Is an electric car actually cheaper than gas?

Higher purchase price, lower fuel and maintenance, sometimes a tax credit. The break-even year is usually 5-7 — but specific to your electricity rate, your gas price, your annual mileage.

How the math works

Year-by-year total cost of ownership for both vehicles, with the same annual mileage and ownership horizon.

  • Purchase: sticker price minus tax credit (US: up to $7,500 federal for qualifying EVs).
  • Fuel: miles ÷ MPG × gas price for ICE; miles ÷ miles-per-kWh × electricity rate for EV. Home charging vs DC fast-charging changes the EV side significantly ($0.14/kWh vs $0.35/kWh national).
  • Maintenance: EVs typically save $250-$400/year (no oil, fewer brake pads, fewer moving parts). Tires similar.
  • Insurance: EVs typically run 15-25% higher (specialized parts, fewer repair shops).
  • Resale: both depreciate. EVs have wider variance — Tesla holds value, some early EVs depreciate faster than ICE.

The break-even year is where cumulative TCO of the two paths crosses. Typical range with US tax credit: years 4-7. Without the credit: years 7-10. Below 10K miles/year, the EV may never break even on TCO alone.

Math runs locally. Inputs never leave your browser. Source on github.

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