“Is an EV actually cheaper?” depends on five line items, not the sticker price. Here is the framework with national planning figures — your state’s electricity rate, gas price, and insurance market can shift every line, so treat these as starting estimates, not quotes.
The five lines that decide it
1. Purchase price delta
Comparable EVs still typically cost $3,000–$8,000 more up front than their gas equivalents, though the gap has narrowed and some segments now overlap. A federal clean vehicle credit may offset part of this — eligibility rules (income caps, assembly and battery sourcing, MSRP limits) have changed repeatedly, so verify current eligibility for the specific vehicle and your tax situation before counting it.
2. Fuel vs. electricity per mile
Using national planning figures — ~$3.20/gal gas and ~$0.15/kWh home electricity:
- Gas car at 30 MPG: ~$0.107/mile
- EV at 3.5 mi/kWh: ~$0.043/mile
At 12,000 miles/year that’s roughly $1,280 vs. $515 — about $750/yr saved, if you charge mostly at home. DC fast charging often runs $0.40–$0.55/kWh and can erase most of the gap for road-trip-heavy drivers. Your home rate matters a lot: run the home energy audit to see where your electricity costs sit and how an EV’s ~3,500–4,500 kWh/yr would land on your bill.
3. Maintenance delta
No oil changes, fewer fluids, regenerative braking that stretches brake life. Planning estimate: EVs save ~$300–$600/yr in routine maintenance, partially offset by faster tire wear from extra weight.
4. Insurance delta
EVs currently insure ~10–20% higher on average (higher repair costs, battery replacement risk). On a $1,800/yr baseline, figure +$200–$350/yr. Get real quotes — this varies wildly by model and state.
5. Depreciation
Historically EVs depreciated faster than gas cars; the gap has been narrowing as the used-EV market matures, but rapid tech turnover and incentive swings still add uncertainty. Planning estimate: roughly even to ~$500/yr worse for the EV over a 5-year hold, model-dependent.
5-year planning comparison (12,000 mi/yr, home charging)
| Line item | Gas (30 MPG) | EV (3.5 mi/kWh) | EV advantage |
|---|---|---|---|
| Purchase delta | baseline | +$5,000 | −$5,000 |
| Federal credit (if eligible — verify) | — | up to −$7,500 | +$7,500 |
| Fuel/electricity (5 yr) | ~$6,400 | ~$2,600 | +$3,800 |
| Maintenance (5 yr) | ~$3,000 | ~$1,000 | +$2,000 |
| Insurance (5 yr) | ~$9,000 | ~$10,400 | −$1,400 |
| Depreciation | baseline | ~even to −$2,500 | ~$0 to −$2,500 |
| Net (5 yr, planning range) | ~+$4,000 to +$7,000 with credit; roughly −$600 to +$400 without |
The honest summary
- Home charger + eligible for the credit + average-or-cheap electricity → the EV usually wins clearly.
- No home charging (apartment, street parking) → fast-charging prices plus the purchase premium often make gas comparable or cheaper.
- High-electricity-rate states without the credit → run your own numbers; it’s close.
Start with your actual electricity cost: the energy audit takes a minute and anchors line 2 to your house, not a national average.
Estimates on this site are for planning only; confirm with your utility rates, insurance quotes, and current federal/state incentive rules.