EV vs Gas Calculator Guide: Total Cost of Ownership Compared
Quick Answer
- *EVs save roughly $1,000/year in fuel and $460/year in maintenance compared to gas cars (DOE, Consumer Reports).
- *Total cost of ownership over 10 years favors EVs by $6,000–$12,000 depending on purchase price and local electricity rates.
- *Federal tax credits of up to $7,500 for new and $4,000 for used EVs accelerate the break-even timeline.
- *EV insurance runs 15–25% higher, partially offsetting fuel and maintenance savings.
The True Cost of EV vs Gas: It's Not Just the Sticker Price
The average new EV in the U.S. costs $55,242 as of Q4 2025 (Kelley Blue Book), compared to $48,759 for the average new gas vehicle. That $6,483 gap leads many buyers to assume gas is cheaper. But the sticker price is just one piece of a much larger puzzle.
Total cost of ownership (TCO) includes fuel, maintenance, insurance, depreciation, financing, and tax incentives over the vehicle's life. When you add those up, the picture shifts significantly. A 2025 Department of Energy analysis found that EVs cost $0.24 per mile less to operate than comparable gas vehicles over a 15-year ownership period.
Fuel Cost Comparison
Fuel is where EVs win decisively. The math is straightforward.
| Metric | Gas Car | EV |
|---|---|---|
| Annual miles | 13,500 | 13,500 |
| Efficiency | 28 MPG | 3.5 mi/kWh |
| Fuel price | $3.40/gallon | $0.16/kWh |
| Annual fuel cost | $1,639 | $617 |
| Annual savings (EV) | $1,022 | |
| 10-year savings | $10,220 | |
These figures use the national average gas price from AAA ($3.40/gal as of March 2026) and the EIA's average residential electricity rate ($0.16/kWh). Drivers in states with cheap electricity (Washington at $0.10/kWh, Louisiana at $0.11/kWh) save even more. Those in high-electricity states like California ($0.27/kWh) see smaller but still meaningful savings.
Maintenance Cost Comparison
EVs have far fewer moving parts than internal combustion engine (ICE) vehicles. No oil changes, no transmission fluid, no spark plugs, no timing belts, no exhaust system.
| Maintenance Item | Gas Car (10-yr cost) | EV (10-yr cost) |
|---|---|---|
| Oil changes | $1,500–$2,400 | $0 |
| Brake pads/rotors | $800–$1,200 | $200–$400 (regenerative braking) |
| Transmission service | $600–$1,000 | $0 |
| Spark plugs/ignition | $300–$500 | $0 |
| Coolant/fluids | $400–$600 | $200–$300 |
| Tires | $2,000–$3,000 | $2,400–$3,600 (heavier vehicles) |
| Total estimated | $5,600–$8,700 | $2,800–$4,300 |
Consumer Reports' 2025 analysis of maintenance costs across 300,000 vehicles confirmed that EV owners spend an average of $4,600 less on maintenanceover the first 10 years. The one area where EVs cost more is tires: the added weight of battery packs causes tires to wear 10–20% faster.
Insurance: Where EVs Lose Ground
EV insurance premiums are 15 to 25 percent higherthan comparable gas vehicles, according to Bankrate's 2025 auto insurance study. The primary reasons:
- Higher repair costs: EV body panels often use aluminum, and battery damage can total a vehicle.
- Fewer certified repair shops: Limited EV-trained technicians drive up labor costs.
- Higher replacement value: More expensive vehicles cost more to insure.
On average, EV owners pay about $500 more per year in insurance. Over 10 years, that $5,000 gap eats into fuel and maintenance savings. However, the gap is shrinking as more body shops gain certification and EV repair parts become more standardized.
Depreciation: The Wild Card
Depreciation is the largest single cost of vehicle ownership, and it has historically hit EVs harder than gas cars. According to iSeeCars 2025 data, the average EV loses 49.1% of its value after 5 years, compared to 40.2% for gas vehicles.
