If you are not heating your house with propane, that sounds high to me. I guess a really old hot water heater in a very cold area might be a drain on the propane, but that does sound strangely high. I know people who heat their homes and run somewhere around that kind of usage.

It sounds a bit high. How old is your water heater? I just pulled up the Energy Star info from the cheapest 30 gallon water heater on Lowes.com and it says 269 gallons a year. That's 22 gallons on a month for just hot water (if you're the perfect example for however they figure the Energy Star stuff). Just our range top is propane and we get filled up once a year.

One of my friends uses propane for hot water, cooking and heating. There are only 2 of them in a 2400 sq ft home. I can't believe how much propane they go thru, I would have figured they could get thru a winter on their 500 gallon tank, not! I think they fill at least 2 times a year. I'm on NG and cost wise it's probably 1/2 the cost of propane.

If you've checked for leaks and there are none, it's for real.

One thing about propane is that there are less BTUs in it than natural gas. It takes more propane to heat water to the same temperature as natural gas.

1-2 gallons a day would be normal for an average family without a furnace or dryer being used. So, you're slightly above average in usage. If you have bigger than a 30 gallon water heater, use a tub at least once a week, 2-3 hot loads of laundry, with 30ish showers between the 4 of you, then the usage could be accurate.

Might be time to think about installing a tankless! I LOVE mine, and have been loving mine for 18 years. If you size it correctly, it can save you money.