Water Heater Replacement Cost Calculator
Last updated: October 15, 2026
Estimate water-heater replacement cost and operating savings for tank, tankless or heat-pump options using editable project assumptions.
Starting figures illustrate this model. Enter your own measurements, quoted costs and applicable terms; this page does not retrieve live prices or provider rates.
Estimated net replacement cost
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- Gross installed cost: —
- Estimated annual operating savings: —
- Simple payback on upgrade: —
- Estimated monthly operating savings: —
On this page
Quick summary: Estimate water-heater replacement cost and operating savings for tank, tankless or heat-pump options using editable project assumptions.
Read the complete guide
Updated reference sections in this guide are in English.
What this calculator estimates
Estimate water-heater replacement cost and operating savings for tank, tankless or heat-pump options using editable project assumptions.
How to use it
Enter Water-heater equipment cost ($); Installation labor ($); Permit and inspection ($); Venting, electrical or gas upgrades ($); Old unit removal ($); Rebates and incentives ($); Current annual operating cost ($); Estimated new annual operating cost ($). Select Calculate to update the results.
How the calculation works
The calculator totals equipment, labor, permitting, upgrade and removal costs, subtracts rebates and compares entered annual operating costs.
Worked example: starting scenario
| Water-heater equipment cost ($) | 2300 |
|---|---|
| Installation labor ($) | 1400 |
| Permit and inspection ($) | 250 |
| Venting, electrical or gas upgrades ($) | 900 |
| Old unit removal ($) | 200 |
| Rebates and incentives ($) | 500 |
| Current annual operating cost ($) | 650 |
| Estimated new annual operating cost ($) | 420 |
| Estimated net replacement cost | $4,550.00 |
|---|---|
| Gross installed cost | $5,050.00 |
| Estimated annual operating savings | $230.00 |
| Simple payback on upgrade | 19.8 years |
| Estimated monthly operating savings | $19.17 |
Important limitations
Fuel type, capacity, venting, electrical service, location, code, warranty and household hot-water use affect price and savings.