Water Heater Cost Calculator

The sticker price of a water heater tells only part of the story; what it costs to run over a decade tells the rest. By pairing the purchase price with projected 10-year operating expenses, this tool lets you weigh a cheaper upfront unit against one that quietly saves money on energy year after year, a comparison worth making before you spend a dollar.

Each type carries a fixed installed-price range and a fixed annual operating cost in the calculator: gas tank $1,000-$2,000 and $400 a year, electric tank $1,000-$1,500 and $500, tankless gas $2,000-$4,000 and $300, tankless electric $1,500-$3,000 and $400, heat pump $2,000-$4,000 and $200. The 10-year figure is the midpoint of the price range plus ten years of operating cost. Household size sets only the recommended tank size (30-40 gallons for one or two people, 40-50 for three or four, 50-80 for five or more); the operating costs do not change with it or with your local rates.

Your real-world bills will drift from these numbers depending on how much hot water your household draws, what your local utility charges, and how efficient your specific model turns out to be. State and utility rebates can also trim the upfront cost meaningfully (the federal 25C credit ended for equipment placed in service after 2025), and since they fall outside this basic calculation, they are worth chasing down on your own.