13 Best Condensing Tankless Water Heater | No More Cold Showers

Our readers keep the lights on and the coffee maker working hard! As an Amazon Associate, I earn from qualifying purchases.

Specs are compiled from manufacturer listings and verified buyer reviews and can change over time — please confirm the key details on the product page before buying.

If you are tired of being the last one in the shower, or you are tired of a giant metal tank squatting in your garage, a condensing tankless water heater is the upgrade you are actually considering. These units heat water only when you turn on a tap, which means endless hot water, but the real magic is in the word “condensing” — it captures waste heat that older tankless models simply blow out the vent. The result is a unit that is dramatically more efficient (think 0.91 to 0.98 UEF ratings) and, because it runs cooler exhaust, it can often use cheaper PVC venting instead of expensive stainless steel.

I’m Mohammad Maruf — the founder and writer behind Gardening Beyond. This guide is built by comparing the manufacturers’ published specifications and the patterns across verified customer reviews, so you get each pick’s real strengths and trade-offs instead of marketing spin.

condensing tankless water heater reviews here focus on real-world reliability, flow rates, and hidden installation costs.

Our Picks at a Glance

Rinnai RX199iN Condensing Smart Sense Tankless Water Heater
Best OverallRinnai RX199iN Condensing Smart Sense Tankless Water Heater4.6★144 ratingsThe 11 GPM powerhouse that ends cold showers for a 3-bedroom home. This is the unit that makes a 7-fixture household feel like it has an endless well of hot water.Check Price on Amazon
ThermoMate RTC68iN Condensing Tankless Water Heater
Best ValueThermoMate RTC68iN Condensing Tankless Water Heater4.4★16 ratingsThe smart-budget pick that still runs three showers at once. If you want the efficiency of condensing without the premium price tag, the ThermoMate RTC68iN is the one to weigh.Check Price on Amazon

How To Choose The Best Condensing Tankless Water Heater

Choosing a condensing tankless water heater is a slightly different game than picking a standard tank model. You are not just looking for “hot water” — you are matching a machine’s appetite for gas and water flow to the size of your home and the number of people in it. Get the flow rate wrong, and you will be staring at lukewarm water during a morning rush.

Flow Rate (GPM) — The Real Capacity Number

The single most important number is the flow rate, measured in gallons per minute (GPM). This is not the total water the unit holds; it is the amount of hot water it can produce at one specific moment. A 6.6 GPM unit is perfect for a 2-person home running one shower. An 11 GPM unit like the Rinnai RX199iN can handle 7 fixtures at once (showers, sinks, and a washing machine all at the same time). If you undersize this, you will get cold water sandwiches when the dishwasher kicks in during a shower.

BTU Heat Output — The Northern Climate Insurance

The BTU (British Thermal Unit) rating tells you how hard the burner can work to raise the water temperature. This matters most in winter. If your incoming ground water is 40°F, you need a lot more heat to bring it to 120°F than someone in Florida with 70°F ground water. A 199,000 BTU unit is the heavyweight tier, suitable for 3+ bathroom homes in cold climates, while a 160,000 BTU unit is a solid mid-range choice. The efficiency factor (UEF) tells you how much of that heat actually gets into the water versus out the vent.

Quick Comparison

Model Best For Flow Rate Heat Output Efficiency (UEF) Amazon
Rinnai RX199iN Whole-home, 7 fixtures at once 11 gpm 199,000 BTU 0.98 Amazon
ThermoMate RTC68iN Budget-conscious 3-shower homes 9.38 gpm 163,000 BTU 0.91 Amazon
Rheem 9 GPM Simple indoor installs 9 gpm 180,000 BTU Amazon
Rheem Prestige RTGH-RH11DVLN Instant hot water with recirculation 11 gpm 199,000 BTU 0.94 Amazon
Noritz NRC66DVNG Smaller homes, simple PVC venting 6.5 gpm High Amazon
Noritz NRC66DVLP Propane homes with small footprints 6.6 gpm High Amazon
Takagi T-H3J-DV-N Garage wall installs, ultra-low NOx 6.6 gpm High Amazon
AO Smith ATI-540P-N 3-4 bath homes with instant recirc 10 gpm 199,000 BTU 0.93 Amazon
Rinnai RU160iN High-efficiency 6-fixture homes 9 gpm 0.97 Amazon

In‑Depth Reviews

Best Overall

1. Rinnai RX199iN Condensing Smart Sense Tankless Water Heater

11.1 GPMUEF.98

The 11 GPM powerhouse that ends cold showers for a 3-bedroom home.

