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Water Heater Replacement Budget Calculator

Water heater replacement: $900-$2,500 for a tank, $2,500-$4,500 for tankless. Cost varies by capacity, fuel, and install complexity. This calculator sizes. Expansion tank is required on closed plumbing systems with check valve — adds $80-Water heater replacement: $900-$2,500 for a tank, $2,500-$4,500 for tankless. Cost varies by capacity, fuel, and install complexity. This calculator sizes.50. Code updates often require pan under heater with drain ($75-Water heater replacement: $900-$2,500 for a tank, $2,500-$4,500 for tankless. Cost varies by capacity, fuel, and install complexity. This calculator sizes.50), dedicated shutoff, and flex connectors. Permits required in most jurisdictions ($50-$250). Heat pump water heaters require larger space (8+ feet ceiling) and generate cool air output — great in hot climates, less ideal in cold basements.

$

Net total (after rebates)

$1,400

Subtotal

$1,700

Unit cost

$1,200

How the math works

50-gallon gas tank: $1,200 + $500 install − $300 rebates = $1,400. Tankless gas 6.8 GPM: $2,044 + $1,200 = $3,244 before rebates. Hybrid heat pump 50 gal: $2,400 + $900 = $3,300.

Get rebates from state energy office + utility. Heat pump and tankless both qualify for up to $2,000 federal tax credit (IRA). Makes tankless and hybrid cost-competitive with standard tank.

How to Use

  1. Pick tank or tankless and fuel.
  2. Enter capacity.
  3. See total install cost.

Frequently Asked Questions

Tank or tankless?

Tankless: lasts 20+ years vs 10-15 for tank, endless hot water, saves 20-30% on water heating. Upfront cost 2-3x higher. Best if planning to stay 10+ years.

Capacity?

Tank: 40 gal for 1-2 people, 50-60 gal for 3-4, 75+ for 5+. Tankless: sized by flow rate (GPM), not gallons. Typical 6.8-11 GPM for residential.

Electric vs gas?

Gas cheaper to operate ($200-$400/yr vs $400-$700 electric). But electric heat pump heaters (hybrid) can beat gas on operating cost with rebates. Gas requires venting.

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