How to Use the ICE vs EV Ownership Cost (5 years)
This calculator compares the total cost of ownership for a gas-powered vehicle versus an electric vehicle over a 5-year period. It accounts for purchase price, fuel/electricity, maintenance, insurance, and registration fees to reveal which option is most economical.
Key inputs include vehicle purchase prices, your local gas and electricity rates, average annual mileage, insurance estimates, and applicable federal or state EV tax credits. Accurate local utility rates and fuel prices are critical for realistic comparisons.
The results show total 5-year costs and annual breakdowns for each vehicle type. A lower total cost indicates better value; examine individual cost categories to identify where EVs or gas cars excel in your situation.
5-Year Ownership Cost Breakdown: ICE vs EV (Mid-Range Vehicles)
This table compares total cost of ownership for a typical $35,000 gas sedan versus a $38,000 electric sedan over 5 years.
| Cost Category | ICE Vehicle (Gas) | EV Vehicle (Electric) |
|---|---|---|
| Purchase Price | $35,000 | $38,000 |
| Federal Tax Credit | $0 | $7,500 |
| Fuel/Electricity (75k miles) | $9,000 | $3,000 |
| Maintenance & Repairs | $4,000 | $1,200 |
| Insurance (5 years) | $6,500 | $7,200 |
| Registration & Fees | $1,200 | $1,000 |
| Total 5-Year Cost | $55,700 | $49,900 |
Assumes $3.50/gallon gas, $0.14/kWh electricity, 15,000 miles/year. EV advantages increase with higher fuel prices and annual mileage.
Annual Fuel & Electricity Costs by Vehicle Type and Driving Patterns
Annual operating costs vary significantly based on mileage and local energy prices.
| Annual Mileage | Gas Car @ $3.50/gal (25 MPG) | EV @ $0.14/kWh (4 mi/kWh) |
|---|---|---|
| 10,000 miles | $1,400 | $350 |
| 15,000 miles | $2,100 | $525 |
| 20,000 miles | $2,800 | $700 |
| 25,000 miles | $3,500 | $875 |
Gas prices and electricity rates vary by region; higher mileage amplifies EV savings. High-efficiency gas cars (>30 MPG) reduce the gap by ~20%.
Pro Tips
- Input your actual regional electricity rate from your utility bill for precise EV charging cost estimates.
- Factor in available EV incentives such as federal tax credits ($7,500), state rebates, and utility company rebates to reduce net EV costs.
- Use realistic annual mileage based on your commute; higher mileage increases EV advantages by spreading fuel savings across more miles.
- Request actual insurance quotes from providers for both vehicle types, as EV insurance premiums vary significantly by model and insurer.
Common Mistakes to Avoid
Ignoring Tax Credits and Rebates
Failing to include federal or state EV incentives underestimates true EV savings; always input applicable credits to reflect actual out-of-pocket costs.
Using Incorrect Local Utility Rates
Applying national average electricity rates instead of your local rate can distort EV charging cost estimates by $800–$2,000 over 5 years.
Overlooking Maintenance Differences
Assuming identical maintenance costs ignores that EVs require significantly fewer oil changes, brake service, and transmission repairs.
Not Adjusting for Insurance Premium Variations
Generic insurance estimates miss model-specific premiums; EVs often cost 5–10% more to insure due to battery replacement complexity.
Frequently Asked Questions
How much can I save by switching to an EV over 5 years?
Savings depend on electricity costs, fuel prices, and maintenance. A typical EV driver saves $4,000–$10,000 over 5 years compared to gas vehicles, excluding federal tax credits.
Are EV charging costs included in this calculator?
Yes, the calculator factors in home charging rates (typically $0.12–$0.18 per kWh) and public charging costs. Input your local electricity rate for accuracy.
What maintenance costs does an ICE vehicle incur over 5 years?
Gas cars average $500–$1,000 annually in maintenance (oil changes, filters, brakes), while EVs cost $200–$400 yearly due to fewer moving parts.
Should I include federal tax credits in the comparison?
Yes, the federal EV tax credit up to $7,500 (2024) significantly reduces upfront EV costs; input the applicable credit to reflect true ownership expense.
How does annual mileage affect the 5-year cost comparison?
Higher mileage favors EVs; driving 15,000+ miles yearly amplifies fuel and maintenance savings, making the EV advantage >$8,000 over 5 years.
What's the impact of gas price volatility on total cost?
Gas fluctuations directly affect ICE costs; a $1 per gallon increase raises 5-year fuel expenses by $800–$1,500 depending on fuel efficiency.
Can insurance costs differ significantly between ICE and EV models?
EV insurance is typically 5–10% higher due to battery replacement costs, though some insurers offer EV discounts; input actual quotes for precise comparison.
References & Resources
Last updated: April 2026
- U.S. Department of Energy - EV Costs and Savings
Official government resource comparing lifetime EV and gas vehicle costs with interactive calculators.
- EPA Fuel Economy Guide
EPA data on fuel economy, efficiency ratings, and cost comparisons for all vehicle types.
- InsideEVs - Cost of EV Ownership
Industry analysis of real-world EV ownership costs including insurance, maintenance, and fuel savings.
- Kelley Blue Book - Vehicle Depreciation Data
Current market data on EV and gas vehicle resale values, depreciation rates, and pricing trends.