This is the unit that makes a 7-fixture household feel like it has an endless well of hot water. The RX199iN delivers 11 gpm, which the maker says covers 7 fixtures at once, and it does it with a super-high UEF of.98 — that is close to perfect efficiency for a gas appliance. Owners describe it as reliable and quiet, with one noting it has served a 3-bedroom home well for a full year.

On the flex side, this one model runs on either natural gas or propane thanks to the Smart Sense gas control, and it installs indoors or outdoors with the Versa Vent. At 55 pounds and 18.5″W x 30.11″H, it is a compact suitcase-sized box that frees up your garage floor. The reliability is the biggest draw — it is the #1 praised aspect, with heat generation close behind.

Installation honestly varies by situation. Some buyers found it easy; others describe it as a challenging project, so plan for a professional if you are not handy. The recurring gripe is the noise level, which some find noticeable, though most call it quiet. As buyers report, “Its been a year now so I can honestly say this water heater was worth every penny I paid for it.”

What wins people over

  • Reliability is the top praised aspect, with owners trusting it daily.
  • 11 gpm flow covers 7 fixtures at once — showers, laundry, and dishes together.
  • Runs on gas or propane, indoors or outdoors, for total flexibility.
  • UEF.98 efficiency means less gas wasted up the vent.

What to be ready for

  • Installation is a challenge if you are a first-timer; a technician is recommended.
  • Some owners note a noticeable noise level while running.
  • Requires registration within 90 days for the full 15-year heat exchanger warranty.

Reach for this if: you have a larger home (3+ bedrooms) and want one flexible unit that handles many fixtures at once without running out.

Think twice if: you are on a strict budget or plan a DIY install with zero plumbing experience — the complexity is real.

Best Value

2. ThermoMate RTC68iN Condensing Tankless Water Heater

9.38 GPM163,000 BTU

The smart-budget pick that still runs three showers at once.

If you want the efficiency of condensing without the premium price tag, the ThermoMate RTC68iN is the one to weigh. The dual heat exchange system (stainless steel plus oxygen-free copper) is what captures waste heat to hit that 0.91 UEF, which the maker says cuts annual hot water costs by about 17% versus traditional models.

This is a wall-mount indoor unit at 14.57″W x 28.44″H, making it one of the slimmer profiles here. The smart water mixing valve keeps temperature stable even during multi-shower use, and a sealed combustion design keeps it quiet. Owners praise the easy installation and steady hot water, with one calling it “perfect” for on-demand needs.

The honest catch is the hidden costs. Owners mention: “It doesn’t come with everything you need to hook it up and if you are going from a tank heater to tankless be ready to spend another for parts.” That covers gas shut-off valves, isolation valves, and a pressure relief valve. Also, as a condensing unit, it produces mildly acidic condensate that needs a drain and an external neutralizer kit (not included) to protect your pipes.

Smart savings: You get true condensing efficiency and three-shower capacity for a mid-range price, but budget extra for hook-up parts.

Who it’s for: A value-focused homeowner who is OK doing a bit of extra shopping for the missing valves.

Top Performer

3. Rheem Natural Gas Condensing Tankless Water Heater

9 GPM180,000 BTU

A straightforward 180,000 BTU workhorse that installs without drama.

For many homes, the Rheem 9 GPM is the ticket to endless hot water without overcomplicating things. It delivers 0.4 to 9 gpm of flow and fires up to 180,000 BTU, which is plenty for a mid-sized family running a couple of showers and the dishwasher. The temperature range runs 100 to 140°F, defaulting to a comfortable 120°F, and it includes an electric ignition — no standing pilot light to fuss over.

At 59.9 pounds and 17.7″W x 23.7″H, this is one of the heavier, more compact units here. The #1 praised aspect is installation — owners find it straightforward, with one saying it “installed and working perfectly” and another highlighting a polite delivery crew that placed the unit right where it was needed. The build quality is also praised, and it runs quietly and efficiently per the manual.

The warranty is solid: 15 years on the heat exchanger, 5 years on parts, and 1 year on labor. One owner advises adding an expansion tank and pressure regulator for constant pressure, and notes a gas smell in the exhaust (at 93% efficiency) — so keep the vent away from lounging areas. This is a dependable, no-surprises pick.

Easy installation: The most praised trait is the straightforward hookup, so this suits DIY-leaning owners.

Best if: you want a reliable mid-range unit that does not need a gas line or vent re-engineer.

