Electric vs Gas Car: Real Cost of Ownership

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If you’re wondering whether an electric vehicle will actually save you money, the answer is in the numbers—not the sticker price. This guide shows exactly how to calculate the total cost of ownership for an EV versus a gasoline car in minutes, so you can decide with confidence.

What you’ll get: a step‑by‑step worksheet, quick formulas for fuel and maintenance, and a ready‑to‑use table that reveals the true $‑difference over five years.

Electric Vehicle vs Gasoline Car Cost of Ownership: The Full Picture

When most people start a comparison they look only at purchase price and EPA mileage. That misses the biggest cost drivers—fuel rates, maintenance, insurance, and depreciation. Below is the complete framework you need to avoid those pitfalls.

1. List Purchase Price & Incentives

Note the MSRP of each vehicle.
Subtract every federal, state, or local tax credit you qualify for.
Example: A $4,500 credit can shrink an EV’s price gap instantly.

2. Estimate Fuel Cost

Vehicle	Energy Use	Cost per Unit	Annual Miles	Annual Fuel Cost
EV	kWh/100 mi (from sticker)	$0.13/kWh (average home rate)	12,000	`(kWh/100 mi ÷ 100) × 12,000 × $0.13`
Gas	MPG (EPA)	$3.30/gal (average)	12,000	`12,000 ÷ MPG × $3.30`

Plug the numbers in and you’ll see the fuel savings electric vs gas car comparison instantly—often $1,000+ per year.

3. Factor Maintenance Costs

Electric motors have far fewer moving parts. Typical annual costs:

EV: $300 (no oil changes, less brake wear)
Gas: $900 (oil, filters, spark plugs, brakes)

Over five years that’s a $3,000 advantage for the EV.

4. Add Insurance & Registration

Insurance may be a bit higher for an EV—add about $100 per year. Registration fees are usually equal, so keep them the same for both models.

5. Calculate Depreciation

Use an online depreciation calculator or a simple rule of thumb:

EV: retains ~55% after five years
Gas: retains ~45% after five years

The difference translates to roughly $2,000 more equity in the EV.

6. Assemble the Total Cost Table

Cost Item	EV (5 yr)	Gas Car (5 yr)
Purchase price (after incentives)	$30,000	$30,000
Fuel	$6,000	$7,500
Maintenance	$1,500	$4,500
Insurance	$1,250	$1,150
Depreciation (loss)	$13,500	$16,500
Total	$52,250	$60,800

The how to calculate total cost of ownership for EV boils down to this simple table—showing an $8,500 saving over five years.

7. Adjust for Your Driving Habits

City driving: regenerative braking adds free mileage → higher savings.
Highway driving: gasoline engines become more efficient → savings shrink slightly.

Swap the kWh/100 mi or MPG values with your real‑world data and the worksheet stays accurate.

Quick Checklist Before You Buy

☐ Verify all available tax credits and rebates.
☐ Record your home electricity rate (cents per kWh).
☐ Gather EPA fuel‑economy ratings for both vehicles.
☐ Estimate annual miles based on past driving history.
☐ Research average maintenance costs for each model.

Having this checklist on hand makes the electric vehicle vs gasoline car cost of ownership calculation a breeze.

Final Thoughts

The biggest surprise for many is how maintenance and depreciation tip the scales toward electric cars, often more than fuel savings alone. Use the worksheet above for any EV or gasoline model you’re eyeing, and you’ll have a crystal‑clear picture of the real financial impact.

If this guide helped you, share it with anyone debating an EV, and consider subscribing to the DriveSimple Blog newsletter for more no‑fluff car‑finance hacks delivered every few weeks.