Water Heaters — Costs, Options & Repair
Water heating is the second-largest energy expense in most US homes, and the decisions cluster fast when a tank fails: repair or replace, tank or tankless, gas or electric, standard or heat pump. This hub connects every guide and tool we publish on the topic.
If you're starting from a failed heater: check age first (the serial number encodes it). Under 6 years, repair usually wins. Past 10, replacement almost always does — and that's the moment to consider tankless or heat-pump options, because changing type costs least when you're replacing anyway.
Cost guides
| Guide | Typical | Range |
|---|---|---|
| How Much Does Water Heater Replacement Cost? | $1,700 | $1,000 – $3,300 |
| How Much Does a Tankless Water Heater Cost? | $3,600 | $1,400 – $5,900 |
| How Much Does a Heat Pump Water Heater Cost? | $3,300 | $2,000 – $5,200 |
| How Much Does Water Heater Repair Cost? | $400 | $150 – $950 |
| How Much Does Water Softener Installation Cost? | $2,000 | $1,000 – $3,800 |
Calculators
- Water Heater Replacement Cost Calculator
- City permit guides (Austin, Houston, Phoenix, Denver, Miami-Dade)
Key decisions
Tank, tankless, or heat pump?
Tank: cheapest install, 8–12 year life. Tankless: 2–3× install cost, endless hot water, 20+ years — strongest with gas and soft water. Heat pump: the efficiency champion on electric, 3–6 year payback vs a resistance tank, needs space and a drain. Fuel, space, and household demand decide; the guides above run the numbers for each.
Do I need a permit to replace a water heater?
In most US jurisdictions yes — plumbing, and often gas/mechanical for gas units. Reputable installers pull it and fold the fee into the quote. It exists for real safety reasons: T&P discharge, venting, and strapping.
What kills water heaters early?
Sediment (flush annually in hard-water areas), a consumed anode rod (check at year 4–6), and pressure problems. A $50 anode and a $0 flush are the cheapest years of extra life you can buy — and a water softener upstream helps everything downstream.
Every figure above is an editorial estimate with published assumptions — see how we estimate costs.