EV vs Gas: The Real Cost Comparison
The running-cost gap between an electric car and a comparable gas car is large and consistent. The total cost of ownership is more nuanced, because purchase price, depreciation, and how you charge can swing the result either way.
Fuel: EVs win clearly on home charging
Using typical US numbers — an EV at 3.5 mi/kWh on $0.16/kWh electricity, versus a gas car at 30 mpg on $3.50/gallon:
| Cost per mile | 12,000 mi/year | |
|---|---|---|
| EV (home charging, incl. ~10% charging loss) | ~5.0¢ | ~$600 |
| Gas | ~11.7¢ | ~$1,400 |
That is roughly $800 saved on fuel per year at average rates, and the gap widens where electricity is cheap or gas is expensive:
- Cheap overnight EV rate ($0.10/kWh) + $4.50 gas → EV ~3.1¢/mi vs gas ~15¢/mi.
- Expensive DC fast charging ($0.45/kWh) as your main method → EV ~13¢/mi, which can erase the advantage versus an efficient gas car.
Home charging is what makes the fuel savings real. If you cannot charge at home and must rely on public fast chargers, run the numbers carefully before assuming an EV is cheaper to fuel.
Maintenance: EVs win
No oil changes, no spark plugs, no timing belts, no exhaust or emissions system, no transmission fluid, and far less brake wear thanks to regenerative braking. EVs typically cost 30–50% less to maintain over the first several years. Offsetting that: EV tyres wear faster (instant torque, heavier vehicles, ~10–20% shorter tyre life is common), and out-of-warranty battery or high-voltage component repairs, though rare, are expensive.
Purchase price and depreciation: mixed
EVs still tend to cost more up front than an equivalent gas model, though the premium has shrunk as battery costs fell and more models arrived. Depreciation has been the biggest wildcard: some EV models have lost value quickly as newer, cheaper, longer-range versions launched and as pricing on new cars was cut; others have held value well. Because depreciation is usually the largest single cost of owning any car in its first five years, this factor can dominate the comparison — check the specific models you are weighing, not “EVs” in general.
Charging infrastructure
- Level 1 (standard wall outlet): ~3–5 miles of range per hour. Fine for low daily mileage, no install cost.
- Level 2 (240V): ~20–30 miles per hour, a full overnight charge. Install cost typically $500–2,000 depending on panel capacity and wiring distance.
- DC fast charging: 10–80% in 20–40 minutes, for road trips. 2–4× the cost per kWh of home charging.
Budget the Level 2 install into the EV’s cost if you will need one.
Electricity, home charging, and solar
If you have solar, charging the car from your own midday production is close to free — and it is often the best use of surplus solar in markets where net-metering export rates are low, because you are self-consuming energy that would otherwise be exported cheaply. See net metering explained. Even without solar, a dedicated overnight EV rate from your utility can cut charging costs by half or more.
Five-year cost, side by side
A rough total-cost comparison for two similar compact SUVs, 12,000 miles a year, home charging, held five years:
| EV | Gas | |
|---|---|---|
| Purchase price | $42,000 | $36,000 |
| Level 2 charger install | $1,200 | — |
| Fuel / electricity, 5 yr | ~$3,000 | ~$7,000 |
| Maintenance, 5 yr | ~$1,500 | ~$3,500 |
| Tyres (EVs wear faster) | ~$1,400 | ~$900 |
| Resale value at year 5 | −$18,000 | −$17,000 |
| Net 5-year cost (~) | ~$31,100 | ~$33,300 |
On these assumptions the EV comes out ~$2,200 ahead over five years — but the result is dominated by two lines you cannot know precisely in advance: the purchase premium and the resale value. Swap in an EV model that has depreciated poorly (resale −$24,000 instead of −$18,000) and gas wins. Run the comparison for the specific cars on your shortlist, not “EVs vs gas cars” in the abstract.
When gas still makes sense
- You cannot charge at home and would depend on expensive public charging.
- You drive very little — the fuel savings never add up to the price premium.
- You need a vehicle type (heavy towing, specific work configuration) not yet available as an affordable EV.
- Very cold climate — winter range can drop 20–40% and cabin heating draws from the battery, though heat-pump-equipped EVs handle this better.
- The specific EV you would buy depreciates faster than the gas alternative.
Battery life, warranties, and the resale question
The fear that an EV battery will fail expensively out of warranty has largely not borne out. Federal rules require EV batteries to be warranted for at least 8 years / 100,000 miles (10 years / 150,000 in California), and real-world fleet data shows most modern packs retain 85–90% of their capacity after 100,000–150,000 miles, degrading slowly after an initial small drop. Full pack replacements outside warranty are rare, and a growing repair industry replaces individual modules for a fraction of a whole-pack price.
Battery health is also becoming a transparent number: many EVs report state of health in the car or an app, and used-EV listings increasingly quote it. That transparency cuts both ways for resale — a well-treated pack (mostly Level 2 charging, kept between 20–80% for daily use, not parked at 100% in the heat) holds value; a heavily fast-charged one shows it.
Incentives are now mostly state and local
Federal EV purchase incentives have been scaled back, so — as with home solar — the incentives that matter are increasingly at the state, utility, and local level: state rebates or tax credits on the vehicle, utility rebates on a Level 2 charger, reduced overnight “EV rate” electricity plans, and in some areas HOV-lane access or reduced registration fees. Add these up for your state before comparing sticker prices; a $1,000–2,000 charger-plus-rate benefit changes the fuel math meaningfully.
The bottom line
On fuel and maintenance, an EV charged at home is clearly cheaper — commonly $800–1,500 a year less to run than a comparable gas car. Whether it wins on total cost depends on the purchase premium and, above all, depreciation of the specific models you are comparing, plus whether you can charge at home. Run your own fuel numbers with the EV charging cost calculator, then check the purchase-price and resale-value gap for the actual cars on your list.