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How to Pay for a Tankless Water Heater

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How to Pay for a Tankless Water Heater

Get endless hot water without paying for it all at once using the right window.

VoAtlas editorial Updated · 3 min read
Typical cost $3,800 before anything else
Across the 0% window $211.11/mo 18 months, no interest

How we got that: $3,800 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 saving space in your utility closet by ditching that giant metal tank. The swap usually takes a day of plumbing work, and you want to book it during a mild stretch of weather rather than waiting for the first cold snap when plumbers are swamped and charging top dollar. Aim for spring or summer to get the best rates on labor.

Before you commit to anyone, get at least three quotes from local plumbers. Prices swing wildly for this specific job because of venting requirements and gas line updates. Once you have the right contractor pinned down at a fair price, we can look at how to spread out the about $3800 cost without handing over a chunk of interest.

Keep in mind that 0% for 18 months on purchases and balance transfers from date of account opening is a hard deadline, not free money. If you still owe a balance when those 18 months are up, deferred interest kicks in on the whole original amount at the standard rate, which defeats the point of the plan.

The steps

  1. 01

    Get multiple quotes

    Call at least three licensed plumbers to price the swap. Make sure each quote includes the cost of venting and any electrical or gas line upgrades. Plumbers often quote low and add fees later, so get a firm total in writing.

  2. 02

    Pick your window

    Schedule the install for a mild week in spring or fall. Plumbers are less busy then, which makes negotiation easier and keeps you from going without hot water during freezing weather.

  3. 03

    Set up your payment plan

    Use the Citi Simplicity® Credit Card to cover the bill and set up automatic payments of $211.11 per month. This splits the about $3800 total evenly so you finish paying it off right as the timeline ends.

  4. 04

    Clear the work space

    Tankless units mount on the wall and take up a fraction of the space your old tank used. Clear out the area around your current water heater so the crew can move fast and finish the job in a single day.

  5. 05

    Inspect the final setup

    Test the hot water at the farthest sink before the plumber leaves. Make sure they registered the unit for the parts warranty and handed you the paperwork.

  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 water heaters last?

They generally last 20 years, which is about double the lifespan of a traditional tank. You just need to flush the system once a year to keep mineral buildup from killing the heat exchanger.

Do I need to upgrade my gas line?

Often, yes. Tankless units need a lot of gas all at once to heat water on demand, so your plumber might need to swap your old half-inch pipe for a three-quarter-inch line.

Will my electric bill go up?

Your electric bill might tick up slightly because the unit needs a small amount of electricity to run the computer board and fan, but your gas bill should drop since it only burns fuel when you run the tap.

What happens if the power goes out?

Tankless units need both electricity and gas to run, so they won't work during a blackout. If you live in an area with frequent outages, you will need a small generator hooked up to the unit.