How to Calculate EV vs Gas Total Cost of Ownership
What is EV vs Gas Total Cost of Ownership?
The EV vs Gas Car Total Cost of Ownership calculator compares the complete 5-year or 10-year ownership costs of an electric vehicle versus a gasoline car, including purchase price, fuel, maintenance, insurance, depreciation, and available tax credits.
Formula
TCO = Purchase Price - Tax Credits - Resale Value + (Annual Fuel Cost + Insurance + Maintenance) x Years
- P
- Purchase Price ($) — Sticker price or negotiated price of the vehicle
- TC
- Tax Credits ($) — Federal and state EV incentives applied at purchase
- FC
- Annual Fuel Cost ($/year) — Yearly cost of electricity or gasoline
- M
- Annual Maintenance ($/year) — Yearly maintenance and repair costs
- RV
- Resale Value ($) — Projected value of the vehicle at end of ownership period
Step-by-Step Guide
- 1Enter purchase prices for both the EV and gas vehicle
- 2Input annual miles driven, electricity rate ($/kWh), and gas price ($/gallon)
- 3Add annual insurance and maintenance costs for each vehicle
- 4The calculator computes total cost over the ownership period and shows the break-even point
Worked Examples
Input
EV: $45,000, 12k mi/yr, $0.13/kWh, 3.5 mi/kWh; Gas: $35,000, 30 mpg, $3.50/gal; 10 years
Result
EV TCO: $52,860 vs Gas TCO: $59,600 — EV saves $6,740 over 10 years
Input
EV: $45,000 with $7,500 credit; Gas: $35,000; 5 years
Result
EV TCO: $37,930 vs Gas TCO: $42,300 — EV saves $4,370 over 5 years
Common Mistakes to Avoid
- ✕Forgetting to include the federal EV tax credit ($7,500) and state incentives which dramatically change the comparison
- ✕Using average gas prices instead of local prices which vary from $2.80 to $5.50+ per gallon
- ✕Overlooking that EV maintenance is 40-60% cheaper since there are no oil changes, transmission service, or exhaust repairs
Frequently Asked Questions
Are EVs really cheaper to own than gas cars?
In most scenarios, yes. While EVs have higher upfront costs, lower fuel costs ($0.04/mile vs $0.12/mile for gas) and 40-60% lower maintenance typically result in lower 10-year TCO, especially with tax credits.
How much does it cost to fuel an EV per mile?
At the US average electricity rate of $0.16/kWh and an efficiency of 3.5 mi/kWh, an EV costs about $0.046 per mile compared to $0.12-0.18 per mile for gasoline vehicles.
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