First, find out where the water starts
A valve, drain connection, or supply fitting may be repairable. Water leaking through a corroded tank shell usually means replacement because the tank itself is failing. Water collected at the base does not prove that the shell is leaking; water can travel from a fitting higher up.
Ask the company evaluating the heater to explain what it found and why it recommends repair or replacement. A second estimate can help when the proposed work is substantial or the diagnosis is unclear.
Compare the full scope
For a repair estimate, ask which part is being replaced, what caused the leak, and whether the work includes related checks or follow-up. For replacement, compare the full installed job: model and capacity, labor, removal and disposal, permit handling, required code or venting changes, and warranty terms.
The age and condition of the heater, the availability of parts, and the home’s fuel, venting, and installation space can all affect the choice. There is no single repair-cost percentage that settles every case.
Make the decision with a written estimate
Ask for the diagnosis, scope, and total price in writing before authorizing work. Compare similar scopes and make sure you understand what is excluded. Do not assume a replacement is necessary just because water is present, or that a repair is worthwhile without knowing the condition of the tank.
HeaterFixer is a call-connection service. Your call may connect with an independent plumbing company; that company handles inspection, recommendations, and pricing. HeaterFixer may receive compensation for connected calls.
More leak guidance
Read about water under a water heater and safe first steps when a heater leaks.