How much does it cost to replace a water heater?
Water heater replacement costs $900 for a basic 40-gallon electric tank install, $1,800 for a typical 50-gallon gas tank with code upgrades, and $3,500+ for high-efficiency, large-capacity, or hybrid heat-pump units.
Quick price points (2026)
| Scope | Cost | What it includes |
|---|---|---|
| Low | $900 | 40–50 gal tank |
| Typical | $1,800 | 40–50 gal tank |
| High | $3,500 | 40–50 gal tank |
How to budget for this project
- Get 3 quotes
Get itemized quotes from at least three licensed contractors in your area.
- Adjust for your region
Compare the same scope and account for regional labor and permitting.
- Add 10–15% contingency
Hidden conditions, code upgrades and permit fees can increase the original quote.
- Plan the cash, not the financing
Build the replacement cost into the home's repair plan before the work becomes an emergency.