Here's the number nobody prints on a listing: the unit is often less than half of what the job costs. Gas line resizing, condensing-rated venting and a condensate drain routinely add up to more than the heater itself. The Rinnai RX199iN Condensing Smart Sense Tankless Water Heater is still the one I'd choose, because the service network behind it is the largest in the country.
I should be straight with you about method. I rent, so this is the one category where I worked from installation manuals, sizing tables and plumbers' field reports rather than fitting ten heaters myself. What I could assess directly was sizing maths, electrical requirements, and which units are honest about what they demand. That turned out to be most of the decision.

#1 · Editor's Choice
Field reliability is the reason this sits first, not the spec sheet. Plumbers report fewer repair calls on Rinnai than on anything else in the category, and the service network is the largest in the country, which matters more than any efficiency figure the day it stops working. Smart Sense flags a fault over WiFi before the hot water goes. But I read the installation manual twice and the cost is real: proper gas line sizing plus a dedicated condensing vent means the fitting bill often exceeds the unit itself.
The verdict: The one I'd buy for support, not for specs.
#2 · Runner-Up
Matching the premium units on efficiency while asking noticeably less is the case here, and the spec sheets back it. A condensing exchanger and ultra-low NOx output, which several states now require. Rheem parts move through ordinary plumbing suppliers rather than special order, which I checked with a local merchant. At 8.4 GPM it supplies less than the 10 GPM units, and in a cold inlet climate that gap widens fast, so size it against your own water rather than the label.
The verdict: The efficiency of the flagships, a step down on flow.
#3 · Best Whole House Gas
Nobody markets this to homeowners, which is exactly why it's worth a look. Ten gallons a minute and 199K BTU puts it level with the flagship tier, and A.O. Smith is one of the largest water heater manufacturers in the world, so distribution is deep even without the advertising. The thing to check before you get excited is the gas supply. A full 199K BTU input needs a line many houses simply don't have, and resizing it is not a small job.
The verdict: Flagship output without the flagship marketing.
#4 · Best For Large Homes
Takagi designs for high simultaneous demand rather than scaling up a small unit, and the heat exchanger is built to commercial standards. If you have three bathrooms and people who shower at the same time, this is the one engineered for it. Two things pulled it down for most readers though. It's the most expensive unit in this list, and in a one-bathroom house it's actively wrong, because an oversized heater cycles on and off against a small draw.
The verdict: Right for a big house, wrong for a small one.
#5 · Best Compact Gas
Correct sizing is underrated, and 6.6 GPM is the honest number for one or two bathrooms. Noritz has built tankless units longer than most of this field, and a long production run means the parts and the failure modes are documented rather than guessed at. Direct venting is simpler to route than the big units. It won't cover three fixtures at once, and output drops sharply once inlet water gets genuinely cold, which is worth modelling for your climate.
The verdict: The right-sized choice, if you don't oversize out of habit.
#6 · Premium Pick
Proportional power modulation is the feature that separates good electric units from frustrating ones, because it holds the outlet temperature steady as the flow changes rather than surging. This is the highest electric output here and requires no flue whatsoever, which deletes the largest single installation cost. I checked the amperage against a typical older panel and that's the problem: it needs heavy service, and its price sits above every other electric option listed.
The verdict: The best electric unit, if your panel can feed it.
#7 · Best Value
Seventeen inches square and three and a half deep is the detail that sells this, because it fits where a tank never could. Self-modulating technology matches draw to demand, and with no venting the install is electrical work only. It's the value benchmark most electric guides reach for. The warning in every one of those guides is the same one I'd give: confirm your panel capacity first, and expect it to struggle where inlet water runs cold.
The verdict: The value pick, provided the panel maths works out.
#8 · Best Electric Build
Eemax builds electric tankless as its main business rather than a sideline, and the internals are plainer and more serviceable than the consumer-focused units. Twenty-seven kilowatts puts it near the top of the electric range, all of it reaching the water since there's no flue. No venting needed. It carries the same amperage problem as every high-output electric unit, and support runs through electrical suppliers rather than the plumbing merchants most people call.
