The 3D physical model of the electrical water heater was built. The water-heater performance of two kind structures was resolved by computer fluid dynamics simulation (CFD). The heater performance is characterized by a new method rather than that the discharge efficiency, extraction efficiency and fraction of heat recoverable. The new method is based on the constant discharge water temperature and rate for end user, 5L/min and 43°C that include the hot water from EWH and cold water from outside EWH. But the water discharge rate from EWH was variable as the water temperature discharge from EWH was variable. The discharge efficiency of conventional EWH was 79.312%, and the discharge efficiency of improved EWH was 84.97%. Compared with the traditional method, it is more close to the user using reality condition.