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Gas vs Electric Car Cost Comparison 2026

Compare the total cost of ownership between gas and electric vehicles over 5 years. Includes purchase price, fuel, insurance, depreciation, and maintenance costs.

Gas vs Electric: 5-Year Total Cost of Ownership

The price tag is only the beginning. When comparing a gas car to an EV, you need to look at the full picture: purchase price, fuel/energy costs, insurance premiums, depreciation, and maintenance over at least 5 years of ownership. That's where the real savings — or costs — become clear.

While EVs typically cost $5,000-$7,000 more upfront than comparable gas vehicles, they cost significantly less to fuel and maintain. The average EV saves $800-$1,200 per year in fuel and $300-$400 per year in maintenance. Add in state incentives worth $2,000-$12,500, and the total cost equation often favors electric — especially in states with generous incentives.

This calculator uses industry-standard assumptions for depreciation (45% for EVs over 5 years), insurance ($1,800/yr EV vs $1,650/yr gas), and maintenance ($300/yr EV vs $650/yr gas) to give you a realistic comparison.

How to Use the Gas vs Electric Comparison Calculator

This calculator gives you a full 5-year total cost of ownership (TCO) comparison between a gas car and an EV. Here's how to use it:

Step 1: Select or Enter Your Gas Car

Start by selecting a common gas car model from the dropdown (e.g., Honda CR-V, Toyota Camry, Ford F-150). The calculator auto-fills: MPG rating, typical maintenance cost, insurance cost, and depreciation rate for that model. If your car isn't listed, select "Custom" and enter the MPG manually.

Step 2: Select or Enter Your EV

Similarly, select an EV model from the dropdown (e.g., Tesla Model 3, Chevy Equinox EV, Ford F-150 Lightning). The calculator auto-fills: MPGe rating, typical maintenance cost, insurance cost, and depreciation rate. For EVs, the maintenance cost is lower but insurance is typically higher.

Step 3: Enter Your Local Gas Price and Electricity Rate

These values significantly affect the comparison. The calculator auto-fills national averages ($3.94/gallon gas, 18.56¢/kWh electricity), but you should enter your local rates for the most accurate comparison. Select your state from the dropdown to auto-fill state averages.

Step 4: Enter Annual Mileage

The average American drives 13,500 miles/year, but your mileage may differ. Drive more than 15,000 miles/year? The EV advantage grows significantly. Drive less than 8,000 miles/year? The gas car might actually be cheaper on a TCO basis because you're not driving enough to offset the EV's higher purchase price.

Step 5: Review Your 5-Year TCO Comparison

The results show: (1) Total 5-year cost for the gas car, (2) Total 5-year cost for the EV, (3) Net savings (EV cost minus gas cost), and (4) Break-even year (when the EV's fuel+maintenance savings overcome its higher purchase price).

Understanding Total Cost of Ownership (TCO): What's Included

What TCO Includes

A proper TCO calculation includes: (1) Purchase price (after incentives), (2) Fuel cost over 5 years, (3) Maintenance cost over 5 years, (4) Insurance cost over 5 years, (5) Depreciation (resale value at year 5), and (6) Financing cost (if applicable).

What TCO does NOT include: Registration fees, parking costs, tolls, and car washes. These are roughly equal for gas and EV, so they don't affect the comparison.

Purchase Price: The EV Premium in 2026

The average EV costs $5,500 more than a comparable gas car in 2026. Examples:

Important: State incentives can eliminate this premium. For example, in California, the Equinox EV's $4,700 premium is erased by the $7,500 CVRP rebate — making the EV $2,800 cheaper than the gas CR-V.

Fuel Cost: The Core Savings

Over 5 years and 67,500 miles (13,500/year):

State variations: In California (gas $5.58/gallon, electricity 32.6¢/kWh), the 5-year fuel savings are $8,100+. In Louisiana (gas $3.12/gallon, electricity 11.9¢/kWh), the savings are only $3,100.

Maintenance Cost: The Hidden Savings

Over 5 years:

Note: EVs wear through tires faster (instant torque, heavier battery). Budget an extra $100-150/year for more frequent tire replacements. Net maintenance savings: ~$1,400 over 5 years.

Insurance Cost: The EV Penalty

EV insurance typically costs $150-300 more per year than a comparable gas car. Over 5 years: $750-1,500 additional cost. This partially offsets the fuel and maintenance savings.

Why EVs cost more to insure: (1) Higher repair costs (specialized parts, battery concerns), (2) EVs are more likely to be financed (lenders require comprehensive coverage), (3) EV owners tend to have higher credit scores (correlated with higher coverage levels).

