The Water Research Foundation’s Residential End Uses of Water report showed that the average US home used almost 50,000 gallons of water per year for indoor use alone in 2016. The report showed that 33% of indoor water use is hot water.

Home energy experts at Scope Zero estimate that the average US home could cut their water costs by almost 50% by upgrading to water-efficient home technology. The energy bill savings could be even higher if the occupants incorporate wise water consumption habits.

But every home is unique in how it consumes water, so it can be difficult to have a one-size-fits-all playbook for upgrading your home technology. This section will break down how much money the average US home spends on water.

The average breakdown of water use at home

Figure 1 shows the breakdown of indoor water use for the average home in 206, per the Water Research Foundation’s Residential End Uses of Water report.

Figure 1. Breakdown of how the average US home uses water indoors.

As you can see, toilets, showers, and sinks are the three largest categories of indoor water use. This is because most homes use these devices regularly on a daily basis. For devices like washing machines and dishwashers, homes may only use these devices a few times per week, so their overall water usage tends to be lower.

The EPA reported that the average cost of residential water was $0.0168 per gallon in 2024. At this rate, the annual water bill for the average US home is around $840 (assuming no outdoor water use).

The average breakdown of hot water use at home

A home’s water bill is not the only cost associated with water. The cost to heat water usually accounts for about 15% of a home’s annual energy bill. In 2020, the Energy Information Administration (EIA) reported that the average US home spent about $295 on water heating. Adjusting for 2025 electricity and natural gas prices, the annual cost of water heating is likely closer to $530 for the average US home.

Figure 2 shows how much hot water the average US home uses per year per water-consuming device. A few notable points:

• Toilets only use cold water.
• Dishwashers usually use 100% hot water.
• Hot water usage of sinks, showers, and washing machines depend on occupant behavior.

Figure 2. Indoor water and hot water usage for the average US home.

Outdoor water usage

Many homes in the US have even higher water bills due to their outdoor water use. Common ways that homes use water outdoors include irrigation, pools, and hot tubs. Outdoor water typically doubles a home’s water consumption, increasing the average 50,000 gallons of water per year to closer to 100,000 gallons of water per year. This would increase average annual water bills from $840 to $1,680.

For reference, hot tubs hold anywhere from 200-650 gallons, while residential pools hold anywhere from 10,000-30,0000 gallons.