Compare the 5-year total cost of a gas car vs an electric vehicle side by side.
EVs cost more upfront but significantly less to fuel and maintain. The true comparison isn't sticker price — it's the 5-year total cost of ownership, which accounts for fuel, maintenance, insurance, and depreciation. When you run those numbers, many EV owners come out ahead, especially with the federal tax credit reducing the purchase price gap.
The 5-year window is the standard in the industry because it captures enough fuel and maintenance savings to overcome the EV's higher purchase price for most buyers. After 5 years, EVs tend to be even more favorable since they continue to have lower operating costs while gas cars may face increasing repair bills as they age.
Fueling an EV at home costs roughly $0.03–$0.05 per mile at average US electricity rates (about $0.16/kWh). A gas car getting 28 MPG at $3.50/gallon costs about $0.125 per mile — roughly 3x more. A driver putting 12,000 miles per year on a gas car spends around $1,500 in fuel annually. The same miles in an EV costs about $400–$600 at home charging rates. That's $900–$1,100 in annual savings, or $4,500–$5,500 over five years just on fuel.
Public DC fast charging erodes this advantage — typically running $0.30–$0.50/kWh, it narrows the gap to about 1.5x cheaper than gas rather than 3x. Drivers who rely heavily on public charging (apartment dwellers without home charging) will see smaller fuel savings.
Electric vehicles have far fewer moving parts than gas engines. No oil changes, no spark plugs, no timing belts, no transmission fluid, and no exhaust system. EV owners typically spend $300–$600/year on maintenance (mostly tires and brake fluid), compared to $800–$1,200/year for gas vehicles. Regenerative braking also extends brake pad life significantly — many EV owners go 100,000+ miles before needing brake work.
Over 5 years, the maintenance savings add up to $1,500–$3,000 for the average driver. Combined with fuel savings, total operating cost savings of $6,000–$8,500 over 5 years are realistic for many buyers.
EVs still carry a price premium over comparable gas vehicles — typically $5,000–$12,000 more before incentives. The federal EV tax credit that used to close much of this gap (up to $7,500 for new vehicles, $4,000 for used) ended for vehicles acquired after September 30, 2025 under the One Big Beautiful Bill Act — it no longer applies to 2026 purchases, with a narrow exception for buyers who signed a contract and paid before that date. See our EV Tax Credit 2026 guide for the current rules.
What's still real: state incentives in California, Colorado, New York, and others can still add $1,000–$5,000 depending on the program (check current amounts, since these change), and a separate, smaller federal car-loan interest deduction (up to $10,000/year, not EV-specific) applies if you finance a new US-assembled vehicle. Don't budget around the old $7,500 figure — run the numbers below using the vehicle's actual price after only the incentives you've confirmed still apply.
For drivers who put on fewer than 8,000 miles per year, the fuel and maintenance savings may not offset the higher EV purchase price within a 5-year window. If you frequently take long road trips without access to a fast-charging network, range anxiety and charging time become real practical concerns. And if you can only charge at public stations — not at home — your electricity costs are higher and the savings are smaller.
Hybrid vehicles often make sense as a middle ground: lower purchase price than a full EV, significantly better fuel economy than a gas car, and no range concerns. Toyota and Honda hybrids in particular have strong reliability records that can make them the lowest total-cost option over 10+ years.
This calculator compares 5-year total costs including purchase price, fuel, and maintenance. It does not factor in insurance (EVs often cost 10–20% more to insure due to higher repair costs) or depreciation differences. For a complete picture, factor in your local electricity rate, your actual annual mileage, and whether you'll have access to home charging.
EVs typically cost 10–20% more to insure than a comparable gas vehicle, largely because battery packs and specialized components are expensive to repair or replace after even minor collision damage. On a $1,500/year gas insurance policy, that's an extra $150–$300/year, or $750–$1,500 over five years — enough to meaningfully narrow the savings this calculator shows.
Resale value cuts the other way and is harder to predict. Some EVs have held value well due to strong demand, while others have depreciated faster than expected as battery technology and range improve year over year, making older models feel dated faster than an equivalent gas car. If you plan to sell or trade in before the 5-year mark, research resale trends for your specific model rather than assuming EVs universally hold value better or worse than gas cars — the answer varies significantly by make and model.
Every fuel-savings figure on this page assumes majority home charging at residential electricity rates. Drivers without home charging access — renters, apartment dwellers, or anyone relying primarily on public DC fast charging — will see their effective cost per mile rise by roughly 2–3x, since public rates run $0.30–$0.50/kWh versus $0.10–$0.20/kWh at home. Before assuming an EV will save you money, honestly assess whether you can charge at home or at work most nights; if not, run the numbers again using public charging rates instead of the default home rate in this calculator.
This calculator estimates potential savings from driving an electric vehicle versus a gas-powered vehicle. Results are estimates only. Actual savings depend on real-world energy rates, driving habits, vehicle efficiency, insurance, and depreciation. EV and gas prices fluctuate over time. This tool is for informational purposes only and does not constitute financial or purchasing advice.