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How to Pay for a Tankless Water Heater

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How to Pay for a Tankless Water Heater

Upgrade to endless hot water with a plan that uses utility rebates and a 0% interest window to keep costs manageable.

VoAtlas editorial Updated · 3 min read
Typical cost $2,800 before anything else
Across the 0% window $155.56/mo 18 months, no interest

How we got that: $2,800 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.

Say goodbye to the mid-shower cold snap. A tankless system heats water on demand, so you never run out, and it takes up way less space in the garage. Most installs take a single day. We suggest booking in the spring or fall when plumbers aren't busy fixing frozen pipes or emergency calls.

Getting three quotes is non-negotiable. Prices vary wildly based on your gas line or electrical panel capacity. Once you have a number, we can use the Citi Simplicity® Credit Card (Citi) to break the $2,800 average cost into smaller bits.

The 18-month window is a hard deadline, not a gift. If you still have a balance when that time is up, you will start paying the standard interest rate on whatever is left over.

The steps

  1. 01

    Check your venting

    Start in your utility room. Tankless units need specific exhaust venting and often a larger gas line than your old tank. See if your electrical panel has room for a new circuit before you start shopping.

  2. 02

    Hunt for utility rebates

    Check your local gas and electric company websites for efficiency rebates. Many providers will pay you back $200 to $600 for switching to a high-efficiency model. This is cash back in your pocket after the install.

  3. 03

    Use a 0% interest window

    We use the Citi Simplicity® Credit Card (Citi) to handle the upfront cost. It gives you 0% for 18 months on purchases and balance transfers from date of account opening. This keeps your cash in the bank while you chip away at the bill.

  4. 04

    Get three firm quotes

    Don't settle for the first plumber who picks up the phone. Ask for an all-in price that includes permit fees and hauling away your old heavy tank. Make sure they list the specific model and its flow rate.

  5. 05

    Automate the payoff

    To clear a $2,800 bill within the window, you need to pay $155.56 every month. Set this up as an automatic transfer from your checking account. This ensures you finish the balance before the interest kicks in.

  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

Is a tankless heater really worth it?

It is if you have a big family or a huge bathtub. You save a little on your monthly energy bill since you aren't heating a giant tank of water while you sleep.

How much does the installation cost?

The unit itself is usually around $1,000, but labor and venting upgrades often bring the total to about $2,800. If your gas lines are too small, that price can go up.

Do I need to maintain it?

Yes. You have to flush the mineral scale out once a year, especially if you have hard water. It takes about an hour and stops the heating elements from failing early.

Will I get hot water instantly?

No. It still takes time for the water to travel from the heater to your shower. You just won't run out of it once it finally arrives.