Water Heater Repair and Replacement Costs: What Homeowners Should Expect

Picture it: You’re in the middle of a shower so hot, steam clouds the bathroom — when, suddenly, the hot water turns to ice, leaving you teeth-chattering cold. But that clichéd scenario isn’t the only bad thing that can happen when your water heater calls it quits. You might also be dealing with a dishwasher full of silverware that didn’t reach the required temperature to fully sanitize, or a load of laundry covered in stubborn stains that couldn’t be removed.

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Like it or not, your water heater isn’t just for pouring yourself a luxurious bath; it pumps out hot water that keeps you, your clothes and your dishes clean. And when something goes wrong with it, it’s not the kind of thing you can ignore for long.

If you suspect something is wrong with your water heater — especially if it’s a gas model — you need to call a licensed plumber. If you do suspect a gas leak, turn off the natural gas to your home at the shutoff valve, leave the premises and call 911.

But just scheduling a repair is easier said than done, of course, and repairs can be pricey. Average water heater repair and replacement costs have increased up to 14% over the past four years — according to aggregated HomeServe data as reported by our nationwide network of contractors — while as many as 41% of homeowners have less than $500 saved for a home repair emergency.

A look at national average repair prices might help ease the sticker shock by giving you an idea of what that bill from the plumber might look like.

Pressure Relief Valve Replacement: $271

Now, don’t be alarmed, but … your water heater could explode. Pressure builds up in the tank due to the heated water. That said, your water heater likely won’t explode, thanks to one crucial piece called a pressure relief valve. This valve opens on its own to release pressure in the water heater’s tank when pressure exceeds the safety threshold. When this valve fails, you might notice a lot of noise coming from your water heater, or water leaking from the pipe that vents from the pressure relief valve.

Replacing a damaged, worn or leaking pressure relief valve carries a national average cost of $271. This price is 8% higher than in 2022 and 16% higher than in 2020.

Drain Valve Replacement: $248

You need to drain and flush your water heater at least once a year to remove the sediment buildup that can decrease efficiency and shorten the life of your machine. The drain valve is the little spigot at the bottom of your water heater that allows you to empty the water heater for this kind of maintenance.

If something is wrong with your drain valve, you might find:

• Mineral deposits around the valve

• The valve is stuck

• Leaks

• The valve spins, but won’t open

• Nothing comes out of the valve when you open it.

To replace a broken drain valve, you’ll probably pay around $248, which is the national average price. Prices have increased 11% since 2022, and 22% since 2020.

Upper or Lower Thermostat Repair or Replacement: $242

Electric water heaters have two separate heating elements — one at the top and one at the bottom. The bottom element is responsible for heating most of the water. However, the top element is the brains of the operation. Once the thermostat at the top reads the desired temperature, it switches on the element at the bottom, allowing all of the water to come to the same temperature.

Based on what’s wrong with your hot water system, you can pinpoint which thermostat is giving you trouble. If you have hot water, but it runs out quickly, there’s something wrong with the lower thermostat, as the upper one is still running the element at the top of the tank. But if you have no hot water at all, the upper thermostat is to blame, as it’s not telling the lower thermostat to heat up, either.

A new upper or lower thermostat will run you $242, based on the national average price. That’s 6% more than in 2022 and 14% more than in 2020.

Gas Control Valve Repair or Replacement: $495

On a gas water heater, the gas control valve does, well, just what the name implies: It controls the amount of gas flowing to the burner that heats up the water in the tank. The dial allows you to adjust this gas flow manually, letting you choose how hot water from your water heater gets.

A faulty gas control valve can present itself in a variety of ways:

• Lukewarm or cold water

• Gas smells

• Pilot light won’t stay lit

• Error codes in the form of flashing LEDs

To replace a gas control valve, you can expect to pay somewhere around the national average cost of $495. Prices have increased 5% since 2022, and 10% since 2020.

Water Heater Replacement: $1,459

Sometimes, a broken water heater just isn’t worth repairing. If your water heater has completely given up the ghost, expect to pay about $1,459 for a full replacement, including materials and labor. This price reflects the replacement cost for an average, tanked water heater with a 40-gallon capacity. Tankless water heaters and larger-capacity water heaters will likely cost more.

This price is 4% higher than in 2022. Sufficient pricing data was not available for 2020.

Diagnostic Fee

Something to keep in mind is that a lot of plumbers (like many other types of service professionals) charge a “callout” fee. Often referred to as a “diagnostic” fee, this is basically just how much it’s going to cost to get a plumber to drive to your home and look at your water heater. Even if they don’t find anything wrong — or it’s a simple fix that doesn’t require replacement parts — they will likely bill for this time.

(The prices above reflect repair costs as of December 2024, and are based on national data. Costs in your community could be higher or lower, depending on a number of factors. This pricing does not reflect emergency repairs, which can often cost more due to services needed on short notice or after hours.)