Private Well vs City Water Cost

Amortize your well over its service life and weigh it against your monthly water bill — illustrative math on your figures, not financial advice.

Illustrative math, not advice: This is illustrative math on the figures you enternot financial advice. Drilling cost, water rates, well life and your usage vary; talk to a qualified professional. Savings are never guaranteed.

Calculator

$
Drilling, casing, pump, tank and hookup — the all-in build cost you paid or were quoted.
years
A planning figure to amortize over (wells often last decades; pumps less).
$/month
What you pay (or would pay) the utility each month for the same water.
Well cost per month$50.00
Well amortized$12,000.00 ÷ (20 yr × 12)
City water per month (yours)$65.00
Monthly difference−$15.00 (well cheaper)

Amortized over 20 years, a $12,000.00 well is about $50.00/month; against a $65.00/month city bill the well is about $15.00 cheaper per month. This is illustrative math on your figures — well life, pump replacements and rates vary. Not financial advice.

A private well trades a large up-front cost for near-zero monthly water charges (you still pay for the electricity to run the pump and for occasional maintenance). City water flips that: little or nothing up front, a bill every month. To compare them fairly you spread the well’s build cost over the years you expect it to serve, turning a one-time number into a monthly figure you can set next to the utility bill.

This is deliberately simple — a recoup identity on the numbers you enter. It is illustrative, not a financial model, and it does not fold in electricity, repairs, water quality or the value of water independence.

Formula

A pure amortization on your own figures:

Well cost per month = well total ÷ (service life years × 12)

Monthly difference = city bill per month − well cost per month

No interest rate, no live water tariff, no forecast — just your build cost, your assumed life, and your bill.

Worked example

A $12,000 well amortized over 20 years is 12,000 ÷ (20 × 12) = $50 per month. Against a $65 per month city bill, the well works out about $15 a month cheaper on these figures. Shorten the assumed life to 15 years and the well rises to about $67/month, roughly a wash — which is exactly why the service-life assumption matters so much.

What the simple math leaves out

Treat the result as a starting point, not a verdict. Real ownership costs include the pump’s electricity, periodic water testing, any treatment, and pump or pressure-tank replacements over the well’s life — a pump rarely lasts as long as the borehole itself. City water has its own trajectory: rates tend to rise over time, which quietly improves the well’s standing in a longer comparison.

Because so much rides on the service-life and bill assumptions, try a few values rather than trusting one. This is illustrative math on your figures — not financial advice, and savings are never guaranteed. Talk to a qualified professional for a real decision.

Frequently asked questions

Is well water cheaper than city water?
Often, over the long run, because the monthly cost is mostly pump electricity once the well is built. But it depends on the build cost, how long the well serves, and your local water rates. A $12,000 well over 20 years is about $50/month; whether that beats your bill depends on your numbers.
How do I amortize a well?
Divide the all-in build cost by the number of months you expect it to serve (service-life years × 12). A $12,000 well over 20 years is 12,000 ÷ 240 = $50 per month. Compare that to your monthly city bill.
What does this comparison leave out?
Pump electricity, water testing, treatment, and pump or pressure-tank replacements over the well’s life, plus future changes in city water rates. It is a simple recoup identity, so add those costs yourself for a fuller picture.
Is this financial advice?
No. It is illustrative math on the figures you enter, meant to frame the trade-off. Well life, repairs and rates vary, savings are never guaranteed, and you should talk to a qualified professional before making a decision.