How much does it cost to replace a 40-gallon water heater?
How much does it cost to replace a 40-gallon water heater?
$600 – $1,600 average 40-gallon electric water heater installation
$900 – $3,000+ average 40-gallon gas water heater installation
Average cost to replace a 40-gallon water heater
The cost to replace a 40-gallon water heater is $600 to $1,600 for an electric unit or $900 to $3,000+ for a gas unit, including installation labor. A 40-gallon water heater costs $400 to $2,000 for the unit alone, depending on the brand, features, energy efficiency, and fuel type.
| Factor | Average cost (electric) |
Average cost (gas) |
|---|---|---|
| Water heater | $400 – $1,000 | $500 – $2,000 |
| Installation labor | $200 – $600 | $400 – $1,000+ |
| Total installed cost | $600 – $1,600 | $900 – $3,000+ |
Water heater sizes range from 30 to 100 gallons. A 40-gallon tank is sufficient for small households with 1 to 2 people and low hot water usage. A larger 50-gallon water heater costs more at $700 to $3,100+ installed but will meet the hot water needs of a larger household of 3 to 4 people.
40-gallon water heater cost by fuel type
Water heater replacement costs depend on the fuel type. The table below breaks down the pros and cons of electric versus gas water heaters.
| Type | Pros | Cons |
|---|---|---|
| Electric |
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| Gas |
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Switching from a gas to an electric water heater or vice versa increases costs because it requires running new wiring or gas lines.
Electric water heater
A 40-gallon electric water heater ranges in price from $400 to $1,000 for the unit alone. Electric units are best for smaller households with reduced hot water demands. Electric water heaters are cheaper and easier to install but tend to be more expensive to operate compared to gas water heaters.
Gas water heater
A 40-gallon gas water heater costs $500 to $2,000 for the unit alone. Gas water heaters are more difficult and costly to install but are more cost-effective to operate than electric heaters. They are ideal for larger households with higher hot water needs.
Hybrid heat pump water heater
A 40-gallon hybrid heat pump water heater costs $2,100 to $4,200, including labor and the unit itself. These systems require sufficient open-air space to pull heat from the air. They are up to four times more energy efficient than electric tank heaters and qualify for a $300 federal tax credit and other potential rebates.
40-gallon water heater installation cost factors
Several factors impact the cost of installing a new 40-gallon water heater:
Brand: Competitively priced models from Rheem, American Standard, and Whirlpool often have shorter warranties, while premium brands like Bradford White and A.O. Smith offer better technology and longer warranties at a higher cost.
Energy efficiency: More efficient units have higher upfront costs but yield savings in 4 to 6 years.
Installation labor: Basic replacements take a professional plumber 3 to 4 hours, while complex jobs may require 6 hours or more, especially those needing a gas line plumber to make gas line adjustments.
Difficult installations: Additional labor costs of $125 to $300 per hour may apply for installations in cramped spaces.
Off-hours service: Additional charges apply for emergency or after-hours installations.
Permits & inspections: Permit fees for gas or electrical work range from $50 to $150.
Expansion tank: Large water heaters require an expansion tank to regulate water pressure. Installation costs $100 to $200 for internal bladder types and $200 to $350 for external tanks.
Venting: Gas heaters require venting for airflow and safety, adding $500 to $1,500, depending on the type and complexity. Power vent units with electric blowers cost $350 to $500 more than easier-to-install direct vent units.
Disposal of old unit: Removing and disposing of the old water heater costs $70 to $500, with the lowest prices for tanks that are already drained and disconnected. Most plumbers include old tank removal and disposal in their replacement fee.
Cost to run a 40-gallon water heater
The average operating cost per month for a 40-gallon residential water heater is $20 to $55, with costs varying based on factors like fuel source, local utility rates, and usage patterns.
| Water heater type | Average monthly operating cost |
|---|---|
| Gas | $20 – $30 |
| Electric | $35 – $55 |
Signs your water heater needs replacing
An annual water heater inspection can identify minor issues before they escalate, extending the unit's lifespan. However, if you notice any of these common warning signs, your water heater might need replacing:
Inconsistent or insufficient hot water
No hot water at all
Rusty or discolored water
Unusual noises
Leaking tank
Increased energy bills
Water heater installation FAQs
How long does a 40-gallon water heater last?
A 40-gallon residential water heater lasts 8 to 15 years on average. However, several factors impact your water heater's lifespan, including the quality of the materials, installation quality, usage, and mineral deposits in the water.
Is a 40-gallon water heater enough?
A 40-gallon water heater is enough for smaller households with 1 to 3 people with average hot water needs. A 40-gallon water heater may not be enough for a larger household of 4+ people, especially if they shower frequently or use a lot of hot water for other purposes like laundry or dishwashing.
How long does it take for a 40-gallon water heater to heat up?
The time it takes for a 40-gallon water heater to heat up depends on the fuel type, thermostat settings, and heater efficiency. Typically, a gas water heater takes 30 to 40 minutes to fully heat the tank. An electric water heater usually takes longer at about 60 to 80 minutes for a 40-gallon tank.
How tall is a 40-gallon water heater?
The standard height for residential water heaters is around 50 to 60 inches tall. However, different manufacturers and models within the same category can have slight variations in height. Check the specifications for the brand and model to accurately determine the height.
How heavy is a 40-gallon water heater?
The weight of a 40-gallon water heater is around 80 to 120 pounds when empty. Adding 40 gallons of water brings the total weight to approximately 430 to 450 pounds.
Hiring a water heater installation company
When it's time to replace your water heater, make sure you pick the right water heater installation company near you. Follow these guidelines to ensure a smooth process from start to finish:
Get quotes from at least 3 licensed plumbers with experience installing water heaters.
Verify all quotes are for the same water heater brand, model, and size for an accurate comparison.
Check reviews on HomeGuide and Google and look at their past project examples.
Choose a properly licensed, bonded, and insured company. This protects you in case anything goes wrong.
Make sure the quote includes safely removing and disposing of your old water heater.
Request a detailed written estimate, contract, and warranty before work begins.
Set up a payment schedule for the work rather than paying 100% up front so you have leverage in case of issues.
Questions to ask a plumber or water heater installer
Hiring the right installer from the start helps to ensure a hassle-free project. Remember to ask these important questions when speaking with water heater installers:
Is a 40-gallon water heater suitable for my household?
How much experience do you have installing water heaters?
Which energy source—gas, propane, or electric—is best for my home, and why?
Would a hybrid heat pump water heater benefit my residence, and if so, how?
Should I consider a tankless option instead?
What water heater brands do you recommend, and what makes them preferable?
Are there any current manufacturer rebates available?
Does your estimate include the removal and disposal of my existing water heater?
What additional expenses should I expect?
Will you handle the permits for the project?
How long will it take to replace the water heater?
Can you provide details on the warranty period and coverage for the selected water heater?
What is the water heater's anticipated lifespan, and are there ways to extend it?
What maintenance routine do you suggest for my new water heater?
Using our proprietary cost database, in-depth research, and collaboration with industry experts, we deliver accurate, up-to-date pricing and insights you can trust, every time.