EV vs. Gas Calculator
See the true total cost of ownership for an electric vehicle vs. a gas car over any time horizon. Fuel savings, insurance, and maintenance all factor in.
True Cost of Ownership: EV vs. Gas
The sticker price is only one part of the equation when choosing between an electric vehicle and a gas-powered car. Total cost of ownership (TCO) covers every dollar you'll spend over the years you own the vehicle — purchase price, fuel, insurance, maintenance, and repairs. EVs typically cost more upfront but less to run, making the multi-year comparison critical.
Fuel savings are the biggest advantage for EVs. Electricity costs roughly 3–4x less per mile than gasoline for most US drivers. Maintenance savings are also meaningful: EVs have no oil changes, fewer brake replacements (due to regenerative braking), no transmission service, and fewer moving parts overall. The Department of Energy estimates EVs cost about half as much to maintain per mile as gas vehicles.
EV vs. Gas Cost Comparison Table
| Cost Category | EV (Typical) | Gas Car (Typical) |
|---|---|---|
| Purchase Price | $38,000–$55,000 | $25,000–$38,000 |
| Federal Tax Credit | Up to $7,500 | None |
| Annual Fuel Cost | $400–$700 | $1,200–$2,000 |
| Annual Maintenance | $600–$1,000 | $1,200–$1,800 |
| Annual Insurance | $1,600–$2,200 | $1,200–$1,800 |
| 5-Year Fuel Savings | $4,000–$6,500 | Baseline |
When Does an EV Make Financial Sense?
An EV makes the most financial sense when you drive a lot (higher annual mileage amplifies fuel savings), have home charging (public fast charging narrows the fuel cost advantage), plan to keep the vehicle 5+ years (to recoup the upfront premium), and qualify for the federal tax credit. If you drive fewer than 8,000 miles per year and rely primarily on public charging, the financial case for an EV weakens considerably.
Insurance costs for EVs are generally 10–20% higher than comparable gas vehicles due to higher repair costs and parts availability. Factor this into your comparison, especially for luxury EVs where insurance premiums are notably elevated.
Frequently Asked Questions
Is an EV cheaper than a gas car long-term?
In most cases, yes. EVs cost more upfront but have significantly lower fuel and maintenance costs. At $0.13/kWh and 28 kWh/100 miles, charging costs around $450/year vs. $1,313/year for a 32 MPG gas car at $3.50/gallon driving 12,000 miles. Over 5–7 years, most EV owners come out ahead — especially with the federal $7,500 EV tax credit reducing the price gap.
What is the break-even point for an EV?
Break-even depends on the price premium, fuel savings, and maintenance savings. A $14,000 EV premium divided by $1,200/year in combined fuel and maintenance savings yields a break-even of about 11–12 years. Higher gas prices or more annual driving accelerates break-even significantly. The federal tax credit can cut break-even to 5–6 years.
Does the federal EV tax credit affect the comparison?
Yes, significantly. The Inflation Reduction Act offers up to $7,500 in federal tax credits for qualifying new EVs and $4,000 for used EVs, subject to income and vehicle price caps. This directly reduces the EV purchase price in the comparison. Apply the credit to your EV purchase price input to see the full adjusted comparison.
How do home charging costs compare to gas?
Home charging at the US average of $0.13/kWh costs roughly $0.04 per mile for a typical EV. A 30 MPG gas car at $3.50/gallon costs about $0.12 per mile — three times more. Public fast charging (DCFC) costs more, around $0.25–0.35/kWh, reducing the fuel savings advantage but still often cheaper than gas.