The total cost of ownership (TCO) of a car is everything you spend on it from the day you buy it to the day you sell it or send it to the junkyard. It includes the purchase price, fuel, maintenance, insurance, registration, taxes, and how much value the car loses over time. When you compare an EV to a gas car using TCO instead of just the sticker price, the financial picture changes significantly.
Most people focus on the purchase price when deciding between an electric vehicle and a gas car. That's understandable — it's the biggest single number. But the purchase price is only one piece of a much larger puzzle. Two cars with the same sticker price can cost thousands of dollars apart over five or ten years once you factor in everything else.
This guide breaks down every cost category that makes up total cost of ownership, explains how EVs and gas cars differ in each one, and shows what the overall picture looks like over typical ownership periods.
Total cost of ownership includes six major cost categories. Some favor EVs, some favor gas cars, and some are roughly equal. Here's the complete list:
| Cost Category | Favors EV or Gas? | Size of Difference |
|---|---|---|
| Purchase price | Gas (usually cheaper upfront) | Large ($2,000-$10,000+) |
| Fuel / energy | EV (electricity cheaper than gas) | Large ($800-$1,500/year) |
| Maintenance | EV (fewer parts to service) | Moderate ($400-$800/year) |
| Insurance | Gas (lower premiums typically) | Small to moderate ($200-$600/year) |
| Depreciation | Varies by model | Moderate |
| Taxes, fees, and incentives | Depends on your state | Small to large |
The key insight is that gas cars tend to win on upfront costs, while EVs tend to win on ongoing costs. The question is always: how long does it take for the EV's lower running costs to make up for its higher purchase price? That's what TCO analysis answers.
Electric vehicles generally cost more to buy than comparable gas cars. As of early 2026, the average transaction price for a new EV in the US is roughly $3,000-$7,000 higher than a similar gas model, though this gap has been shrinking steadily.
Some examples of how similar models compare:
| EV Model | Starting MSRP | Gas Equivalent | Starting MSRP |
|---|---|---|---|
| Chevrolet Equinox EV | ~$33,000 | Chevrolet Equinox | ~$30,000 |
| Hyundai Ioniq 5 | ~$42,000 | Hyundai Tucson | ~$30,000 |
| Tesla Model 3 | ~$39,000 | Toyota Camry | ~$29,000 |
| Ford Mustang Mach-E | ~$37,000 | Ford Escape | ~$31,000 |
However, the federal EV tax credit can erase much of this gap. Qualifying new EVs can receive up to $7,500 in tax credits, and used EVs up to $4,000. Not every EV qualifies — eligibility depends on where the vehicle and its battery are manufactured, plus income limits for the buyer. But when the credit applies, a $39,000 EV effectively costs $31,500, putting it in the same ballpark as many gas alternatives.
This is where EVs have their biggest ongoing advantage. Electricity is cheaper than gasoline per mile driven in every US state, and the gap is substantial.
A typical EV uses about 30 kWh of electricity per 100 miles. At the national average residential electricity rate of roughly $0.16 per kWh, that's about $4.80 per 100 miles. A comparable gas car getting 30 MPG at $3.30 per gallon costs about $11.00 per 100 miles. The EV costs less than half as much to fuel.
Over a year, for someone driving 12,000 miles annually:
Over five years, that's around $3,700 in fuel savings. Over ten years, it's roughly $7,400. And these estimates assume stable gas and electricity prices — historically, gas prices have been far more volatile than electricity rates.
If you charge at public DC fast chargers instead of at home, the savings shrink. Fast charging typically costs $0.30-$0.50 per kWh, which brings EV fuel costs closer to gas costs. But most EV owners do 80-90% of their charging at home, so the home charging rate is the more realistic number for TCO calculations. (For a detailed breakdown, see our complete EV charging cost vs gas comparison.)
Enter your electricity rate, gas price, and driving habits to see a personalized cost comparison.
Calculate Your SavingsElectric vehicles have far fewer moving parts than gas cars. No engine, no transmission, no exhaust system, no timing belt, no spark plugs, no oil to change. This translates directly into lower maintenance costs.
Here's what each vehicle type typically needs:
| Service | Gas Car | EV |
|---|---|---|
| Oil changes | Every 5,000-7,500 miles (~$50-$80 each) | Not needed |
| Transmission service | Every 30,000-60,000 miles (~$150-$300) | Not needed |
| Brake pads | Every 30,000-50,000 miles | Every 70,000-100,000+ miles (regenerative braking reduces wear) |
| Tire rotation | Every 5,000-7,500 miles | Every 5,000-7,500 miles |
| Cabin air filter | Every 15,000-30,000 miles | Every 15,000-30,000 miles |
| Coolant flush | Every 30,000-50,000 miles | Every 50,000-100,000 miles (battery cooling system) |
| Spark plugs | Every 30,000-100,000 miles | Not needed |
The annual maintenance cost difference typically runs $400-$800 per year in the EV's favor. Over a 10-year ownership period, that adds up to $4,000-$8,000 in savings. (For the full breakdown, see our EV vs gas maintenance cost guide.)
