Water Heater Replacement Cost Calculator

Water heater replacement costs $600–$4,300 total (unit + labor). A standard tank gas 50-gallon runs $800–$2,500 installed. A tank electric 50-gallon costs $700–$2,350. A high-efficiency hybrid/heat-pump 50-gallon costs $1,500–$4,300. Labor alone is $300–$1,500. Add $100–$300 for old unit removal, $100–$300 for an expansion tank (required by code in many areas), and $50–$150 for a drain pan. Emergency replacement can add $200–$500 to labor costs.

Tank water heaters last 8–12 years on average. Gas tanks last 8–12 years, electric tanks 10–15 years, and hybrid/heat-pump models 12–15 years. Tankless models last 15–20 years. Signs of failure: rusty water (anode rod depleted), rumbling noises (sediment buildup), leaks around base (tank corrosion), inconsistent temperature, or age over 10 years. Annual flushing and anode rod replacement every 3–5 years ($150–$300) can extend lifespan by 3–5 years.

Gas units cost more upfront ($400–$1,000 vs. $300–$850 for electric) but cost 30–50% less to operate annually. Gas operating cost: $250–$400/year. Electric operating cost: $400–$600/year. Over 10 years, gas saves $1,500–$2,000 in energy costs. However, electric is cheaper if you don't have existing gas lines (new gas line: $500–$2,000). Hybrid/heat-pump electric models are the most efficient — operating cost only $150–$250/year but higher upfront ($1,200–$2,800).

Household size determines capacity: 1–2 people need 30–40 gallons, 3–4 people need 40–50 gallons, 5+ people need 50–80 gallons. First-hour rating (FHR) matters more than tank size — it measures gallons of hot water delivered in the first hour. A family of 4 needs an FHR of 60–80 gallons. For gas, 40-gallon has an FHR of 70–90 gallons. For electric, 50-gallon has an FHR of 55–70 gallons. Electric tanks need a larger tank for the same output as gas.

Yes, most cities require a plumbing permit for water heater replacement — even for same-type swaps. Permits cost $50–$200. The permit ensures code compliance: proper venting (gas units), seismic strapping (California and earthquake zones), expansion tank (required in many jurisdictions), T&P valve discharge pipe, and adequate clearance. Unpermitted work can void homeowner's insurance and cause issues at resale. Licensed plumbers typically pull permits as part of the job.

Tankless water heaters cost $2,000–$5,000 installed (2–4x more than tank) but save $100–$200/year on energy and last 15–20 years vs. 8–12. Switching from tank to tankless often requires: gas line upgrade ($500–$1,500), new venting ($500–$1,000), and electrical work ($200–$500). Total conversion: $3,000–$7,000. Payback period: 10–15 years. Best for: small homes, high gas prices, limited space. Not ideal if: you have low gas flow rates or need hot water for multiple simultaneous uses without sizing up.

A hybrid heat-pump water heater extracts heat from surrounding air to heat water — like a reverse air conditioner. It uses 60–70% less electricity than a standard electric tank. A 50-gallon hybrid costs $1,200–$2,800 for the unit plus $300–$1,500 for installation. Annual operating cost: $150–$250 vs. $400–$600 for standard electric. Requires 700+ cu ft of space (not closets) and 40–90°F ambient air temp. Many utilities offer $300–$800 rebates. Federal tax credit of up to $2,000 available through 2032.

Same-type replacement (gas to gas, electric to electric) takes 2–4 hours for a licensed plumber. Timeline: disconnect old unit (30 min), drain and remove (30 min), position new unit (15 min), connect water lines (30 min), connect gas or electric (30 min), install venting if needed (30 min), fill and test (30 min). Switching fuel types (gas to electric or vice versa) adds 4–8 hours for new gas line, venting, or electrical circuit. Emergency same-day service is available from most plumbers at a premium ($200–$500 extra).