Water Heater Energy Cost Calculator

The Uniform Energy Factor (UEF) on the EnergyGuide label captures standby and conversion losses in one number.

Tapeline — Water Heater Energy Cost Calculator

Printed October 9, 2026

Hot water used per day60 gal
Incoming water temperature55 °F
Tank setpoint120 °F
FuelElectric (resistance or heat pump)
Uniform Energy Factor (UEF)0.92
Electricity rate0.17 $/kWh
Natural gas rate1.4 $/therm

Results update as you type.

°F
°F

Typical: electric resistance ≈ 0.92, heat pump ≈ 3.3–4.0, gas storage ≈ 0.6–0.7, gas tankless ≈ 0.9+.

$/kWh

Find this on your utility bill: total charges ÷ kWh used gives an all-in rate.

$/therm
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Watch the step-by-step video

Watch it explained

A step-by-step video using your numbers: what to enter, what the result means, and a “what if” example. On-screen instructions follow each step as it happens.

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What the animation shows

The animation and the step-by-step video above use your numbers. Here is the same walkthrough written out for the default example.

Finished frame of the water heater energy cost calculator animation for the default example
The last frame of the animation for the default example.

What you enter

  • Hot water used per day: 60 gal.
  • Incoming water temperature: 55 °F.
  • Tank setpoint: 120 °F.
  • Fuel: Electric (resistance or heat pump).
  • Uniform Energy Factor (UEF): 0.92. Typical: electric resistance ≈ 0.92, heat pump ≈ 3.3–4.0, gas storage ≈ 0.6–0.7, gas tankless ≈ 0.9+.
  • Electricity rate: 0.17 $/kWh. Find this on your utility bill: total charges ÷ kWh used gives an all-in rate.
  • Natural gas rate: 1.4 $/therm.

What happens, step by step

  1. 60 gallons a day are heated from 55 to 120 °F.
  2. Electric elements heat the tank; UEF 0.92 covers standby heat loss.
  3. Repeat that every day for a year: 3,782 kWh of electricity.
  4. At $0.17 per kWh, that is about $53.58 a month.

The answer: yearly cost is $642.92.

How it’s calculated

  • Heat per day (BTU) = gallons × 8.34 × (setpoint − inlet)
  • Yearly input = daily heat × 365 ÷ UEF
  • kWh = BTU ÷ 3,412; therms = BTU ÷ 100,000

Worked example

60 gal/day, 55 °F inlet, 120 °F setpoint, electric resistance UEF 0.92, $0.17/kWh.

Inputs

Hot water used per day
60 gal
Incoming water temperature
55 °F
Tank setpoint
120 °F
Fuel
Electric (resistance or heat pump)
Uniform Energy Factor (UEF)
0.92
Electricity rate
0.17 $/kWh
Natural gas rate
1.4 $/therm

Results

Yearly cost
$642.92
Yearly energy (electric)
3,782 kWh
Monthly cost
$53.58

Load this example into the calculator

Assumptions and limits

  • UEF already includes standby losses at rated conditions; real use patterns differ.
  • Inlet temperature is a yearly average.

Verify the result against the applicable local code, adopted code edition, manufacturer instructions and project requirements. See our methodology.

Questions

How much does it cost to run an electric water heater?

A typical family using 60 gallons a day pays around $640 a year at $0.17/kWh with a resistance heater. A heat pump water heater cuts that by roughly two-thirds.

Does lowering the setpoint save energy?

Yes. Energy is proportional to the temperature rise. Many households use 120 °F.