Electric vehicles cost 3-4 cents per mile for fuel compared to 12-15 cents per mile for gas cars. Driving 12,000 miles annually, an EV saves $1,000-$1,400 in fuel costs per year. But EVs typically cost more upfront, so total ownership costs depend on how long you keep the car.

After test-driving a Tesla Model 3 and comparing it against my 2019 Toyota Camry for three months, I tracked every dollar spent on fuel and electricity. My Camry cost $1,520 in gas over 12,400 miles that year, while the Model 3 owner I carpooled with spent just $410 charging at home. That $1,100 difference convinced me the math is real — but only if you have home charging.

Use our EV vs Gas Calculator to compare total costs for specific vehicles based on your driving habits.

EV vs Gas: The Cost Breakdown

Fuel/Energy Costs

Vehicle Type	Efficiency	Cost per Mile
Gas car (28 MPG)	28 miles/gallon	$0.125 @ $3.50/gal
Hybrid (50 MPG)	50 miles/gallon	$0.07 @ $3.50/gal
Electric (3.5 mi/kWh)	3.5 miles/kWh	$0.04 @ $0.14/kWh
Plug-in Hybrid (EV mode)	3.3 miles/kWh	$0.04 @ $0.14/kWh

Annual Fuel Cost Comparison

Based on 12,000 miles/year:

Vehicle	Annual Fuel Cost
Gas car (25 MPG)	$1,680
Gas car (30 MPG)	$1,400
Gas car (35 MPG)	$1,200
Hybrid (45 MPG)	$933
Hybrid (55 MPG)	$764
Electric vehicle	$480

Annual EV savings vs. 28 MPG gas car: ~$1,020

Tip

Home charging is cheapest. At $0.14/kWh, home charging costs about 70% less than gas. Public fast charging ($0.30-0.50/kWh) is still cheaper than gas but erodes the savings.

Calculating Your Fuel Savings

The Formula

Annual Savings = (Gas Cost per Mile - Electric Cost per Mile) × Annual Miles

Step-by-Step Calculation

Your gas car:

Gas cost per mile = Gas price ÷ Your MPG
Example: $3.50 ÷ 28 MPG = $0.125/mile

Electric vehicle:

Electric cost per mile = Electricity rate ÷ Miles per kWh
Example: $0.14 ÷ 3.5 mi/kWh = $0.04/mile

Annual savings:

($0.125 - $0.04) × 12,000 miles = $1,020/year

Savings by Driving Distance

At current average prices ($3.50/gal, $0.14/kWh):

Annual Miles	EV Fuel Cost	Gas (28 MPG)	Annual Savings
8,000	$320	$1,000	$680
10,000	$400	$1,250	$850
12,000	$480	$1,500	$1,020
15,000	$600	$1,875	$1,275
20,000	$800	$2,500	$1,700
25,000	$1,000	$3,125	$2,125

Total Cost of Ownership Comparison

Fuel is just one factor. Here's the complete picture:

Sample 5-Year Comparison

Comparing similar vehicles:

Gas car: $35,000 MSRP, 30 MPG
EV: $45,000 MSRP, 3.5 mi/kWh

Cost Category	Gas Car	Electric Car
Purchase price	$35,000	$45,000
Federal tax credit	$0	-$7,500
Adjusted price	$35,000	$37,500
Fuel (5 years)	$7,000	$2,400
Maintenance (5 years)	$4,500	$2,000
Insurance (5 years)	$7,500	$8,500
Registration (5 years)	$500	$750
5-Year Total	$54,500	$51,150

EV saves $3,350 over 5 years in this example.

Important

Tax credits change the math dramatically. The federal $7,500 EV tax credit (when eligible) can make EVs cost-competitive even with higher MSRPs. Check current eligibility at fueleconomy.gov.

