By Meraj Uddin Provat · Last reviewed May 23, 2026 · Editorial Standards
EVs cost 20–40% more up front than comparable gas cars, but they save $800–$1,500 per year on fuel and maintenance — and state EV credits still shrink that gap in some places. The federal $7,500 EV credit (Section 30D) ended for vehicles acquired after September 30, 2025, so it's off by default here. This EV vs gas TCO calculator runs both vehicles side-by-side over 3, 5, 7, or 10 years, accounts for state rebates, depreciation, insurance, and home electricity rates, and tells you the exact dollar amount one option saves over the other.
EV vs Gas Total Cost of Ownership
Side-by-side 5- and 10-year TCO including purchase, fuel, maintenance, insurance, and resale value.
Electric Vehicle
Gas Vehicle
Winner over 5 years
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Adjust the inputs to compare total cost of ownership.
Electric Vehicle TCO
Gas Vehicle TCO
Cumulative cost over time
Where the lines cross is the break-even year. After that, the lower line saves you money each additional year.
Estimates only. Actual costs vary by specific vehicle, your state, your driving patterns, and your home charging setup. Federal EV tax credit has MSRP, income, and assembly requirements — verify eligibility before counting on it. Not financial advice.
How to use this calculator
Six inputs and you have your answer:
- Enter your annual miles. US average is 13,500. If you commute a lot or drive long distances, increase this number — high mileage usually favors EVs.
- Pick your ownership horizon. 5 years is the most common; 10 years stretches the EV advantage further because EV fuel and maintenance savings compound over time.
- Enter the EV and gas vehicle MSRPs. Use specific models you're considering. Comparable trims is best — don't compare a base gas car to a top-trim EV.
- Set fuel economy. EVs use MPGe (miles per gallon equivalent); typical range is 90–140. Gas cars use standard MPG; 2024 new-car average is 28 MPG combined.
- Confirm electricity rate, gas price, and maintenance. The defaults are 2026 US averages. Tweak to your actual situation.
- Leave the federal credit checkbox unchecked unless you locked in a binding purchase contract before September 30, 2025 — the credit ended for everyone else. Add any state rebate you qualify for.
The verdict block updates live with which vehicle saves more and by exactly how much.
What's actually in TCO?
Total Cost of Ownership = everything you pay to acquire, operate, and dispose of the vehicle — minus what you recover when you sell or trade it. Six categories:
1. Net purchase price
Sale price minus any state EV rebate (the federal $7,500 credit ended September 30, 2025, and no longer applies to new purchases). For a $45,000 EV with a $2,000 state rebate, your net purchase is $43,000 — a bigger gap versus a comparable $33,000 gas car than it was before the federal credit expired.
2. Fuel (or electricity)
Gas car: annual miles ÷ MPG × gas price. EV: annual miles × kWh per mile × electricity rate, where kWh per mile = 33.7 ÷ MPGe (the EPA standard conversion since 1 gallon of gasoline contains ~33.7 kWh of energy equivalent).
Realistic example, 13,500 miles/year:
- Gas car at 30 MPG and $3.50/gal: $1,575/year
- EV at 115 MPGe and $0.165/kWh: $649/year
- EV saves ~$925/year on fuel
3. Maintenance
EVs need about half the routine maintenance of a comparable gas car. No oil changes, no spark plugs, no timing belt, no transmission fluid, fewer brake jobs (regenerative braking does most of the slowing). What's left: tires, wipers, cabin air filter, brake fluid every few years, coolant for the battery thermal system.
Consumer Reports puts typical lifetime maintenance at roughly $0.06/mile for EVs and $0.10/mile for gas — about a 40% reduction. Our defaults ($600/yr EV, $1,200/yr gas) reflect this.
4. Insurance
EVs typically cost $150–$400 more per year to insure than comparable gas vehicles. Reasons: higher repair costs (battery damage = expensive), more expensive parts and labor, and a smaller pool of qualified shops in some regions. The gap is closing as the EV repair network matures.
5. Depreciation (resale value)
The biggest TCO line item over 5+ years for both options. Historically EVs depreciated faster than gas cars (older Nissan Leafs lost 60%+ in 5 years), but the gap is closing rapidly with newer EVs from Tesla, GM, Ford, and Hyundai. Typical 2024–2026 depreciation curves:
- Gas vehicle 5-year resale: ~49% of MSRP
- EV 5-year resale: ~45% of MSRP
The gap is now small enough that EV operating savings often dominate, especially at higher mileage and longer ownership.
