A Guide to Finding the Right Water Heater

Choosing the right water heater is about more than just replacing an old unit. Your home’s hot water demand, fuel source, available space, efficiency goals, and budget all play an important role in determining the best solution.

Whether you’re considering a traditional tank water heater or a tankless system, this guide will help you understand your options and identify a solution that meets your household’s needs.

START WITH YOUR FUEL TYPE

Before selecting a water heater, determine which fuel source is available in your home:

ELECTRIC

A reliable option for homes without natural gas service.

GAS

Often offer faster recovery rates and can support higher hot water demands.

Your available fuel source will help narrow your options and determine which products will work best in your home.

FIVE THINGS TO CONSIDER

DEMAND

How much hot water does your household use at one time?

Consider:

  • Number of people in your home
  • Number of bathrooms
  • Frequency of showers, laundry, and dishwasher use
  • Large fixtures such as rain showers or soaker tubs

Selecting the proper capacity helps ensure your household has enough hot water when it matters most.

EFFICIENCY

Energy-efficient water heaters can help reduce operating costs while lowering environmental impact.

Tankless systems heat water only when needed, while traditional tank models store heated water and maintain temperature throughout the day. Understanding these differences can help you balance comfort and energy savings.

SPACE

Water heater size and installation requirements vary by product type.

  • Tank water heaters require floor space.
  • Tankless water heaters feature a compact, wall-mounted design that can help free up valuable room in utility spaces, basements, or mechanical rooms.

COST

A water heater is a long-term investment.

Traditional tank models typically have a lower purchase cost, while tankless systems often require a larger initial investment but can provide long-term benefits through improved efficiency and durability.

WARRANTY

Warranty protection is an important part of your water heater purchase decision.

Typical warranty coverage includes:

  • Tank Water Heaters: 6-year limited tank warranty and 6-year parts warranty
  • Tankless Water Heaters: 15-year limited heat exchanger warranty and 5-year parts warranty

Always review the product’s warranty details before purchasing.

TANK VS. TANKLESS:

WHAT’S RIGHT FOR YOUR HOME?

Wondering which option is right for your home?

The table below highlights some of the key differences between traditional tank water heaters and tankless systems

THE ESSENTIALS

TANK TYPE

TANKLESS

Hot Water SupplyLimited, stored hot water (simultaneous usage)Endless, on-demand hot water
Operating EfficiencyMaintains heated water throughout the dayHeats only when needed
SpaceRequires floor spaceCompact, wall-mounted design
Upfront CostLower purchase costHigher initial investment
Warranty6-year limited warranty on tank & parts15-year limited warranty on heat exchanger, 5-year limited warranty on parts

The Essentials

Tank Type

Tankless

Hot Water Supply Limited, stored hot water (simultaneous usage) Endless, on-demand hot water
Operating Efficiency Maintains heated water throughout the day Heats only when needed
Space Requires floor space Compact, wall-mounted design
Upfront Cost Lower purchase price Higher initial investment
Warranty 6-year limited warranty on tank and parts 15-year limited warranty on heat exchanger, and 5-year limited warranty on parts

MEET YOUR HOT WATER NEEDS

One of the most important factors in selecting a water heater is understanding your home’s simultaneous hot water demand.

If multiple fixtures are used at the same time, your water heater must be able to supply enough hot water to keep up with demand.

UNDERSTANDING GPM

GPM (Gallons Per Minute) measures the amount of hot water required for fixtures to operate properly.

The higher the total GPM of fixtures running at the same time, the larger your water heating solution may need to be.

HOT WATER FIXTURESESTIMATED DEMAND (GPM)
0.5 – 1.0
1.0 – 1.5
1.0 – 1.5
1.5 – 2.0
1.8
3.0 – 4.0+
4.0 – 8.0+
6.0 – 12.0+

COMMON HOUSEHOLD HOT WATER SCENARIOS

Use the examples below as a general guide to help estimate your home’s hot water requirements. Actual sizing should always be confirmed by a licensed professional.

HOT WATER FIXTURESCOMMON HOUSEHOLD SCENARIOS (RUNNING SIMULTANEOUSLY)ESTIMATED PEAK DEMANDRECOMMENDED TANK OR TANKLESS UNITS
+ 1 shower + dishwasher3-4 GPM1x electric 50 USG
1x gas 50 USG
1x gas tankless
+ 2 showers4-5 GPM1x electric 80 USG
1x gas 50 USG
1x gas tankless
+ + 2 showers + laundry6-7 GPM1x gas 75 USG
1x gas tankless
+ + 3 showers7-8 GPM1x gas 75 USG
2x gas tankless
+ Roman tub filler + shower7-10 GPM1x gas 75 USG
2x gas tankless
+ + + + 3 showers + laundry + dishwasher10-12+ GPM2x gas 75 USG
3x gas tankless
+ + + Luxury home (tubs, showers & body sprays)12-20+ GPM2x gas 75 USG
3-4x gas tankless
Hot Water Fixtures Estimated Peak Demand Recommended Tank or Tankless Units
+ 3-4 GPM 1x electric 50 USG
1x gas 50 USG
1x gas tankless
+ 4-5 GPM 1x electric 80 USG
1x gas 50 USG
1x gas tankless
+ + 6-7 GPM 1x gas 75 USG
1x gas tankless
+ + 7-8 GPM 1x gas 75 USG
2x gas tankless
+ 7-10 GPM 1x gas 75 USG
2x gas tankless
+ + + + 10-12+ GPM 2x gas 75 USG
3x gas tankless
+ + + 12-20+ GPM 2x gas 75 USG
3-4x gas tankless

COLD CLIMATE CONSIDERATIONS

In colder climates, incoming water temperatures are lower, which can impact water heater performance.

If a water heating system is not properly sized, cold incoming water may contribute to:

  • Reduced hot water availability
  • Lower performance during peak demand periods
  • Longer recovery times

Proper sizing is especially important for Canadian households where seasonal water temperatures can vary significantly.

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