An EV usually costs more upfront and less to run. Whether that trade pays off — and how fast — depends on a handful of numbers most comparisons skip.
The upfront gap is real, but it's not the whole story
EVs typically carry a purchase price premium over a comparable gas car, though that gap has been narrowing. The relevant question isn't whether the EV costs more upfront — it usually does — but how long it takes for lower running costs to close that gap, and whether that timeline fits how long you'll own the vehicle.
Energy cost per mile is where EVs usually win
Charging at home, especially overnight on an off-peak rate, typically costs a fraction of gasoline per mile — see the detailed math in our EV home charging cost calculator. The gap narrows somewhat with public fast charging, which usually costs more per kWh than home charging, but home charging remains the cheaper baseline for most owners.
Maintenance savings add up, but are easy to underestimate
No oil changes, fewer moving parts, and regenerative braking that reduces brake wear all lower an EV's typical maintenance cost compared to a gas car — often a meaningful annual saving that compounds with mileage, similar to the energy cost advantage.
Mileage is the variable that decides everything
High-mileage drivers reach breakeven much faster since energy and maintenance savings scale directly with miles driven — a 20,000 mile/year driver closes the price gap far sooner than someone driving 6,000 miles/year. Run your actual annual mileage, both vehicles' efficiency, and local energy prices through the EV total cost of ownership calculator rather than relying on a generic national average.
Battery degradation is a real but usually modest factor
Most EV batteries degrade 1.5-2.5% per year on average, with published fleet data generally showing degradation front-loaded in the first couple years before leveling off — most manufacturers warranty around 70% capacity retention at 8-10 years. See the battery degradation calculator for what that means for your specific vehicle's range over time; it rarely changes a 5-year cost comparison dramatically but is worth knowing for longer ownership horizons.
Frequently asked questions
Does insurance cost more for an EV?
It can, sometimes moderately, due to higher repair costs for specialized components and battery packs — this comparison focuses on purchase price, energy, and maintenance, so factor insurance in separately if it's a meaningful difference for your specific vehicles.
How much does annual mileage really change the outcome?
Significantly — doubling annual mileage roughly halves the time to reach cost breakeven, since energy and maintenance savings scale directly with miles driven while the upfront price premium stays fixed.