EV vs Fuel Cost Calculator

About EV vs Fuel Cost Calculator

This calculator compares the full cost of owning an electric vehicle against a petrol or gas-powered car. Enter purchase prices, fuel or electricity costs, maintenance, insurance, and depreciation rates to see a year-by-year breakdown and cumulative cost chart. The tool highlights the breakeven year where one option becomes cheaper than the other, helping you make a more informed buying decision based on real numbers rather than assumptions.

How EV and Gas Running Costs Compare

The biggest ongoing cost difference between electric and gas vehicles is fuel. An EV's "fuel" cost is calculated as:

Annual electricity cost = (annual mileage / range per charge) x battery capacity (kWh) x electricity rate ($/kWh)

For a gas car, the equivalent formula is:

Annual fuel cost = (annual mileage / MPG) x price per gallon

Here is a worked example for 12,000 miles per year. An EV with a 75 kWh battery and 300-mile range at $0.14/kWh costs about $420/year in electricity. A gas car getting 30 MPG at $3.50/gallon costs $1,400/year. That is a fuel savings of roughly $980 per year for the EV.

Let's break that EV calculation down step by step. At 12,000 miles per year and 300 miles per charge, you need 40 full charges. Each charge uses 75 kWh, so 40 x 75 = 3,000 kWh per year. At $0.14/kWh, that is 3,000 x $0.14 = $420. For the gas car: 12,000 miles at 30 MPG requires 400 gallons. At $3.50 per gallon, that is 400 x $3.50 = $1,400.

Maintenance costs also differ significantly. The US Department of Energy estimates that EVs cost about 40% less to maintain than gas vehicles. EVs skip oil changes, have no transmission fluid to replace, and use regenerative braking that extends brake pad life. Typical annual maintenance runs about $500 for an EV and $900 for a gas car. Over 10 years, that is $4,000 in savings on maintenance alone.

Here is a detailed breakdown of common maintenance items and their typical costs:

Maintenance Item	EV Cost	Gas Cost	Frequency
Oil Change	Not needed	$50 - $80	Every 5,000-7,500 miles
Transmission Service	Not needed	$150 - $300	Every 30,000-60,000 miles
Brake Pads	$150 - $250	$200 - $350	Every 50,000-75,000 miles (EV lasts longer)
Tire Rotation	$30 - $50	$30 - $50	Every 5,000-7,500 miles
Cabin Air Filter	$30 - $50	$30 - $50	Every 15,000-20,000 miles
Coolant Flush	$100 - $150	$100 - $150	Every 50,000 miles
Spark Plugs	Not needed	$100 - $200	Every 30,000-100,000 miles

Insurance tends to be 10-15% higher for EVs, mainly because replacement parts (especially batteries) cost more. Some insurers are closing this gap as EV adoption grows. Use the auto loan calculator to see how financing affects the overall picture.

Cost Category	EV (Annual)	Gas (Annual)	10-Year Difference
Fuel / Electricity	$350 - $600	$1,200 - $2,400	$6,000 - $18,000 saved
Maintenance	$400 - $700	$800 - $1,200	$1,000 - $5,000 saved
Insurance	$1,400 - $2,000	$1,200 - $1,800	$0 - $2,000 extra
Registration / Tax	$100 - $400	$50 - $200	$0 - $2,000 extra

When Does an EV Break Even?

EVs usually cost more upfront than comparable gas models. A mid-range EV like the Tesla Model 3 or Chevrolet Equinox EV starts around $35,000-$45,000, while a similar gas sedan or SUV may cost $28,000-$38,000. Federal tax credits up to $7,500 (as of 2025) can narrow that gap considerably.

The breakeven point is where the EV's lower running costs have offset the higher purchase price. For most buyers driving 12,000 miles per year, this happens between year 5 and year 8. Drivers who cover more miles break even faster because the fuel savings compound more quickly.

Let's walk through a specific scenario. Suppose you are comparing a $42,000 EV (after a $7,500 federal credit, so $34,500 net) against a $32,000 gas car. The upfront gap is $2,500. With annual savings of roughly $980 in fuel and $400 in maintenance, the EV saves about $1,380 per year in running costs. Subtracting the slightly higher insurance (about $200/year more), the net annual saving is $1,180. At that rate, the EV breaks even in about 2.1 years. Without the tax credit, the gap widens to $10,000, pushing breakeven to about 8.5 years.

