You never expect your water heater to die on you, but once it does, the meter starts running. Repairs average $600, though your number could be as low as $100 or as high as $1,800, depending on the problem. If the unit is beyond saving, replacing a tank-style water heater costs $850 to $1,800 with installation, and tankless systems range from $1,400 to $3,900.
Costs in this article are sourced from contractor estimates via Angi.
Table of Contents
Water heater costs at a glance
| Cost category | Typical range |
| Average repair | $600 |
| Repair range | $100 – $1,800 |
| Plumber hourly rate | $50 – $150 |
| Tank replacement (installed) | $850 – $1,800 |
| Tankless replacement (installed) | $1,400 – $3,900 |
| Old unit removal | $100 – $500 |
| Water damage repair | $1,300 – $5,550 |
How much does it cost to fix a water heater?
Expect to pay around $600 for the average repair, but bills swing from $100 to $1,800. Plumbers charge $50 to $150 an hour, and on top of that, you’re paying based on which part failed, whether your unit is easy to get to or crammed in a crawl space, and what the going rate is in your area.
A pilot light relight or breaker reset can be under $50—or free if you do it yourself. Failed gas valves and corroded heating elements are a different story and can quickly push a single repair bill past several hundred dollars.
Common repairs for gas water heaters
Gas water heaters have a few weak points that tend to go first. A plumber can relight a pilot light for $50 to $150, and most handle it in minutes. Thermocouple replacement averages around $150—labor makes up the bulk of the bill, since the part itself costs only a few dollars.
Gas valve and thermostat replacements cost around $200 with labor. One thing I won’t hedge on: a gas smell near your water heater means you stop what you’re doing, shut the supply valve, and call the utility company. Period.
The Consumer Product Safety Commission (CPSC) posts water heater safety information on its site that’s worth a few minutes of your time, particularly if you have a gas unit.
Common repairs for electric water heaters
Electric units fail differently. Replacing a heating element will set you back $200 to $300, and a thermostat swap costs $150 to $200. The part alone is under $50—the rest of that invoice is the plumber diagnosing the problem, pulling the old component, and wiring in the new one.
A tripped breaker might be a free fix if you just flip it back on. But if the breaker keeps tripping, that often points to a failing heating element drawing too much current or a wiring problem—either way, it’s worth a service call. Electric units have two heating elements and two thermostats, so your plumber can test both sides to isolate the issue.
Repairs that apply to both types
Some repairs hit gas and electric units equally. Leaks are the big ones, and the cost varies wildly based on the source. A loose fitting might be a $100 fix. At our old house about five years ago, we had a leaky valve that a plumber tightened for about that price. But a cracked tank usually means the whole unit needs to be replaced.
Sediment flushes are easy to forget and easy to regret skipping. My plumbing contractor charges me around $100 each year to flush the tank in my house—money I’m happy to spend, given that a professional flush goes for closer to $150 and prevents the kind of mineral buildup that kills units early.
Your temperature and pressure (T&P) relief valve is there to keep the tank from over-pressurizing, so don’t ignore a leak or a stuck valve—a replacement runs around $200. The anode rod is another one worth keeping tabs on. It corrodes, so your tank doesn’t have to, and new rods go for $20 to $50 plus an hour of labor. The U.S. Department of Energy (DOE)’s water heater maintenance guide walks through each task for a full breakdown.
How much does it cost to replace a water heater?
When repairs no longer make financial sense, here’s what a new unit will cost you. Tank-style replacements range from $850 to $1,800, including installation labor. Tankless systems are a bigger lift at $1,400 to $3,900. Removal of the old unit is usually billed separately at $100 to $500.
Tank vs. tankless replacement costs
Tank-style water heaters are what most homes already have—roughly 90% of households, in fact. They’re less expensive up front, simpler to install, and labor costs $150 to $450.
Tankless units carry a higher price tag, with installation labor alone ranging from $600 to $1,850. But they last around 20 years compared to 10 to 15 for tank models. According to the DOE, homes that use 41 gallons or less of hot water per day can achieve 24% to 34% greater efficiency with a tankless setup.
I went with a tank during my 2022 build. Tankless would have been nice, but I was already over budget on the framing, and the simpler plumbing install helped me claw back some of that overage.
Other costs that can add up
Your final bill doesn’t always stop at the price of the water heater and the labor to hook it up. If the installer has to open a wall to run new plumbing or electrical lines, drywall repair alone tacks on $1,000 to $3,000. Permits are another line item that catches people off guard—requirements and fees vary by municipality, and your installer can usually tell you what to expect.
Switching fuel types or converting from tank to tankless adds plumbing and possibly electrical upgrades that can double labor hours. Most contractors also offer their own warranty on top of the manufacturer’s, and that runs $100 to $300 extra.
Should you repair or replace a broken water heater?
Most contractors I’ve talked to use the same rule of thumb: once the repair bill hits 50% of a new unit’s price, stop putting money into the old one.
