Tankless vs. Tank Water Heater: Which Is Right for You?

When it's time to replace your water heater, the big decision is whether to stick with a traditional tank or switch to a tankless model. Both have real advantages. Here's how to decide.

Traditional tank water heaters

Tank units store and heat a reservoir of water, typically 40 to 80 gallons. They cost less upfront and are simpler to install, but they take up space, use energy keeping water hot around the clock, and can run out during heavy use.

Tankless water heaters

Tankless units heat water on demand as it flows through the unit. They never run out, last longer, save space, and lower energy bills, but they cost more upfront and may need electrical or gas upgrades.

Which should you choose?

• Choose tank if you want lower upfront cost and simpler installation
• Choose tankless if you want endless hot water, lower bills, and longer lifespan
• Consider your household size and hot water demand