To compare an electric and a gas car fairly, add up six costs over the years you'll keep it: purchase price after incentives, fuel or electricity, maintenance, insurance, fees, and depreciation. EVs usually cost more up front and win back the gap on fuel and upkeep — but not always. This guide breaks down each piece so your comparison reflects your own driving, electricity rate, and local gas prices rather than a generic headline.
Start with purchase price minus incentives
EVs typically carry a higher sticker price than a comparable gas car, sometimes by several thousand dollars, so that gap is your starting deficit for the EV. But the number that matters is the net price after incentives, which can dramatically narrow or even close the gap depending on where you live and which model you choose.
Federal, state, and local incentives can knock thousands off an eligible EV, and some regions add utility rebates for home chargers on top. These programs change often and come with eligibility rules tied to income, the vehicle, and where it was built, so verify what you actually qualify for before assuming a discount. Subtract only the incentives you're confident you'll receive.
Fuel versus electricity is usually the biggest gap
This is where EVs typically claw back their price premium. Consider 12,000 miles a year. A gas car getting 30 mpg burns 400 gallons; at $3.50 a gallon that's $1,400 a year, or $7,000 over five years. An EV using about 0.30 kWh per mile needs roughly 3,600 kWh; at a home rate of $0.15 per kWh that's $540 a year, or $2,700 over five years.
In that example the EV saves about $4,300 in energy over five years — often enough to offset a higher purchase price by itself. But the result swings with your inputs: cheap gas and expensive electricity narrow the gap, while frequent public fast-charging (which can cost two to three times a home rate) erodes the EV's advantage. Charging mostly at home is what makes the math strongly favor electric.
Maintenance, insurance, and the quieter costs
EVs have far fewer moving parts — no oil changes, no spark plugs, no timing belts, no exhaust system — so scheduled maintenance is typically lower, and regenerative braking makes brake pads last longer too. Over five years that difference often adds up to a few hundred to a couple thousand dollars in the EV's favor.
The costs don't all point one way, though. EVs frequently carry higher insurance premiums because repairs and battery packs are expensive, and they cost more to fix after a collision. Registration fees, some states' special EV road-use fees, and tire wear (EVs are heavier and torquey) all belong in an honest tally. None is huge alone, but together they matter.
Depreciation is the cost most people forget
Depreciation — how much value the car loses — is usually the single largest cost of ownership, bigger than fuel or maintenance, yet it's the one buyers overlook because you don't write a check for it. A car that costs $40,000 and is worth $22,000 after five years has cost you $18,000 in depreciation alone, dwarfing most other line items.
Resale values for EVs have historically been more volatile than for gas cars, swayed by battery-health concerns, fast-improving new models, and shifting incentives, though this varies a lot by brand and model. Because depreciation is so large, a strong or weak resale value can flip the whole five-year comparison — which is exactly why a proper total-cost-of-ownership calculation includes it rather than stopping at fuel savings.
Run the numbers yourself
Frequently Asked Questions
Is an electric car really cheaper over five years?
Often, but not always. EVs usually win on fuel and maintenance and can benefit from incentives, but they cost more up front, can have higher insurance, and may depreciate faster. The answer depends on your mileage, electricity rate, local gas price, and how long you keep the car — which is why a full five-year comparison beats a rule of thumb.
Why include depreciation in the comparison?
Depreciation is typically the biggest cost of owning any car — larger than fuel or maintenance — and it differs between EVs and gas cars. Leaving it out can make an EV look cheaper or more expensive than it truly is over five years, so a fair total-cost comparison has to account for resale value.
Does home charging versus public charging change the math?
Significantly. Home electricity often costs around $0.15 per kWh, while public fast-charging can run two to three times that. An EV that charges mostly at home enjoys the largest fuel savings; one that relies on public fast-chargers gives much of that advantage back.