Nicolette Forbes

By: Nicolette Forbes on August 12th, 2022

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How Much Does a Water Heater Cost?

Standard Water Heaters

Are you looking to purchase a new tank-style water heater and want to know the costs involved? Then you’ve come to the right place! Finding the right water heater for your home or business can be a daunting task, which is why we’ve created content that answers your burning questions to make the process easier.

We here at Monkey Wrench Plumbing, Heating & Air are trained and certified with some of the top tank-style water heater manufacturers like Rheem. Since 2007, we’ve helped thousands of clients across the Los Angeles area with their tank-style water heater needs, and now, it’s your turn. 

In this article, I’m going to walk you through the costs of tank-style water heaters and what factors can affect the price of a water heater. 

By the end of this article, you will have all the information you need to get a better sense of what a tank-style water heater would cost for your home.


What is the Average Cost of a Tank-Style Water Heater?

Tank-style water heaters can range anywhere from $1,600 and $3,500 when it is provided and installed by a certified company.

The cost of a tank-style water heater depends on several factors, such as:

  • Brand
  • Location
  • Size
  • Installation Material
  • Add-ons/Accessories
  • Water Filtration
  • Maintenance

In the next section, we’ll break down how the cost can change depending on certain factors.


Factors Affecting the Cost of Tank-Style Water Heaters

While every home is different, there are a few main factors that can increase or decrease the overall cost of a tank-style water heater. 



Just like with a new car, the brand, make, and model of your tank-style water heater will affect the overall price. Choosing a high-end manufacturer, like A.O. Smith, may mean a slight increase in the cost of the unit compared to other brands. Typically, you can expect to spend anywhere from $1,000-$1,800 for a tank-style unit.

The logo for tank-style water heater manufacturer, A.O. Smith. 

When choosing a water heater, be sure to factor in the quality of materials and warranties before jumping to the cheapest option on the market. While it’s possible to get a low-cost unit at a store like Home Depot, most units purchased at stores like this can void or limit any warranties offered by manufacturers.



The location of the water heater in your home will influence the costs to install. For example, if the water heater has to be placed in the basement or a corner of the attic, these difficult-to-reach areas can drive up the installation cost. Additionally, if you would like to move your water heater from one part of your home to another, you can expect to pay a little more depending on the needs of your water heater, such as new gas lines or water lines to accommodate the new location. 



When it comes to buying a water heater, size matters. The size of your water heater is determined by the number of people in your home, along with your hot water needs.  The bigger the water heater, the higher the cost. A 40-gallon water heater can efficiently meet the needs of a two-person household, and it costs around $1,600. For larger homes (like five or more people), you may need to consider a 75-gallon water heater or an 80-gallon water heater which can cost up to $3,500.


Installation Material

You may be surprised to learn that, even if you purchase a tank-style water heater, some materials are not included with the water heater that needs to be installed, like pressure valves. Materials that will affect the cost of your tank-style water heater are:

  • Any new water pipes
  • Any new gas venting
  • Any new gas lines
  • Any electrical work

While every installation has a few modifications that need to be made, the more that needs to be updated or replaced will increase the overall cost of installing your water heater.



While purchasing a tank-style water heater (and the additional installation pieces) will get you hot water, there are add-ons that you can add to your water heater to help your hot water flow, prolong the life of your unit, and keep your house safe.

Add-ons that you can include with your tank-style water heater are:

An expansion tank on a tank-style water heater.

Though some of these add-ons may be required by your local city code, these items usually aren’t included in basic installation costs. It is important to remember this when purchasing a new water heater because if you add any of these items to your water heater, it will increase the overall cost.


Water Filtration

Water filtration often isn’t included (or even thought about) when installing a tank-style water heater, but factoring in water filtration can save you thousands of dollars in the long run.

If you’re in an area, like Los Angeles, that has particularly hard water, installing water filtration for your home and a new water heater can prolong the life of your water heater. Read this article here to learn more about the negative effects that hard water can have on your water heater and home.

A photo of Crystal Quest whole-house softener.

Most tank-style manufacturers recommend installing water filtration to combat hard water, and in most manufacturer manuals, if your water hardness is over a certain amount of grains per gallon, manufacturers can void any warranties.



Though annual maintenance isn't a cost you have to worry about during installation, keep in mind that yearly cleaning for your tank-style water heater will be one of the most important things you do to protect your water heater (outside of water filtration).

Yearly cleaning can be a DIY project, or you can have a certified technician clean your water heater and do inspections to make sure everything is working properly. Check out this article here as we dive deeper into how to drain a water heater so that you can have a better understanding of what goes into tank-style maintenance.


Is a Tank-Style Water Heater Right For You?

Price matters. But it's not the only thing you have to consider when you're thinking of purchasing a tank-style water heater. While every home and installation is different, some key factors will affect the cost of installing a new water heater.

We here at Monkey Wrench Plumbing, Heating & Air have been dedicated to giving you the most accurate information to make the best decision for yourself and your home since 2007. If you live in the Los Angeles area and are ready to see what a tank-style water heater looks like for your home, click the ‘Book’ button below. Or if you still have questions about water heaters, check out our water heater service page or give us a call at 310-853-8690, and one of our call center representatives would be happy to help you.