After about 10 to 15 years of use, tank water heaters start breaking down more often. A $400 repair on a 12-year-old tank is tough to stomach when you could put that money toward a new unit that comes with a warranty and lower energy bills.
Keep an eye on repair frequency, too. One repair in a year is normal wear. Two or three repairs in 18 months is the unit telling you it’s done. A newer, more efficient model can also lower your utility bills—water heating makes up around 13% of the average household’s energy costs, per the DOE. There’s also a resale angle—real estate data shows the home value bump from a new water heater can be as high as 4%.
Is a broken water heater an emergency?
It depends on what you’re dealing with. Smell gas? Get everyone out first, then shut off the valve and call your utility provider once you’re outside. Don’t go back in.
An actively leaking or burst tank needs fast action, too—water damage restoration runs $1,300 to $5,550 before you even factor in mold. As soon as you spot water around the base, close the cold-water supply valve feeding the heater and cut power at the breaker panel (electric) or the gas shutoff (gas).
No hot water, but no leak and no gas odor? Annoying—downright miserable in January—but not dangerous. Get a couple of quotes over the next day or two instead of paying emergency service premiums. Take photos of any damage for your insurance file.
How to pay for a water heater repair or replacement
A minor repair might fit on a credit card or come out of an emergency fund. But a full replacement—especially a tankless install pushing toward $4,000—can strain most household budgets. And because you probably didn’t wake up planning to buy a water heater today, you may need to line up financing quickly.
Home equity line of credit (HELOC)
What if the water heater is just the start—say, the burst tank also damaged your flooring or drywall? A home equity line of credit (HELOC) lets you pull funds in stages as each repair bill comes in. Most HELOCs carry variable rates, though, so your monthly payment won’t stay fixed.
Personal loan
If you don’t have much equity in your home—or you’d rather not put your house up as collateral—an unsecured personal loan is a way to go. Many personal loans have a faster application process than most secured options. That speed matters when you’re dealing with a dead water heater and cold showers.
Home equity agreement
Credit score been a barrier to getting approved for a loan? If you’ve still got equity in your home, a home equity agreement works differently from traditional financing. There are no monthly payments—instead, the company takes a share of your home’s appreciation when you sell or refinance.
Home equity loan
A home equity loan gives you a lump sum at a fixed interest rate, which works well when you know the total cost of the replacement upfront. It’s a strong option for a planned replacement when you have time to go through the application process.
Any of these financing options can be the right choice in different situations. To learn more about the best home improvement loans, read our complete guide, and check out some of the top lender recommendations below.
Note on tax credits
The federal Energy Efficient Home Improvement Credit (Section 25C) expired Dec. 31, 2025. Before the deadline, homeowners could claim up to $2,000 for qualifying heat pump water heaters or $600 for qualifying gas models. If you had a qualifying unit installed before the cutoff, the credit is still yours to claim on your 2025 return.
The IRS energy-efficient home improvement credit page has the filing details. Rebate programs at the state and local level haven’t all gone away—check with your utility company or state energy office before purchasing a new unit.
FAQ
Who replaces water heaters?
Most water heater replacements are done by licensed plumbers, though HVAC contractors also take them on when gas lines are part of the job. Always verify licensing and insurance before signing anything.
How long do water heaters last?
Tank units go about 10 to 15 years—less if you have hard water and skip flushes, more if you stay on top of maintenance. Tankless models can last 20 years with regular descaling.
Can I fix a water heater myself?
Pilot relights, breaker resets, and sediment flushes are reasonable DIY tasks — gas lines, electrical connections, and T&P valve work are not.
What are the signs that a water heater is about to fail?
Rust-colored hot water, banging or popping noises, wet spots near the base, and hot water running out sooner than usual. If there is more than one of those at the same time, you should start lining up quotes.
Article sources
At LendEDU, our writers and editors rely on primary sources, such as government data and websites, industry reports and whitepapers, and interviews with experts and company representatives. We also reference reputable company websites and research from established publishers. This approach allows us to produce content that is accurate, unbiased, and supported by reliable evidence. Read more about our editorial standards.
- Angi, How Much Does It Cost to Repair a Water Heater?
- Angi, How Much Does Water Heater Replacement Cost?
- Angi, How Much Does a Tankless Water Heater Cost?
- U.S. Department of Energy, Tankless or Demand-Type Water Heaters
- U.S. Department of Energy, Estimating Costs and Efficiency of Storage, Demand, and Heat Pump Water Heaters
- U.S. Consumer Product Safety Commission, Tap Water Scalds
- Internal Revenue Service, Energy Efficient Home Improvement Credit
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About our contributors
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Written by Jonathon JachuraJon Jachura is a home improvement enthusiast and engineer with more than a decade of experience in HVAC systems and hands-on home projects. He enjoys helping homeowners understand, plan, and budget for upgrades that make their homes more comfortable and efficient.
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Edited by Amanda HankelAmanda Hankel is a managing editor at LendEDU. She has more than seven years of experience covering various finance-related topics and has worked for more than 15 years overall in writing, editing, and publishing.