Tankless water heater costs range between $1,171-$3,331. Tankless water heater installation cost is impacted by several factors, including the type of system, whether it’s a single-point or whole-house system, type of fuel it uses, flow rate, system size, brand, labor, materials, permits, accessibility, and charges for removing the existing heating system. A tankless water heater can save money compared to a traditional tank-style water heater. Tankless heaters use energy to heat water on-demand, can produce an endless supply of hot water, have a lower risk of leaks, take up less space, and typically have a longer lifespan. Learn more about the benefits of a tankless water heater and costs for installation.