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The average cost range for purchasing and installing a tankless hot water heater is from $3,500 to $4,300. The cost can vary significantly based on the number of people in your household, amount of water used, type of equipment and efficiency factor. Before buying a tankless water heater, be sure to get multiple quotes from contractors to compare costs, installation approach and warranties.

Did you see a building science or energy efficiency term you did not understand? Check out our glossary.