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How Much Is a 40 Gallon Water Heater? – Update Price

Fact checked by Stephen Conklin

how much is a 40 gallon water heater

Is your 30-gallon water heater no longer sufficient to supply your household’s hot water demands? Are you wondering “how much is a 40 gallon water heater?” whether electric or gas?

Knowing how much a 40-gallon water heater costs allows you to plan your budget, including money for the heater’s installation and continuous operation. You can start saving for your water heater upgrade so your family will continue enjoying an unlimited hot water supply.

Let’s learn how much you will be paying for a 40-gallon water heater.

Table of Contents

How Much Can I Expect to Pay for a 40-Gallon Gas Water Heater?


The cost of a 40 gallon gas water heater can range from $400 to $1,800, depending on the manufacturer, model series, energy efficiency, and feature set.

These water heaters use propane or natural gas to produce heat from the burner, raising the water temperature to preferred levels. The cold water enters the 40-gallon tank through an inlet port, heats up inside the tank, and moves out through an outlet port ready for distribution to hot water fixtures.

Gas water heaters are ideal for homes with an existing natural gas line or propane gas. These products are more expensive than electric water heaters but are more cost-efficient in the long run.

On average, gas water heaters use 0.205 therms per hour. Hence, if you use the water heater for three hours daily, you will consume 0.615 therms per day. Suppose the natural gas price in your area is $1 per therm. In that case, you will pay about 62 cents daily or $18.60 monthly.

Cheap 40 gallon gas water heaters might be right for the budget of some families. However, it would be best not to expect too much because there will always be downsides to the product reflecting the brand’s cost-cutting measures.

How Much Can I Expect to Pay for a 40-Gallon Electric Water Heater?

Electric water heaters are more affordable but costlier to operate than gas-powered water heating systems. The average cost of 40 gallon water heater running on electricity is $700. You can buy an affordable $300 unit if you are on a tight budget or go for a $1,100-water heater for the best results.

These water heater systems operate like a gas heater, except for the heat source. Electric water heaters have thermostats mated to heating elements that heat the water.

Unfortunately, these products also require a dedicated circuit breaker because they draw a large amount of electricity. The average 40-gallon electric water heater requires about 4,000 watts of power running on a dedicated 240-volt system.

Suppose you use your 4,000-watt 40-gallon electric water heater for three hours daily, and the electricity cost in your community is 10 cents per kilowatt-hour. In that case, you will pay $1.20 daily (4,000 watts = 4 kWh; 4 kWh x $0.10= $1.20). Your monthly water heating bill is $36.

How Much Will It Cost Me to Install a 40-Gallon Gas Water Heater?

The 40 gallon water heater cost is not the only thing you must consider. Installation can also set you back for a few hundred dollars more unless you set up the water heater yourself. Water heater installation can be a worthy DIY project if you know what to do.

The cheapest labor you can get is $350, but it can go up to $1,500 if your house needs some modifications to accommodate the 40-gallon gas water heater. Vents are a must when installing a gas-powered water heating appliance, which can also increase the overall installation cost.

How Much Will It Cost Me to Install a 40-Gallon Electric Water Heater?


As mentioned, installing a 40-gallon electric water heater requires a dedicated 240-volt electrical system with a separate circuit breaker. That is why it would be best to have a professional install this water heater unless you are confident with your electrical skills.

The labor cost for installing a 40-gallon electric water heater is less expensive than gas installation. The lowest installation cost you can get is $270, although it is not unusual to spend as much as $1,000. If you add this to the price of 40 gallon water heater, your total expenses are $570 to $2,100.

What Factors Impact a 40-Gallon Water Heater’s Price?

Several factors can impact the price of 40 gallon hot water heater, including its installation cost. That is why I always recommend first-time buyers to factor in the unit price, labor cost, and other incidentals in planning their budgets.

1. Type

Electric water heaters are more affordable than gas-powered units, even though they deliver the same 40 gallons of hot water.

However, gas water heaters are more cost-efficient, providing families with as much as $220 in annual savings. It might not seem like much, but a budget-conscious family will appreciate the price difference. Moreover, a gas water heater will pay for itself in about a year or more.

2. Materials

The choice of materials can also impact the price of 40 gallon hot water heater. For example, some manufacturers use cast iron in their hot water storage tanks, while others produce water heaters with stainless steel. We know that cast iron is less expensive than stainless steel.

Other companies use high-density polyethylene polymers, fiberglass, galvanized steel, and advanced materials for their tanks. Each material type has its price considerations that impact the water heater’s retail price.

The tank’s inner lining and external insulation also matter. Some tanks come with high-quality glass lining, while others rely on stainless steel and other corrosion and limescale-preventing materials.

The water heater tank’s foam insulation can also add to its price. The thicker and more advanced the insulation technology, the more expensive the water heater.

The good news is these improvements or innovations in tank technologies enhance the water heater’s heat retention and heat loss prevention capabilities. Although you will pay more for these water heaters, you can expect stellar performance.

3. Energy Efficiency

Electric water heaters are more energy-efficient than gas-powered water heating devices.

These devices have heating elements completely submerged in the water, minimizing heat loss. On the other hand, gas water heaters rely on a burner outside the water tank, making it more susceptible to environmental forces favoring heat loss.

In general, a 40-gallon water heater with a higher energy efficiency rating is more expensive than a product with a low rating.

4. Inherent Features

The more features present in a 40-gallon water heater, the more expensive the product is. These attributes can include smart connectivity, self-cleaning modes, and other unique features.


You can now answer the question “how much is a 40 gallon water heater?”

  • A gas-powered 40-gallon water heater can cost you $400 to $1,800, while its installation can set you back by an additional $350 to $1,500.
  • A 40-gallon electric water heater can cost $300 to $1,100, plus an extra $270 to $1,000 for professional installation.

There you go. Now, you can plan the budget for upgrading your existing water heater or installing a new one if you are a first-time owner.

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