Tankless water heater installation cost: gas vs. electric
Tankless water heater installation cost averages $2,641 in 2026, with most homeowners paying $1,406 to $3,902, per Angi. HomeGuide's broader range is $1,400 to $5,600 depending on fuel type.
| Installed, typical (Angi, avg $2,641) | $1,406–$3,902 |
| Installed range (HomeGuide) | $1,400–$5,600 |
| Electric, installed (HomeGuide) | $1,400–$3,000 |
| Natural gas, installed incl. modifications (HomeGuide) | $2,100–$5,600 |
| Labor (Angi) | $600–$1,850 |
| Labor (HomeGuide) | $600–$2,500 |
| Permits (HomeGuide) | $50–$200 |
Where the money goes
HomeGuide estimates the unit is about 40% to 45% of the total. The rest is labor, supplies and the upgrades a home needs to run a tankless heater.
| Unit (HomeGuide) | $600–$2,600 |
| Supplies: pipes, connectors, valves (HomeGuide) | $150–$300 |
| Permits (HomeGuide) | $50–$200 |
| Old heater removal and permits (Angi) | +$200–$500 |
Gas vs. electric
Electric units are cheaper and simpler to install, according to HomeGuide, but whole-house electric models can need a dedicated circuit or even a panel upgrade. Gas units cost more upfront partly because they need proper venting and an adequately sized gas supply; switching from a tank often means upsizing the gas line. See gas line installation cost.
Tankless vs. tank replacement
A like-for-like tank replacement is usually the cheaper upfront option; see water heater replacement cost. Tankless units avoid standby heat loss and, per Angi, do not need an expansion tank. Whether the long-term savings justify the higher install cost depends on your fuel prices and hot water use.
Questions for the installer
- What flow rate (gallons per minute) does my household need, and does this unit meet it?
- Will the gas line, venting or electrical service need upgrades, and are they in the price?
- Who pulls the permit?
- What maintenance (descaling) does the unit need, and is it covered by the warranty?
Frequently asked questions
How much does it cost to install a tankless water heater?
Angi's 2026 average is $2,641, with most paying $1,406 to $3,902. HomeGuide's range is $1,400 to $5,600.
Is labor expensive for tankless installation?
Angi lists labor at $600 to $1,850; HomeGuide at $600 to $2,500 for 3 to 10 hours, depending on gas or electrical upgrades.
Are electric tankless heaters cheaper to install?
Usually. HomeGuide lists electric units at $1,400 to $3,000 installed versus $2,100 to $5,600 for natural gas.
Does a tankless water heater need an expansion tank?
Angi notes tankless water heaters do not require an expansion tank.
Related cost guides
- Water heater replacement cost
- Water heater repair cost
- Gas line installation cost
- Expansion tank installation cost
Sources
- Angi: tankless water heater cost (2026 data)
- HomeGuide: tankless water heater installation cost (2026)
National figures from published 2026 cost guides, retrieved 10 Oct 2026. Local prices, especially in high-cost metros, can be higher. Always get written quotes.