Plumbing · Entity

Tankless Water Heater

An on-demand water heater that heats water as it flows through a heat exchanger, eliminating the storage tank.

Quick answer
Tankless Water Heater: An on-demand water heater that heats water as it flows through a heat exchanger, eliminating the storage tank. Typical cost: $2,800–$5,500 installed (gas); $1,800–$3,500 (electric whole-house)..

Why it matters

Tankless units last 18–22 years, free up floor space, and cut standby losses — but installation can require gas-line and venting upgrades that double the price.

Typical cost
$2,800–$5,500 installed (gas); $1,800–$3,500 (electric whole-house).

Pros

  • Endless hot water
  • 20+ year lifespan
  • Smaller footprint

Cons

  • Gas upgrades may be required
  • Hard water can scale heat exchanger
  • Higher upfront cost

Common uses

  • Homes with constant hot-water demand
  • Small homes needing space
  • Long-term ownership

Alternatives

Conventional tankHeat-pump water heater
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Frequently asked questions

Is tankless worth the cost?
Yes if you'll own 10+ years and use moderate-to-high hot water; payback is otherwise too slow.
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