Gas vs Electric Water Heater Cost Calculator

What is a Gas vs Electric Water Heater Cost Calculator?

A Gas vs Electric Water Heater Cost Calculator is a simple online tool that estimates the annual operating costs of your water heater based on:

• Household size (to estimate hot water demand)
• Energy Factor (EF) of the gas heater
• Natural gas cost (measured in $/therm)
• Energy Factor (EF) of the electric heater
• Electricity cost (measured in $/kWh)

The calculator uses conversion factors (BTUs to therms and kWh) to compare costs and determine whether natural gas or electric heating saves you more money in the long run.

In short, it takes the guesswork out of energy cost comparisons.

How the Calculator Works (Simplified)

Here’s the step-by-step breakdown of how the calculator crunches numbers:

1. Hot Water Demand
   Each person in a household is estimated to use 10,000,000 BTUs of hot water energy per year.
   Example: A family of 4 uses 40,000,000 BTUs annually.
2. Gas Heater Calculation
   • Total BTU demand is divided by the gas heater’s efficiency (EF).
   • That gives the input BTUs required.
   • Input BTUs are converted into therms (1 therm = 100,000 BTUs).
   • Multiply by local gas cost ($/therm) = annual gas cost.
3. Electric Heater Calculation
   • Total BTU demand is divided by the electric heater’s efficiency (EF).
   • Converted to kWh (1 kWh ≈ 3,412 BTUs).
   • Multiply by local electricity cost ($/kWh) = annual electric cost.
4. Savings Comparison
   • If gas costs less → you see potential savings with natural gas.
   • If electric costs less → you see savings with electricity.
   • If costs are nearly equal → the tool tells you so.

The results are displayed instantly in dollars, making it easy to compare.

Why Use a Cost Calculator Instead of Guessing?

Many homeowners assume gas is always cheaper than electric. While this can be true, it’s not guaranteed. The actual cost depends on:

• Local utility rates (electricity may be cheaper in some regions)
• Appliance efficiency ratings (higher EF = less energy wasted)
• Household size (larger families use more hot water, magnifying cost differences)

By using the calculator, you’re basing your choice on real numbers, not assumptions.

Benefits of Using This Calculator

• Personalized results: Based on your inputs (not generic averages).
• Transparent math: Shows you exactly how costs are estimated.
• Better budgeting: Know what you’ll spend yearly on hot water.
• Informed decisions: Helps you decide which heater type to buy.

Try It Yourself

Here’s how you can use the calculator in practice:

1. Enter the number of people in your household.
2. Input the energy factor for both gas and electric water heaters.
   • (You can find EF values on the heater’s EnergyGuide label.)
3. Add your local utility rates for natural gas ($/therm) and electricity ($/kWh).
4. Hit Compare Costs to see which option saves you more money annually.

Real-World Example

Let’s say:

• Family size: 4 people
• Gas heater EF: 0.60
• Natural gas cost: $1.50/therm
• Electric heater EF: 0.95
• Electricity cost: $0.15/kWh

The calculator might show:

• Annual Gas Cost: $X,XXX
• Annual Electric Cost: $Y,YYY
• Annual Savings: $ZZZ (with either gas or electric, depending on the numbers).

This gives you clear, side-by-side cost comparisons tailored to your home.

Gas vs Electric Water Heater: Beyond Just Cost

While cost is important, there are other factors to weigh:

• Installation cost: Gas heaters often cost more upfront.
• Environmental impact: Electric heaters may be cleaner in areas with renewable electricity.
• Heating speed: Gas heaters usually heat water faster.
• Maintenance: Electric heaters often need less upkeep.

So while the Gas vs Electric Water Heater Cost Calculator is excellent for annual running cost comparisons, you’ll want to consider these extras too before making a final choice.