A traditional tank water heater replacement costs between $1,200 and $3,000, while a tankless water heater conversion typically costs $2,500 to $7,000 or more. Tank replacements are usually more affordable because they can use existing plumbing and utility connections.
Storage tank swaps are simple because they use your existing utility hookups. In contrast, tankless conversions require intensive retrofitting to support instant heating.
These modifications frequently trigger extra structural expenses before the system can operate safely. You may need to pay for new corrosion-resistant venting. Installers often must widen standard lines to 3/4-inch gas pipes.
Labor rates, permits, site conditions, and optional scale inhibitors or water softeners can also affect the final price.