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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 your old unit before it bursts and use a clear payment plan to manage the $3100 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.

Switching to a tankless heater means you stop paying to keep a giant tank of water hot all day. You get endless hot water and save space in your utility closet. Most installations take less than a day, but don't wait for your current unit to leak before acting.

The best time to book a plumber is late fall or early spring. Avoid mid-winter when heating emergencies keep them busy and prices climb. Get at least three written quotes to compare labor costs before you commit to a brand.

The 0% intro APR is a deadline, not free money. If you have a balance remaining after 15 months, the lender will charge you interest on what you still owe at their standard rate, which is usually quite high.

The steps

  1. 01

    Get three quotes

    Call local plumbers and ask for a site visit. Have them quote the unit price and the labor separately. Don't go with the cheapest option if they don't explain how they handle your gas lines or venting.

  2. 02

    Check your electrical or gas

    Tankless units need more power or gas flow than a standard tank. Make sure your current lines can handle the load. If you need a gas line upgrade, factor that into your $3100 budget now.

  3. 03

    Use your 0% intro APR

    The Discover it® Cash Back card offers 0% intro APR for 15 months on purchases. This gives you a 15-month window to pay off the $3100 without interest charges. If you divide the total by 15, you pay $206.67 per month.

  4. 04

    Schedule the work

    Once you have your quotes, pick a day when you can be home for the full installation. Clear the area around the old heater so the plumber can move quickly. A faster install often keeps your labor bill lower.

  5. 05

    Set up autopay

    Link your bank account to the card payment portal. Set your payment to at least $207 each month. This keeps you on track to clear the balance before the intro window closes.

  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

Are tankless heaters really worth the cost?

They last longer than tanks and don't waste energy heating water you aren't using. You save on your monthly utility bills over time.

What happens if the installation goes over $3100?

Plumbing surprises like outdated venting or pipe corrosion can add to the bill. Keep a small cushion in your savings just in case the final quote is higher.

Can I install this myself?

It involves gas lines and electrical work, which usually requires a permit and professional certification. If you DIY, you might void the unit's warranty or fail a home inspection later.

Do I need to pay for the unit upfront?

Many plumbers ask for a deposit for the unit and the rest after the work is done. Use your card for the total amount to keep your payment plan consistent.