The verdict: Solid electric hardware with a narrower support path.
#9 · Best Propane
Off the natural gas grid, the options narrow quickly, and this is the strongest of them. Seven and a half gallons a minute on liquid propane is genuine whole-house output, and it's CSA certified for indoor installation. It costs considerably less than the condensing units above. That's because it isn't condensing, so efficiency trails them clearly, and Marey's support network is thinner than Rinnai's or Rheem's if something goes wrong.
The verdict: The propane answer, with efficiency as the trade.
#10 · Best Portable
Let's be clear that this belongs to a different category than everything above it. It's a portable propane heater with battery ignition and a regulator in the box, made for camping, an RV or an off-grid cabin. At 1.32 GPM it runs one outdoor shower. It needs no plumbing and no mains power, which is the entire point. Treat it as house equipment and you'll be disappointed; treat it as camping kit and it's excellent.
The verdict: Camping equipment, and very good at being that.
This category needs a different approach and I'd rather say so plainly. Nobody plumbs ten water heaters into one house, so instead of pretending otherwise, I worked from manufacturer installation manuals, sizing tables, published efficiency ratings and the field reports plumbers put their names to. Where I could check something directly, such as electrical requirements against a real panel or physical dimensions against a real space, I did.
Scoring weighted output and efficiency at 30 percent, editorial and trade consensus at 30 percent, with installation practicality and value at 20 percent each. Trade consensus carries real weight here because plumbers see failure rates that no single household ever will.
Nothing was supplied by a manufacturer, and no brand influenced the ranking.
Start with temperature rise, because it is the single most misunderstood thing in this category. Every maximum flow figure assumes a small rise between incoming and outgoing water. A unit rated 10 GPM in a warm climate manages roughly half that where the inlet water is genuinely cold in winter. Work out your own rise first, then size the unit. Anyone looking for the best condensing tankless water heater for a family of four in a cold region should be shopping the 10 GPM units rather than the 6.6 GPM one, even though the smaller unit looks adequate on paper.
Then be realistic about gas versus electric, because the constraint is different in each case. Gas units need a correctly sized gas line, condensing-rated venting and a condensate drain, which is where the installation bill grows. Electric units need none of that, which sounds like the simple option until you check the amperage draw. A 24 kW or 28.8kW unit can demand more than an older panel can supply, and a panel upgrade costs more than the heater.
Condensing versus non condensing is mostly an efficiency question with a venting consequence. A condensing heat exchanger pulls heat back out of the exhaust, which raises efficiency and lowers the flue temperature enough to change what venting material you can use. The Marey here is the non-condensing option, and it costs less for exactly that reason.
Finally, resist oversizing. An oversized heater short-cycles on low flow, which produces the cold water sandwich people complain about, and it costs more to buy and run. Descaling also matters more than most listings admit: on hard water, skipping it will shorten the life of the exchanger and void most warranties. For the other big home-systems decision, our guide to the best electric fireplaces covers supplemental heating.
For most households on natural gas, buy the Rinnai RX199iN. The specs are competitive rather than dominant, and that's not why it wins. It wins because plumbers report the fewest problems with it and the parts network is the largest, which is what you'll care about in year six.
Want the same efficiency for less? The Rheem RTGH matches it on condensing performance at 8.4 GPM, which is plenty in a warm inlet climate. If you have three bathrooms and simultaneous showers, the Takagi is engineered for that load, and the A.O. Smith supplies the same 10 GPM with less marketing attached. For one or two bathrooms, the Noritz at 6.6 GPM is correctly sized and won't short-cycle.
No gas at all, or no appetite for venting? The Stiebel Eltron holds temperature better than any other electric unit here, the EcoSmart ECO 24 is the value choice in a compact body, and the Eemax is the plainest and most serviceable. All three come with the same caveat: check your panel capacity before you order.
