Tankless Water Heaters: Prices and Installation Costs in 2026

Tankless water heaters are a popular home upgrade among water heater systems. Compared to point of use heaters, they offer endless hot water, while providing better energy savings and longer lifespans compared to traditional storage tank systems. 

But before making the switch, most homeowners ask: How much does a tankless water heater cost? And just as importantly, how much is the installation cost?

This in-depth guide breaks down the numbers, from purchase prices to professional installation costs, so you can budget smartly and avoid surprises on your shopping quest.

Average Tankless Water Heater Cost for 2026

First let’s discuss the prices. While tankless water heaters cost less than storage tank heaters, they are a bit pricier than undersink and point-of-use units.

Unit price: 

$600 – $3,000+ (electric models at the low end; gas condensing models at the high end)

Installation cost: 

$700 – $3,500+ (including labor, venting, hookups and necessary permits)

Total installed cost  for most homes: 

$1,400 – $5,000

Cost for complex installs:

$5,000 – $9,000+, if new gas lines, venting or electrical upgrades are required

Let’s break down the costs in the next section.

What Affects Tankless Water Heater Installation Cost?

Several factors determine how much you’ll pay for the installation.

1. Fuel Type: Gas vs. Electric

Electric tankless: 

• These are typically cheaper to purchase ($400–$1,500) and no venting is needed.
• However, whole-house units often require a costly electrical panel upgrade ($1,200–$4,000).

Gas tankless: 

• Higher upfront cost ($700–$3,500+) 
• Requires venting and gas-line requirements
• Upfront expenses are usually offset by lower operating costs in the long run.
  

2. Flow Rate and Capacity

Units are priced by the amount of hot water they can provide, which is measured in gallons per minute (GPM).

• Small units (4–6 GPM) are fine for 1–2 fixtures.
  
• Large units (8–11+ GPM) that can handle multiple showers and appliances simultaneously cost more.

Here’s our in-depth guide to tankless water heater sizing so you can determine the capacity you need for your household.

3. Venting and Gas Line Work (for Gas Units)

• Venting adds $300–$1,200+ depending on complexity.
  
• Running a new gas line or upsizing an existing one can add $360–$2,000+.
  

4. Electrical Service Upgrades (for Electric Units)

• Many whole-house electric units need 150–300 amps.
  
• If your home’s panel can’t handle it, you may need a panel upgrade costing $1,200–$4,000.

5. Permits, Labor & Regional Rates

• Labor typically runs $75–$250/hour.
  
• Permits/inspections add $100–$500.
  
• Expect higher costs in major metro areas vs rural regions.
  

Real-World Installation Scenarios

• Basic Electric (Point-of-Use)
  Unit: $200–$500
  Install: $300–$800
  Total: $500–$1,300
  
• Whole-House Electric (with panel upgrade)
  Unit: $600–$1,400
  Upgrade + labor: $2,100–$4,500
  Total: $2,700–$6,000
  
• Gas Tankless (direct replacement)
  Unit: $900–$2,000
  Install: $1,000–$2,000
  Total: $1,900–$4,000
  
• Gas Tankless (new vent + gas line)
  Unit: $2,000–$4,000
  Gas line + venting: $1,600–$3,800
  Labor + permits: $1,000–$2,000
  Total: $5,000–$9,000+
  

Our Recommended Tankless Water Heaters

Budget:

Rinnai RE160i High Efficiency Non-Condensing, 6.6 GPM Tankless Hot Water Heater for Indoor Installation

The Rinnai RE Series is a non-condensing line of tankless hot water heaters. The RE160 is a high efficiency hot water heater and features a 0.81 UEF (Uniform Energy Factor). It offers 160,000 BTUs with a hot water delivery flow rate that ranges from 0.26 – 6.6 GPM, good for a home with a single bathroom. This allows for simultaneous use of 2 – 3 fixtures at one time. 

An integrated controller is included with the water heater. The minimum temperature setting is 120° with a maximum of 140°F. The unit offers maximum settings at 125°F with an option to increase to 140°F.

Intermediate model

Rinnai RE180i High Efficiency Non-Condensing, 8.5 GPM Tankless Hot Water Heater for Indoor Installation

This heater delivers 180,000 BTUs with a flow rate that ranges from 0.13 – 8.5 GPM. This is good for simultaneous use of 3 – 4 fixtures at one time. 

The minimum temperature setting is 98° with a maximum of 140°F. The unit offers maximum settings at 125°F with an option to increase to 140°F. An optional Control-R WiFi Module allows for remote monitoring and heater management.

Premium:

Bradford RTG-R-199-X1 Infiniti GR Series High Efficiency Condensing Tankless Hot Water Heater with Built-In Recirculation

The Bradford White Infiniti GR Series of tankless hot water heaters comes with a built-in recirculation pump and dedicated recirculation connection. The series is Energy Star Qualified and Certified Green by the Green Restaurant Association.

This particular model features 199,000 BTUs and hot water delivery with a flow rate that ranges from 0.5 – 9.7 GPM, enough for a home with three or more bathrooms and simultaneous use of 3 – 4 fixtures at one time. This unit also boasts an Energy Factor of 0.96 (the closer to 1.0 the better).

Electric:

GE GE24DNHPDG 5.3 GPM Tankless Whole House Electric Hot Water Heater

This electric tankless water heater can produce 5.3 gallons of water per minute, providing enough hot water for a whole house, enough to run 2 showers and 4 faucets. 

Yet it only measures 15″ x 10″ with a 3.875″ depth – perfect to fit in small spaces. 

It has an easy-to-use touch screen control so you can adjust temperature and settings with the touch of a button. Temperature adjustment is available in °F or °C. And, although factory set at 105°F, it can be adjusted from 86°F – 140°F. It features Scale Reduction Technology which extends the life of the unit by shielding the heat element from water and scale build-up.

Your Trusted Source for Tankless Water Heaters

So are tankless water heaters worth the investment?Yes, if you plan to stay in your home long-term. Lower utility bills, endless hot water, and longer lifespan often offset the higher upfront cost.

Want to compare models and costs? Browse our full line of Tankless Water Heaters and get expert help finding the perfect fit for your home. And if you’re due for an upgrade, make sure to replace your water heater with an EnergyStar qualified model to take advantage of the tax credit before it expires at the end of 2025!

Check out our other entries on tankless water heaters:

What is a Tankless Water Heater?

The 7 Benefits of Tankless Water Heaters

How Big of a Tankless Water Heater Do I Need?