How Much Does a Tankless Water Heater Cost in 2024?

In recent years, tankless water heaters have become popular due to their energy efficiency and reduced operating costs. Instead of constantly heating a water tank to keep water hot, tankless heaters heat water when necessary. This can save homeowners in Cincinnati up to 35% on water heating costs. But how much do these devices cost? Although prices vary, gas tankless water heaters typically cost between $750 and $2,300, while electric tankless water heaters range in price from $500 to $800.

Herrmann Services is Cincinnati’s leading plumbing company. We meet all your plumbing, electrical, heating, and cooling needs. Contact us today for a free consultation.

Factors That Affect Tankless Water Heater Cost

There are several tankless water heaters, so it’s important to research before picking the right one for your house. Below are some factors that affect tankless water heater costs.

Single-Point or Whole-House Heaters

Single-point heaters, or point-of-use systems, provide hot water to one faucet or shower. They are the ideal solution for a garage or disconnected guest house. They are very efficient because the hot water travels a shorter distance. Each unit costs between $100 to $300.

Whole-house heaters supply hot water to the entire house. They cost $200 to $2300 depending on size, fuel source, and brand.

Energy Type

Tankless water heaters can have various sources of energy. The two most common are gas and electric water heaters. Electric water heaters are the most affordable, followed by gas and solar.


You can choose several brands when buying a tankless water heater. Some are more economical, while others are pricey. Still, it’s better not to let the price of a tankless water heater be the main deciding factor. An expensive unit from a reputable company might have a higher initial cost, but it will likely have a longer lifespan than a cheaper one from a lesser-known company.

Some reputable brands include Rheem, Stiebel Eltron, Rinnai, Ecosmart, Eemax, and Eccotemp.

Gallons per Minute (GPM)

Gallons per minute affects the price of a tankless water heater. A tankless water heater heats water on demand, so it should be able to supply hot water to as many appliances and faucets as possible. Thus, if you have a big house, you will need a unit with a high flow rate. The average house requires 5 to 7 GPM to supply enough hot water.

Condensing vs Non-Condensing Tankless Water Heaters

Condensing heaters use an additional heat exchanger to heat water faster by decreasing the temperature of exhaust gasses to the condensation point, which increases the flow rate. Condensing heaters are more expensive than non-condensing heaters but are also more efficient.

Yearly Operating Cost of Tankless Hot Water Heater

Since a tankless water heater only heats water when necessary rather than constantly heating water in a tank, it doesn’t consume as much energy. Below are some things that influence yearly operating costs for tankless water heaters.

  • Energy factor: This pertains to a unit’s efficiency. The energy factor of a tankless heater ranges from 0.96 to 0.99. The higher the energy factor, the more efficient the unit.
  • Power consumption: When you combine the energy factor with how often you use your heater, you get your unit’s total power consumption. The power consumption for electric units is measured in kilowatt-hours per year, whereas gas units are measured in BTUs (British Thermal Units).
  • Cost of energy source: Multiplying the power consumption with the price of the fuel source will give you an estimation of your appliance’s yearly operating costs.
    On average, the annual operating cost of an electric tankless heater will range between $75 to $300, whereas the operating costs of a gas tankless heater will range from $175 to $500.

a tankless water heater cost breakdown

Contact Herrmann Services for Premier Tankless Hot Water Heater Installations & Services

Suppose you’re looking for a knowledgeable team to install a tankless water heater; trust the experts at Herrmann Services. We are committed to remarkable service and craftsmanship and aim to exceed your expectations. Contact us today to schedule your installation.


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