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utility · 18000W typical

Running a tankless electric water heater costs about $4.46/month.

That's the typical tankless electric water heater at 18000W, run 1 hours a day at the US-average rate of 16.5¢/kWh. Change any of those and the number moves — use the calculator below to see yours.

Estimated cost

$4.46/month
$0.15 per day$54.20 per year27.0 kWh monthly
W

A tankless electric water heater draws full power only while the thermostat/compressor is running — about 0.1 effective hours at 18000W across your 1-hour window.

How you use it

Cost shifts with how long it's on.

The same tankless electric water heater can cost very different amounts depending on usage patterns. Three common scenarios, at the US-average rate.

family household

$4.46

per month

on-demand heating during hot-water use

1 hrs/day·$54.20/yr

couple

$2.23

per month

shorter on-demand cycles

0.5 hrs/day·$27.10/yr

Where you live

$8.07 spread between the cheapest and priciest states.

Same appliance, same hours of use, different zip code — the monthly cost varies this much.

StateRateMonthlyYearly
Hawaii41.2¢$11.12$135.34
California31.4¢$8.48$103.15
Massachusetts30.8¢$8.32$101.18
Connecticut28.7¢$7.75$94.28
Rhode Island27.9¢$7.53$91.65
New Hampshire24.6¢$6.64$80.81
Alaska24.3¢$6.56$79.83
New York22.3¢$6.02$73.26
Maine22.1¢$5.97$72.60
Vermont21.5¢$5.81$70.63
Michigan19.3¢$5.21$63.40
New Jersey19.1¢$5.16$62.74
Maryland18.4¢$4.97$60.44
Pennsylvania18.1¢$4.89$59.46
District of Columbia17.8¢$4.81$58.47
Wisconsin17.4¢$4.70$57.16
Delaware17.2¢$4.64$56.50
Illinois16.9¢$4.56$55.52
Ohio16.6¢$4.48$54.53
Nevada16.3¢$4.40$53.55
Indiana15.8¢$4.27$51.90
Virginia15.7¢$4.24$51.57
Minnesota15.6¢$4.21$51.25
Colorado15.4¢$4.16$50.59
Alabama15.2¢$4.10$49.93
West Virginia15.2¢$4.10$49.93
Florida15.1¢$4.08$49.60
New Mexico14.8¢$4.00$48.62
Texas14.8¢$4.00$48.62
Arizona14.7¢$3.97$48.29
South Carolina14.7¢$3.97$48.29
Kansas14.6¢$3.94$47.96
Georgia14.2¢$3.83$46.65
Iowa14.1¢$3.81$46.32
North Carolina13.9¢$3.75$45.66
Missouri13.6¢$3.67$44.68
Oregon13.4¢$3.62$44.02
Tennessee13.3¢$3.59$43.69
Kentucky13.2¢$3.56$43.36
Mississippi13.1¢$3.54$43.03
Oklahoma13.1¢$3.54$43.03
South Dakota12.7¢$3.43$41.72
Montana12.4¢$3.35$40.73
Nebraska12.2¢$3.29$40.08
Arkansas12.1¢$3.27$39.75
Washington12.1¢$3.27$39.75
Louisiana11.9¢$3.21$39.09
Wyoming11.6¢$3.13$38.11
North Dakota11.5¢$3.11$37.78
Utah11.4¢$3.08$37.45
Idaho11.3¢$3.05$37.12

Efficient vs. inefficient

A $69.26/year difference across the wattage range.

Swapping a high-draw model for an efficient one pays for itself. Here's what that looks like annually at typical usage.

Most efficient

13000W

$3.22 per month

$39.15 per year

Typical

18000W

$4.46 per month

$54.20 per year

High draw

36000W

$8.91 per month

$108.41 per year

When it hits hardest

winter peak

Colder incoming water forces higher watts per gallon.

Ways to cut the cost

  • 1

    Flush annually to prevent scale buildup — scale kills tankless efficiency fast

    Maintains 15-25% efficiency over time

  • 2

    Lower setpoint to 120°F

    Saves 10-20% vs higher setpoints

  • 3

    Use low-flow fixtures — undersize a tankless and you'll run cold

    Prevents running tankless at max watts

Real-world wattages

Pulled from actual spec sheets.

BrandModelWatts
Stiebel EltronTempra 24 Plus24000W
EcoSmartECO 2727000W
RheemRTEX-1818000W

Picks that actually move the needle

Three products worth comparing if you're thinking about upgrading or supplementing what you have.

Some links below are affiliate links. If you buy, we may earn a small commission — it never changes the price you pay, and we only recommend picks we would stand behind.

EcoSmart ECO 27 Tankless Electric Water Heater

27kW unit for whole-house in warm climates

$520-650
Low-Flow Showerhead 1.5 GPM

Cuts hot water demand 30-40%

$25-40ENERGY STAR
Scale-Prevention Inline Filter

Scale buildup ruins tankless efficiency quickly

$80-120

See also

Related appliances

Sources: www.energystar.gov · www.energy.gov

Last updated: 2026-04-13