Erbium-doped lithium niobate on insulator (Er:LNOI) has attracted enormous interest as it provides gain and enables integrated amplifiers and lasers on the lithium niobate on insulator (LNOI) platform. We demonstrate a highly efficient waveguide amplifier on Er:LNOI. The 2.58-cm long amplifier can achieve 27.94 dB signal enhancement, 16.0 dB internal net gain (6.20 dB/cm), -8.84 dBm saturation power, 4.59 dB/mW power conversion efficiency, and 4.49 dB noise figure at 1531.6 nm. Besides, thorough investigation on the pumping wavelength, pumping scheme, output power and noise figure have been performed to provide a comprehensive understanding on this novel waveguide amplifier. This work will benefit the development of a powerful gain platform and can pave the way for a fully integrated photonic system on LNOI platform.