How Much Does a Water Heater Replacement Cost in Denver? [2025 Data]

Normal Range: $1,092 - $2,261

The average cost for a water heater is $1,661 in Denver, but it can range between $2,261 and $1,092. Your pro can discuss tank or tankless systems and if you need any additional plumbing upgrades.

How we get this data
Cost Insights
  • Replacing your water heater can increase your home’s energy efficiency and save you money on your energy bills.

  • Tankless water heaters have a higher initial cost but last longer and are more energy efficient.

  • Water heater replacement in Denver requires a quick permit.

  • Plumbers in Denver charge an average of $55 to $250 per hour in labor.

Replacing your water heater in Denver costs around $1,661 on average, with most homeowners paying between $1,092 and $2,261. The size and type of water heater are the biggest factors that affect how much you’ll pay, with labor costs also playing a part in the final cost. Take a look at what determines the cost of a water heater replacement in Denver.

Water Heater Replacement Cost Factors 

The cost to replace a water heater in Denver, CO, is affected by factors like the size and type of heater and local labor costs. When budgeting for this project, you’ll need to know what influences the cost, so we’ve broken down some factors to keep in mind. 

Size

Hot water heaters come in different sizes, measured by gallons (for tank-style systems) or gallons per minute (for tankless systems). The total amount of your water heater replacement cost will largely depend on the size of your new water heater, and that will depend on the size of your household. Your water heater installation pro can help you determine what size you need.

Hot Water Heater Size (Gallons)Household SizeAverage Cost
301–2 people$875–$2,625
401–4 people$1,000–$2,875
503–5 people$1,000–$3,900
754–6 people$1,375–$5,000
806 or more people, and households with high-demand appliances$1,625–$9,375

Tank vs. Tankless Water Heaters 

A traditional tank-style water heater stores water in a large tank that holds anywhere from 20 to 100 gallons. If you’re like 90% of households, you have a tank hot water heater sitting on a concrete pad in a basement, laundry room, or utility room. 

In comparison, a tankless water heater is the size of a small suitcase, has a coil system for heating water, and is usually mounted on the wall. Tankless water heaters cost around twice what a tank-style heater does, but the energy savings and longer lifespan can make a tankless heater worth the initial cost. Your water heater installation pro can help you decide which type of water heater is best for your replacement.

Tank water heaters versus tankless water heaters visual comparison
TypeAverage CostProsCons
Tank$750–$3,125Cost-effective, larger range of fuel optionsShorter lifespan, less energy efficient
Tankless$1,750–$4,875Long lifespan, takes up less spaceLimited fuel options, may require new utility lines

Types of Water Heaters

Most electric and gas water heaters cost between $550 and $1,500, but the type of water heater will significantly impact your cost. A light-duty commercial heater is more durable but costs about $1,000 more than a residential unit.

Type of Water HeaterAverage CostBest For
Electric$750–$4,375Small apartments
Gas$875–$3,375Areas with high electricity costs
Propane$875–$3,125Rural or inaccessible areas
High efficiency$1,875–$3,750Energy savings
Indirect$2,125–$5,475Flexible fuel source
Solar$2,125–$6,875Energy efficiency in sunny climates
Hybrid heat pump$1,500–$4,375Energy efficiency in garages or basements

Plumber Pro Costs

Plumber Costs

To ensure your water heater is installed safely and in compliance with safety regulations, you’ll need to hire a water heater installation pro in Denver. Plumbers in Denver charge an average of $55 to $250 per hour in labor, depending on experience, licensing, specialization, and more.

Permit Costs

You’ll need to obtain a permit to replace your water heater, but water heater replacement qualifies for a quick permit from the City of Denver. In most cases, permit fees for water heater replacement will cost between $25 and $50. It’s important to confirm that you have the necessary permits before beginning work, so check with your water heater installation pro to ensure that step has been completed. 

Additional Pros to Consider Hiring

If your water heater replacement requires the installer to open up drywall, you may need to hire a drywall installer, who will charge $1 to $2.10 per square foot in labor in addition to the cost of materials. If you’re changing the type of water heater you have and need electrical rewiring, hiring an electrician will cost $60 to $175 per hour plus materials. 

Safety Warning

To prevent carbon monoxide exposure from a water heater, make sure it is properly ventilated. You should also have it inspected and cleaned every year and install a carbon monoxide detector nearby. If you smell gas—which can mimic the scent of rotten eggs—evacuate immediately and call your gas company.

Do Water Heater Replacements Increase Home Value?

A new hot water heater can offer a return on investment (ROI) of 50% to 90%, depending on the type of heater installed. Energy-efficient options like tankless or solar heaters can save you several hundred dollars a year on energy costs, although the high initial costs might take the life of the heater to pay off in energy savings. 

A new water heater can help increase your home’s value up to 1.3% and is an appealing feature for prospective buyers, since it’s a significant expense that won’t need to be dealt with for up to a decade or more.

How Angi Gets Its Cost Data

Home is the most important place on earth, which is why Angi has helped more than 150 million homeowners transform their houses into homes they adore. To help homeowners with their next project, Angi provides readers with the most accurate cost data and upholds strict editorial standards. We’ve surveyed over 30,000 real Angi customers about their project costs to develop the pricing data you see, so you can make the best decisions for you and your home. We pair this data with research from reputable sources, including the U.S. Bureau of Labor Statistics, academic journals, market studies, and interviews with industry experts—all to ensure our prices reflect real-world projects. 

Want to help us improve our cost data? Send us a recent project quote to [email protected]. Quotes and personal information will not be shared publicly.

Need professional help with your project?
Get quotes from top-rated pros.

The homeowners guide to water heater services

From average costs to expert advice, get all the answers you need to get your job done.