Tankless water heaters, sometimes called “on-demand” units, heat water only when it’s needed rather than storing it in a tank. This makes them highly energy-efficient, ideal for smaller spaces, and capable of providing continuous hot water for busy households. Though installation costs can be higher upfront, tankless systems often deliver long-term savings and superior efficiency.
The best tankless water heater brands typically range from $1,000 to $3,500+, depending on flow rate, fuel type, efficiency rating, and local labor costs. Choose based on your priorities: energy efficiency, size, performance, warranty coverage, and household hot-water demand.
- Best for Budgets: Eccotemp, State Water Heaters
- Premium Quality: Rinnai, Navien, Rheem
- Best for Large Households: A.O. Smith, Bradford White
- Smart-Home Integration: Rheem, GE Appliances
Best Brands at a Glance
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- Exceptional efficiency and lifespan
- Strong brand reputation and support
- Extensive model selection for all home sizes
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- Excellent condensing efficiency
- Quiet, reliable operation
- Long-lasting stainless components
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- Reliable nationwide support
- Smart technology integration
- Strong warranty and efficiency
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- Proven brand reliability
- Strong warranty coverage
- Efficient gas and hybrid models
Top 9 Tankless Water Heaters
Rinnai
- Average Cost: $1,200 to $3,500
What We Love
Rinnai is the industry leader in tankless technology, offering powerful gas and condensing models that deliver consistent, on-demand hot water. Known for outstanding efficiency and longevity, Rinnai’s products are engineered in Japan and built for decades of dependable service. We rate it 5 stars for energy performance, durability, and advanced technology.
Cost Information
Rinnai tankless water heaters typically cost $1,200 to $3,500 installed, depending on size, venting configuration, and gas line requirements.
- Basic Non-Condensing Models: $1,200 to $1,800
- High-Efficiency Condensing Units: $2,000 to $3,500
Installation costs usually run $800 to $2,500 and depend on venting upgrades, gas-line capacity, and whether a recirculation system is added.
Best Series
The Rinnai Sensei™ SE+ Series offers ultra-high efficiency with up to 0.98 UEF, smart connectivity, and built-in recirculation for faster hot water delivery.
Navien
- Average Cost: $1,300 to $3,200
What We Love
Navien combines advanced engineering with outstanding energy savings, making it one of the most efficient tankless brands available. Its condensing gas models recover nearly all exhaust heat, achieving exceptional UEF ratings.
We rate Navien 4.5 stars for innovation, quiet operation, and outstanding efficiency.
Cost Information
Navien systems cost $1,300 to $3,200 installed, depending on model and configuration.
- NPE-A2 Series With Recirculation: $2,000 to $3,200
- Standard NPE-S2 Series: $1,300 to $2,200
Installation costs typically range $700 to $2,000, varying with venting materials, fuel-line size, and retrofit complexity.
Best Series
The Navien NPE-A2 Series is a top performer, featuring built-in recirculation, stainless steel heat exchangers, and ENERGY STAR® certification.
Rheem
- Average Cost: $1,000 to $2,800
What We Love
Rheem’s tankless systems blend reliability with innovation, offering both gas and electric models suited for diverse households. Known for strong warranties and excellent support, Rheem’s newer Performance Platinum tankless line integrates smart Wi-Fi control for convenience and efficiency tracking.
We rate it 4.5 stars for dependability and user-friendly technology.
Cost Information
Rheem units cost $1,000 to $2,800 installed, depending on fuel source and efficiency.
- Standard Gas or Electric Models: $1,000 to $1,600
- Condensing and Wi-Fi-Enabled Units: $1,800 to $2,800
Installation typically adds $600 to $900, depending on whether the home needs venting or electrical upgrades and whether a recirculation system or smart-home integration is added.
Best Model
The Rheem RTEX-18 is a compact and highly efficient tankless water heater built to deliver reliable, on-demand hot water. Boasting a 99.8% energy efficiency rating, it features durable copper heating elements and precise digital temperature control, making it an ideal solution for smaller homes and households with moderate hot water demands.
AO Smith
- Average Cost: $1,000 to $2,700
What We Love
brings the same trusted durability from its tank models into its tankless lineup. The brand’s gas and hybrid models are designed for efficiency and reliability, with corrosion-resistant heat exchangers and strong warranty coverage.
We rate it 4.5 stars for performance and long-term value.
Cost Information
A.O. Smith tankless heaters cost $1,000 to $2,700 installed, depending on type and flow rate.