However, this gap is narrowing. Tesla Model 3 and Model Y hold their value better than many gas competitors, and high-demand EVs like the Rivian R1S and BMW iX show strong retention. As the used EV market matures and battery concerns diminish, depreciation rates should continue to converge.
Federal and State Tax Credits
The Inflation Reduction Act provides significant purchase incentives:
- New EVs: Up to $7,500 federal tax credit (applicable at point of sale since 2024)
- Used EVs: Up to $4,000 for vehicles priced under $25,000
- Income limits: $150,000 AGI for single filers, $300,000 for joint filers (new EVs)
- Price caps: $55,000 for sedans, $80,000 for SUVs/trucks/vans
State incentives vary widely. Colorado offers an additional $5,000 state tax credit. California provides up to $7,500 through the Clean Vehicle Rebate Project for lower-income buyers. Combined, some buyers access $12,500+ in total incentives, closing or eliminating the purchase price gap entirely.
5-Year TCO Example: Tesla Model 3 vs Toyota Camry
| Cost Category | Tesla Model 3 LR | Toyota Camry LE |
|---|---|---|
| Purchase price | $42,490 | $30,450 |
| Federal tax credit | –$7,500 | $0 |
| Net purchase price | $34,990 | $30,450 |
| Fuel (5 years) | $3,086 | $8,196 |
| Maintenance (5 years) | $1,800 | $4,200 |
| Insurance (5 years) | $11,000 | $8,500 |
| Depreciation (5 years) | $17,000 | $12,200 |
| Total 5-year TCO | $67,876 | $63,546 |
At 5 years, the Camry holds a slight edge of roughly $4,330. But extend the timeline to 10 years and the EV's lower running costs overtake the higher upfront price, typically resulting in $3,000–$6,000 in total savings for the EV. The break-even point in this comparison falls around year 6 to 7.
When Gas Still Wins
EVs do not make financial sense for everyone. Gas remains cheaper in total cost when:
- You drive fewer than 8,000 miles per year (fuel savings are too small to overcome the price gap)
- Your electricity rates exceed $0.25/kWh and you cannot charge during off-peak hours
- You cannot access the federal tax credit (income too high or vehicle does not qualify)
- You plan to own the vehicle for fewer than 4 years (depreciation hits EVs harder early on)
- You frequently tow heavy loads (EV range drops 30–50% while towing)
Run the numbers for your specific situation
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Frequently Asked Questions
Is an EV cheaper than a gas car over time?
For most drivers, yes. While EVs typically cost more upfront, lower fuel and maintenance costs save $6,000 to $12,000 over 10 years compared to an equivalent gas vehicle, according to the Department of Energy. The break-even point usually falls between year 2 and year 5 depending on purchase price, electricity rates, and annual mileage.
How much do you save on fuel with an EV?
The average American drives 13,500 miles per year. At $3.40 per gallon and 28 MPG, gas costs about $1,639 per year. The same miles in an EV averaging 3.5 miles per kWh at $0.16 per kWh costs about $617 per year. That is roughly $1,022 per year in fuel savings, or $10,220 over 10 years.
Are EVs more expensive to insure than gas cars?
On average, yes. EV insurance costs 15 to 25 percent more than comparable gas vehicles due to higher repair costs and expensive battery packs. According to Bankrate 2025 data, the average annual premium for a Tesla Model 3 is approximately $2,200 compared to $1,700 for a comparable Toyota Camry. The gap is narrowing as more body shops gain EV repair certification.
What federal tax credits are available for EVs in 2026?
The federal EV tax credit under the Inflation Reduction Act provides up to $7,500 for new qualifying EVs and up to $4,000 for used EVs priced under $25,000. Buyers must meet income limits ($150,000 for single filers, $300,000 for joint filers on new EVs). Many qualifying vehicles can apply the credit as a point-of-sale discount at the dealer.
How much does EV maintenance cost compared to gas cars?
EVs cost 30 to 50 percent less to maintain than gas cars. There are no oil changes, transmission fluid replacements, spark plugs, or timing belts. Consumer Reports estimates EV owners save an average of $4,600 in maintenance costs over the first 10 years of ownership compared to gas vehicle owners.