Interactive Tool
Tankless Water Heater Savings Calculator
Enter your details to see how much a tankless water heater could save you compared to a traditional tank model over 10–20 years.
Your Details
Estimated Net Savings Over 15 Years
$-4,025
After installation cost + maintenance (still worth it for comfort + lifespan)
Annual Energy Savings
$165/yr
Payback Period
22 years
Total Cost of Ownership (15 Years)
Energy: $8,250 + 1 replacement(s): $1,500
Install: $3,500 + Energy: $5,775 + Maintenance: $3,000
Rebates: The federal tax credit ended December 31, 2025. Some gas utilities still pay rebates on qualifying units, which shortens the payback period. Check available rebates
How We Calculate Savings
Our calculator uses the Department of Energy's efficiency estimates: tankless gas units are approximately 24–34% more efficient than conventional storage tank heaters, while electric tankless models are approximately 8–20% more efficient in terms of total energy cost (despite higher UEF ratings, electricity costs more per BTU in most markets).
Maintenance costs are estimated at $200/year for annual descaling and periodic filter replacement. Tank replacement costs assume a standard 50-gallon unit at $1,500 installed, replaced every 10 years. These are averages, your actual costs may vary based on local energy prices, water hardness, and usage patterns.