Off-grid or on propane, the Marey gives you whole-house flow at the cost of condensing efficiency. And for a cabin, a campsite or an outdoor shower, the Camplux is the right tool and nothing else here comes close. Still undecided and on gas? Get the Rinnai.
| Product | Flow rating | Fuel and type | Install burden | Support network | Overall |
|---|---|---|---|---|---|
| Rinnai RX199iN Condensing Smart Sense Tankless Water Heater | Whole house | Gas, condensing | Gas line plus vent | Largest here | 9.4 |
| Rheem RTGH 8.4 GPM Condensing Gas Tankless Water Heater | 8.4 GPM | Gas, condensing | Gas line plus vent | Strong | 8.9 |
| A.O. Smith ATI-540P-N 10 GPM Gas Tankless Water Heater | 10 GPM | Gas, condensing | 199K BTU gas line | Deep distribution | 8.7 |
| Takagi TK-540P-NIH 10 GPM Gas Tankless Water Heater | 10 GPM | Gas, condensing | 199K BTU gas line | Strong | 8.5 |
| Noritz NRC66DVNG 6.6 GPM Condensing Tankless Water Heater | 6.6 GPM | Gas, condensing | Simpler direct vent | Well documented | 8.3 |
| Stiebel Eltron Tempra 29 Plus Electric Tankless Water Heater | Whole bathroom | Electric, 28.8kW | Heavy electrical only | Specialist | 8.6 |
| EcoSmart ECO 24 Electric Tankless Water Heater | Shower plus sink | Electric, 24 kW | Electrical only | Widely stocked | 8.2 |
| Eemax EEM24027 Electric Tankless Water Heater | Whole bathroom | Electric, 27 kW | Electrical only | Electrical channels | 7.9 |
| Marey 7.5 GPM Propane Tankless Water Heater | 7.5 GPM | Propane, non-condensing | Indoor vent | Thinner | 7.4 |
| Camplux AY132G Portable Propane Tankless Water Heater | 1.32 GPM | Propane portable | None | Limited | 7.1 |
Count fixtures, then adjust for your climate. Two bathrooms in a warm region are fine on around 8 GPM, while the same house with genuinely cold inlet water wants 10 GPM. One bathroom is well served by 6.6 GPM. Oversizing is not harmless, since an oversized unit short-cycles on low flow and produces uneven temperatures.
It's the gap between incoming cold water and the temperature you want out. The bigger that gap, the less water a heater can raise per minute, which is why a unit rated 10 GPM in Florida may manage closer to half that in a northern winter. Every maximum flow figure quietly assumes a small rise.
Over a long enough horizon, usually yes, but the maths is less flattering than the marketing. The unit saves energy by not keeping a tank hot, and it lasts longer than a tank heater. What eats the saving is installation, since gas line work and venting can cost more than the appliance. If you're replacing like for like, it's an easier case.
Gas if you have a suitable line, electric if you don't and your panel is strong. Gas handles higher flow and costs less to run in most regions, but needs venting and a condensate drain. Electric needs no venting at all, which removes the biggest install cost, and instead demands serious amperage that many older panels cannot supply.
More than most homes have spare. The high-output electric units here draw enough that a dedicated circuit is not the end of it; the whole panel needs the capacity. Have an electrician confirm the service size before ordering, because a panel upgrade will cost more than the heater and turns a cheap install into an expensive one.
Considerably longer than a tank, which is a genuine part of the value case. Where a tank heater is typically replaced after roughly a decade, these are built to run substantially longer, and most parts are serviceable rather than sealed. That lifespan assumes descaling on schedule, which on hard water is not optional and voids most warranties if skipped.
The Rinnai RX199iN is the unit I'd put in a house on natural gas, and the reason isn't the spec sheet. It's that plumbers report fewer failures on it and the parts network is the largest in the country, which is what matters the week it stops working. The Rheem RTGH is the one I'd choose to save money without giving up condensing efficiency, as long as 8.4 GPM suits your climate. Between those two, most homes are covered. Get a quote for the gas line and venting before you commit to any of this, because that's where the real cost lives.
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