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How to Budget for a Tankless Water Heater

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How to Budget for a Tankless Water Heater

Swap out your bulky water heater without paying interest by planning ahead and spreading the cost.

VoAtlas editorial Updated · 3 min read
Typical cost $3,100 before anything else
Across the 0% window $206.67/mo 15 months, no interest

How we got that: $3,100 spread evenly across the 15-month introductory window on the Discover it® Cash Back. Checked · at the bank Carry a balance past the window and the standard APR applies to what is left.

A tankless water heater clears out that giant metal tank from your utility room and gives you endless hot water. You can run two showers and the dishwasher without anyone taking a cold rinse at the end. Swapping an old tank for a wall-mounted unit takes about one full workday. The smartest time to book it is late spring or summer. Winter is when failing tanks burst and plumbers charge top dollar for emergency calls.

A typical gas conversion costs around $3100 once you factor in the unit, labor, new venting, and gas line work. You do not want that bill sitting on a regular credit card racking up charges. A structured plan lets you upgrade before an emergency forces your hand, without draining your savings.

Remember that a 0% intro APR offer is a strict deadline, not free money. If you have any balance remaining after the 15 months, the card's standard rate takes over on the rest. Set up autopay for $206.67 right away so the balance hits zero well before that window shuts.

The steps

  1. 01

    Get three off-season bids

    Prices swing wildly between plumbing companies for gas work. Call at least three licensed contractors in early summer. Ask each one for an itemized quote that includes permits, disposal of your old tank, and any required gas line upgrades.

  2. 02

    Check your venting and gas supply

    Tankless units burn a lot of fuel quickly, so your current gas pipe might be too narrow. Have your installer check your line diameter and make sure you have a clear path outside for the new exhaust vents. Sorting this out before work starts keeps surprise costs off the final bill.

  3. 03

    Finance with the Discover it® Cash Back

    Charge the $3100 installation to the Discover it® Cash Back to get a 0% intro APR for 15 months on purchases and balance transfers. Divide the invoice into 15 equal payments of $206.67. Pay that exact number every month, and you will pay off the entire project without a dime in interest.

  4. 04

    Clear the utility area

    Your crew needs room to haul away a 150-pound tank and mount the new unit to the wall studs. Move any boxes or clutter away from the water lines the night before. Locate your main water shutoff valve beforehand to make sure it actually turns.

  5. 05

    Set up an annual flush kit

    Minerals in your water will scale up the heating elements over time. Buy an inexpensive transfer pump and a couple gallons of white vinegar from the hardware store. Running a vinegar cycle through the unit once a year keeps it running efficiently for twenty years.

  6. 06

    Check the card terms before you commit

    Every figure we publish for the Discover it® Cash Back carries the date a person verified it against Discover and a link to where they checked. Intro windows and APRs change without notice, so confirm the current terms before applying.

    See Discover it® Cash Back terms →

Common questions

How long does a tankless water heater installation take?

Most installations take between six and eight hours. A two-person crew can usually pull the old tank, mount the new unit, adjust lines, and test the system in a single day.

Is gas better than electric for tankless water heaters?

Gas units are generally cheaper to run and handle higher water demand in cold climates. Whole-house electric models often require expensive electrical panel upgrades to draw enough power.

Why should I replace my water heater before it breaks?

When a tank bursts, you have hours to make a decision, meaning you pay emergency labor rates and take whatever unit is on the truck. Planning ahead gives you time to compare three quotes and find the best price.

Can I install a tankless gas water heater myself?

This is a job for a licensed pro. Modifying gas supply lines, routing high-temperature exhaust, and pulling local permits require professional training and specific tools.