How Much Does a Water Heater Replacement Cost in 2025?

This article was updated using automation technology and thoroughly reviewed for accuracy by HomeAdvisor Editor Ryan Noonan.

The cost to replace a water heater ranges from as little as $350 to as much as $12,000 when factoring in labor and the unit itself. However, most homeowners pay an average of $1,329 to replace a water heater. This price varies depending on the type of water heater you choose, the unit’s size, the fuel type, and whether you’re relocating it from its prior location. Whether you’re swapping out an old unit or upgrading to a more efficient model, knowing what to expect can help you budget and plan for a smooth installation.

Water Heater Replacement Cost Factors

Several factors influence your water heater replacement cost, including the unit type, size, fuel source, and brand.

Type
There are several types of water heaters, each with its own advantages and drawbacks. The type you choose will significantly affect your replacement cost.