EV vs Gas: Total Cost of Ownership (TCO) Made Simple

Which costs less over time depends on energy prices, incentives, miles driven, and charging access. Use this framework to compare apples to apples.

TCO Components

• Purchase price & incentives: Upfront cost minus federal/state/local credits and rebates.
• Energy cost: Electricity (home/work/public) vs gasoline or E85.
• Maintenance: EVs often have fewer wear items (no oil changes); gas vehicles can be cheaper to repair in some regions.
• Depreciation: Model‑dependent; EV resale values vary with battery tech and incentives.
• Insurance & fees: Region and model specific.

Estimating Energy Cost per 100 Miles

• EV: kWh/100 mi × electricity price ($/kWh). Example: 28 kWh/100 mi × $0.15 = $4.20/100 mi.
• Gas: (100 ÷ MPG) × price/gal. Example: 30 MPG at $3.80/gal → $12.67/100 mi.

Public fast charging can be pricier than home rates; road‑trip costs vary.

When EVs Tend to Win

• Daily commuting with home/work charging and time‑of‑use rates
• Stop‑and‑go traffic (regen)
• High annual mileage (energy and maintenance savings compound)

When Gas Might Be Simpler/Cheaper

• Sparse charging infrastructure (rural/remote)
• Towing long distances at highway speeds (range hit on many EVs)
• Very low annual mileage (upfront savings dominate)

Practical Tips

• If you can charge at home overnight, EV economics improve significantly.
• Factor in battery warranty terms and local resale trends.
• For road‑trippers, test a realistic charging route before buying.

FAQs

Which is cheaper? Run your numbers. For many commuters with home charging and average electricity prices, EVs are cheaper per mile. But total ownership depends on incentives, mileage, and local energy costs.