- Standard Non-Condensing Models: $1,000 to $1,500
- Condensing Models: $1,800 to $2,700
Installation costs are generally $600 to $1,500, influenced by venting design, gas-line size, and the complexity of replacing an existing water heater.
Best Series
The A.O. Smith Signature Series Tankless Gas Heater offers excellent efficiency and fast flow rates, with ENERGY STAR® certification and corrosion-resistant components.
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Bradford White
- Average Cost: $1,200 to $2,800
What We Love
Bradford White is highly regarded by professional plumbers for its robust and contractor-grade tankless systems. Known for durable design and superior heat exchanger quality, the brand focuses on performance and dependability.
We rate it 4 stars for professional reliability and solid efficiency.
Cost Information
Bradford White tankless models cost $1,200 to $2,800 installed, depending on configuration.
- Standard Gas Models: $1,200 to $1,800
- High-Efficiency Condensing Units: $2,000 to $2,800
Installation costs average $700 to $1,500 and depend on vent routing, access, and any gas or plumbing upgrades required.
Best Series
The Bradford White Infiniti® K Series provides continuous hot water, low NOx emissions, and a corrosion-resistant dual heat exchanger.
Ruud
- Average Cost: $900 to $2,400
What We Love
Ruud, a sister brand to Rheem, delivers similar reliability and energy performance at slightly lower price points. It’s a strong option for homeowners seeking dependable hot water and good warranty protection without the premium cost.
We rate it 4 stars for reliable mid-range performance that delivers solid efficiency and dependability at a more affordable price point.
Cost Information
Ruud tankless systems cost $900 to $2,400 installed, depending on model and flow rate.
- Standard Models: $900 to $1,400
- Condensing Models: $1,600 to $2,400
Installation costs typically range $600 to $1,200 and vary with venting type, fuel source, and whether new plumbing or electrical work is needed.
Best Series
The Ruud Professional Ultra Series offers up to 0.93 UEF efficiency and includes built-in digital diagnostics for easier maintenance.
State Water Heaters
- Average Cost: $900 to $2,200
What We Love
State Water Heaters provide reliable tankless systems that balance cost and performance. Known for accessible pricing and dependable operation, these units are ideal for homeowners who want long-term efficiency without paying premium prices.
We rate it 4 stars for consistent, value-driven reliability and strong energy performance suited for everyday homeowners.
Cost Information
Typical costs range $900 to $2,200 installed, depending on type and efficiency.
- Basic Models: $900 to $1,200
- Condensing Models: $1,500 to $2,200
Installation costs run $500 to $1,000 and fluctuate based on venting, gas-line upgrades, and overall installation difficulty.
Best Series
The State ProLine® XE Tankless Series features strong efficiency ratings, stainless steel heat exchangers, and reliable warranty coverage.
GE Appliances
- Average Cost: $800 to $2,000
What We Love
GE offers user-friendly, tech-focused tankless systems that emphasize convenience and modern design. With digital displays, smart temperature control, and quiet operation, they’re great for smaller homes and tech-savvy users.
We rate it 3.5 stars for user-friendly controls and smart-home convenience ideal for smaller households and light hot-water needs.
Cost Information
GE tankless systems cost $800 to $2,000 installed, depending on capacity and configuration.
- Electric Models: $800 to $1,200
- Gas Models: $1,400 to $2,000
Installation costs typically range $500 to $1,000 and depend on whether the unit is gas or electric and if new wiring or venting is required.
Best Series
The GE GeoSpring™ Electric Tankless Series provides fast heating, smart control panels, and compact wall-mounted design for space efficiency.
Eccotemp
- Average Cost: $250 – $600
What We Love
Eccotemp is a great choice for homeowners on a budget or for off-grid and RV applications. The brand specializes in portable, compact, and affordable tankless water heaters that are easy to install and maintain. We rate it 3 stars for accessibility, affordability, and innovation in small-space water heating.
We rate it 3 stars for affordability and compact design that works well in small or off-grid applications, though with limited flow and lifespan.
Cost Information
Eccotemp models cost $500 to $1,500 installed, depending on size and setup.
- Portable or Point-of-Use Units: $500 to $800
- Whole-Home Systems: $1,000 to $1,500
Installation costs generally fall between $400 and $800, varying with fuel source, venting needs, and whether professional or DIY installation is chosen.
Best Series
The Eccotemp EL22i Indoor Tankless Water Heater delivers reliable performance and easy installation at a fraction of the cost of premium brands.
