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Water heater size: how big a tank, or how powerful a tankless unit?

Estimate your peak-hour hot water demand, the first-hour rating and tank size you need, and the power of a tankless heater for the showers you run at once.

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Suggested tank size

60

Peak-hour demand: minimum first-hour rating
35
Flow for a tankless heater
2
Tankless heater power needed
20.5 kW

Size for your busiest hour

A water heater that is too small runs out during the morning rush; one that is too large wastes energy keeping water hot. For tank heaters, what matters most is not the tank volume itself but the first-hour rating (FHR): how much hot water the heater can deliver in an hour, starting full. It is printed on the EnergyGuide label.

Peak-hour demand

The US Department of Energy suggests adding up the hot water used in your busiest hour:

  • Shower: 10 gallons
  • Bath: 20 gallons
  • Dishwasher: 6 gallons
  • Clothes washer, warm or hot: 7 gallons
  • Food preparation: 5 gallons, hand dishwashing 4 gallons

Choose a heater whose first-hour rating is at least that total.

Example

A family of four takes two showers between 7 and 8 am while the dishwasher runs and breakfast is cooked:

  • Peak-hour demand: 2 × 10 + 6 + 5 + 4 = 35 gallons
  • A typical 40-gallon gas heater has an FHR of 60 to 70 gallons and a 50-gallon electric one about 55 to 65, so either covers it
  • Suggested tank size for four people: about 60 gallons if baths or long showers are common, 50 gallons otherwise

Tankless water heaters

A tankless (on-demand) heater has no stored water, so it is sized by flow rate and temperature rise:

  • Flow = showers running at once × flow per head, for example 1 × 2.0 gpm
  • Temperature rise = target temperature − incoming water temperature, for example 120°F − 50°F = 70°F
  • Power = flow in L/min × rise in °C × 4.186 ÷ 60, here about 20.5 kW

Whole-house electric tankless units often need 25 to 36 kW and several 40 to 60 A breakers; gas units are rated around 150,000 to 199,000 BTU/h. Groundwater is colder in northern states, so the same unit delivers less flow there in winter.

Choosing the type

  • Heat pump water heaters use two to three times less electricity than standard electric tanks, but recover more slowly; choose a slightly larger tank.
  • Gas tanks recover fastest.
  • Tankless saves standby losses and space but costs more to install.

Set the thermostat to about 120°F to limit scalding and standby losses.

Frequently asked questions

What is the first-hour rating?

The amount of hot water a tank water heater can deliver in one hour starting full, shown on the yellow EnergyGuide label. Choose a model whose first-hour rating is at least your peak-hour demand.

How much hot water does a shower use?

The US Department of Energy uses about 10 gallons of hot water per shower for sizing, 20 for a bath, 6 for a dishwasher load and 7 for a warm clothes wash.

How do I size a tankless water heater?

By flow rate and temperature rise: add the flow of fixtures used at once, for example two showers at 2 gpm, and multiply by the rise from the cold water temperature to about 120°F. Electric models need a lot of power; gas models are rated in BTU per hour.

Is a bigger tank always better?

No. A tank that is too large wastes energy keeping unused water hot. A heat pump water heater can save a lot of energy but recovers more slowly, so size it with some extra margin.

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Results are estimates provided for information purposes. They do not replace professional advice.