How much does an electric water heater cost to run in Michigan?

$105 a month

A day of use
$3.45
An hour of running
$1.15
A year
$1,258.70

5,000 W, 3 hours a day of element heating time (tank type), at Michigan’s average rate of 23.0¢ per kWh (EIA, June 2026). How we calculate this

Change the watts, hours or rate
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What it costs at other usage levels

Electric water heater at 5,000 W and 23.0¢ per kWh
UseA dayA monthA year
1 hour a day$1.15$34.96$419.57
2 hours a day$2.30$69.93$839.14
3 hours a day typical$3.45$104.89$1,258.70
4 hours a day$4.60$139.86$1,678.27
8 hours a day$9.20$279.71$3,356.54
24 hours a day$27.59$839.14$10,069.62
Monthly cost of an electric water heater in Michigan, nearby states and the USMichigan: $104.89; Indiana: $79.89; Ohio: $87.55; Wisconsin: $89.24; US average: $83.68Michigan$104.89Indiana$79.89Ohio$87.55Wisconsin$89.24US average$83.68

Models range from 4,500 W to 5,500 W (Virginia Cooperative Extension). We use 5,000 W, the middle of that range.

Michigan compared with other states

CheapestMost expensive

Michigan’s residential rate is the 13th most expensive of 51 states and DC, 4.7¢ above the US average of 18.3¢ (+25%). Michigan’s rate is up 2.2¢ from June 2025 (20.8¢, +10.4%).

Ways to spend less

  • Turn the tank thermostat down to the lowest setting that still gives comfortable showers.
  • Fix dripping hot taps and fit low-flow shower heads.
  • Wash clothes in cold water.
  • Cut heating time by an hour a day with shorter showers. Saves about $34.96 a month.

Questions

How much does it cost to run an electric water heater per hour?

About $1.15 an hour in Michigan. An electric water heater at 5,000 W uses 5.00 kWh per hour, and at Michigan’s average of 23.0¢ per kWh that comes to $1.15.

How much does an electric water heater add to your electric bill?

Used 3 hours a day of element heating time (tank type), about $104.89 a month in Michigan, or $1,258.70 a year.

How much does it cost to run an electric water heater 24 hours a day?

Running nonstop, an electric water heater would use 120 kWh a day and cost $27.59 a day, or $839.14 over an average month in Michigan.

How many watts does an electric water heater use?

Models range from 4,500 W to 5,500 W (Virginia Cooperative Extension). We use 5,000 W, the middle of that range. Check the label on yours: cost scales directly with watts, so a 20% lower wattage means a 20% lower bill.

Why does an electric water heater cost more or less to run in Michigan than elsewhere?

Michigan’s residential rate is the 13th most expensive of 51 states and DC, 4.7¢ above the US average of 18.3¢ (+25%). Michigan’s rate is up 2.2¢ from June 2025 (20.8¢, +10.4%). The appliance uses the same energy everywhere; only the price per kWh changes.

Sources

Usage assumptions (hours a day, season) are ours and listed on the methodology page. Found an error? Tell us.