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Average Cost of Tankless Water Heaters

You can expect to pay, on average, $1,136 for a tankless water heater. The average cost will vary however, depending on the type of heater you buy (condensing vs non-condensing) and its size. The price of tankless water heaters is also not one-dimensional. While upfront costs are certainly the thing most will look to first, you should also think about the long-term energy and upkeep costs as well. This article breaks down tankless water heater costs to make you a smarter shopper.

Table of Contents

Cost of Tankless Water Heaters

The cost of tankless water heaters varies from $200 to $2,500, with the median price being around $1,500. We found that the most expensive brand is Rinnai, while Marey are some of the most affordable we found. Keep in mind, however, that this initial cost isn’t the best way to shop for a water heater. Instead, you should also take into consideration factors such as: how big of a tank you need, whether you will be mounting it inside or outside and finally what type of tankless water heater you prefer. You should also always consult online reviews from consumers to figure out if the make and model you intend to buy is reliable.

Non-Condensing Tankless Water Heater Costs

The cheapest tankless water heater you can buy is non-condensing. This is an older, more reliable technology that doesn’t produce condensate. That means the initial installation will be less expensive since you don’t need to worry about having a place to drain condensate. Typically, these water heaters are also less prone to breaking down and will be cheaper to repair as the technology is older and more tested.

That being said, non-condensing tankless water heaters have lower energy efficiency ratings — topping out at about 0.8 EF. While it will take a while for such a difference to really matter to your wallet, it’s something shoppers should be aware of.

Tankless Water HeaterCost
AO Smith Model ATI-310-N$773
State Tankless Water Heater 199,000 BTU$1,207

Condensing Tankless Water Heaters

A condensing tankless water heater will run you about X — which is X% more expensive than a non-condensing one. So, why do people pay extra for these models? Well, first of all condensing water heaters are more energy efficient — typically around 0.9 EF. That means 90% of every dollar you put into these models will be turned into heat, and just 10% will be wasted. Depending on your water usage, such a difference can matter relatively quickly. Additionally, these heaters allow you to use a non-expensive PVC pipe for ventilation.

One more thing to consider is that installing a condensing tankless water heater will be more expensive to install because you also need to account for some place to remove the condensate (something that will also make long-term maintenance of these units expensive as well).

Tankless Water HeaterCost
Takagi T-H3$1,030
RINNAI RUR199IN$1,813
AO Smith Voltex HPTU-50N$1,542
AO Smith ProLine XE 10 GPM$1,213
EZ Tankless Deluxe on Demand 4.4 GPM 85,000 BTU$579

Cost by Size

Lastly, we want to show readers how the price of tankless water heaters varies with their size. Tankless water heaters are a scored based on the maximum temperature rise possible for a given flow rate.You should determine the flow rate and the temperature rise you’ll need for the right application of one of these tanks in your home. Never try and save money by under-sizing your tankless water heater.

Gas Heater Size / BTUs
Gas Heater Cost Range
120K – 140K BTUs
$500 – $1,200
160K BTUs
$750 – $1,600
180K BTUs
$900 – $1,900
190K – 199K BTUs
$1,000 – $2,200


How to Buy a Tankless Water Heater

To determine what kind of size tank you need, check out this guide.

Before purchasing a tankless water heater, we encourage readers to check out this quick 8-minute video that does a fantastic job explaining the difference between the types of tankless water heaters, their sizes and when you should prefer one over another.

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