Depreciation: The Big Variable

How much your car is worth after 5 years dramatically affects TCO. Examples (Edmunds 2026 resale estimates):

Why some EVs depreciate faster: Rapid technology changes (2026 EVs have 300+ mile range and 20-minute fast charging; 2023 EVs may have only 220 miles and 45-minute charging). Leasing protects you from depreciation risk — return the car at lease-end regardless of resale value.

Gas vs EV TCO by State: Where EVs Win (and Lose)

States Where EVs Have the Lowest 5-Year TCO

1. California (EV cheaper by $3,500-5,500 over 5 years): High gas prices ($5.58/gallon) + strong state incentives ($7,500 CVRP) + HOVs lane access (valued at $1,500-3,000/year) = EVs are cheaper even with the purchase premium.

2. Oregon (EV cheaper by $2,800-4,500 over 5 years): Moderate gas prices ($4.85/gallon) + strong state incentives (up to $12,500) + low electricity rates (14.4¢/kWh) = EVs win convincingly.

3. Washington (EV cheaper by $2,500-4,000 over 5 years): Low electricity rates (11.9¢/kWh from hydropower) + no sales tax on EVs under $45,000 + high gas prices ($4.72/gallon) = EVs are cheaper.

4. New Jersey (EV cheaper by $2,000-3,500 over 5 years): No sales tax on EVs + $5,000 state rebate + moderate gas prices ($3.45/gallon) = EVs win.

5. Colorado (EV cheaper by $1,800-3,000 over 5 years): $5,000 state tax credit (refundable) + moderate gas prices ($3.65/gallon) + low electricity rates (14.5¢/kWh) = EVs are cheaper.

States Where Gas Cars Still Have Lower TCO

1. Louisiana (Gas cheaper by $800-1,500 over 5 years): Low gas prices ($3.12/gallon) + no state EV incentives + moderate electricity rates (11.9¢/kWh) = gas cars are cheaper.

2. Mississippi (Gas cheaper by $700-1,200 over 5 years): Very low gas prices ($3.05/gallon) + no state EV incentives + low electricity rates (13.1¢/kWh) = gas cars are cheaper.

3. Alabama (Gas cheaper by $600-1,000 over 5 years): Low gas prices ($3.22/gallon) + no state EV incentives + moderate electricity rates (14.8¢/kWh) = gas cars are slightly cheaper.

4. Texas (EV cheaper by only $200-800 over 5 years — essentially a tie): Moderate gas prices ($3.42/gallon) + limited state incentives + variable electricity rates (10-18¢/kWh depending on utility) = EVs and gas cars are nearly tied on TCO.

Regional Patterns

Lease vs Buy: How It Affects TCO

If You Lease the EV

Leasing changes the TCO calculation dramatically:

TCO for leasing: Add up all lease payments + insurance + electricity cost over the lease term (typically 3 years). Compare this to the TCO of buying the gas car over the same 3 years. Leasing an EV is often cheaper on a monthly basis even though the EV has a higher MSRP.

If You Buy and Keep for 10+ Years

If you keep the car for 10+ years (beyond the warranty period), the TCO advantage of EVs grows significantly:

Gas vs EV 5-Year Cost Comparison

Example: A driver in California driving 13,500 mi/yr saves $1,800/yr. See your savings below.
Data updated June 2026 · EIA & AAA real-time
e.g. Tesla Model 3: ~$40K, Chevy Equinox EV: ~$35K
e.g. Honda Accord: ~$28K, Toyota Camry: ~$27K
Customize Assumptions (Optional)
Typical: 0.25-0.45
Typical: 20-35
% of value lost over 5 years
% of value lost over 5 years
Typical: $1,500-$2,500
Typical: $1,400-$2,200
Typical: $200-$500
Typical: $500-$900

Frequently Asked Questions

Yes! EVs have far fewer moving parts — no oil changes, timing belts, transmissions, or exhaust systems. The average EV owner spends about $300/year on maintenance vs $650/year for a gas car. Over 5 years, that's $1,750 in savings. The biggest savings come from no oil changes ($500/year for gas cars) and regenerative braking (brake pads last 2-3x longer).

Historically yes, but the gap is narrowing. EVs typically depreciate 45-50% over 5 years compared to 40-45% for gas cars. However, lower fuel and maintenance costs often offset the higher depreciation. With the federal tax credit gone, some analysts predict EV resale values will stabilize and improve.

On average, EV insurance is about $150-$300 more per year than a comparable gas vehicle. This is due to higher repair costs (specialized parts and labor) and the higher average purchase price of EVs. Many insurers now offer EV-specific policies with competitive rates.

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