Tank vs. Tankless Water Heaters: What’s the Right Choice for Your Home?

Choosing a new water heater can feel overwhelming. Tank or tankless? What’s the difference? Which one is better?

The truth is—they both have great benefits. The best choice depends on you, your home, and how your family uses hot water.

Let’s break it down simply, so you can feel confident and informed.

What’s the Difference Between a Tank and a Tankless Water Heater?

It all comes down to how they heat and store water:

Tank Water Heaters (Traditional)
These systems come with a large tank—usually between 30 and 100 gallons—that stores hot water 24/7 and reheats it after each use.

Tankless Water Heaters
These units don’t store water. Instead, they heat water on demand, only when you turn on a tap, shower, or appliance.

Why Choose a Tank Water Heater?

Tank water heaters are still the most common in homes. Here’s why homeowners love them:

Lower cost upfront – Retrofitting for a tankless system typically costs 2–3x more than swapping in a new tank.
Simple to install – Often a like-for-like replacement that just needs to be brought up to code.
Easier to service – With just 3–4 components, parts are widely available and repairs are straightforward.
Consistent hot water – If a tank has worked for you before, it’ll keep working just the way you’re used to.

Things to consider:

• Uses more energy by keeping water hot 24/7—even when you’re not using it. 
• Once the tank runs out, you may wait 30–60 minutes for more hot water. 

Why Choose a Tankless Water Heater?

Tankless systems are becoming the go-to for modern and upgraded homes. Here’s why:

Energy efficient – They only run when you use hot water, making them about 30% more efficient than tanks.
Endless hot water – Perfect for long showers, big families, and oversized bathtubs.
Saves space – Wall-mounted and more compact (though space savings are often modest).
Longer lifespan – With proper maintenance, they can last 15–25 years (vs. 8–12 for tanks).

Things to consider:

• Higher upfront costs due to the need to retrofit. 
• Larger gas lines may need to be run from your meter to meet the system’s higher BTU demands. 
• Repairs can be more technical, and parts may be more expensive. 
• Annual maintenance is required, and skipping it can lead to costly repairs.

How to Know Which Is Right for You

Before choosing, ask yourself:

• How many people live in your home? 
• How many bathrooms do you have? 
• Do you ever run out of hot water? 
• Do you want a “set-it-and-forget-it” water heater, or are you okay with annual maintenance? 
• Do you take lots of baths or have an oversized tub? 
• Are you planning to stay in your home long-term? 

Need help thinking it through?
Check out our helpful guide:
Should I Go Tankless or Stick With a Traditional Water Heater?

We Don’t Pick Favorites—We Pick What’s Best for YOU

At THE Water Heater Company, we’re not here to tell you which water heater is better—we’re here to help you figure out which one is better for your home.

Our experienced technicians take the time to visit your home, ask the right questions, and perform a full evaluation. Then, we guide you to the option that best fits your comfort, budget, and long-term plans.

It’s not about what we like—it’s about what works for you.

Want to schedule a home evaluation? We’re happy to help.

Let’s Find Your Perfect Fit

Whether you go tank or tankless, the right water heater will:

• Keep your showers hot 
• Lower your energy bills 
• And keep your home running smoothly 

Need help deciding?
Call THE Water Heater Company at (877) 798-7487 to speak with a real expert who cares.