Cost Comparison: Tankless vs. Traditional Water Heaters

Rooter Man Plumbing is a trusted name when it comes to providing dependable water heater services. Whenever you’re looking for a skilled plumber to diagnose and fix your water heater, we are the experts to call. Today, we’ll look at the cost comparison between tankless and traditional water heaters.

Upfront Costs

When it comes to the initial purchase, traditional water heaters are more affordable. A standard tank water heater costs between $500 and $1,000 depending on capacity and brand. These systems are also widely available and relatively simple to install, which keeps installation fees lower, ranging from $500 to $1,500.

On the other hand, tankless water heaters can cost anywhere from $1,000 to $2,500 or more just for the unit itself. The higher price reflects the advanced technology and the fact that these units deliver hot water on demand. Installation is more involved and may require upgrading your gas line, electrical system, or venting. As a result, installation costs for tankless systems fall between $1,000 and $3,500, depending on your home’s layout and existing infrastructure. As long as you work with a professional plumbing repair service, you can get the most out of your tankless water heater.

Operating Costs

While traditional systems are cheaper upfront, they tend to consume more energy. A traditional water heater heats a large tank of water, even when you’re not using it. This results in standby heat loss, where energy is wasted maintaining the water temperature.

Tankless systems are more energy-efficient because they heat water only when you need it. According to the U.S. Department of Energy, households using less than 41 gallons of hot water daily can save 25–35% on energy bills with a tankless heater. Over time, these savings can add up, more so in homes with moderate to low water usage.

In real dollars, a traditional unit might cost $300–$600 per year to run, while a tankless system may come in closer to $150–$300 annually, depending on usage patterns and local utility rates.

Maintenance and Repairs

Traditional water heaters require minimal annual maintenance, usually just flushing the tank to remove sediment buildup. However, they’re more prone to leaks and internal corrosion, which can lead to expensive emergency water heater repairs or early replacement. Be sure to call a local plumbing service as soon as you notice a problem with your storage water heater.

Tankless heaters also need annual maintenance to prevent scale buildup, especially in areas with hard water. While repairs can be more technical and slightly costlier, tankless systems have fewer moving parts that can fail. With proper maintenance, they can last up to 20 years or more, compared to the 8–12 years typical for traditional models.

Rooter Man Plumbing: The Go-To Plumbers for Water Heater Services

Do you need help selecting the right water heater for your home? Is your water heater acting up and you need professional water heater repair? Get in touch with the experts at Rooter Man Plumbing. We are renowned for offering a comprehensive range of water heater services, including water heater installation, repair, and replacement. Our plumbers have worked with all types of water heaters for years, so you can expect them to provide top-quality workmanship and exceptional customer service. Whether you’re looking to replace an aging storage water heater or upgrade to a tankless unit, we are here to help.