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Compare the estimated operating cost of a natural-gas and electric resistance water heater using the same household hot-water demand and your local utility rates.
Estimate how much hot water your household uses each day.
The greater the temperature rise, the more energy is required to heat the water.
Enter your natural-gas price and an estimated overall energy-conversion efficiency for the comparison.
Enter your electricity price and electric resistance heating efficiency.
Add installed prices if you also want to compare simple long-term cost differences.
These values show approximately where the two energy-cost estimates become equal under your entered efficiency assumptions.
Both systems are compared against the same useful water-heating requirement.
Gallons × 8.33 × temperature rise = useful BTU required
Useful BTU ÷ gas efficiency = gas energy input
Gas BTU ÷ 100,000 × price per therm
Useful BTU ÷ electric efficiency ÷ 3,412.142 = kWh
kWh × electricity price
Hot-water temperature − incoming-water temperature
A heat-pump water heater operates differently from a conventional electric resistance water heater and can use substantially less electricity under suitable conditions. Do not use the electric resistance results here as an estimate for a heat-pump water heater. A separate heat-pump water-heater cost calculator should use UEF or other appropriate performance assumptions.
When comparing fuel costs, variable energy charges are usually the most useful starting point. A monthly gas customer or service charge should only be counted as a water-heating cost if switching away from gas would actually eliminate that charge, or if you have a reasonable basis for allocating part of it to the water heater.