How to Choose the Right Size Water Heater for Your Home

Allison Kessler • February 13, 2026

Choosing the right size water heater for your home is crucial for both comfort and efficiency. A water heater that's too small will leave you shivering mid-shower, while one that's too large can result in unnecessarily high energy bills. Consulting experienced plumbing contractors can also help you better understand your household needs and the basic principles of water heater operation so you can select the perfect model for your home.


Assess Your Household Hot Water Demand

The first factor to consider is your household’s hot water needs. Think about the peak hours of hot water use in your home. How many people live in your household, and what are their habits? Do you have teenagers who take long showers, or multiple people showering at the same time in the morning? Consider other appliances that use hot water, such as washing machines and dishwashers. A family of four will generally require a water heater with a larger capacity compared with a small household of one or two people.


Prioritize Energy Efficiency and Operating Costs

Another vital consideration is energy efficiency. According to the U.S. Department of Energy, water heating makes up approximately 18% of the typical home's energy use and is usually the second-largest energy expense. Therefore, selecting an energy-efficient model can significantly reduce utility bills. Look for water heaters with a high Energy Factor rating. While they might cost more upfront, their efficiency offsets this through lower operational costs.


Compare Water Heater Types and System Options

It's also essential to consider the type of water heater that best suits your home. Traditional storage water heaters are the most common, but demand (tankless) water heaters can be more efficient since they only heat water when needed. Hybrid heat pump water heaters and solar water heaters are options as well. Each type has its pros and cons, so consider your budget, space availability, and long-term energy savings when selecting a model. If you’re unsure which type or size is ideal, licensed plumbing contractors can assess your setup and make tailored recommendations.


Selecting the right size water heater involves considering your household's hot water needs, energy efficiency, and the type of heater that fits your lifestyle. By taking these factors into account, you can ensure a steady supply of hot water while optimizing energy use and costs. Investing some time in choosing the appropriate model can lead to long-term savings and increased home comfort.


If you're ready to choose the right water heater with confidence, we're here to help every step of the way. At Maxwell Plumbing & Heating LLC, our experienced plumbing contractors make it easy to find a solution that fits your home, your budget, and your long-term comfort.

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