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How Much Does a Tankless Water Heater Cost?

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Every homeowner eventually faces the crucial decision of replacing or installing a new water heater. If you’re thinking about switching from the traditional tank water heater to a tankless system, one of the first questions that might come to mind is, “How much does a tankless water heater cost?”

Let’s dive deep into the various factors that can influence the cost to install a tankless water heater and understand what sets them apart.

Understanding the Basics of Tankless Water Heaters

First and foremost, it’s essential to grasp what exactly a tankless water heater is. Unlike traditional tank heaters that store and constantly heat water, a tankless hot water heater only heats water when there’s a demand, hence often referred to as a demand water heater. This design can offer increased efficiency and potentially lower utility bills.

So, if you’re thinking about making the switch from a traditional tank water heater to a tankless unit, it’s understandable if you have questions. Namely, how much does a tankless water heater cost? Let’s go over everything you need to know in more detail below.

Factors Influencing the Cost to Install a Tankless Water Heater

Tankless water heaters offer several notable advantages. However, if you’ve never installed one of these systems before, you may be unsure what you can expect regarding installation costs. So, how much does a tankless water heater cost? Let’s discuss the factors that can ultimately impact the price you pay.

Type of Tankless Water Heater

There are primarily two types of tankless systems — electric tankless water heaters and gas tankless water heaters. Typically, electric units are cheaper to purchase but might have higher operational costs depending on local electricity rates. Gas units, on the other hand, can be costlier upfront but might save you in the long run, especially if gas prices in your region are low. Additionally, gas units sometimes require the installation of a carbon monoxide detector for safety.

Size and Flow Rate

Size matters when it comes to tankless water heater installation costs. A heater’s capacity is measured in gallons per minute (GPM). The more gallons per minute you need, the larger and more expensive the unit will be. Think about how many devices (like showers or faucets) you’ll use at once, and select a tankless unit that can handle that flow rate.

Energy Efficiency and Type

There’s a difference between condensing and non-condensing tankless systems. Condensing tankless water heaters are generally more efficient as they utilize the heat from exhaust gases to preheat the incoming cold water. This process reduces energy consumption, but these units can be pricier than non-condensing ones. Look for Energy Star-rated models, which can offer greater long-term savings.

Installation Complexity

The cost to install a tankless water heater isn’t solely about the unit’s price. The complexity of the installation can also vary the costs. For instance, if you’re switching from a tank water heater to a tankless system, there might be additional charges for modifying your home’s infrastructure.

Brand and Quality

Like any product, brand reputation and quality play a role in the cost. While you might find budget-friendly options, remember that, in many cases, you get what you pay for. Investing in a reputable brand might save you more in the long term in terms of durability and efficiency.

Pros and Cons of Installing a Tankless Unit

Before jumping into an installation, it’s essential to weigh the pros and cons of tankless water heaters.


  • Energy-efficient: Only heats water on demand.
  • Long-lasting: Typically outlasts traditional tank heaters.
  • Space-saving: Compact design frees up space.


  • Higher upfront costs: Initial purchase and water heater installation costs might be higher.
  • May require home modifications: this is a factor to consider when switching from a tank to a tankless unit.

Install a Tankless Water Heater Today!

So, how much does a tankless water heater cost? While there are many factors to consider, understanding the cost to install a tankless water heater is easier once you’ve analyzed your home’s needs and researched your options.

If you’re in the Dallas-Fort Worth area and thinking about installing a tankless unit, Pure Plumbing is here to guide you every step of the way. From helping you choose the perfect unit to ensure a smooth installation process, our experts have got you covered. Also, if you ever need water heater repair in Dallas, know that we’re just a call away.

Are you ready to make the switch to a more efficient, space-saving, and modern tankless water heater system? Contact Pure Plumbing today and step into the future of water heating with a tankless water heater in Dallas!