Compact Pick

4. Rinnai RX160iN Condensing Smart Sense Tankless Water Heater

9 GPMUEF.97

The same flexible Rinnai brains, sized for 6 fixtures at once.

The RX160iN is the slightly smaller sibling to our top pick, trading a little flow for a lower entry point — but cold-water wait while the heater fires up. It includes a built-in recirculation system, so hot water is already in the pipes when you turn on the tap. It delivers up to 11 gpm at 199,000 BTU, positioning it among the most powerful units here, with a.94 UEF efficiency rating.

Its Auto-Learn Programming tracks your water usage over time and auto-programs to meet hot water needs at peak times — a smart feature you do not see on most competitors. The compact, space-saving design is perfect for a tank replacement, and the water & gas leak detection will shut the unit down and give an error code for safety. Owners love the instant hot water and the ability to run multiple simultaneous showers.

The honesty here is that reliability gets harsh feedback. Multiple reviewers point out failures — a cracked heat exchanger, a plastic flame sensor window that burns, and warranty disputes leaving them without hot water for a month. One owner notes that while it works great initially, it quit after about a year. This is the one to buy with eyes open: the feature set is excellent, but the track record is the weakest of our picks.

Choose it for: the best instant-hot-water feature set of the list, with built-in recirculation and huge 11 gpm flow.

Be cautious if: you prioritize reliability above all — the owner reports on long-term durability are not reassuring.

Budget Champion

5. Noritz NRC66DVNG Indoor Condensing Tankless Water Heater

6.6 GPM38 lbs

A featherweight 38-pound heater that vents with cheap Schedule 40 PVC.

If you are replacing an aging 40-gallon tank in a smaller home, the Noritz NRC66DVNG is the efficient, light, and easy pick. At only 38 pounds and 13.8″W x 23.6″H, it is one of the lightest and most compact units on the list — easy for one person to lift and mount. It flows 6.6 gpm, which owners say handles multiple fixtures without issues in a typical home.

The big practical win is the venting. This condensing unit can be vented with Schedule 40 PVC pipe and fittings, which is dramatically cheaper and easier to source than stainless steel venting required by non-condensing units. It also earns points for low NOx emissions, a digital temperature control, and a quiet, small footprint. Shoppers say gas use dropping 10-20% after switching, and a 6-month update found the unit running flawlessly.

The common trade-off is the “cold-water sandwich” — a brief slug of cold water when the heater cycles — and the need for regular descaling and annual cartridge replacement to keep it happy. This is a great fit for a 2-3 person household that wants efficiency without the bulk.

Easy all-rounder: Light enough for a DIY lift, cheap to vent with PVC, and efficient enough to cut your gas bill.

Best for: 1-2 bathroom homes with moderate simultaneous demand.

Propane Pick

6. Noritz NRC66DVLP Indoor Condensing Tankless Water Heater

6.6 GPMLiquid Propane

The propane twin of our budget pick, tuned for off-grid and tank-based homes.

This is the liquid propane version of the Noritz NRC66, built for homes that run on LP tanks rather than natural gas lines. It delivers the same 6.6 gpm flow at 38 pounds and 14″W x 26″H, and it shares the same low NOx, high-efficiency condensing design and Schedule 40 PVC venting. Buyers report plenty of hot water even at the lowest setting, and it maintains good temperature when running two showers at once.

The standout praise is for the build quality — owners describe the Japanese attention to detail and recommend getting the matching valve made for this model. It holds a maximum temperature of 140°F, giving you a bit more headroom than some competitors. The included remote thermostat and 6-foot power cord add convenience.

Two honest cautions: this unit is strictly LP-only, so do not expect a natural gas conversion without spending extra. And for cold climates, the exhaust is acidic (do not reuse an old metal vent), and owners recommend a backflow preventer and even a 100W bulb near the coils to prevent freezing. The intake/exhaust routing instructions are also a bit confusing — keep the intake and exhaust 4 feet apart as directed.

Propane-ready: A dependable, high-quality LP unit that owners happily recommend for single-activity and two-shower use.

Plan for: sourcing 3-inch PVC pipe and a backflow preventer if you live in freezing territory.

Wall-Mount Pick

7. Takagi T-H3J-DV-N Condensing Tankless Water Heater

6.6 GPMUltra-Low NOx

The garage-wall classic with instant heat and a 15-year record.

The Takagi T-H3J-DV-N is the kind of heater that owners literally say “the last one lasted 15 years with a problem” — a track record that earns trust. It flows 6.6 gpm, attaches neatly to a garage wall, and satisfies the 2012 SCAQMD Rule 1146.2 for ultra-low NOx emissions, making it one of the cleaner-burning options for California buyers. The water is hot almost instantaneously, and the compact space-saving design frees up the floor entirely.

