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Use the calculator for an instant estimate, or read on for a full breakdown of how this cost is calculated.
Quick Answer
$15–$60/month
Varies by equipment & usage
Water heater energy use depends on how many gallons of hot water your household uses and how efficiently the heater delivers it. The key metric is UEF (Uniform Energy Factor) — a higher UEF means less electricity per gallon heated.
A standard electric tank water heater has a UEF of around 0.90–0.95. A family of four using roughly 60 gallons/day needs about 4,500 BTUs to heat it from 55°F to 120°F. That works out to roughly 1,350–1,600 kWh/year — about $18–$22/month at $0.16/kWh.
Heat pump water heaters (UEF 3.0–4.0) use ambient air heat and consume 60–70% less electricity than a resistance tank — cutting annual costs to $350–$500.
Estimate Your Cost
Occupants
3
people
Heater type
Electricity rate
0.16
$/kWh
Est. monthly cost
$46.55
~3,491 kWh/year
Number of occupants (each person uses roughly 15–20 gallons/day of hot water)
Water heater type — tank, tankless, or heat pump
UEF rating — higher is more efficient
Incoming water temperature (colder groundwater = more energy to heat)
Set temperature — each 10°F lower saves roughly 3–5%
Tank insulation and standby losses for tank models
Electricity rate in your area
Pro Tip
The biggest savings usually come from upgrading the least efficient items first. Use Watt Wisdom to see exactly which loads are driving your bill before spending money on improvements.
Watt Wisdom calculates your full household energy profile — every appliance, your climate zone, and your usage habits — and tells you exactly what's driving your bill.
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