Tank vs. Tankless Water Heaters: Which Is Right for Your Madison Home?

If your water heater is 10 or more years old, the question is not whether you will replace it but what you will replace it with. Here is how tank and tankless heaters compare for a typical Madison household.

How They Work

A tank water heater keeps 40–80 gallons of water hot around the clock. A tankless water heater heats water only when a faucet opens, using a high-output gas burner or electric element.

Side by Side

	Tank	Tankless
Installed cost	About $900–$2,500	About $1,500–$4,500+
Typical lifespan	8–15 years	20+ years
Hot water supply	Limited to tank size	Continuous
Energy use	Standby losses keeping water hot	8–34% more efficient per the U.S. Department of Energy; the biggest savings are in lower-use homes
Space	Large footprint	Wall-mounted
Maintenance	Annual flush	Annual descaling

When Tank Makes Sense

• You want the lowest upfront cost
• You are doing a quick like-for-like replacement
• Your home has an electric heater and limited electrical capacity
• You may sell the home within a few years

When Tankless Makes Sense

• Your household runs out of hot water
• You have natural gas and plan to stay long-term
• You want the space back in a garage or closet
• You value a longer service life over lower upfront cost

The Hidden Costs of Switching

Converting to tankless can require a larger gas line, new venting, a condensate drain, and sometimes electrical work. Those can add $500–$2,000 to the job. A plumber should check your gas supply and venting before quoting.

Bottom Line

For most Madison households replacing an old tank quickly, a new tank is the practical choice. If you have gas, plan to stay, and are tired of cold showers, tankless often pays for itself over its longer life. See water heater repair and replacement.