Owners praise the quality and the strong tech support from the vendor, with one noting the seller even helped secure a tax credit certificate. It uses computerized safety features and has no pilot light to worry about, simplifying maintenance. The unit needs little space and is rated for continuous on-demand use.

The honest notes: some owners found it heats slower than an old tank heater, so adjust expectations on “instant” heat. And if you plan to use it for radiant floor heating, know that it is not guaranteed for that duty — one owner had a gas valve fail three times over about 9 months. Also, be ready to upgrade your gas line (from 1/2″ to 1″) for proper flow. This is a solid, proven pick for standard whole-house use.

The long-game pick

  • Owners mention 15-year lifespans on older models — serious durability.
  • Ultra-low NOx emissions satisfy strict California air rules.
  • Compact wall-mount design frees up garage space.
  • Vendor tech support is praised for getting tax credits sorted.

Set expectations

  • Not guaranteed for radiant floor heating loops.
  • May heat slower than an older tank heater, per one owner.
  • Gas line may need upgrading to 1-inch for full flow.

Reach for it if: you want a proven, long-lived wall-mount unit with ultra-low emissions for a standard home.

Look elsewhere if: you need instant hot water at the tap with zero delay or plan radiant floor heating.

Premium Pick

8. AO Smith ATI-540P-N Condensing Tankless Water Heater

10 GPM199,000 BTU

Built-in recirculation and marine-grade steel for 3-4 bath homes.

The AO Smith ATI-540P-N is built for the bigger home that has been burned by slow-hot-water waits before. It flows up to 10 gpm — enough for 3 to 4 bathrooms depending on your climate — and includes an integrated hot water recirculation pump, so the water is waiting for you when you step in. The 199,000 BTU burner handles heavy simultaneous demand, and the 0.93 UEF keeps the gas bill reasonable.

Durability is the sales pitch here: it uses marine-grade 316L stainless steel and commercial-grade materials, with safety features like an exhaust and water temperature safety control, an overheat cut-off fuse, and an air-fuel ratio sensor. Customers note it runs “excellent” for a condo, handling a shower and washer at the same time without pressure or temperature drops. The built-in scale prevention reduces mineral buildup, which means less descaling maintenance than a typical tankless.

The practical catch: it uses a single exhaust that is costlier than standard PVC, and your gas lines must be sized for 200K BTU max. One owner notes it is not recommended for midwestern regions, so check the ground-water temperature map before committing. Despite that, it is a well-regarded, easy-install unit for a condo or a 3-bath home with the budget for premium gear.

Premium durability: Marine-grade steel and a built-in recirc pump make this a set-and-forget choice for larger homes.

Check first: Your gas line size and local climate before you buy.

Quiet Performer

9. Rinnai RU160iN Condensing Tankless Water Heater

9 GPMUEF.97

The 9 GPM Rinnai that is barely audible in a 1,100 sq ft house.

The Rinnai RU160iN is the ENERGY STAR-qualified workhorse for homes that want Rinnai dependability with a focus on quiet operation. It flows 9 gpm (up to 6 appliances at once) with a UEF of 0.97, and it comes with Circ-Logic — a feature that pairs with an external pump to reduce wait time via scheduled or on-demand recirculation. Owners consistently call it quiet, describing it as barely audible even in a small house, and note it starts within seconds of a tap opening.

The DIY-friendly install is a highlight, with several owners completing it themselves using PEX and re-piping. One owner measured 90 seconds to reach 110°F at the farthest shower (25-30 feet of pipe) — half the time of their old tank unit. The default 120°F temperature is easy to regulate, and it survives power outages without needing resets.

There are two recurring themes to know. First, some owners find the fan randomly hums when the unit is idle (a condensing byproduct). Second, there is a noticeable pressure drop for some, with one owner noting reduced flow to the shower and kitchen sink. The warranty is a bit lighter than modern Rinnai models: 120 months on the heat exchanger, 60 months parts, 12 months labor. It is a strong, proven unit for a 2-bath home.

Quiet + efficient: A 0.97 UEF unit that owners love for its near-silent operation and easy DIY install.

Best for: Someone comfortable with light plumbing re-routes who wants energy savings without the noise.

