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Calculate peak hour demand for water heater
What is peak hour demand?
Peak hour demand is the busiest one-hour of hot water usage period.
This may be in the morning, evening or some other time during the day.
Accurate calculation of demand is essential to proper water heater sizing.
Resources:
How to calculate recovery
How to calculate first hour delivery
Figure peak demand
Peak hour demand for family of three.
Illustration shows 3 showers using 20 gallons hot water per shower.
This amount of hot water seems very high.
Dishwasher and clothes washer manufactured after 2015 are designed to consume much less water.
There are many ways to conserve hot water. If peak hour can be reduced, then smaller size water heater can be installed.
Generally: cost to operate 40 gallon water heater can be $9 per year less over 50 gallon. 40 gallon heaters have 2% higher efficiency vs 50 gallon.
Caution: buying gas water heater that is too small can overwork the heater and shorten lifespan. Overuse has no effect on electric heater since parts are generic and easily replaced DIY.

Resource:
9 ways to save with water heater
Two water heaters
How much does it cost to fun gas water heater
How to repair electric water heater
How much hot water does your shower consume?
Typical shower or bath is 104-110F. Typical water heater thermostat is set at 120F. Divide 104-110 by 120 to find the ratio of hot and cold. This example shows the ratio of Hot-cold is 85-90%.
For more accurate percentage, use cooking thermometer to measure water temperature with full Hot water coming out of faucet, and then test again at bath or shower temperature.

To find the total for your shower habits, plug drain, take ordinary shower, remove water using measuring cup, then multiply by 85-90% hot-cold ratio.
Similar calculations can be made for laundry by filling empty laundry tub then use measuring cup to manually empty tub. Estimations can be made for other hot water usage like washing hands. Of course toilets and outdoor faucets are not connected to Hot water and should have no effect.giving a ratio of 85-90% hot and 10-15% cold if thermostat is not out of calibration, and single handle faucet cartridges are not leaking Read about crossover.
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