EV vs. gas car cost,
the real numbers.

Field guide

Understanding the real cost of switching to an EV.

The sticker price of an electric vehicle is almost never the whole story. EVs typically cost more to buy than comparable gas cars, but far less to fuel and maintain over time. Whether that trade-off works in your favour depends on three variables that vary enormously by person: how many miles you drive per year, what you pay for gasoline, and what you pay for electricity. This calculator helps you run those numbers for your specific situation.

Annual fuel costs: gas vs. electricity

The fuel cost of a gas car is straightforward: divide your annual mileage by your fuel economy in MPG, then multiply by the price per gallon. A typical sedan averaging 28 MPG driven 12,000 miles per year at $3.50 per gallon costs about $1,500 in fuel annually.

For an EV, the equivalent calculation uses kilowatt-hours (kWh) instead of gallons:

A Tesla Model 3 uses roughly 34 kWh per 100 miles. At the US national average electricity rate of $0.15 per kWh, the same 12,000 miles costs about $612 — a saving of nearly $900 per year compared to the gas car. Home charging rates are often lower than the national average during off-peak hours, and on-the-road DC fast charging is typically much higher.

MPGe: the equivalent measure

The EPA rates EV efficiency in MPGe (miles per gallon equivalent) to make comparisons easier. It converts the energy in a gallon of gasoline (33.705 kWh) into the equivalent number of miles the EV would travel on that energy. A vehicle rated at 100 MPGe uses 33.7 kWh per 100 miles. You can enter either unit in this calculator — it converts automatically.

The upfront premium and break-even

Electric vehicles typically carry a higher sticker price than comparable gas models. The average EV premium in the US has ranged from $5,000 to $15,000 over recent years, though competition and falling battery costs are steadily narrowing the gap. The break-even year is when your cumulative fuel savings equal the net purchase premium:

At $888 in annual savings and a $10,000 price premium, break-even arrives in about 11.3 years — a real number for most 2026 purchases, now that the federal credit that used to shrink this premium is gone. Under the old $7,500 credit, that same example would have broken even in about 2.8 years — a useful reference point if you're modeling a used EV bought under the narrow pre-10/1/2025 exception below.

The federal EV tax credit — expired for new purchases

The Inflation Reduction Act (IRA) created a clean vehicle tax credit under IRS Section 30D worth up to $7,500 for new EVs and $4,000 for used EVs, applied at the point of purchase as a dealer discount. The One Big Beautiful Bill Act (OBBBA) terminated this credit for any vehicle acquired after September 30, 2025 — roughly seven years ahead of its original 2032 sunset. The only surviving exception: a vehicle you acquired on or before that date via a binding written contract and payment still qualifies, even if it's placed in service later. For a purchase you're considering today, there is no federal EV credit to apply — this calculator's credit toggle is off by default and exists mainly to model a pre-10/1/2025 purchase or to compare against how the math used to work.

Total cost of ownership (TCO)

Fuel is only part of the ownership equation. Studies from Consumer Reports and the US Department of Energy consistently show that EVs cost significantly less to maintain than gas cars. The absence of oil changes, transmission fluid, spark plugs, exhaust systems, and reduced brake wear (thanks to regenerative braking) saves EV owners an average of $1,000 or more per year in maintenance costs. This calculator focuses on fuel costs only; factoring in lower maintenance would make the EV case even stronger.

Insurance is usually 10–20% higher for EVs, partially offsetting the maintenance saving. Depreciation varies significantly by brand and model, with some EVs depreciating faster than others. These factors are beyond the scope of this calculator.

CO₂ emissions comparison

A gas car emits 19.6 lbs (8.9 kg) of CO₂ per gallon burned — a fixed number based on fuel chemistry. EV emissions depend on your local electricity grid. The US national average grid emits roughly 0.851 lbs of CO₂ per kWh (EPA eGRID 2022). In states with heavy renewable energy — California, the Pacific Northwest, or New England — EV emissions are far lower. In states powered mostly by coal, the gap shrinks, though EVs are still cleaner in almost all US regions.

On the US average grid, switching from 28 MPG to a 34 kWh/ 100-mile EV for 12,000 miles per year saves approximately 2.5 tons of CO₂ annually — the equivalent of planting about 100 trees.

Charging: home vs. public

Around 80% of EV charging happens at home, typically overnight on a Level 2 charger (240V). The cost per mile for home charging is usually 3–5 cents at average US electricity rates — far below the 10–15 cents per mile for a typical gas car. DC fast charging at public stations costs significantly more, often 30–50 cents per kWh, and should be factored in if you rely heavily on public infrastructure.

Disclaimer

This calculator provides fuel-cost estimates for informational purposes only. Results are based on the inputs you provide and national average reference data. Actual costs will vary based on your specific driving patterns, local fuel and electricity prices, vehicle model, charging habits, insurance, depreciation, and maintenance. The federal Section 30D EV tax credit modeled here no longer applies to any vehicle acquired after September 30, 2025 (OBBBA) — it's included only for the narrow pre-10/1/2025 binding-contract exception or for historical comparison, and is off by default. This is not financial or tax advice. Always consult a qualified financial adviser before making a vehicle purchase decision.