Maintenance Cost Differences

Component	Gas Car	Electric Car
Oil changes	$30-70 every 5k miles	None
Transmission service	$100-300 every 50k	None (single gear)
Brake pads	Every 40-60k miles	Every 100k+ miles (regen braking)
Spark plugs	Every 60-100k miles	None
Air filter	Every 15-30k miles	Every 15-30k miles
Coolant	Every 50k miles	Every 150k miles
Timing belt	$500-1000 once	None
Engine repairs	Potential	None
Battery replacement	N/A	$5-15k (rare, after 150k+ miles)

Average maintenance:

Gas car: $700-$1,200/year
EV: $300-$500/year

When factoring in fuel costs, your actual MPG matters more than EPA estimates — learn how to track your real gas mileage for an accurate comparison.

EV Purchase Cost Analysis

Current EV Pricing (2026)

Category	Price Range	Examples
Budget EV	$28,000-$35,000	Chevy Equinox EV, Nissan Leaf
Mid-range EV	$40,000-$55,000	Tesla Model 3, Ford Mustang Mach-E
Luxury EV	$60,000-$90,000	BMW iX, Mercedes EQS
Premium EV	$100,000+	Porsche Taycan, Lucid Air

After Tax Credits

Federal EV tax credit: Up to $7,500 for qualifying vehicles State incentives: $0-$7,500 additional (varies)

Sticker Price	Federal Credit	Effective Price
$45,000	-$7,500	$37,500
$52,000	-$7,500	$44,500
$65,000	-$7,500	$57,500

Lease vs. Buy for EVs

Leasing advantages:

Lower payments if tax credit is applied by lessor
Avoid battery degradation concerns
Get newest technology every 3 years

Buying advantages:

Keep the tax credit yourself
Long-term savings from ownership (understand the full picture in our car payment guide)
EVs have lower depreciation than gas cars now

Break-Even Analysis

How long until EV savings cover the higher purchase price?

Break-Even Formula

Years to Break Even = Price Difference ÷ Annual Savings

Example Calculations

Scenario	Price Diff	Annual Savings	Break-Even
EV $8k more, 12k mi/year	$8,000	$1,500	5.3 years
EV $5k more (w/credit), 12k mi/year	$5,000	$1,500	3.3 years
EV $3k more (w/credit), 15k mi/year	$3,000	$1,900	1.6 years
EV $10k more, 10k mi/year	$10,000	$1,100	9.1 years

High-mileage drivers benefit most from EVs.

Tip

Consider resale value. EVs are holding value better than expected. A 3-year-old EV may retain 60-70% of value vs. 50-60% for a gas car.

Charging Costs Explained

Home Charging

Rate	Cost per kWh	Cost per 300-mile charge
Average US rate	$0.14/kWh	$12
Low (off-peak)	$0.08/kWh	$7
High (CA, HI)	$0.25/kWh	$21
Time-of-use (night)	$0.05-0.10/kWh	$4-8

Public Charging

Network	Cost per kWh	Cost per 300-mile charge
ChargePoint	$0.30-0.45/kWh	$25-40
Electrify America	$0.35-0.48/kWh	$30-40
Tesla Supercharger	$0.25-0.40/kWh	$20-35
Free (workplace, retail)	$0	$0

Home Charging Setup Costs

Level	Equipment	Installation	Total
Level 1 (120V)	Included	$0	$0
Level 2 (240V)	$300-700	$300-1,500	$600-2,200

Level 1: 3-5 miles per hour of charging (overnight sufficient for <40 mi/day) Level 2: 25-30 miles per hour of charging (full charge in 8-10 hours)

EV Considerations Beyond Cost

Advantages of EVs

Advantage	Explanation
Lower fuel costs	50-70% less than gas
Less maintenance	No oil changes, less brake wear
Smoother driving	Instant torque, quiet operation
Environmental impact	Zero direct emissions
Home refueling	Convenient overnight charging
HOV lane access	In many states
Performance	Quick acceleration

Challenges of EVs

Challenge	Mitigation
Higher upfront cost	Tax credits, lower operating costs
Range anxiety	Plan routes, 300+ mile range common now
Charging infrastructure	Improving rapidly, Tesla network
Apartment/condo charging	Workplace charging, DC fast charging
Cold weather range loss	10-25% reduction, precondition while plugged in
Battery degradation	Most retain 80%+ after 150k miles

Who Should Consider an EV?

