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The average cost to install a new water heater is around $1,300, but you can expect to pay between $875 and $1,750, depending on the kind of water heater, the size of the unit, and the professional chosen to complete the work. Tankless water heaters can push your price higher, as installation is more complicated, with prices as high as $3,500. The location and accessibility of your water heater will play a role in the project cost, as those sitting in tight spaces like a crawl space will drive up your labor costs.

Tankless water heaters are more expensive than those with a storage tank, but they come with some impressive benefits that most homeowners find worth the higher investment. Most importantly, they provide unlimited hot water, so you’ll never run out like you would with a storage tank. Tankless heaters are also more efficient, so comparing gallon-for-gallon, you’ll spend less on hot water with a tankless heater. Tankless water heaters are also smaller, require less maintenance, and tend to last longer than storage tank water heaters.

It usually takes a professional water heater installer between two and three hours to remove an existing water heater and install a new tank heater. However, it could take four to five hours if they have to work in a small utility closet or another tight area, like a crawl space. Tankless water heaters have a more complicated installation process, so they will take a bit longer. Additionally, a gas water heater requires a connection to a gas line, and that alone can add about an hour to the installation timeline compared to installing an electric water heater.

It is very difficult and dangerous to install your own water heater, so we strongly recommend against tackling this as a DIY project. Not only will you need to wire your water heater, but you’ll also need to connect plumbing to the intake and outlet. Sweating copper pipes and connecting wiring properly are skills most DIYers don’t have, and even if you do feel confident you can do it, working with water and electricity always leaves the potential for electrocution. Hiring a local water heater installer is well worth the investment.

In most municipalities, a license is not mandatory for water heater installation or replacement. However, we strongly recommend hiring a licensed plumber or water heater installer to handle the work. Licensed installers are far less likely to make a mistake during the installation, which means paying for the experience decreases your risk of a leak and other issues. You can use our state licensing tool to find out if a contractor you’re considering in your area holds a plumber’s license.