Provide a few details about your project and receive competitive quotes from local pros. On average, water heater replacement or installation costs $885, with most homeowners spending between $668 and $1,102. This data is based on actual project costs as reported by HomeAdvisor members.Hot water is an essential part of modern life, a necessity rather than a luxury.rovide a few details about your project and receive competitive quotes from local pros. On average, water heater replacement or installation costs $885, with most homeowners spending between $668 and $1,102. This data is based on actual project costs as reported by HomeAdvisor members.