Pros and cons of tankless water heaters
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The manufacturer of the tank-less heater can give you the proper size. we are a family of four - put in a tank-less water heater several years ago. I keep very good records for energy costs for the house. Noticed a serious drop in gas consumption. I figured a seven year payback in savings, but it looks like a 5 year payback. the system was fairly expensive (don't remember the price but fairly expensive)
If you have natural gas then I would recommend you look into the size you need for your use. Gas is far more efficient than electric.
We installed a tank-less water heater in 2012 and we love it. We live in the country and use propane gas. I can run the dish washer and take a shower at the same time. The only time we ran out of hot water was when the gas tank ran out. I would never go back to an electric hot water heater. We paid $1200 for the water heater and installation.
To size the tankless water heater you need, you go by how may bathroom showers you have. They pay for themselves. They are more than a regular water heater but the warranty is also better, if something has to be replaced you do not have to buy a other one like a standard water heater you just buy the part that goes bad and they are not expensive. I sold tankless water heater for 15 years and I still talk to customers about them.