CostEstimator logoCostEstimator

Gas vs Electric Water Heater: Cost Comparison

Gas heaters cost more to install but run 30–50% cheaper each month. Electric wins on install simplicity — and heat pump models flip the operating-cost math entirely.

Typical range: $400 – $2,500 installed

Electric Tank

$400–$1,500 installed

Pros

  • Cheapest install
  • No venting needed
  • Works anywhere
  • Longer typical lifespan

Cons

  • 30–50% higher monthly cost
  • Slow recovery
  • Larger tank needed
  • Vulnerable to power outages
Estimate electric tank cost →

Gas Tank

$700–$2,500 installed

Pros

  • 30–50% cheaper to run
  • Fast recovery for big families
  • Works during power outages
  • Smaller tank works fine

Cons

  • Higher install cost
  • Needs gas line + venting
  • 10–13 year lifespan
  • CO risk if poorly vented
Estimate gas tank cost →

Bottom line

Already have gas service and a 3+ person household? Gas pays back in 3–5 years. All-electric home or heat pump upgrade? Skip both — go heat-pump water heater.

Related calculators

Water Heater Replacement Cost Calculator

Estimate the cost to replace a water heater — tank or tankless, gas or electric — including labor and permits.