How Much Does a Water Heater Cost?
A Straightforward Answer From a Professional Plumber
One of the most common questions homeowners ask is:
“How much do you charge for a water heater?”
It sounds like an easy question—but many plumbing companies refuse to give a price over the phone. They’ll often say every installation is different and that they need to see the job first.
While that can be true, the reality is this:
👉 Most water heater replacements fall into a standard installation category.
Our plumbers use a detailed price book, and the majority of installations fit clearly defined guidelines. So why can’t they give a price over the phone?
The honest answer is — They can and I will.
Most companies just want to get into your home because its harder for you to say no when you are face to face with a salesman
Why Water Heater Prices Online Are Misleading
When homeowners research water heater prices online, they usually see a much lower number than what a plumber quotes. That’s because online prices only show the cost of the water heater unit, not the full installation.
A water heater installation includes far more than just the tank.
When you hire a licensed plumber, you’re paying for:
- The water heater
- Required safety and code-compliant parts
- Professional installation
- Warranty handling
- Proper disposal of the old unit
Comparing an online price to a professional installation is like comparing the price of steak in a grocery store to a steak dinner at a restaurant.
Example: 40-Gallon Gas Water Heater Installation Cost
Here’s a real-world breakdown of what goes into a standard professional water heater replacement:
Professional-grade 40-gallon Ultra Low NOx gas water heater – $1,374.64
Water connections (flex lines or dielectric unions) – $51.60
Gas connections (gas flex or pipe and fittings) – $23.65
Vent connections – $34.53
Earthquake straps – $30.31
Thermal expansion tank and fittings – $63.41
Drain pan (floor & ceiling saver) – $51.75
Water alarm – $49.91
T&P relief valve drainpipe – $9.90
Removal & disposal of old water heater – $100.00
Home protection materials – $40.00
Total Parts Cost: $1,829.70
Labor Cost: $828.00
Total Water Heater Replacement Cost: $2,657.70
Example price is from Mike Bachman Plumbing and is actual water heater pricing at the time of posting
Why Professional Water Heaters Cost More Than Store-Bought Models
Water heater manufacturers produce different models for different markets, even if they look identical.
Major U.S. Water Heater Manufacturers
There are three primary water heater manufacturers in the United States:
- A. O. Smith
Brands include A. O. Smith, State, American, Lochinvar, Reliance, Takagi, and Whirlpool. - Rheem
Brands include Rheem, Ruud, Richmond, GE and Eemax. - Bradford White
Brands include Bradford White and Laars.
These manufacturers produce:
- Commercial-grade heaters
- Professional-grade heaters
- Retail (home-center) heaters
Home-center water heaters often use lower-cost components such as:
- Plastic drain valves instead of brass
- Smaller aluminum anode rods instead of magnesium
- Thinner materials and simplified internals
- Sold to home centers without manufacturer warranties
These cost-cutting measures affect lifespan, reliability, and serviceability.
Water Heater Warranty Differences Explained
Warranty differences are one of the biggest reasons professional installations cost more—and provide better value.
Professional-grade water heaters typically include:
- 6-year tank warranty*
- 6-year parts warranty*
- 1-year Manufacturer-backed labor coverage
- Some plumbing companies supply their own warranties above and beyond the manufacturers.
Retail water heaters often advertise similar warranties, but they are usually prorated and handled through the store—not the manufacturer.
Homeowners are often required to deal with:
- Call centers
- Retail warranty departments
- Delayed or denied claims
You’ll often see a sticker that says:
“Stop. Do not return this product to the place of purchase.” With a number to call.
When something goes wrong, the homeowner—not the plumber—is responsible for navigating the warranty process with the retailer.
*Warranties are available in 6-, 8-,10-, and 12-year options.
Why Water Heater Installation Labor Costs What It Does
The cost of labor is another key factor. Professional plumbers charge different rates depending on their business structure, but labor costs are more than just the time spent in your home installing the unit.
Professional plumbing labor includes:
- Licensing, taxes, and insurance
- Office staff and scheduling
- Vehicles, fuel, and insurance
- Tools and equipment replacement
- Marketing and advertising
It also includes time spent:
- Picking up the heater
- Traveling to your home
- Removing the old unit
- Installing and testing the new heater
- Registering warranty
- Hauling away the old system
When you hire a professional plumber, you’re paying for experience, safety, and peace of mind.
Final Thoughts: What You’re Really Paying For
When you purchase a water heater from a professional plumber, you’re not just buying a tank—you’re investing in:
- Proper sizing and selection
- Code-compliant installation
- Long-term reliability
- Warranty support
- Safe disposal of old equipment
We believe in transparency and are happy to explain our pricing.
Want a More Accurate Water Heater Quote?
We are happy to share our prices with you and will gladly answer your questions by email, phone, or in person. If you would like to email us a picture and information about your water heater and the surrounding area, we can often provide a more accurate estimate without needing to visit your home.
📧 Email: Vic@mikebachmanplumbing.com
Please include:
- A photo of the water heater and surrounding area
- A photo of the rating plate
I’ll review everything and get back to you as soon as possible.