There are several clear signs that your water heater may need to be replaced rather than repaired. One of the most common indicators is age—most traditional water heaters last about 8–12 years, and performance often declines after that. You may also notice inconsistent or insufficient hot water, rust-colored water coming from your taps, or strange rumbling or banging noises coming from the tank, which can signal sediment buildup. Visible leaks around the base of the unit are another serious warning sign, often indicating internal tank failure. Rising energy bills can also suggest the system is losing efficiency. When these issues become frequent or severe, replacement is usually the most reliable and cost-effective long-term solution.