank $1,300-$3,300, and tankless gas (plus venting) $3,200-$8,000. Because HPWH avoids on-site combustion and typically has the lowest operating cost of any electric option, it is usually the best value once you weigh installed cost against 10-year running cost - but enter your own local electricity and gas rates above, since operating cost is sensitive to both.

The federal Section 25C tax credit (30% of installed cost up to $2,000/year for HPWHs meeting Energy Star efficiency tiers) was repealed by the One Big Beautiful Bill Act (OBBBA) for property placed in service after December 31, 2025, so it no longer applies to 2026+ installs. The HEEHRA rebate (high-efficiency electric home rebate) is unaffected - up to $1,750 for households under 150% of area median income, capped at 50% project cost for moderate-income, 100% for low-income. State-by-state rollout through 2026 - check your state energy office. Stack-able with utility rebates ($200-$800 common).

Tankless (gas typically) wins for: small-to-medium households, long-term occupants (lasts 20+ years vs tank's 10-12), endless hot water, space savings. Tankless loses for: large-simultaneous-demand households (running dishwasher + 2 showers at once exceeds capacity), upfront cost ($3,200-$8,000 installed vs $1,300-$3,300 for a gas tank). Gas tankless also requires upgraded gas line + dedicated venting, adding $1,500-$3,000 on top of a standard installation.

Like-for-like replacement (same fuel, same location): 2-4 hours. Fuel switch (gas → electric or vice versa): 4-8 hours, may require new circuit + breaker (electric) or gas line + venting (gas). HPWH install: 4-6 hours, needs 240V circuit and condensate drain. Tankless installation: 6-10 hours due to venting + gas line upsize requirements. Most installers permit + pull electrical/plumbing separately.