Installing your new water heater will depend on your home’s plumbing and the installation location. Generally, you should budget a couple of thousand dollars for a new water heater (but remember, financing is a great way to split this amount into convenient monthly payments).

Hot water tanks tend to cost less than tankless heaters, since they are simpler technology. However, the energy-efficiency of tankless heaters means you can save money by using them in the long run.