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?
To compare EV vs gasoline fuel costs per mile: gas car cost = price per gallon ÷ MPG; EV cost = electricity rate ÷ miles per kWh. At US averages of $3.50/gallon and $0.16/kWh, 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. The EPA's MPGe rating standardizes EV efficiency by equating 33.7 kWh to one gallon.