Fuel vs EV Total Cost of Ownership
Compare gas vs electric vehicle ownership costs with breakeven analysis. Enter values for instant results with step-by-step formulas.
Formula
TCO = Purchase Price - Credits + Fuel/Energy + Maintenance + Insurance + Depreciation + Registration
All ownership costs over the period. Fuel: miles / efficiency × price. Maintenance: miles × per-mile cost. Depreciation: purchase × (1 - retention rate)^years.
Worked Examples
Example 1: Average Commuter
Problem: 12K miles/year, 5 years. Gas: $35K car, 28 MPG, $3.50/gal. EV: $45K, 3.5 mi/kWh, $0.13/kWh, $7,500 credit.
Solution: GAS TCO:\nFuel: (60K / 28) × $3.50 = $7,500\nMaintenance: 60K × $0.09 = $5,400\nInsurance: $7,500\nDepreciation: $35K × 56% = $19,600\nRegistration: $1,000\nTotal: $41,000\n\nEV TCO:\nEnergy: (60K / 3.5) × $0.13 = $2,229\nMaintenance: 60K × $0.04 = $2,400\nInsurance: $8,250\nDepreciation: $37.5K × 67% = $25,125\nRegistration: $1,500\nTotal: $39,504\n\nSavings: $1,496 (3.6%)\nBreakeven: ~4.5 years
Result: EV saves $1,500 over 5 years | Breakeven: 4.5 years | Marginal advantage
Example 2: High-Mileage Driver
Problem: 20K miles/year, 5 years. Gas: $32K car, 25 MPG, $3.80/gal. EV: $42K, 3.3 mi/kWh, $0.11/kWh, $7,500 credit.
Solution: GAS TCO:\nFuel: (100K / 25) × $3.80 = $15,200\nMaintenance: 100K × $0.09 = $9,000\nInsurance: $7,500\nDepreciation: $18,200\nTotal: $50,900\n\nEV TCO:\nEnergy: (100K / 3.3) × $0.11 = $3,333\nMaintenance: 100K × $0.04 = $4,000\nInsurance: $8,250\nDepreciation: $23,100\nTotal: $40,183\n\nSavings: $10,717 (21%)\nBreakeven: ~2.5 years
Result: EV saves $10,700 over 5 years | Breakeven: 2.5 years | Strong EV advantage
Example 3: Budget Comparison
Problem: 10K miles/year, 7 years. Gas: $25K used car, 32 MPG, $3.20/gal. EV: $35K, 4.0 mi/kWh, $0.15/kWh, $4,000 used credit.
Solution: GAS TCO:\nFuel: (70K / 32) × $3.20 = $7,000\nMaintenance: 70K × $0.10 = $7,000 (older car)\nInsurance: $8,400\nDepreciation: $12,500\nTotal: $34,900\n\nEV TCO:\nEnergy: (70K / 4.0) × $0.15 = $2,625\nMaintenance: 70K × $0.04 = $2,800\nInsurance: $9,240\nDepreciation: $18,600\nTotal: $38,265\n\nGas saves: $3,365\nBreakeven: Never (gas wins)\n\nBudget gas car wins on TCO when purchase price gap is large and miles are low.
Result: Gas saves $3,400 | EV never breaks even | Low miles favor gas
Frequently Asked Questions
What is Total Cost of Ownership (TCO)?
TCO includes all ownership costs: purchase price, fuel/energy, maintenance, insurance, registration, taxes, and depreciation. Looking only at purchase price misses 50%+ of true cost. TCO reveals which vehicle is actually cheaper.
How do I calculate fuel cost per mile?
Divide the price per gallon by your vehicle's MPG. At $3.50/gallon with 28 MPG, your fuel cost is $0.125 per mile. For total driving costs including maintenance, insurance, and depreciation, the IRS standard mileage rate (67 cents/mile in 2024) provides a rough benchmark.
What factors affect a car's fuel efficiency?
Speed (efficiency drops above 50 mph), tire pressure (each PSI under-inflated costs 0.2% efficiency), weight, aerodynamics, driving habits (aggressive driving reduces MPG 15-30%), air conditioning (reduces MPG 10-25% in city driving), and engine maintenance.
How do I compare the fuel cost of an electric vehicle with a gasoline car?
The EPA's MPGe (miles per gallon equivalent) standardizes EV efficiency against gasoline by equating 33.7 kWh of electricity to one gallon of gas. To calculate your actual fuel cost comparison: for a gas car, divide miles driven by MPG then multiply by price per gallon; for an EV, divide miles by miles-per-kWh efficiency then multiply by your electricity rate per kWh. At US averages of $3.50/gallon for gasoline and $0.16/kWh for electricity, a 30 MPG car costs about 11.7 cents per mile while a 3.5 miles/kWh EV costs about 4.6 cents per mile — roughly 60% cheaper to run.
How do I interpret the result?
Results are displayed with a label and unit to help you understand the output. Many calculators include a short explanation or classification below the result (for example, a BMI category or risk level). Refer to the worked examples section on this page for real-world context.
How do I verify Fuel vs EV Total Cost of Ownership's result independently?
The Formula section on this page shows the equation used. You can reproduce the calculation manually or in a spreadsheet using those steps. Compare your answer against the worked examples in the Examples section, which use known reference values so you can confirm the calculator is behaving as expected.