In general, buying and setting up a tankless water heater is about 2 to 2.5 times pricier than a standard water heater. This is because of the higher unit production costs, venting, and the need to adjust the gas line and meter to support the unit's needs.

However, once your tankless water heater is in place, you'll enjoy lower operational costs, extra space in your home, and you might even qualify for tax credits or local incentives.