Several factors push the breakeven earlier or later:

• Higher gas prices favour the EV - every $1/gallon increase shifts breakeven roughly 1-2 years earlier
• Cheap overnight electricity rates can cut EV charging costs by 30-50% compared to standard rates
• Tax credits and incentives directly reduce the upfront cost gap, and many states offer additional rebates on top of the federal credit
• Higher annual mileage means more fuel savings each year - someone driving 20,000 miles per year saves about 67% more on fuel than someone driving 12,000
• EV depreciation was historically faster than gas cars, though this is levelling out as the used EV market matures
• Electricity rates vary widely - from $0.08/kWh in some states to over $0.30/kWh in others, which dramatically changes the fuel savings

Check your local electricity costs and fuel costs to get accurate numbers for your area.

How Depreciation Affects Total Cost

Depreciation is often the single largest cost of car ownership, and it plays a big role in the EV vs gas comparison. This calculator uses a declining-balance depreciation model. The default rates are 20% in year 1 and 15% per year after that, which matches industry averages tracked by Edmunds and Kelley Blue Book.

For a $40,000 vehicle at those rates, the value drops to $32,000 after year 1, $27,200 after year 2, $23,120 after year 3, and $19,652 after year 4. After 5 years, the car is worth about $16,704 - a total depreciation of $23,296 or 58% of the original price.

Historically, EVs depreciated faster than gas cars because of rapid technology improvements and range anxiety in the used market. A 2023 iSeeCars study found that the average EV lost 49% of its value after 5 years, compared to 39% for gas vehicles. However, this gap has been narrowing as battery technology stabilizes and consumer confidence in used EVs grows. Tesla Model 3 and Model Y, for example, have shown depreciation rates comparable to popular gas vehicles.

You can adjust the depreciation rates for each vehicle independently in the calculator. If you expect your EV to hold its value well (perhaps a popular model with strong demand), set a lower depreciation rate. If you are considering a first-generation EV from a new manufacturer, a higher rate may be more realistic.

Other Factors to Consider

Beyond raw cost, there are practical factors that affect which vehicle suits your needs. Charging infrastructure matters - if you can charge at home overnight, an EV is more convenient than visiting a petrol station. Home charging typically costs much less than public fast charging, and you start each day with a full battery. If you live in a flat or rely on street parking, charging logistics are more complex and public charging costs can be 2-3x higher than home rates.

Range has improved dramatically. Most new EVs offer 250-350 miles per charge, which covers daily driving for the vast majority of people. The average American drives about 37 miles per day according to the US Department of Transportation, so even a modestly ranged EV needs charging only once or twice a week. For longer trips, fast-charging networks like Tesla Supercharger and Electrify America can add 200 miles of range in about 20-30 minutes.

Battery longevity is a common concern. Most manufacturers warrant EV batteries for 8 years or 100,000 miles, and real-world data from high-mileage EVs shows that batteries typically retain 85-90% of their original capacity after 200,000 miles. Battery replacement costs have also dropped substantially, from over $15,000 a few years ago to $5,000-$8,000 for many models today.

Resale value is another consideration. Early EVs depreciated quickly, but popular models now hold their value well. A 2025 Consumer Reports study found that the best-selling EVs retained 60-65% of their value after three years, comparable to many gas vehicles. Battery warranty coverage also helps protect resale value, giving buyers confidence in the used market.

Environmental impact is not captured in this calculator but matters to many buyers. According to the EPA, the average EV produces about 50-60% fewer lifetime emissions than a comparable gas car, even accounting for battery manufacturing and electricity generation. In regions with clean grids (hydroelectric, nuclear, or heavy renewable mix), the advantage is even larger.

Tax implications go beyond the purchase credit. Some states charge higher registration fees for EVs to offset lost gas tax revenue. These fees range from $50 to $400 per year depending on the state. On the other hand, some states and local utilities offer additional incentives like reduced electricity rates for overnight EV charging, free public charging at certain locations, or HOV lane access. Check your state's energy office website for the latest incentives available in your area.

If you are also considering financing options, the auto loan calculator can help you estimate monthly payments and total interest for either vehicle type. You might also want to check the gas mileage calculator to verify your actual fuel consumption if you already own a gas vehicle.