When shopping for a water heater, tank size is a major consideration.
A smaller family would be comfortable using a 40 gallon hot water heater. Generally, a 40 gallon hot water heater is sufficient for a family of 2-3 people. However, if you have a larger family or bigger bathtubs – a 40 gallon hot water heater may not be large enough for your needs. Another factor to consider is your space. A 40 gallon hot water heater would be shorter in height than installing a 60 gallon hot water heater.