A rain barrel saves a little money, slowly. A typical 55-gallon barrel used weekly in the growing season saves about 1,000 to 1,500 gallons a year, which at the average US water price of about 1.5 cents per gallon is about 15 to 25 dollars a year. A barrel that costs 80 dollars therefore takes about three to five years to pay for itself. A DIY barrel that costs 40 dollars pays back in about two years. That is the honest answer, and it is fine: a rain barrel is a water-saving tool first and a money-saving tool second.
Barrel water is for non-potable use only: ornamental beds, lawns, and outdoor cleaning. It is not drinking water, and the savings below are for garden watering only.
The Short Answer: A Little, Slowly — and That Is Fine
If you buy a rain barrel to get rich, you will be disappointed. If you buy one to save water, to water your garden during a dry spell, and to cut your water bill a little each year, you will be happy. The savings are real, but they are small, because water is cheap in most of the US. A barrel saves money at the rate of about a dollar for every 60 to 70 gallons you use, and a barrel holds only 55 gallons at a time. The value is in using it again and again, week after week, year after year. Over ten years, a barrel that saves 20 dollars a year saves 200 dollars, which is more than twice its cost. Over twenty years, it saves 400 dollars. Slow, steady, and real — that is the verdict.
The Maths: Gallons Saved × Your Local Water Rate
The maths is simple: money saved equals gallons of tap water replaced, times your local water rate per gallon. The US average water rate is about 1.5 cents per gallon, or about 15 dollars per 1,000 gallons, but rates vary widely. In some cities water costs less than 1 cent per gallon. In dry western cities it can cost 3 to 5 cents per gallon, or more in summer when tiered rates apply. Check your water bill for your rate: look for the charge per 1,000 gallons, or per cubic foot, and convert it. One cubic foot is about 7.48 gallons, so a rate of 10 dollars per 100 cubic feet is about 1.3 cents per gallon.
Your gallons saved depend on how often you use the barrel. A barrel used once a week for 26 weeks in the growing season, emptied each time, saves 55 times 26, or 1,430 gallons a year. A barrel used twice a week saves 2,860 gallons. A barrel that sits full and unused saves nothing, no matter how much rain falls. The barrel only saves money when you use the water instead of turning on the tap.
Worked Example: 55 Gallons a Week at the US Average Water Price
Take a typical home: one 55-gallon barrel, used once a week for 26 weeks in the growing season, at the US average water price of 1.5 cents per gallon. Gallons saved: 55 × 26 = 1,430 gallons a year. Money saved: 1,430 × $0.015 = $21.45 a year. A store-bought barrel costing 80 dollars pays for itself in 80 ÷ 21.45, or about 3.7 years. A DIY barrel costing 40 dollars pays for itself in about 1.9 years. Two linked barrels used once a week save 2,860 gallons and about 43 dollars a year, and pay for themselves in about three to four years.
Now change the rate. In a city where water costs 3 cents per gallon, the same barrel saves 1,430 × $0.03 = $42.90 a year, and pays for itself in under two years. In a city where water costs 0.8 cents per gallon, it saves $11.44 a year, and pays for itself in seven years. The rate matters more than the barrel. If your water is expensive, a barrel is a good investment. If your water is very cheap, a barrel is a water-saving choice, not a money-saving one.
Payback Table: Barrel Cost vs. Years to Break Even
This table assumes 1,430 gallons saved a year — one full barrel a week for 26 weeks — at the water rate shown.
| Barrel cost | At $0.01/gal ($14/yr) | At $0.015/gal ($21/yr) | At $0.03/gal ($43/yr) |
|---|---|---|---|
| $40 (DIY) | 2.8 years | 1.9 years | 0.9 years |
| $80 (store-bought) | 5.6 years | 3.7 years | 1.9 years |
| $120 (decorative) | 8.4 years | 5.6 years | 2.8 years |
| $200 (two linked) | 9.3 years* | 6.5 years* | 3.3 years* |
*Two linked barrels save about 2,860 gallons a year when used weekly, so the payback for the $200 row uses $29, $43, and $86 a year, not the single-barrel figures. A decorative barrel takes the longest to pay back, because you are paying for looks, not capacity. A DIY barrel pays back fastest, because the cost is lowest. In all cases, the barrel keeps saving after it pays for itself, for as long as it lasts — usually 10 to 20 years with good maintenance.
What the Savings Do Not Include (Your Time, Parts, Replacements)
The maths above counts only the barrel cost and the water saved. It does not count your time: two to three hours to install a barrel, and about an hour a year to maintain it. It does not count parts: a new spigot washer every few years, a new screen, a new overflow hose, or a replacement diverter. It does not count the stand, if you build one, or the cost of a pump if you add one. It does not count the water you save that you would not have used anyway: if you water less because the barrel is empty, you are not saving money, you are just watering less.
None of that makes a barrel a bad idea. It makes the payback a little longer than the simple table says, and it means you should buy a barrel because you want to save water and garden more sustainably, not because you expect a quick return. The money is a bonus, not the reason. If you count your time at a high hourly rate, a barrel will never pay for itself. If you count it as gardening time you enjoy, it already has.
The Honest Verdict: Save Water First, Save Money Second
A rain barrel saves water first and money second. It saves about 1,000 to 1,500 gallons a year for a typical home, which is a meaningful amount of water, and about 15 to 25 dollars a year at average US prices, which is a small amount of money. It pays for itself in two to five years, depending on the barrel cost and your local water rate, and it keeps saving for 10 to 20 years after that. It also gives you water during a dry spell, when tap water may be restricted, and it reduces stormwater runoff from your roof, which helps your local streams.
Buy a barrel if you want to water your ornamental garden with free rainwater, if you want a buffer against dry weeks, and if you like the idea of using what falls on your roof. Do not buy one if you only want to save money quickly. The honest verdict is that a rain barrel is a good, slow investment in water, not a fast investment in cash, and that is exactly what it should be.
FAQ
How much money does a rain barrel save per year?
About 15 to 25 dollars a year at the US average water price, for a barrel used once a week in the growing season. In cities with expensive water, it can save 40 dollars or more a year.
How long does it take a rain barrel to pay for itself?
About two years for a DIY barrel costing 40 dollars, and about three to five years for a store-bought barrel costing 80 dollars, at average water prices.
Does a rain barrel save money on a water bill?
Yes, a little, if you use the barrel water instead of tap water for ornamental beds and lawns. A barrel that sits full and unused saves nothing.
Is a rain barrel worth it if water is cheap?
For money alone, probably not quickly. For saving water, for watering during dry spells, and for reducing runoff, yes. Buy it for the water, not just the bill.
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