A tankless heater heats water only when a tap is open, instead of keeping 40 or 50 gallons hot around the clock. You do not run out of hot water after the third shower, the unit hangs on a wall instead of taking up floor space, and there is no tank to rust through and flood the garage.
The tradeoffs are real too. Installation costs more than a tank swap, especially when the gas line has to be upsized or new venting run. Flow is limited by the unit's size, so a heater sized too small struggles when two showers and the dishwasher run at once. And tankless units need periodic descaling, because minerals in the water build up in the heat exchanger.
We go through those numbers for your home specifically, and if a tank still makes more sense, we will tell you and handle a standard water heater replacement instead.