Building a home? Remodeling? Or maybe your old water heater is just about done? A tankless water heater could be a smart move. It saves energy, frees up space, and gives you hot water on demand. The key is choosing the correct size for your household. Too small and you’ll run short; too big and you’ll overspend. In this blog from America’s Plumbing Company, we’ll share how to find the right size tankless water heater for your family, what it costs, and other key things you need to know.
Benefits of Installing a Tankless Water Heater
If you’re used to a big water heater sitting in your garage or taking up half your closet, switching to a tankless model can be a real upgrade. Instead of storing 40 or 50 gallons of hot water and keeping it heated all day, a tankless unit warms water only when you turn on the tap. That means no more running out halfway through a shower or waiting for the tank to refill after laundry.
Here’s why so many California families love going tankless:
- Endless Hot Water Supply: A tankless system heats water as it flows through, giving you an endless supply of hot water for showers, dishes, and laundry—even when everyone’s using it at once.
- Takes Up Less Space: Without a large tank, these units mount neatly on the wall, freeing up floor space in your garage or utility room for storage, bikes, or cleaning supplies.
- More Energy Savings: Since it doesn’t keep 50 gallons of water hot all day, a tankless water heater only uses energy when you need it—helping lower monthly bills.
- Sized for Your Home: Tankless models are measured by flow rate (how many gallons per minute they can heat) and temperature rise (how much they can raise the incoming water temperature). The right combination keeps your showers warm even when the washing machine’s running.
- Gas or Electric Options: Choose an electric unit for simplicity or go with gas if you need more heating power and higher flow rates for a larger household.
To sum it up, a tankless water heater installation means less waiting, less wasted energy, and a home that works more efficiently for your family’s daily routine. From early morning showers to weekend laundry marathons, a properly sized tankless water heater keeps the hot water flowing hour after hour.
Why Correct Sizing Matters for Tankless Water Heater Installation
When it comes to your tankless water heater installation, size isn’t something to guess at. The unit has to match your home’s demand for hot water: how many fixtures you use at once, how often, and for how long. A properly sized water heater is a critical factor in keeping your showers hot, your laundry clean, and your dishwasher doing its job.
Here’s what can go wrong if your system isn’t the proper size:
- Inconsistent Hot Water: If your unit can’t keep up with your family’s usage, the water temperature may fluctuate or suddenly turn cold mid-shower.
- Strain on the System: A smaller unit working overtime to meet demand can wear out faster, leading to premature repairs or replacement.
- Wasted Energy and Higher Bills: Oversizing can be just as bad. If your water heater is too large for your home, it’ll use more energy than necessary to heat water you don’t need.
- Limited Coverage for the Whole House: The wrong capacity means you might only get enough hot water for one or two fixtures at a time, instead of supplying your whole house.
- Reduced Efficiency: When a system isn’t sized correctly, it can’t run at its best. That means uneven performance, wasted energy, and utility bills that continue to climb.
Getting the sizing right during your tankless water heater installation makes all the difference between a relaxed, normal routine and daily frustration. With help from a professional plumber who understands your home’s layout and water usage, you’ll end up with a tankless water heater that’s properly sized, energy efficient, and ready for anything.
How Big of a Tankless Water Heater Do I Need?
So, the big question is this: what size tankless water heater do I need? The size of your tankless water heater depends on a few key factors—mainly how much hot water your family uses at once and how many fixtures (like showers, sinks, and appliances) are running at the same time. Unlike traditional tanks, these systems are measured by flow rate in GPM (gallons per minute) and heating capacity, not by how many gallons they store.
For example, a couple living in a smaller home might only need a 6–8 GPM unit to run one shower and a dishwasher comfortably. But a larger household with multiple bathrooms and several people living under one roof may need a 10–12 GPM system to keep up with the demand for simultaneous showers, laundry, and dishes. The maximum flow rate determines how much hot water your system can produce at once, so choosing the right capacity is critical for smooth, consistent performance.
The table below provides an overview of the different sizes of tankless water heaters and which is ideal for each family size, along with their typical cost:

When choosing your system, there’s more to consider than just the size. Digital temperature controls let you set an exact water temperature—so your showers stay comfortable and you don’t have to mix in as much cold water. A built-in recirculation pump can keep hot water moving through your pipes, cutting down the wait time at distant fixtures like a bathroom upstairs or a kitchen on the other side of the house.
ENERGY STAR® rated models use less gas or electricity per gallon of water heated, helping you save money every month. And because Sacramento homes often have hard water, choosing a system with built-in scale prevention can protect your equipment and extend its life.
What Goes Into Your Tankless Water Heater Installation Cost
While tankless water heaters can cost more upfront, they typically last 20 years or more—almost twice as long as a traditional tank-style water heater. They also need less maintenance, which can save you money over time. Still, it’s important to look at the full picture when planning your tankless water heater installation. Other factors can affect your total cost, including:
- Gas or Electrical Upgrades: Your home may need a larger gas line or an electrical panel upgrade to support the new unit.
- Venting Modifications: Safe operation may require new stainless or PVC venting, rerouting, or longer runs to meet code.
- Permits and Inspections: Local codes often require permits and a final inspection, which add time and fees.
- Limited Access or Relocation: Tight spaces, attic installs, or moving the heater to a new spot can increase labor due to tricky access.
- Mounting and Enclosures: Wall-mount brackets, seismic strapping, or an outdoor weatherproof enclosure may be needed.
- New Lines or Wiring: Running new gas lines or electrical wiring—especially over long distances—can significantly raise costs.
Purchasing a tankless water heater is an investment, but it’s worth it for the convenience and comfort it brings to your home.
We Can Expertly Size and Install Your New Tankless Water Heater
America’s Plumbing Company installs and services all the leading brands of tankless water heaters so you’ll always get a reliable system that fits your home’s needs. Our process starts with gathering a few key details—like your home’s size, number of bathrooms, and how your family uses hot water each day.
With that information, we’ll accurately size your new system and give you a clear, no-obligation quote on your options. Once you give us the go-ahead, we’ll get your new water heater installed ASAP! We can also talk to you about financing. Many local utilities, including SMUD and PG&E, offer rebates for energy-efficient upgrades, and California’s statewide programs sometimes provide additional incentives.
Get a Quote for Your Tankless Water Heater Installation Today
America’s Plumbing Company can help you choose the right tankless water heater for your home while saving money at every corner. Check out our Google Reviews to see why so many Sacramento homeowners trust our locally owned plumbing company that’s been proudly serving the area since 1999.
Have questions, or are you ready to take the next step? Schedule your tankless water heater installation estimate today with America’s Plumbing Company and experience service that’s fast, friendly, and fair.
