Hot Water On Demand: Your Tankless Heater Size Answered
Switching to a tankless water heater is an exciting upgrade for any home, promising endless hot water and improved energy efficiency. But before you can enjoy those long, guilt-free showers, you face a critical question: “What size tankless water heater do I need?” Unlike traditional tank heaters measured in gallons, tankless models are sized by their heating power and water flow capacity. Getting this right is the key to hot water happiness.

The good news is that you don’t need an advanced engineering degree to figure it out. Sizing a new water heater, whether it’s a whole-house or point-of-use model, boils down to two primary factors:
- Peak Flow Rate: The maximum amount of hot water, measured in gallons per minute (GPM), that you’ll need at any single moment.
- Temperature Rise: The number of degrees the heater must raise the temperature of the incoming cold water to reach your desired hot water temperature.
By understanding and calculating these two figures, you can confidently choose the correct size tankless water heater for your home’s unique needs, ensuring you have all the hot water you want, exactly when you want it.
Calculating Your Peak Flow Rate
Your peak flow rate is the total GPM your household might use during its busiest time. Think about a typical morning: someone is showering, the dishwasher is running after breakfast, and you’re washing a load of laundry. You’ll need a tankless unit that can keep up with this simultaneous hot water use. Here’s how to calculate it.

First, list the plumbing fixtures you expect to run at the same time and their typical flow rates. You can often find the GPM stamped on the fixture itself (especially on newer faucets and showerheads).
Here are some common estimates:
- Showerhead: 2.0 – 2.5 GPM (older models can be 3.0 GPM or more)
- Bathroom Faucet: 1.0 – 1.5 GPM
- Kitchen Faucet: 1.5 – 2.2 GPM
- Dishwasher: 2.0 – 3.0 GPM
- Washing Machine (Hot Water Cycle): 3.0 – 5.0 GPM
Example Calculation:
Let’s say your peak demand involves one shower and the dishwasher running simultaneously.
2.5 GPM (shower) + 2.0 GPM (dishwasher) = 4.5 GPM Peak Flow Rate
By adding up the GPM for all concurrently running fixtures, you can estimate the total flow rate your new heater must support. For the most accurate calculation, consider installing low-flow fixtures to reduce your overall hot water demand. It’s also important to note that your home’s water pressure can impact GPM; if you suspect you have water pressure problems, it’s wise to address those first, as low pressure can prevent a tankless unit from activating correctly. In some cases, a water pressure booster pump may be necessary.
Determining Required Temperature Rise
The second piece of the puzzle is the temperature rise. This is simply the difference between the temperature of the cold water entering your home and the hot water temperature you want coming out of your taps. An effective tankless water heater sizing guide always emphasizes this calculation, as it determines how hard the unit has to work.

The formula is straightforward:
Desired Hot Water Temperature – Incoming Groundwater Temperature = Required Temperature Rise
Most households set their hot water temperature between 120°F and 130°F. The temperature of your incoming groundwater, however, varies significantly by region and season. In southern states, it might be 60-70°F year-round. In northern climates, it could drop to 40°F or even lower in the winter.
Example Calculation (for a colder climate):
125°F (desired temp) – 45°F (incoming winter water) = 80°F Temperature Rise
A higher temperature rise demands more power from your heater to achieve the same GPM. This is why climate is a critical factor in selecting the right unit.
Matching to Manufacturer Specifications
With your peak flow rate (GPM) and required temperature rise (°F) in hand, you’re ready to shop. Manufacturers of both natural gas and electric tankless water heaters provide specification charts that show a unit’s performance. These charts will tell you the maximum GPM the unit can produce at different temperature rises.

For example, a spec sheet might look like this:
- At 40°F Temperature Rise: 8.0 GPM
- At 60°F Temperature Rise: 6.5 GPM
- At 80°F Temperature Rise: 5.0 GPM
Using our examples from above, we need a unit that can provide at least 4.5 GPM at an 80°F temperature rise. The unit in this example would be a perfect match, as it can deliver 5.0 GPM under those conditions. Always choose a unit that meets or slightly exceeds your calculated needs to ensure satisfaction. Many manufacturers, like Rheem, offer a tankless electric water heater sizing tool to simplify this matching process.
Adjusting for Climate and Usage Patterns
As we’ve seen, your geographical location plays a huge role. If you live in a cold climate like Minnesota, you will need a much more powerful tankless heater (with a higher BTU rating for gas or kilowatt rating for electric) than a homeowner in Florida to achieve the same hot water output. This is a primary reason why a unit that works perfectly in a southern home may feel undersized in a northern one.
Household Size and Unit Type
The size of your family also impacts your choice. While the GPM calculation is the most accurate method, here are some general guidelines:
- Small Homes/Apartments (1-2 people): A point-of-use unit for a single fixture or a smaller whole-house unit (around 4-6 GPM) might suffice.
- Medium Homes (2-4 people): A whole-house tankless water heater in the 6-8 GPM range is a common choice.
- Large Homes (4+ people, multiple bathrooms): You will likely need a larger, high-capacity unit capable of 8-10 GPM or more to handle peak demand.
This is also where you decide between a whole-house system that serves every fixture or smaller point-of-use heaters dedicated to a specific area, like a remote bathroom or kitchen sink.
Balancing Efficiency and Cost
Choosing the right size isn’t just about performance; it’s about finding the sweet spot between efficiency and cost. While it might be tempting to save money with a smaller unit, an undersized heater will lead to frustrating temperature drops and a “yo-yo” effect when multiple taps are running. Conversely, a grossly oversized unit costs more upfront and may not operate as efficiently if your demand is consistently low.
To protect your investment and ensure long-term efficiency, it is crucial to consider your water’s mineral content. Hard water can cause scale to build up inside a tankless heater, reducing its efficiency and shortening its lifespan. We highly recommend you assess your water quality. If you discover you have hard water, it is a smart move to install a whole house water filtration system or a water softener along with your new heater.
Endless Hot Water Awaits: Your Next Steps
Sizing your tankless water heater correctly is the most important step in ensuring a successful upgrade. By following this guide, you can move forward with confidence. Let’s recap the process:
- Calculate Peak Flow Rate: Add up the GPM of all hot water fixtures you might use at once.
- Determine Required Temperature Rise: Subtract your area’s coldest groundwater temperature from your desired hot water temperature (typically 120-130°F).
- Match and Select: Compare your numbers to manufacturer spec sheets to find a unit that meets or exceeds your GPM needs at your required temperature rise.
Once your perfectly sized heater is installed, you’ll be on your way to enjoying an endless supply of efficient, on-demand hot water. For an extra touch of luxury and convenience, you might also want to consider a recirculation pump, which can deliver hot water to your faucets almost instantly, eliminating the wait.