CutYourElectric

How much does it cost to run a mini tank water heater?

A mini tank water heater costs about 22¢ a day, $6.75 a month and $81 a year at typical use (450 kWh a year) and the U.S. average rate of 17.99¢/kWh. Mini tanks (2.5-7 gallons) plug into a 120 V outlet and draw about 1,440 W; standby heat loss of about 0.4-0.6 kWh a day is most of their annual use.

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Cost to run a mini tank water heater in every state

The same mini tank water heater costs $55 a year in North Dakota and $196 in Hawaii, at each state's average residential rate (12 months ending July 2026).

StateRatePer monthPer year
North Dakota12.32¢$4.62$55
Idaho12.65¢$4.74$57
Nebraska12.86¢$4.82$58
Louisiana12.99¢$4.87$58
Utah13.32¢$5.00$60
Nevada13.36¢$5.01$60
Arkansas13.43¢$5.04$60
Tennessee13.56¢$5.08$61
Oklahoma13.70¢$5.14$62
Montana13.84¢$5.19$62
Kentucky13.92¢$5.22$63
Missouri13.95¢$5.23$63
Wyoming14.01¢$5.25$63
Washington14.12¢$5.29$64
Iowa14.13¢$5.30$64
South Dakota14.20¢$5.32$64
Mississippi14.77¢$5.54$66
North Carolina14.77¢$5.54$66
Kansas15.09¢$5.66$68
Georgia15.12¢$5.67$68
New Mexico15.32¢$5.75$69
Florida15.39¢$5.77$69
Arizona15.40¢$5.78$69
West Virginia15.48¢$5.80$70
Oregon15.50¢$5.81$70
South Carolina15.64¢$5.87$70
Texas15.96¢$5.99$72
Minnesota16.22¢$6.08$73
Alabama16.44¢$6.17$74
Virginia16.48¢$6.18$74
Colorado16.58¢$6.22$75
Indiana16.94¢$6.35$76
Delaware17.79¢$6.67$80
Ohio18.25¢$6.84$82
Wisconsin18.74¢$7.03$84
Illinois18.79¢$7.05$85
Pennsylvania20.70¢$7.76$93
Maryland21.03¢$7.89$95
Michigan21.05¢$7.89$95
New Jersey23.78¢$8.92$107
Vermont23.80¢$8.93$107
District of Columbia24.20¢$9.07$109
New Hampshire26.67¢$10.00$120
Alaska26.85¢$10.07$121
Connecticut27.99¢$10.50$126
New York28.39¢$10.65$128
Rhode Island29.27¢$10.98$132
Maine29.31¢$10.99$132
Massachusetts30.43¢$11.41$137
California32.99¢$12.37$148
Hawaii43.51¢$16.32$196

How to cut the cost

  • Lower the thermostat to 110-120°F.
  • Plug it into a timer so it only heats during hours the sink is used.
  • Insulate the hot outlet pipe.
  • Unplug it when the space is unused for long periods.

Cheaper ways to get the job done

Heavy-duty outlet timer

Avoids keeping water hot 24 hours a day.

See options on Amazon

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Compare with similar appliances

ApplianceWattsTypical usePer monthPer year
Mini tank water heater1,440450 kWh a year$6.75$81
Point-of-use water heater3,50015 minutes a day$4.79$57
Electric water heater4,5004,500 kWh a year$67.46$810
Tankless electric water heater24,0003,700 kWh a year$55.47$666
Heat pump water heater4501,300 kWh a year$19.49$234
Hot water recirculation pump2524 hours a day$3.29$39

Compare these side by side at your rate →

Head-to-head comparisons

Frequently asked questions

How much does it cost to run a mini tank water heater per hour?

A mini tank water heater is usually measured per year rather than per hour. It uses about 450 kWh a year, which works out to 22¢ a day.

How much does it cost to run a mini tank water heater per month?

At typical use (450 kWh a year), a mini tank water heater costs about $6.75 a month and $81 a year, at the U.S. average rate. Enter your ZIP in the calculator above for your utility's rate.

How many watts does a mini tank water heater use?

Most mini tank water heaters use 1,000 to 2,000 watts. Check the label on the back or bottom for your model's exact rating.

How many kWh does a mini tank water heater use?

About 1.23 kWh a day and 450 kWh a year at typical use (450 kWh a year).

Does a mini tank water heater use a lot of electricity?

It's a moderate load: 450 kWh a year is about 4% of the average U.S. home's yearly use.

Is it cheaper to run a mini tank water heater or a point-of-use water heater?

At typical use, a mini tank water heater costs about $81 a year versus $57 for a point-of-use water heater. So the point-of-use water heater is cheaper by about $23 a year. Use the comparison table above to compare them at your own settings.

How can I lower the cost of running a mini tank water heater?
  • Lower the thermostat to 110-120°F.
  • Plug it into a timer so it only heats during hours the sink is used.
  • Insulate the hot outlet pipe.

Rates updated 2026-10-21: EIA data through July 2026. Typical wattage and usage reviewed against DOE, ENERGY STAR and manufacturer specs. Methodology.