Hot Water Costs in the United States

Hot water costs

Hot-water cost depends on how much water is heated, how far its temperature must be raised, the efficiency of the water heater and the energy rate. The right calculation method depends on whether you are estimating a household-use scenario or evaluating a specific model with tested annual energy data.

Estimate your own scenario: use the U.S. Hot Water Running Cost Calculator for electric resistance, heat-pump and natural-gas scenarios, or enter annual kWh/therms directly.

Electric resistance, heat pump and gas water heating

Electric resistance

Electrical energy is converted to heat in the water heater. A usage scenario needs the water-heating load and your electricity rate, while a specific model may have annual EnergyGuide information.

Heat-pump water heater

A heat pump moves heat into the water rather than relying only on resistance elements. Operating performance can vary with ambient conditions and control mode.

Natural gas

Gas water-heater cost depends on fuel consumption and the price paid for gas. U.S. gas bills commonly use therms or utility-specific volume conversions.

Annual tested energy

For a model-specific annual comparison, EnergyGuide or manufacturer energy-use information can be more representative than assuming one constant hourly input.

What UEF tells you

ENERGY STAR describes Uniform Energy Factor (UEF) as the current overall-efficiency measure for residential water heaters, with a higher UEF indicating greater efficiency. UEF is useful for comparing water-heater efficiency within the applicable test framework, but it should not be treated as an exact real-time heat-pump COP in a running-cost scenario.

Official U.S. references

Reviewed: 27 September 2026. Published child guides will appear automatically below this hub after launch.

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