6. Other (often overlooked)
- Home charger installation — $500–$2,000 for a Level 2 charger if you don't already have one. The 30% federal Alternative Fuel Vehicle Refueling Property Credit (Section 30C, capped at $1,000) ended for chargers placed in service after June 30, 2026 under the One Big Beautiful Bill Act, so a charger installed now gets no federal credit. State and utility charger rebates may still apply.
- Public charging — for road trips. Currently $0.30–$0.50/kWh at fast chargers, much more expensive than home charging.
- Battery replacement — most EV batteries are warrantied for 8 years / 100,000 miles minimum. Out-of-warranty battery replacement is $5,000–$20,000, but it's increasingly rare to need a full replacement before year 10.
These are second-order effects the calculator doesn't model — but worth flagging.
The $7,500 federal EV tax credit — ended in 2025
The federal EV credit (Section 30D) is terminated for vehicles acquired after September 30, 2025, under the One Big Beautiful Bill Act. "Acquired" means the purchase date, not delivery — so a 2026 delivery on a contract signed and paid for by September 30, 2025 can still qualify, but a purchase made after that date cannot, regardless of the vehicle.
The used-EV credit (Section 25E, up to $4,000) and the commercial/leasing credit (Section 45W, the mechanism dealers used to pass a credit through on leases) ended on the same date. That closes the leasing workaround described below for any lease signed after September 30, 2025.
For reference, the rules while the credit was active required final assembly in North America, an MSRP cap ($55,000 cars / $80,000 SUVs, vans, and trucks), and battery-component and critical-mineral sourcing thresholds — none of that matters for a 2026 purchase since the credit itself is gone.
Buyer requirements
Modified AGI under:
- $300,000 (married filing jointly)
- $225,000 (head of household)
- $150,000 (single)
Use the lower of current-year or prior-year AGI — useful if your income jumped recently.
Point-of-sale credit (2024+)
Since 2024, the credit can be applied at the dealership at purchase as a price reduction, instead of waiting until you file taxes. The dealer fronts the credit and gets reimbursed by the IRS. This is now the standard way most buyers use it.
Used EV credit
Up to $4,000 for a used EV under $25,000 from a licensed dealer. Vehicle must be at least 2 model years old. Income cap is lower: $150K MFJ / $112,500 HoH / $75K single.
State EV rebates (where they exist)
State-level incentives stack on top of the federal credit. The most generous in 2026:
- Colorado — up to $5,000 state credit
- New Jersey — $4,000 instant rebate at purchase
- Illinois — $4,000 rebate
- Connecticut — $4,250 rebate
- California — Clean Vehicle Rebate Program $2,000 (subject to funding availability and income limits)
- Oregon — $2,500 standard, $5,000 for low-income buyers
- New York — $2,000 Drive Clean rebate
- Massachusetts — $3,500 MOR-EV rebate
- Maryland — $3,000 excise tax credit
Most states without a rebate offer something — HOV lane access, registration fee waivers, time-of-use electricity rate discounts. Check your state DMV or energy office.
When EVs win
Some scenarios where the calculator typically shows the EV advantage clearly:
- High annual mileage (20,000+ miles/year). Fuel savings scale with miles.
- High electricity rate states aren't necessarily losers — gas prices in California are also high, and the math usually still favors EV.
- Long ownership (7+ years). EV maintenance savings keep compounding.
- Bought before September 30, 2025 and claimed the $7,500 federal credit. Was the single biggest swing factor — no longer available for new purchases.
- You charge mostly at home. Public DC fast charging at $0.40+/kWh is 2–3× more expensive than home.
When gas wins
Equally honest about the cases where gas is the better economic choice:
- Low annual mileage (under 7,000 miles/year). Fuel savings can't overcome the EV price premium.
- No home charging and frequent reliance on public DC fast chargers.
- You buy used and the EV doesn't qualify for the $4,000 used credit.
- High insurance differential in your specific state (some states have insurance gaps of $500+).
- Short ownership (under 3 years). Steep first-year depreciation hits EVs harder.
- Tow/heavy payload use cases where EV range drops 30–50% when towing.
