Is an electric car actually cheaper than gas?

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Higher purchase price, lower fuel and maintenance, and since October 2025 no US federal tax credit. At the defaults the EV catches up in year 5; your rate, gas price and mileage move that a lot.

How the math works

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

  • Purchase: the price you actually pay. The US federal clean vehicle credit (up to $7,500, IRC Section 30D) is not available for vehicles acquired after September 30, 2025, per the IRS, so enter the price after any state or dealer incentive only.
  • Energy: cost per km for each car. Home charging and DC fast charging can differ by more than double, so use the rate you’d really pay.
  • Maintenance: a yearly figure for each car. EVs skip oil changes and wear brakes more slowly.
  • Not included: insurance (EVs often cost more to insure) and resale value. If either differs a lot for the two cars you’re comparing, the break-even moves.

The break-even year is where the EV’s lower running costs have repaid its higher price. At the defaults ($40,000 EV vs $30,000 gas car, 15,000 km a year, $0.04 vs $0.12 per km, $500 vs $1,500 maintenance), the EV saves $2,200 a year and catches up after 4.5 years, so the calculator shows year 5. At half the mileage it takes 6.25 years (year 7), since the maintenance gap stays the same.

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

Real-world scenarios

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