CommunitySave Money: Tank vs. Tankless Water Heater

Save Money: Tank vs. Tankless Water Heater

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My wife and I recently bought a 2 bedroom, 1 bath ranch house. We are planning on being here for 10-15 years, until we get close to retirement or retire. The 40-gallon hot water heater that is in the house works fine, but is old (18 years). We were talking about replacing it, but didn't know if a tankless heater, for just the two of us, would save us enough money to have one installed, or if we should just go with another 40-gallon tank heater. Thanks for your input.

The Money Pit Answer
Good question. A tankless water heater is a high-efficiency option and similar in price to a high-efficiency tank water heater. So, if you want to lower your water heating costs, tankless is a good option. That said, over the course of 10-15 years, it's difficult to say if it will save you more money than a tank heater. But considering the convenience of the unlimited amount of hot water that a tankless water heater could provide, I would go with that. In addition, it would probably improve your home's value.