Calculators · Cost to run
How much does it cost to run an electric water heater?
Water heating is about 12% of the average home's electricity, and for an all-electric household a resistance tank heater is one of the largest loads — often 3,500–5,000 kWh a year, or roughly 12 kWh a day. It cycles to hold temperature, so it's best thought of monthly. A heat-pump water heater uses 60–70% less.
per day
$1.50
per month
$45.52
per year
$545.79
A electric water heater (tank) uses about 12 kWh a day, costing roughly $1.50/day or $45.52/month at 12.46¢/kWh.
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What it costs per month, at real rates
Based on a typical household, resistance tank (~12 kWh/day) (~365 kWh), priced at three of the utilities we track:
| Utility | Rate | Cost per month |
|---|---|---|
| PECO (PA) | 10.789¢/kWh | $39.38 |
| BGE (MD) | 14.609¢/kWh | $53.32 |
| ComEd (IL) | 10.399¢/kWh | $37.96 |
Supply rate only; delivery charges are extra. Use the calculator above for your own utility and usage.
Water heater type and energy
| Water heater | Energy per year | Notes |
|---|---|---|
| Resistance tank (electric) | 3,500–5,000 kWh | Standard electric tank; varies with household size |
| Heat-pump water heater | 1,000–1,800 kWh | 60–70% less; higher upfront cost |
| Smaller household (1–2 people) | ~2,500 kWh | Less hot-water use |
| Larger household (4+ people) | 4,500–6,000 kWh | More showers, laundry, dishes |
Cycles to hold temperature; real use depends heavily on household size and hot-water habits.
How to cut the cost
- 1
Set it to 120°F
Many tanks ship at 140°F. Dropping to 120°F is plenty hot, saves energy, and reduces scald risk.
- 2
Insulate the tank and pipes
A tank blanket and pipe insulation cut standby heat loss — cheap and quick to install on an older unit.
- 3
Consider a heat-pump water heater
If you're replacing an electric tank, a heat-pump model uses 60–70% less. The running-cost savings add up fast for an all-electric home.
- 4
Fix hot-water leaks
A dripping hot tap means the heater is reheating water that runs down the drain. Fix leaks and add low-flow showerheads.
Common questions
- How much does it cost to run an electric water heater per month?
- A typical resistance tank uses around 350–400 kWh a month — roughly $45–$60 at typical rates, more for larger households. A heat-pump water heater would cut that substantially.
- Is electric or gas water heating cheaper?
- A standard electric resistance tank usually costs more to run than gas where gas is cheap. But a heat-pump water heater can beat gas on running cost, because it moves heat rather than generating it.
- Do heat-pump water heaters really save money?
- Yes — they use 60–70% less energy than a resistance tank for the same hot water. They cost more upfront and need a warmish space to work well, but cut the running cost sharply.
- How can I lower my water heating bill without cold showers?
- Set the tank to 120°F, insulate it and the pipes, fix hot-water leaks, and add low-flow showerheads. None of these reduce comfort, and together they trim a real chunk off the bill.
Hiring out the wiring?
Before you pay anyone to touch your panel or wiring, make sure they're actually licensed. You can check a contractor's license on StateCreds — our sister site.
Verify a contractor's license by state →If your bill jumped more than your usage explains, your rate may have risen too.