Mid-Size Pick

10. Noritz NRC71DVNG Indoor Condensing Tankless Water Heater

7.1 GPM41 lbs
Noritz NRC71DVNG Indoor Condensing Direct Vent Tankless Water Heater

FAQ

What is the difference between a condensing and non-condensing tankless water heater?
A condensing unit captures waste heat from the exhaust and reuses it to pre-heat incoming water, achieving higher UEF ratings (0.91 to 0.98). A non-condensing unit vents that heat outside, wasting it. Condensing units also run cooler exhaust, which means they can often use cheaper Schedule 40 PVC venting instead of expensive stainless steel. The trade-off is that condensing units produce acidic condensate that needs a drain line and often a neutralizer kit.
How many GPM do I need for a 3-bedroom home?
For a typical 3-bedroom, 2-bathroom home, you generally want a unit rated at least 9 gpm to run a shower and a sink simultaneously without a noticeable drop. If you have 3+ bathrooms or frequently run the washer while someone showers, an 11 gpm unit gives you more headroom. The Rinnai RX199iN at 11 gpm covers 7 fixtures at once, which is well beyond what a standard 3-bedroom needs.
Will a condensing tankless water heater work in a cold climate?
Yes, but you need enough BTU output to handle cold ground water. In northern regions where incoming water can be 40°F or lower, a 199,000 BTU unit is recommended to maintain strong flow. Some owners also note that outdoor installs in freezing climates need heat tape on the condensate drain line to prevent the line from freezing and triggering a shutdown. Check the manufacturer’s ground water temperature map before choosing a size.
Can I vent a condensing tankless heater with PVC pipe?
Yes, in most cases. Because condensing units run cooler exhaust temperatures, they can be vented with Schedule 40 PVC pipe and fittings. The Noritz NRC66DVNG is a specific example that explicitly allows PVC venting. This is a major cost and convenience advantage over non-condensing units, which require specialized stainless steel venting that is harder to source and more expensive.
What hidden installation costs should I expect switching from a tank to tankless?
Most condensing tankless units do not include all the hook-up parts. The ThermoMate RTC68iN, for example, requires you to purchase a gas shut-off valve, color-coded isolation valves, a pressure relief valve, and a thermal bypass valve separately. One reviewer noted spending an extra on parts. You may also need a condensate neutralizer kit, gas line upgrades, and potentially a recirculation bypass valve if your unit has a built-in pump.
How long does a condensing tankless water heater last?
Manufacturers typically back the heat exchanger for 12 to 15 years in residential use. The Rinnai RX199iN offers a limited 15-year heat exchanger warranty if you register within 90 days of installation. The Takagi T-H3J has owners reporting 15-year lifespans on older models. Routine maintenance like annual vinegar flushing and descaling extends the life significantly.
Do condensing tankless heaters need electricity to operate?
Yes. Every tankless gas heater uses an electric ignition and a fan for the sealed combustion process. The Rinnai RX199iN runs on 120V power, and owners note you will have no hot water during a power outage unless you have a UPS backup. This is different from a traditional tank heater with a standing pilot light, which can operate during an outage in some cases.
Is a built-in recirculation pump worth the extra cost?
If you hate waiting for hot water at a distant faucet, yes. The Rinnai RXP199iN and AO Smith ATI-540P-N both include built-in recirculation pumps that keep hot water in the pipes. The RXP199iN goes further with Smart-Circ technology that learns your usage patterns and schedules the pump. The trade-off is that the pump adds operational noise, and some owners find it runs more often than they prefer even on economy settings.

Final Thoughts: The Verdict

For the majority of shoppers, the condensing tankless water heater winner is the Rinnai RX199iN because it pairs the highest UEF efficiency (0.98) with a massive 11 gpm flow rate that covers 7 fixtures, all wrapped in a compact 55-pound package that runs on either gas type. If you want the best balance of efficiency and budget, grab the ThermoMate RTC68iN — you sacrifice some BTU output but keep the condensing savings. And for a large family that needs the biggest capacity with built-in convenience, the Rinnai RXP199iN is the one to reach for with its smart recirculation that brings hot water to every tap instantly.

How We Picked

We do not accept paid placement. Every pick is matched to a real buyer and a real use-case; we do not hands-on test units.

Sources & Methodology

Specifications: manufacturer listings and product documentation. Review insights: verified customer reviews, as of August 2026. Pricing: not shown on this page (it changes often); check the current price via the retailer link.

As an Amazon Associate, Gardening Beyond earns from qualifying purchases. This does not affect which products we feature.

Related Guides

Please use a real email you check. If it's fake or mistyped, your message won't reach us and we can't reply — wrong addresses are rejected automatically.