Great candidates:

Home garage with electrical access
Daily commute under 100 miles
Second vehicle for long trips available
High-mileage drivers (maximize savings)
Environmentally motivated buyers

May want to wait:

Frequent long-distance travel (see our road trip cost guide to compare driving costs)
No home charging access
Limited local charging infrastructure
Very tight budget (used gas may be cheaper)

Hybrid as a Middle Ground

Plug-in hybrids (PHEVs) offer both worlds:

Metric	Gas	PHEV	Full EV
Purchase price	Lowest	Middle	Highest
Fuel cost	Highest	Low (mostly electric)	Lowest
Range anxiety	None	None	Some
Charging needed	No	Beneficial	Yes
Maintenance	High	Medium	Low

PHEVs work well for:

Those who can't charge daily
Frequent long-distance drivers
Transition to full EV later

How to Use Our EV vs Gas Calculator

Our EV vs Gas Calculator provides personalized comparisons:

Enter your current car's MPG — or select a comparison gas car
Select an EV model — or enter efficiency (mi/kWh)
Input your annual mileage — how much you drive
Enter local prices — gas and electricity rates
See results — annual savings, break-even point, 5-year comparison

The calculator also shows:

Monthly fuel cost comparison
Environmental impact (CO2 savings)
Total cost of ownership breakdown

Frequently Asked Questions

Are electric cars actually cheaper to own?

Over 5-10 years, EVs are often cheaper due to fuel and maintenance savings. The higher purchase price is offset by lower operating costs, especially for high-mileage drivers. Tax credits can make EVs cost-competitive immediately.

How much do you save on gas with an electric car?

The average driver saves $1,000-$1,400 per year on fuel costs. Savings are higher for those who drive more miles or live in areas with high gas prices and low electricity rates.

How long do EV batteries last?

Most EV batteries retain 80%+ capacity after 150,000+ miles. Manufacturers typically warrant batteries for 8-10 years or 100,000 miles. Battery replacement costs $5,000-$15,000 but is rarely needed.

Is it cheaper to charge an EV at home or at a public station?

Home charging is significantly cheaper — typically $0.04-0.06 per mile vs. $0.10-0.15 per mile at public fast chargers. Home charging during off-peak hours is the most economical option.

Do EVs require less maintenance?

Yes, EVs have fewer moving parts: no oil changes, no transmission service, no spark plugs, and less brake wear due to regenerative braking. Expect 50-70% lower maintenance costs over the vehicle's life.

What is the break-even point for an EV vs gas car?

Typically 3-6 years depending on price difference, tax credits, and driving habits. High-mileage drivers break even faster. With a $7,500 tax credit, many EVs break even in 2-4 years.

Gas Mileage Calculator — Calculate your current vehicle's fuel economy
Car Payment Calculator — Compare financing for EV vs gas
Road Trip Cost Calculator — Plan trip costs for either vehicle type

Conclusion

Electric vehicles offer significant fuel and maintenance savings, but higher upfront costs mean the math depends on your situation. High-mileage drivers, those with home charging, and buyers who qualify for tax credits often find EVs cheaper over 5+ years. Use the complete picture — purchase price, fuel, maintenance, insurance, and incentives — to make the right choice.

Use our EV vs Gas Calculator to compare specific vehicles based on your driving habits and local prices. The right choice depends on how you drive, where you charge, and how long you plan to keep the car.

Cost comparisons are estimates based on current average prices. Actual costs vary by location, driving habits, specific vehicles, and changing energy prices. Tax credits and incentives vary by vehicle and buyer eligibility.