How Much Does It Cost to Replace a Water Heater?

by | Jun 10, 2025 | Blogs

A failing water heater can throw off your entire routine—cold showers, dishes piling up, and rising energy bills. Whether it’s stopped working altogether or just isn’t performing like it used to, knowing what goes into the replacement cost can help you plan your replacement. 

Water heater replacement costs can vary greatly depending on the type of system you choose, the complexity of the installation, and even where you live. 

At PlumbingWurx, we believe homeowners deserve clear, honest answers—no guesswork, no surprises. Our guide breaks down the cost of a new water heater so you can make the best decision for your home, comfort, and budget.

What Goes Into the Cost of Replacing a Water Heater?

Replacing a water heater isn’t just about swapping out one unit for another. The total cost includes several moving parts: the new water heater, professional installation, and any materials or updates needed to bring your setup up to code. 

Tank or Tankless: How Your Choice Impacts the Price

The type of water heater you choose greatly affects your overall cost. Tank-style water heaters are generally less expensive upfront and quicker to install, making them a solid choice for budget-conscious households. 

Tankless systems, on the other hand, come with a higher initial price tag but offer long-term savings thanks to their energy efficiency and longer lifespan. Switching from a tank to a tankless setup may also require rerouting plumbing or upgrading your electrical or gas systems, which adds to the installation cost. 

Fuel Type Matters: Gas vs. Electric vs. Hybrid

Gas water heaters are usually more expensive than electric ones, especially if gas lines or vents need to be added or updated. However, they typically offer faster heating and lower monthly energy costs. 

Electric models have a lower upfront cost and more straightforward installation, but may cost more to operate over time. 

Hybrid water heaters, which combine heat pump technology with traditional electric heating, are more expensive but can significantly reduce energy bills. The right choice depends on your home’s infrastructure, energy rates, and how much hot water your household uses.

Installation Costs

Installation costs can vary widely depending on the complexity of the job. A straightforward replacement where everything lines up might be relatively affordable. But if your new unit requires additional plumbing, electrical work, or structural changes, those expenses can add up. 

Permits may be required, and older homes might need updates to meet current building codes. You also need to remove and properly dispose of your old water heater.

Other Factors That Impact the Total Cost

The size and capacity of your new water heater should match your household’s hot water demands, and larger models generally cost more. 

The unit’s location in your home also affects labor time; a unit in a tight attic space, for instance, may take longer to install than one in a garage. Premium brands often offer more extended warranties and advanced features, but they come at a higher price. 

Average Water Heater Replacement Costs

At PlumbingWurx, we know that cost is one of the biggest concerns when replacing a water heater, and we’re here to make the process as transparent and stress-free as possible. 

The cost to replace a standard tank water heater falls between $1,000 and $2,500, depending on the size, brand, and installation complexity. Tankless models tend to run higher, typically ranging from $2,500 to $4,500 due to the unit’s cost and the additional labor involved in retrofitting your system.

Not sure whether it’s time to replace or just repair your current water heater? That’s where our experienced PlumbingWurx team comes in. We’ll evaluate your existing unit’s age, condition, and efficiency and help you weigh short-term repair costs against long-term energy savings and reliability. If your unit is over 10 years old, leaking, or struggling to keep up, replacement may save you more in the long run.

No matter your situation, PlumbingWurx offers honest guidance and expert recommendations tailored to your home, hot water needs, and budget. We’ll walk you through your options and provide a clear, upfront estimate so you know exactly what to expect before any work begins.

Trust PlumbingWurx for Honest, Affordable Water Heater Replacement!

Get expert advice, upfront pricing, and reliable installation—all from a team that prioritizes your budget.

Call us now or visit our website to get started! With our experience in both residential and commercial plumbing, we’re equipped to handle all types of plumbing concerns. Don’t let a minor issue become a big problem. 

Contact us today at (301) 264-7577 or visit us at 1044 Virginia Ave, Hagerstown, MD 21740. We’re a family-owned business and pride ourselves on our quality craft and top-notch customer service!

Contact us for a consultation today

Lean on the trusted expertise of your PlumbingWurx family at 1101 Opal Ct, Suite 101, Hagerstown, MD 21740.

Contact us at (301) 264-7577 today!

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