ClutchCalcs

Tech & Energy

EV vs Gas Total Cost of Ownership

Is an EV actually cheaper to own than a gas car over 10 years, or just cheaper to fuel? Compare apples-to-apples by running both vehicles through identical TCO math: purchase price (use net price after tax credits for EV), fuel cost (gas at MPG × price; EV at mi/kWh × electric rate), and maintenance differences (gas $1,200/yr average vs EV $600/yr — no oil, less brake wear, no transmission). This calculator returns the 10-year cost for each vehicle, total savings (or extra cost), and the break-even year when EV's lower operating costs catch up to its higher purchase price. Most EVs break even in 3-5 years at typical miles + electricity rates.

EV 10-yr savings

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EV total cost
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Gas total cost
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Break-even year
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The cost components

  • Purchase price (net of credits): for EV, subtract federal ITC ($7,500 new) and any state credits before entering. Used EVs may qualify for $4,000 federal credit.
  • Fuel: gas = miles / MPG × $/gallon. EV = miles / (mi/kWh) × $/kWh.
  • Maintenance: gas car ~$1,200/year (oil changes, brakes, transmission service, spark plugs, belts). EV ~$600/year (tires wear faster from instant torque, cabin filter, brake fluid every 5 yr, much less than gas).
  • Insurance: typically 5-15% higher for EVs in early years (specialized service network), but converging with gas as EVs go mainstream. Not factored into this calculator.
  • Depreciation: EVs depreciated faster than gas in 2018-2022; now closer to parity for popular models (Tesla Model 3, Y; Hyundai Ioniq 5; Ford Mustang Mach-E). Not factored into TCO directly here — affects resale value if you sell early.

Worked example: Tesla Model 3 vs Toyota Camry

EV (Tesla Model 3 LR after $7,500 credit): $36K. 4 mi/kWh. $0.13/kWh home charging. 12K mi/yr. Maintenance $600/yr.

Gas (Toyota Camry): $29K. 32 MPG combined. $3.50/gal. 12K mi/yr. Maintenance $1,200/yr.

10-year fuel cost: EV = (12,000 / 4) × 0.13 × 10 = $3,900. Gas = (12,000 / 32) × 3.50 × 10 = $13,125. Gas is $9,225 more in fuel.

10-year maintenance: EV = $6K. Gas = $12K. Gas is $6K more in maintenance.

Total 10-year cost: EV = $36K + $3.9K + $6K = $45.9K. Gas = $29K + $13.1K + $12K = $54.1K. EV saves $8,200 over 10 years. Break-even at ~year 5.

How to use this calculator

  1. EV price after credits: net out federal ($7,500) and state credits.
  2. Gas car price: comparable vehicle price.
  3. Annual miles: typical commute + occasional trips.
  4. Gas MPG: real-world average, not EPA.
  5. Gas price: $/gallon for what you'd actually pay.
  6. EV efficiency: mi/kWh from real-world data (3-4 mi/kWh typical).
  7. Electric rate: $/kWh at home charging.
  8. Years of ownership: 5-10 typical.
  9. Output: total EV cost, total gas cost, savings, break-even year.

Common scenarios

15K miles/year driver (high commute), California rates ($0.30/kWh). EV fuel cost rises but still much cheaper than gas. Higher mileage shortens break-even period dramatically — EV often breaks even in 2-3 years for high-mileage drivers.

8K miles/year driver (light use), cheap gas state ($3.00/gal), Texas rates ($0.12/kWh). Gas car's fuel savings vs EV are smaller. Break-even may stretch to 7-10 years. Depending on EV vs gas price gap, gas might come out ahead.

EV with public DC fast charging instead of home charging ($0.40/kWh). Fuel cost triples — reduces or eliminates the EV's TCO advantage. Home charging is essential to the EV value proposition.

FAQ

What about insurance differences? +
EVs typically cost 5-15% more to insure than comparable gas cars. Reasons: higher repair costs (specialized parts and shops), higher purchase prices (more to total). Difference is narrowing as EVs go mainstream and repair networks expand. Add ~$200-500/year to EV TCO for insurance differential.
What about home charger install cost? +
Level 2 home charger: $500-1,500 (hardware) + $500-2,500 (install). $1,500-3,000 total typical. Often a one-time cost over the EV's life. Some utilities offer rebates ($200-500). Factor into upfront EV cost for true TCO.
Do EV batteries need replacement? +
Modern EV batteries (Tesla, Ford, GM, etc.) are designed to outlast the car — most warranties cover battery for 8 years / 100K miles + retain 70% capacity guarantee. Real-world data: most EVs at 100K miles retain 85-90% of original capacity. Battery replacement is a rare event in EV life.
Are tax credits going away? +
Federal IRA ITC: 30% through 2032, phasing down 2033-2034. Many states have separate credits with their own schedules. Used EV credit ($4,000): until end of 2032. The window is generous; act before phase-down.
Do I qualify for the federal EV credit? +
Yes if: (1) vehicle qualifies (final assembly in NA, battery sourcing requirements); (2) MSRP under $55K (cars) or $80K (trucks/SUVs/vans); (3) income under $300K joint / $225K HOH / $150K single. Used EV: under $25K vehicle price, $4,000 credit, lower income limits. Check fueleconomy.gov for current qualifying vehicles.
What about hybrid as a middle ground? +
Hybrids (Toyota Prius, Honda CR-V Hybrid) get 45-55 MPG with no charging infrastructure required. TCO is closer to small efficient gas cars than to EVs, but better than typical gas. For low-mileage drivers, hybrid may TCO-beat both gas and EV options. Plug-in hybrids (PHEV) split the difference — daily electric driving + gas backup for long trips.
What if I have solar at home? +
Then your effective electricity cost for EV charging is near zero (the marginal kWh going to the EV would otherwise be exported to grid at lower net metering credit). EV+solar combination produces the lowest TCO of any vehicle type — essentially free fuel for the life of the EV.
Should I buy used EV? +
Used EVs (2-4 years old) often offer significant TCO advantage — first owner ate the biggest depreciation hit, you get the lower operating costs going forward. Verify battery health via dealer report; understand if used EV qualifies for $4,000 federal credit. Used Teslas, Nissan Leaf, Chevy Bolt are common bargains.