Rex says
Money math without the spreadsheet headache. Plug in your numbers and I'll show you exactly where the dollars land.
Try a scenario
Click to load — tweak from there.Inputs
Result
Lower total cost option
Gas
Gas water heater total cost
$4,300
Electric water heater total cost
$5,700
Total cost difference
$1,400
Breakeven point
3.0
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How to use this
- 1Enter gas heater unit + install ($).
- 2Enter electric heater unit + install ($).
- 3Enter gas annual operating cost ($).
- 4Enter electric annual operating cost ($).
- 5Enter expected lifespan.
- 6Read your lower total cost option on the right — it updates as you type.
- 7Hit Share to keep the scenario or send it to someone.
About this calculator
Gas water heaters usually cost more to install if you don't already have a gas line, but run cheaper per year in most markets; electric units are cheaper and simpler to install but cost more to operate where electricity is pricey relative to gas. This tool totals purchase and install cost plus annual operating cost across the unit's typical lifespan for each fuel type.
Worked example
Using the values the calculator loads with:
Inputs
- Gas heater unit + install: 1800 $
- Electric heater unit + install: 1200 $
- Gas annual operating cost: 250 $
- Electric annual operating cost: 450 $
- Expected lifespan: 10
Results
- Lower total cost option: Gas
- Gas water heater total cost: $4,300
- Electric water heater total cost: $5,700
- Total cost difference: $1,400
- Breakeven point: 3
What each field means
Inputs
- Gas heater unit + install ($)
- The gas heater unit + install used in the calculation, measured in $. Starts at 1800 $ so you have a working example on load.
- Electric heater unit + install ($)
- The electric heater unit + install used in the calculation, measured in $. Starts at 1200 $ so you have a working example on load.
- Gas annual operating cost ($)
- The gas annual operating cost used in the calculation, measured in $. Starts at 250 $ so you have a working example on load.
- Electric annual operating cost ($)
- The electric annual operating cost used in the calculation, measured in $. Starts at 450 $ so you have a working example on load.
- Expected lifespan
- The expected lifespan used in the calculation. Starts at 10 so you have a working example on load. Accepted range: 1–20.
Results
- Lower total cost option
- Returned as a plain value and shown as the headline result. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Gas water heater total cost
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Electric water heater total cost
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Total cost difference
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Breakeven point
- Returned as a length of time. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
FAQ
Why is gas install often more expensive?
If a home lacks an existing gas line and vent, running one and adding proper venting can add $500-$1,500 to installation versus a simple electric swap.
Which lasts longer?
Both types typically last 8-12 years, though electric tank units can run slightly longer since there's no burner or venting to corrode.
What if my electricity is unusually cheap?
In regions with cheap hydro or solar-heavy grids, electric can beat gas outright — plug your local utility rates into the annual cost fields to see your actual breakeven.
Accuracy and limitations
- Results are estimates before tax, fees, and inflation unless an input explicitly covers them.
- Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.
- This is educational maths, not financial advice. Check anything contractual with the lender or your accountant.
Related tools
Cite this calculator
Writing about this topic? Grab a citation — every link helps keep these tools free.
RevenueLab. (2026). Gas vs Electric Water Heater Cost Calculator. Retrieved from https://www.revenuelab.fyi/toolbox/gas-vs-electric-water-heater-cost
<p>Source: <a href="https://www.revenuelab.fyi/toolbox/gas-vs-electric-water-heater-cost" target="_blank" rel="noopener">Gas vs Electric Water Heater Cost Calculator — RevenueLab</a> (2026).</p>
Source: [Gas vs Electric Water Heater Cost Calculator — RevenueLab](https://www.revenuelab.fyi/toolbox/gas-vs-electric-water-heater-cost) (2026).