Water heater tank size matters when it comes to heating faster & using less energy

When choosing the right size tank for your water heater, bigger isn’t always better. Matching your water heater capacity to the hot water needs of your family can save you money and make your water heat faster.

While you can choose between a storage tank, tankless water heater, or solar tank, this post will focus on storage tanks as they are found in most households.

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Understanding First Hour Rating

The first hour rating is how much hot water your heater can deliver in a single hour. It depends on tank capacity, fuel source, and size of the fuel source.

Tank Capacity x .70 + Recovery = First Hour Rating.

On the Energy Guide label, the first hour rating will be in the top left corner of the label.

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Match first hour rating within 1-2 gallons of your peak hour demand.

Peak hour demand is how much hot water your family will use in one hour.

Use this chart to determine peak hour demand:

UseAverage Gallons of Hot Water UsageTimes per hourGallons used in One Hour
Shower/Bath20x=
Shaving2x=
Hand/Face Washing2x=
Hand dishwashing2x=
Food Preparation2x=
Automatic dishwasher6x=
Clothes washer7x=
Total20x=

Adapted from energy.gov

Higher Energy Factor rating = more efficient tank

The energy factor indicates the efficiency of many home appliances, including water heaters, dishwashers, clothes washers, and clothes dryers. A higher energy factor on your hot water heater means:

  • More efficient recovery time(how efficiently heat is transferred to water)
  • Lower standby losses (heat loss per hour from stored water)
  • Fewer cycling losses (the loss of heat as hot water circulates through tank)

Energy Star rated propane gas water tanks should have an Energy Factor greater than 0.67 for 55 gallon or less tanks, and an Energy Factor greater than 0.77 for 55 gallon or more tanks.

Additional factors that influence size of your water heater

Your family may be classified as higher demand if you have more bathrooms, hot water appliances, or similar shower schedules in your home.

  • Household bathroom count
  • Schedules of people in the home
  • Other Hot Water Appliances

Common gallon capacity required per family-size

Family SizeDemandGallon Capacity Required (for Gas)
5 +High75-100
Low50
3-4High50-75
Low40
2-3High40-50
Low40
1-2High40-50
Low30
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FAQs

How do I know what size propane water heater my family needs?

The right size depends on your household’s peak hot water demand.

Calculate your family’s usage using the First Hour Rating (FHR), which combines tank capacity and recovery rate.

Matching your FHR within 1–2 gallons of your peak demand ensures you have enough hot water without wasting energy.

What is the First Hour Rating on a propane water heater?

The First Hour Rating (FHR) measures how many gallons of hot water a heater can deliver in one hour of peak usage.

It’s based on tank capacity and recovery rate. You’ll find the FHR on the Energy Guide label, helping you choose the best tank size for your household.

Are propane water heaters energy efficient?

Yes. Propane water heaters are highly efficient compared to electric models, especially if they are Energy Star rated.

Tanks with an Energy Factor (EF) greater than 0.67 for under 55 gallons—or greater than 0.77 for larger tanks—use less energy, reduce standby losses, and deliver faster recovery times.