EV vs gas car total cost of ownership

EV vs gas car: the real total cost

EVs cost more upfront and less to operate. Whether they cost less over the life of ownership depends on five things: your annual miles, electricity rate, gas price, ownership horizon, and the federal tax credit.

The math

EV TCO = (price - tax credit) + (years × annual electricity + maintenance)
ICE TCO = price + (years × annual gas + maintenance)

For most US drivers at 2024 gas/electricity prices, EVs break even in 3-5 years and save $5,000-$15,000 over a 7-year ownership.

What flips the answer

EV wins more decisively when:

• You drive more miles (15k+/yr)
• You charge at home overnight ($0.10-0.16/kWh)
• Your gas price is high ($4+)
• You qualify for the full $7,500 federal credit
• You hold the car 7+ years

EV loses or breaks even when:

• You drive few miles (<8k/yr)
• You rely on public DC fast-charging ($0.40-0.60/kWh)
• Your home electricity rate is high (CA peak: $0.50+/kWh)
• The model doesn't qualify for the credit
• You sell within 3 years

What's NOT in this calculator

• Insurance: EVs cost ~10-25% more to insure (higher value, expensive battery replacement). Add ~$300-700/yr to EV column.
• Tire wear: EVs are heavier, eat tires faster. Add ~$200/yr.
• Battery replacement: 100k+ miles, $5-15k if out of warranty. Most EVs warranty 8 yrs / 100k miles.
• Resale value: Used EV market is volatile. Cybertruck and Hummer EV resale: bad. Tesla Model Y: good. Bolt: bad. Hard to predict.
• Charging infrastructure: Level 2 home charger install: $500-2000 one-time.
• State EV incentives: $0 in most states; $7,000+ in CA, CO, NJ, NY, IL.

Charging math

• Home Level 1 (120V): 4-5 mi/hr — barely enough for 30k mi/yr
• Home Level 2 (240V): 25-35 mi/hr — typical setup
• DC Fast (Tesla Supercharger / EA): 200-300 mi/hr — road trip only

If 90% of your miles can be home-charged at residential rates, EV economics work. If you can't charge at home, the calculation gets uglier — public charging often costs as much per mile as gasoline.