Electric Car vs. Gas Car: Which Costs Less to Own?

Updated Oct 27, 2026 3 min read By the WieHow – Home, Energy & Money Guides editorial team
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Quick answer

Charging at home typically costs about half as much per mile as buying gasoline, and EVs need less maintenance. With the federal EV tax credit gone since September 30, 2025, the higher purchase price now weighs more, so the total-cost advantage depends on your miles driven, electricity rate and the price gap between the two cars.

On this page
  1. Fuel: the clearest EV advantage
  2. Maintenance
  3. Purchase price and incentives
  4. Insurance and registration
  5. Depreciation
  6. Who saves the most with an EV

Electric cars are cheaper to fuel and maintain but usually more expensive to buy. Whether that adds up to a saving depends on how much you drive, where you charge and how long you keep the car.

Fuel: the clearest EV advantage

A typical EV goes 3 to 4 miles per kWh. At the US average of about $0.17 per kWh for home charging, that is roughly 5 cents per mile including charging losses. A gas car that gets 30 mpg, with gas at $3.40 per gallon, costs about 11 cents per mile.

EV vs. Gas Car: Fuel Cost CalculatorYearly charging cost vs. gas costTry the calculator →

Over 12,000 miles a year, that is a difference of several hundred dollars per year. The gap shrinks if you rely on public DC fast charging, which often costs $0.40–$0.60 per kWh — similar to or more than gasoline per mile.

Maintenance

EVs have no oil changes, spark plugs, timing belts or exhaust systems, and regenerative braking makes brake pads last much longer. Studies by consumer organizations have found EV owners spend roughly half as much on maintenance and repairs. Tires can wear faster because EVs are heavier and deliver instant torque.

Purchase price and incentives

The federal clean vehicle tax credit of up to $7,500 ended for vehicles acquired after September 30, 2025. Some states and utilities still offer rebates for EVs or home chargers. EV prices have also fallen as competition increased, and the used EV market offers significant discounts.

Insurance and registration

EV insurance is often somewhat higher because repairs can be costly. Many states also charge an annual EV registration fee, typically $50–$250, to replace lost gas tax revenue. Include both in your comparison.

Depreciation

EVs have historically lost value faster than comparable gas cars, partly due to rapid price cuts on new models. If you keep a car for 8–10 years, depreciation matters less; if you trade in every three years, it can wipe out the fuel savings.

Who saves the most with an EV

  • Drivers with a garage or driveway who can charge at home, ideally on a time-of-use rate.
  • High-mileage commuters (15,000+ miles a year).
  • Households with rooftop solar.
  • Buyers of used EVs, who avoid the steepest depreciation.
Rule of thumb: If you can charge at home and drive more than about 10,000 miles a year, an EV of a similar price class usually costs less to own over 8 years — even without the federal credit.

Frequently asked questions

How much does a home charger cost?

A Level 2 charger typically costs $400–$800, plus $500–$2,000 for installation depending on your electrical panel and wiring distance.

Do EV batteries need to be replaced?

Most EV batteries outlast the warranty, which in the US is at least 8 years or 100,000 miles. Gradual capacity loss of 1–2% per year is typical.

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