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Nationally, the average water heater repair cost ranges between $120 and $200, although prices can range up to $400 or more. Water heater repair costs will depend on the type of water heater you have (tankless, electric, natural gas, etc.), the source of the problem, the cost for new parts, and labor rates in your area. Common water heater issues include problems with the thermocouple, thermostat, heating element and leaks. Most standard electric water heaters have two thermostats and two elements. One example for the cost to replace a bad thermostat is $185 for parts and labor. Replacing both the thermostat and the heating element could cost approximately $150-$200. The thermocouple is a safety device that senses when the pilot light is burning and signals the gas valve to close if the pilot light goes out. If your thermocouple is bad or corroded, the average cost to clean and repair it could be between $350 and $400. If your water heater has started to leak, it is usually more cost-effective to invest in a new water heater than to repair it, unless you’re covered by a warranty.