~The Peaceful Plumber~

If your water heater is 10-15 years old or older, then you might want to weigh your options and possibly have your water heater replaced. You might spend a lot of money fixing a water heater that could possibly need to be totally replaced a while later if your water heater is over 10 years old.

If your water heater is leaking from the seams or from a hole in the water heater, it will need to be replaced. 

If your water heater tank is showing signs of rust, it is probably not worth it to spend money replacing parts on it. The rust will soon turn to a leaking water heater.