Is the water heater located in the garage, in the attic or on the second floor? The location of the unit in your home is going to play a role in the cost of replacing it. The starting price to replace a water heater is around $1500. This will include a new water heater, a new pan and new flex lines. We also remove the old water heater and take it with us when we complete the job, rather than leaving you with the task to dispose of it.