Tankless water heaters can offer cost savings compared to traditional tank water heaters, but the exact amount of savings can vary depending on several factors. Here are some considerations: Energy Efficiency: Tankless water heaters are more energy-efficient because they only heat water on demand, eliminating standby heat loss. This efficiency can result in reduced energy consumption and lower utility bills. Usage Patterns: The amount of hot water you use and your usage patterns will impact the cost savings. If you have a high demand for hot water, such as in larger households, the savings from a tankless water heater can be more substantial. Fuel Type: The type of fuel used by the tankless water heater, such as gas or electricity, will affect the cost savings. Gas-powered tankless heaters tend to be more cost-effective in terms of operating costs compared to electric ones. Upfront Costs: Tankless water heaters typically have higher upfront costs than tank heaters. It’s important to consider the payback period to assess the long-term savings potential. While it is challenging to provide an exact percentage of cost savings, it is not uncommon for tankless water heaters to offer energy savings of around 20% to 30% compared to tank heaters. Consulting with a professional plumber or energy expert can help evaluate your specific situation and estimate the potential cost savings of switching to a tankless water heater.