The present disclosure is directed to a tankless water heater and systems and methods of using the same. The tankless water heater embodiments of the present disclosure can be configured to have a plurality of independently operable heat exchangers that can be used individually or collectively, in any combination, to heat water based on the level of demand for hot water. Embodiments can be configured for randomly selecting which heat exchangers are used to heat the incoming water. Embodiments of the present disclosure can also be configured to flow water through heat exchangers that are not being used to heat water and direct such water to a recirculation loop.