Installing a tankless water heater averages around $2,639, typically ranging from $1,406 to $3,902, with labor alone running $600–$1,850. A straight tankless-to-tankless swap costs far less than a first-time conversion from a tank, which often needs a larger gas line, new venting, and sometimes an electrical upgrade.
Likely Causes, Ranked
- Tankless-to-tankless replacement
The cheapest scenario — gas line, venting, and electrical are usually already sized correctly. - First-time conversion from a tank
Often needs a larger gas line, new dedicated venting, and possibly an electrical circuit for the unit’s controls — the biggest driver of cost variance. - Recirculation setup
Adding a recirculation pump or dedicated recirculation line adds meaningfully to the installed cost.
FAQ
Why is my tankless quote so much higher than the average?
If this is a first-time conversion from a tank rather than a swap, gas line upsizing and new venting are the most likely reasons — ask your installer to break the quote down by line item.
Written by HotWater Decoded — water heater repair specialists. Technically reviewed by a licensed technician on our team.
- Angi installed cost data (average $2,639, range $1,406–$3,902, labor $600–$1,850)
- HomeGuide cost ranges ($1,400–$5,600) reflecting the wider spread between swap and first-time conversion jobs
Home · About · Contact ·
Privacy Policy · Terms & Conditions ·
Disclaimer · Editorial Policy
© 2026 HotWater Decoded. All rights reserved.