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).
| State | Rate | Per month | Per year |
|---|---|---|---|
| North Dakota | 12.32¢ | $4.62 | $55 |
| Idaho | 12.65¢ | $4.74 | $57 |
| Nebraska | 12.86¢ | $4.82 | $58 |
| Louisiana | 12.99¢ | $4.87 | $58 |
| Utah | 13.32¢ | $5.00 | $60 |
| Nevada | 13.36¢ | $5.01 | $60 |
| Arkansas | 13.43¢ | $5.04 | $60 |
| Tennessee | 13.56¢ | $5.08 | $61 |
| Oklahoma | 13.70¢ | $5.14 | $62 |
| Montana | 13.84¢ | $5.19 | $62 |
| Kentucky | 13.92¢ | $5.22 | $63 |
| Missouri | 13.95¢ | $5.23 | $63 |
| Wyoming | 14.01¢ | $5.25 | $63 |
| Washington | 14.12¢ | $5.29 | $64 |
| Iowa | 14.13¢ | $5.30 | $64 |
| South Dakota | 14.20¢ | $5.32 | $64 |
| Mississippi | 14.77¢ | $5.54 | $66 |
| North Carolina | 14.77¢ | $5.54 | $66 |
| Kansas | 15.09¢ | $5.66 | $68 |
| Georgia | 15.12¢ | $5.67 | $68 |
| New Mexico | 15.32¢ | $5.75 | $69 |
| Florida | 15.39¢ | $5.77 | $69 |
| Arizona | 15.40¢ | $5.78 | $69 |
| West Virginia | 15.48¢ | $5.80 | $70 |
| Oregon | 15.50¢ | $5.81 | $70 |
| South Carolina | 15.64¢ | $5.87 | $70 |
| Texas | 15.96¢ | $5.99 | $72 |
| Minnesota | 16.22¢ | $6.08 | $73 |
| Alabama | 16.44¢ | $6.17 | $74 |
| Virginia | 16.48¢ | $6.18 | $74 |
| Colorado | 16.58¢ | $6.22 | $75 |
| Indiana | 16.94¢ | $6.35 | $76 |
| Delaware | 17.79¢ | $6.67 | $80 |
| Ohio | 18.25¢ | $6.84 | $82 |
| Wisconsin | 18.74¢ | $7.03 | $84 |
| Illinois | 18.79¢ | $7.05 | $85 |
| Pennsylvania | 20.70¢ | $7.76 | $93 |
| Maryland | 21.03¢ | $7.89 | $95 |
| Michigan | 21.05¢ | $7.89 | $95 |
| New Jersey | 23.78¢ | $8.92 | $107 |
| Vermont | 23.80¢ | $8.93 | $107 |
| District of Columbia | 24.20¢ | $9.07 | $109 |
| New Hampshire | 26.67¢ | $10.00 | $120 |
| Alaska | 26.85¢ | $10.07 | $121 |
| Connecticut | 27.99¢ | $10.50 | $126 |
| New York | 28.39¢ | $10.65 | $128 |
| Rhode Island | 29.27¢ | $10.98 | $132 |
| Maine | 29.31¢ | $10.99 | $132 |
| Massachusetts | 30.43¢ | $11.41 | $137 |
| California | 32.99¢ | $12.37 | $148 |
| Hawaii | 43.51¢ | $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
Avoids keeping water hot 24 hours a day.
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Compare with similar appliances
| Appliance | Watts | Typical use | Per month | Per year |
|---|---|---|---|---|
| Mini tank water heater | 1,440 | 450 kWh a year | $6.75 | $81 |
| Point-of-use water heater | 3,500 | 15 minutes a day | $4.79 | $57 |
| Electric water heater | 4,500 | 4,500 kWh a year | $67.46 | $810 |
| Tankless electric water heater | 24,000 | 3,700 kWh a year | $55.47 | $666 |
| Heat pump water heater | 450 | 1,300 kWh a year | $19.49 | $234 |
| Hot water recirculation pump | 25 | 24 hours a day | $3.29 | $39 |
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.