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How to Budget for a Tankless Water Heater

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How to Budget for a Tankless Water Heater

Get endless hot water and lower your bills by planning your tankless electric water heater upgrade the right way.

Typical cost $1,800 before anything else
Across the 0% window $100.00/mo 18 months, no interest

How we got that: $1,800 spread evenly across the 18-month introductory window on the Citi Simplicity® Credit Card. Checked · at the bank Carry a balance past the window and the standard APR applies to what is left.

Imagine never running out of hot water halfway through a shower and freeing up a chunk of basement wall where that bulky old tank used to sit. Swapping to a tankless electric unit usually takes a plumber about a day, though you might need an electrician too if your panel needs an upgrade. Booking this during the off-season, like late winter or early spring before the summer reno rush hits, helps you lock in flexible scheduling and sometimes better rates from local pros.

Before you commit to anyone, get at least three distinct quotes from licensed plumbers in your area. Prices swing wildly for electrical prep work, so comparing itemized bids ensures you are not overpaying for the unit or the labor. Once you have a realistic number in hand, you can map out how to pay for it without draining your emergency fund.

Remember that the 0% for 18 months on purchases and balance transfers from date of account opening is a strict deadline, not free money. If you still have a remaining balance when that window ends, standard interest rates will kick in on what is left.

The steps

  1. 01

    Get three quotes

    Call local plumbers and ask for itemized bids on both the unit and the electrical work. Make sure each quote includes permits and haul-away fees for the old tank.

  2. 02

    Check electrical needs

    Tankless electric heaters pull a massive amount of power. Ask your electrician to verify if your current breaker panel can handle the extra load before you buy anything.

  3. 03

    Time the install

    Schedule the work during the slower winter months when plumbers have flexible schedules. You might get a better rate when they are looking to fill gaps in their calendar.

  4. 04

    Map out the monthly math

    If your total install comes to about $1800, spreading that exact amount across the Citi Simplicity Credit Card intro window means paying $100.00 per month.

  5. 05

    Set up auto-pay

    Never trust your memory with a payoff deadline. Set up an automatic monthly transfer so you clear the balance before the clock runs out.

  6. 06

    Check the card terms before you commit

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

    See Citi Simplicity® Credit Card terms →

Common questions

How long do tankless electric water heaters last?

Most units last twenty years or more with basic yearly flushing to clear out mineral buildup. That is roughly double the lifespan of a traditional tank heater.

Do I need a bigger electric panel?

Probably. Electric tankless heaters draw a lot of electricity, so many homes require an electrical service upgrade to a 200-amp panel to handle the load.

Will my electric bill go up?

It depends on your current usage, but you usually save money overall because the unit only runs when you turn on the hot water tap, rather than heating a full tank 24/7.

Can I install a tankless electric water heater myself?

Unless you are a licensed plumber and electrician, no. The heavy electrical demands and local building code permits mean this is strictly a job for pros.