September 13, 2023
By Mark Paup

How Much Is a Tankless Water Heater?

Updated January 18, 2024

A Cost-Effective Solution for Your Home

If you’re in the market for a new water heater, you might wonder, “How much is a tankless water heater?” At Golden Rule, we’re here to provide the answers you need. Tankless water heaters offer incredible advantages like endless hot water, but you may have heard they can be a bit pricey upfront. In this article, we’ll break down the costs of tankless water heaters and help you understand why the investment pays off in the long run.

Understanding Tankless Water Heater Costs

We’re homeowners like you, so we know the importance of budgeting for home maintenance. Let’s uncover the truth about tankless water heater expenses.

A new gas tankless water heater, including installation, typically falls within the range of $6,000 to $11,000

In comparison, a traditional 50-gallon gas water heater usually costs between $2,400 and $3,000. That’s a noticeable price difference right off the bat.

But there’s more to the story. A tankless water heater boasts an impressive lifespan of about 15 years, whereas a traditional tank-style water heater usually quits after 8-10 years on average.

So, during the life of a tankless water heater, you’ll likely need to replace a conventional tank-type water heater at least once. Considering the natural cost increase over time, that initial price gap narrows.

Here’s where the tankless water heater truly shines.

In the long run, the efficiency of a tankless water heater is far superior to that of a standard water heater.

A standard water heater with standard venting operates at 57% efficiency, while a power-vented water heater gets up to 67%. In contrast, a tankless water heater runs at a remarkable 95% efficiency, leading to significant savings over time. As the years pass, that price gap continues to shrink until it eventually disappears. Ultimately, the tankless water heater proves to be the more cost-effective choice.

The Future-Proof Choice

So, there you have it. While a tankless water heater might not be the ideal solution for every situation, it’s certainly worth considering the next time you’re in the market for a water heater upgrade or replacement. With a traditional model, you’ll likely pay more in the long run and miss out on the fantastic benefits of a tankless system.

As always, we’re here to assist you with your home improvement needs. Thanks for reading!

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