What is EV vs Gas Total Cost?
An EV vs gas comparison calculates total ownership costs over 3-7 years including purchase price, fuel/charging, maintenance, insurance, and depreciation.
The Formula
TCO = Purchase Price + (Annual Fuel × Years) + (Annual Maintenance × Years) + Insurance − Resale Value
Worked Example
Compare a $45,000 EV vs $35,000 gas car over 5 years, 12,000 miles/year.
- EV: $45,000 + $600/yr charging + $400/yr maintenance + $1,600/yr insurance − $22,000 resale = $36,000 TCO
- Gas: $35,000 + $1,800/yr fuel + $1,000/yr maintenance + $1,400/yr insurance − $15,000 resale = $41,000 TCO
- EV saves: $5,000 over 5 years (before federal tax credit)
📌 The EV saves $5,000 over 5 years despite the higher purchase price, fuel and maintenance savings compound annually. A $7,500 federal tax credit can widen the gap further.
Why This Matters
Running cost savings
EVs cost $0.04-$0.05 per mile versus $0.12-$0.16 for gas. At 12,000 miles/year, that is $1,000-$1,500 annual saving.
Environmental impact
The average US car produces 4.6 metric tons of CO₂ annually. Switching to EV eliminates tailpipe emissions entirely.
Future-proofing
California and several other states are phasing out new gas car sales by 2035. Federal and state EV incentives up to $7,500 make earlier adoption attractive.
Common Mistakes
❌ Comparing sticker price only
EVs cost more upfront but less per mile. TCO over 5 years reverses the price gap in most cases, especially with the federal tax credit.
❌ Ignoring home charging advantage
Home charging at $0.12-$0.15/kWh is 50-70% cheaper than public DC fast charging. Without home charging, the cost advantage shrinks significantly.
❌ Overestimating battery degradation
Modern EV batteries retain 90%+ capacity after 100,000 miles. Most come with 8-year/100,000-mile battery warranties. Degradation fears are largely outdated.
Industry Benchmarks
| Category | Good | Average | Poor |
|---|---|---|---|
| Cost per Mile | EV: $0.04-$0.05 | Gas: $0.12-$0.16 | Older gas: $0.18+ |
| Annual Maintenance | EV: $300-$500 | Gas: $700-$1,200 | Older gas: $1,500+ |
| 5-Year TCO | EV saves $5,000+ | Similar cost | EV costs more (low mileage) |
Source: AAA Your Driving Costs & DOE Alternative Fuels Data Center 2025
Benchmark data sourced from AAA Your Driving Costs & DOE Alternative Fuels Data Center 2025.