One EV-specific maintenance consideration: tires. EVs are heavier than equivalent gas cars because of the battery, and they produce instant torque. Both factors can cause tires to wear faster. EV tires may need replacement every 25,000-35,000 miles compared to 40,000-50,000 miles for gas cars. At $150-$250 per tire, that's an extra $200-$400 per tire cycle. It narrows the maintenance gap but doesn't come close to erasing it.
Insurance premiums for EVs are typically higher than for comparable gas cars. The reasons are straightforward: EVs cost more to repair after a collision. Battery packs are expensive, body panels on some EVs use aluminum instead of steel, and fewer shops have the training and equipment to work on electric vehicles.
The premium difference varies widely by model, location, and driver, but most studies show EV insurance costs 10-25% more than a comparable gas car. On a car with a $1,500/year insurance premium, that's an extra $150-$375 per year.
This gap has been narrowing as EVs become more common and more repair shops tool up for EV work. But as of early 2026, insurance is still a cost category where gas cars have an edge.
Depreciation is the amount of value your car loses over time. For most vehicles, it's actually the single largest cost of ownership — bigger than fuel, maintenance, or insurance combined. A new car typically loses 15-25% of its value in the first year alone, and around 50-60% over five years.
Early EVs (2015-2020 models) depreciated faster than gas cars, partly because battery technology was improving so quickly that older models seemed outdated fast. But this trend has shifted. Recent data shows that many popular EVs now hold their value comparably to — or in some cases better than — similar gas cars.
Tesla vehicles in particular have shown strong resale values, partly because Tesla frequently updates its cars through software rather than requiring new model purchases. Other EVs vary more widely. Some models from major automakers hold value well; others (especially those from brands with uncertain EV futures) depreciate faster.
For TCO calculations, depreciation is typically the hardest cost to predict because it depends so much on market conditions, specific models, and how long you plan to own the car. The safest approach is to look at recent resale data for the specific models you're comparing.
Several state and federal policies affect the total cost of owning an EV vs a gas car. Some save you money, and some cost you extra.
Here's what a typical TCO comparison looks like for an average mid-size sedan, assuming 12,000 miles driven per year and national average fuel and electricity prices.
| Cost Category | Gas Car (5 Years) | EV (5 Years) |
|---|---|---|
| Purchase price (after incentives) | ~$30,000 | ~$32,500 (after $7,500 credit) |
| Fuel / electricity | ~$6,600 | ~$2,900 |
| Maintenance | ~$4,500 | ~$1,800 |
| Insurance | ~$7,500 | ~$8,800 |
| Registration and fees | ~$500 | ~$1,000 |
| Home charger installation | $0 | ~$1,000 |
| 5-Year Total (before depreciation) | ~$49,100 | ~$48,000 |
In this typical scenario, the EV costs roughly $1,100 less over five years — not a dramatic difference, but the EV comes out ahead. And the gap widens as you extend the ownership period, because the EV's ongoing savings in fuel and maintenance keep accumulating while the gas car's costs stay constant.
Over 10 years of ownership, the EV's advantage grows to approximately $5,000-$8,000 depending on specific models and local fuel prices. That's because the fuel and maintenance savings ($1,500+/year combined) keep compounding while the upfront price difference stays fixed.
The EV doesn't always win on TCO. Here are situations where a gas car may cost less overall:
The specific models you're comparing also matter enormously. A fuel-efficient hybrid like the Toyota Camry Hybrid (50+ MPG) has much lower fuel costs than a typical gas car, which narrows the EV's fuel advantage. Our Tesla Model 3 vs Toyota Camry comparison shows exactly how this plays out with real numbers.
Generic TCO comparisons like the table above are useful starting points, but your actual costs depend heavily on your personal situation. The variables that matter most:
The most accurate way to compare is to plug your actual numbers into a calculator rather than relying on national averages.
Compare EV vs gas costs using your actual electricity rate, gas price, and driving habits.
Calculate Your SavingsTotal cost of ownership flips the EV vs gas conversation. Gas cars are usually cheaper to buy, but EVs are cheaper to own over time. For most drivers who plan to keep their car for at least three to four years, charge at home, and qualify for the federal tax credit, the EV will cost less overall.
The size of the savings depends on your specific situation — your electricity rate, gas prices, how much you drive, and which models you're comparing. But the general pattern is consistent: EVs cost more on day one and less on every day after that. Over a typical 5-10 year ownership period, the running cost savings more than compensate for the higher upfront price.
The best approach is to stop looking at sticker prices in isolation. Calculate your total cost of ownership using your actual numbers, and let the full picture guide your decision.