Sizing Your Water Heater
Updated February 20, 2026
Key Takeaway
An undersized water heater runs out during showers. An oversized one wastes energy. Tank heaters are sized by first-hour rating (FHR). Tankless by flow rate (GPM) and temperature rise. Getting it right means never running cold.
Overview
An undersized water heater runs out during showers. An oversized one wastes energy. Tank heaters are sized by first-hour rating (FHR). Tankless by flow rate (GPM) and temperature rise. Getting it right means never running cold.
What to Know
Comparison
| 30-40 gal: 1-2 people, small households |
| 40-50 gal: 2-3 people, moderate use |
| 50-65 gal: 3-4 people, most families |
| 65-80 gal: 5+ people or high demand |
| Tankless: sized by GPM and temperature rise, not gallons |
Buying Tips
- Use first-hour rating (FHR), not just tank size, to compare.
- Cold climates need tankless sized for higher temperature rise.
- Heat pump water heaters recover slower -- size up.
- When in doubt, size up. Slightly oversized costs marginally more but never runs cold.
Common Mistakes
- Sizing by tank gallons alone -- FHR matters more.
- Buying tankless sized for warm climate in a cold climate.
- Replacing 40-gal with 40-gal without checking if the old one was adequate.
- Forgetting simultaneous use -- two showers need 4-5 GPM total.
Bottom Line
Tank: match FHR to peak-hour demand. Tankless: match GPM and temperature rise. Size up when in doubt.