Water Heater Replacement Cost: Tank vs Tankless Comparison
A water heater lasts 8-12 years. When it fails, you have 48 hours to decide. Be prepared with these numbers.
Tank water heater (40-50 gallon): $800-1,500 installed. Electric: $600-1,200. Gas: $800-1,500. Tankless water heater: $2,000-4,500 installed. Electric tankless: $1,500-3,000. Gas tankless: $2,500-4,500. The upfront cost difference is significant — but tankless units last 20+ years versus 8-12 for tanks, and save $100-150/year in energy costs.
Tank vs Tankless: The Real Comparison
10-year total cost for a tank: $1,200 purchase + $5,000 energy = $6,200. For tankless: $3,500 purchase + $3,500 energy = $7,000. 20-year total: tank needs one replacement ($1,200) = $13,600 total. Tankless continues without replacement = $10,500 total. Tankless wins over 15+ years. Tank wins for shorter ownership periods. If you plan to sell the home within 5-7 years, a tank replacement is the financially smarter choice.