Frequently asked questions
What's MPGe and how does it compare to MPG?
MPGe (miles per gallon equivalent) is the EPA's measure for EVs that lets you compare to gas mileage. The conversion: 33.7 kWh of electricity equals 1 gallon of gasoline in energy content. An EV rated 115 MPGe uses 33.7 ÷ 115 = 0.29 kWh per mile.
How long do EV batteries actually last?
Most EVs sold today are warrantied for 8 years or 100,000 miles, whichever comes first, with the battery guaranteed to retain at least 70% capacity. Real-world data from older Tesla, Nissan, and Chevy EVs shows most batteries lose 10–15% capacity over 100,000 miles and continue useful service well past warranty expiration. Full battery replacement before year 10 is rare.
Does cold weather hurt EV range?
Yes — significantly. EVs lose 20–40% of rated range in sub-freezing temperatures because cabin heating uses battery power (gas cars get free heat from the engine). Preconditioning the cabin while plugged in helps. If you live in Minnesota or Maine, downrate the EV's effective MPGe by 25% in your calculations.
What if I drive a lot of long distances?
Public DC fast charging adds 200+ miles of range in 20–30 minutes for most modern EVs. But fast-charge costs ($0.30–$0.50/kWh) are 2–3× home electricity rates, eroding fuel savings. For frequent road trippers, the calculator's "EV electricity cost" can be 50–100% higher than the home-only assumption — adjust accordingly.
Are EVs really better for the environment?
On a lifecycle basis (manufacturing + operating + disposal), yes — even on a coal-heavy grid. The Union of Concerned Scientists found average EVs produce roughly half the lifetime emissions of a comparable gas car in 2024, and the advantage grows as US grid electricity gets cleaner. But this calculator is about your wallet, not your carbon footprint.
Should I buy or lease an EV?
The federal lease pass-through (Section 45W) that let dealers apply the $7,500 credit to leased EVs ended September 30, 2025, along with the purchase credit — so that advantage is gone for leases signed after that date. Leasing can still make sense because it avoids steep first-2-year EV depreciation and lets you upgrade every 3 years as EV tech improves. Drawback: no equity at lease end, and no federal credit either way in 2026.
What about hybrids vs full EV vs gas?
Plug-in hybrids (PHEVs) sit between — most have 25–50 miles of electric range plus a gas engine for longer trips. Math is more complex; if you drive under 30 miles/day and can charge at home, a PHEV often beats both pure EV (no range anxiety) and pure gas (most driving electric). This calculator doesn't model PHEVs separately — we'll add a PHEV variant calculator later.
Why are EVs more expensive to insure?
Three reasons: (1) higher repair costs for the battery and electric drivetrain; (2) more expensive parts; (3) fewer qualified repair shops, so labor markups are higher. Telematics-based insurance plans (Tesla Insurance, USAA, Progressive's Snapshot) can reduce the EV premium 15–25% if you're a low-mileage / low-risk driver.
Methodology and sources
Fuel economy conversions use the EPA standard 33.7 kWh per gallon of gasoline (the basis for MPGe ratings). Electricity rates default to the EIA Form 861 2024 US residential average ($0.165/kWh). Gasoline price default uses the EIA Weekly Retail Gasoline Survey average for 2026 to date ($3.50/gal). Maintenance assumptions come from Consumer Reports EV ownership cost analysis (2023 update) showing EV maintenance at roughly 50% of comparable gas vehicles, and Edmunds True Cost to Own data showing $1,200/year average maintenance on a typical mid-size gas vehicle over 5 years. Insurance differential uses Bankrate's 2024 EV insurance survey averaging $200–$400 more annually for EVs than comparable gas vehicles. Depreciation curves are derived from iSeeCars 5-year depreciation data 2024, with EV resale curve based on the volume-weighted average of major-brand EV models (Tesla, Ford, Hyundai, Kia, Chevy). The federal EV tax credit (Section 30D, plus the used-EV Section 25E and leasing Section 45W credits) terminated for vehicles acquired after September 30, 2025, under the One Big Beautiful Bill Act (P.L. 119-21) — the calculator's federal-credit checkbox defaults off to reflect that. State rebate figures sourced from each state's energy office program pages as of Q1 2026.
Reviewed by the CalcCottage editorial team. Updated May 13, 2026.
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