Heat Pump Water Heater Running Cost
Heat pump water heaters cut water heating bills by up to 70%. See your exact monthly savings here.
A heat pump water heater costs roughly $0.49/day, $15/month, and $179/year for a family of 4 at the US average electricity rate of $0.13/kWh — saving up to $248/year versus a standard electric tank heater.
Calculate Heat Pump Water Heater Savings
Heat Pump vs Electric vs Gas Water Heater (US 2026)
| Metric | Heat Pump WH | Electric Tank | Gas Tank |
|---|---|---|---|
| Monthly cost (3–4 people) | ~$15 | ~$35 | ~$20 |
| Annual cost | ~$179 | ~$427 | ~$241 |
| Efficiency | 250% | 92% | 80% |
| Annual savings vs electric | $248 | — | — |
| Annual savings vs gas | $62 | — | — |
Electric $0.13/kWh. Gas $1.20/therm. Heat pump COP 2.5. Family of 4. US 2026 average rates.
Is a Heat Pump Water Heater Worth It?
At roughly $15/month versus $35/month for a standard electric tank, a heat pump water heater saves a family of 4 around $248 per year on electricity. Most units cost $1,000–$1,500 installed, giving a payback period of 4–6 years in most US states.
Heat pump water heaters work best in spaces that stay above 40°F year-round such as basements, garages, and utility rooms. They also dehumidify the surrounding air as a useful side effect making them ideal for humid US climates like the Southeast.
The Federal tax credit for heat pump water heaters in 2026 covers 30% of purchase and installation costs up to $2,000 under the Inflation Reduction Act. This incentive significantly reduces the payback period and makes upgrading worthwhile for most US homeowners. Compare full running costs in our water heater cost calculator or see how your heat pump cost calculator stacks up for whole-home heating too.
Heat Pump Water Heater — FAQs
Related Water Heater Cost Guides
Compare running costs across all water heater types side by side.
Full monthly running cost guide for electric tank heaters.
Monthly cost breakdown for gas tank and tankless heaters.
Calculate heat pump running costs for whole-home heating.
Free US heating cost tools for every heater type.