Gasoline vs Electric Cars: Which Costs Less to Run?

Electric cars cost less to run than gasoline cars in almost every case, with fuel and maintenance savings typically totaling $1,000 to $2,000 per year for an average driver. The exact difference depends on local electricity and gas prices, your driving habits, and the specific models you compare. This article breaks down the real numbers so you can estimate your own costs.

Formula

The calculator compares the annual fuel cost of a gasoline car versus an electric car. For the gasoline car, the formula is:

Gas cost = (miles driven ÷ fuel economy) × gas price per gallon

For the electric car, the formula is:

Electric cost = (miles driven ÷ 100) × efficiency (kWh per 100 miles) × electricity price per kWh

Variables are defined as:

• miles driven – total miles you drive in a year (e.g., 12,000)
• fuel economy – miles per gallon (mpg) your gasoline car achieves
• gas price – cost per gallon of gasoline in your area
• efficiency – kilowatt-hours (kWh) your EV uses per 100 miles (typical: 25–35 kWh/100mi)
• electricity price – cost per kWh you pay for home charging

Worked Example

Using the default values from the calculator:

• Gas car: 30 mpg, gas at $3.50/gallon, 12,000 miles/year
• Electric car: 30 kWh/100mi, electricity at $0.15/kWh, 12,000 miles/year

Gas car annual fuel cost:

(12,000 ÷ 30) × 3.50 = 400 × 3.50 = $1,400

Electric car annual fuel cost:

(12,000 ÷ 100) × 30 × 0.15 = 120 × 30 × 0.15 = 3,600 × 0.15 = $540

Annual fuel savings with EV: 1,400 – 540 = $860

That’s a 61% reduction in fuel cost. Over five years, you’d save $4,300 just on fuel, before considering maintenance differences.

Why Electricity Is Cheaper Per Mile

The core reason EVs cost less to run is that electric motors convert about 85–90% of the energy stored in the battery into motion, while gasoline engines convert only about 20–30% of the energy in fuel. That efficiency gap shows up directly in your wallet. A typical EV uses about 30 kWh to go 100 miles; at the U.S. average residential rate of $0.15/kWh, that’s $4.50 per 100 miles. A gasoline car at 30 mpg and $3.50/gallon costs $11.67 for the same 100 miles. Even if gas drops to $2.50 and electricity rises to $0.25/kWh, the EV still wins: $7.50 vs $8.33 per 100 miles.

Maintenance Costs: EVs Have Fewer Moving Parts

EVs have no oil to change, no spark plugs, no timing belts, no exhaust system, and no transmission. Regenerative braking reduces brake pad wear. The main maintenance items are tires, cabin air filters, and wiper blades. Over a 5-year/60,000-mile period, typical maintenance for an EV is about half that of a comparable gasoline car. The U.S. Department of Energy estimates EV maintenance at roughly $0.03 per mile versus $0.06 per mile for a gas car, saving about $1,800 over 60,000 miles. However, EV batteries can be expensive to replace, though most automakers warrant them for 8 years or 100,000 miles, and degradation is slow.

Other Running Costs: Insurance, Depreciation, and Charging at Home vs Public

Insurance premiums for EVs are often 10–20% higher than for similar gas models, because repairs and parts are costlier. Depreciation is also a factor: early EVs lost value quickly, but newer models hold value better. If you charge at home on a standard outlet or Level 2 charger, you pay the residential rate. Public fast chargers can cost $0.30–$0.60/kWh, which narrows the fuel cost gap. In some regions, time-of-use electricity rates let you charge overnight for $0.10/kWh or less, making the EV even cheaper. Also, many states and utilities offer rebates or reduced rates for EV owners, but those vary widely.

How to Choose What’s Cheaper for You

To estimate your own savings, gather these numbers:

• Your annual miles (check your insurance or state inspection)
• Your gas car’s real-world mpg (not the window sticker)
• Current gas price in your area
• Your EV’s efficiency (check the EPA rating or your car’s trip computer)
• Your home electricity rate (on your bill, in $/kWh)

Plug those into the calculator above. Also consider:

• If you mostly drive short city trips, an EV’s advantage grows because gas engines are least efficient in stop-and-go traffic.
• If you take frequent long road trips, public charging costs and time can offset savings.
• If you can’t charge at home, an EV may not be cheaper.

Common Misconceptions

“EVs are more expensive to insure, so they cost more overall.� Insurance is higher, but fuel and maintenance savings usually exceed the extra premium. For example, a $200/year higher premium is easily covered by $860 in fuel savings.

“Battery replacement costs $15,000, so EVs aren’t worth it.� Battery replacement is rare and covered by warranty for 8 years/100,000 miles. Most batteries last much longer, and replacement costs are falling.

“Electricity is expensive where I live, so it’s not cheaper.� Even at $0.30/kWh, an EV costs $9 per 100 miles, which is still less than a 25 mpg car at $3.50/gallon ($14 per 100 miles).

Frequently Asked Questions

Do electric cars really cost less to maintain?

Yes, on average. EVs have fewer fluids, no oil changes, and less brake wear. Over 60,000 miles, typical maintenance for an EV is about $1,800 less than for a gas car, according to the U.S. Department of Energy. However, tire wear can be higher due to instant torque and heavier weight.

How much does it cost to charge an electric car at home?

Multiply your car’s efficiency (kWh per 100 miles) by your electricity rate. For a typical EV using 30 kWh/100mi at $0.15/kWh, it costs $4.50 per 100 miles. A full charge for a 300-mile battery would cost about $13.50.

Is it cheaper to charge at a public fast charger?

Usually not. Public fast chargers cost $0.30–$0.60 per kWh, which can double your fuel cost compared to home charging. For long trips, it’s still often cheaper than gas, but not by as much.

What about the cost of installing a home charger?

A Level 2 charger costs $200–$1,000 plus installation, which can be $500–$2,000 if you need a new circuit. Many utilities offer rebates. Even with a $1,500 installation, your fuel savings pay that back in about two years.

Do electric cars lose value faster than gas cars?

Early EVs did, but newer models hold value well. Depreciation depends on battery degradation, new model releases, and tax credits. On average, EVs currently depreciate slightly more than comparable gas cars, but the gap is narrowing.

What if I can’t charge at home?

If you rely solely on public charging, your fuel cost may be close to or even higher than gas. Check charging costs in your area. Some workplaces offer free charging, which makes an EV much cheaper.

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in mpg | Gas car fuel economy | mpg | 30 | 5 | 100
in gpg | Gas price | $/gallon | 3.50 | 1 | 10
in kwh | Electric car efficiency | kWh/100mi | 30 | 10 | 100
in epk | Electricity price | $/kWh | 0.15 | 0.05 | 0.60
in miles | Annual miles driven | miles | 12000 | 100 | 100000
out gas_cost | Gas car annual fuel cost | $ | (miles / mpg) * gpg | 0
out ev_cost | Electric car annual fuel cost | $ | (miles / 100) * kwh * epk | 0
out savings | Annual fuel savings with EV | $ | gas_cost - ev_cost | 0