The Real Cost of Going Electric
"EVs are cheaper to own!" "EVs cost more!" You've heard both claims. The truth? It depends on many factors—but we can calculate it precisely.
This analysis compares total cost of ownership (TCO) for electric vs. gas vehicles over 5 years, using 2026 data and realistic assumptions.
Our Test Case
To make this comparison meaningful, we'll compare similar vehicles:
Electric: Tesla Model 3 Long Range ($47,500 MSRP)
- 82 kWh battery
- 333 miles EPA range
- 3.5 miles per kWh efficiency
Gas: BMW 3 Series 330i ($44,500 MSRP)
- 2.0L Turbo engine
- 30 MPG combined
- Premium gas required
Both are entry-luxury sedans with similar size, performance, and target market.
Cost Category #1: Fuel/Energy
This is where EVs shine brightest.
Electric Fuel Costs (Model 3)
Home Charging (80% of miles):
- Average electricity: $0.14/kWh
- Efficiency: 3.5 miles/kWh
- Cost per mile: $0.04
Public Charging (20% of miles):
- Average cost: $0.35/kWh
- Cost per mile: $0.10
Blended Cost per Mile: $0.052
Annual Fuel (12,000 miles): $624
5-Year Fuel Cost: $3,120
Gas Fuel Costs (330i)
Assumptions:
- Gas price: $3.50/gallon (national average)
- BMW requires premium: $4.00/gallon
- Fuel economy: 30 MPG combined
Cost per Mile: $0.133
Annual Fuel (12,000 miles): $1,600
5-Year Fuel Cost: $8,000
Fuel Savings: EV wins by $4,880
Cost Category #2: Maintenance
EVs have far fewer moving parts—no oil changes, no transmission service, no exhaust system, no spark plugs.
Electric Maintenance (Model 3)
Annual Maintenance:
- Tire rotation: $50-75
- Cabin air filter: $50 (every 2 years)
- Brake fluid: $100 (every 4 years)
- Windshield wipers: $40/year
- Brakes: Minimal (regenerative braking extends life)
Average Annual Cost: $250
5-Year Maintenance: $1,250
Gas Maintenance (330i)
Annual Maintenance:
- Oil changes: $300/year (BMW synthetic)
- Tire rotation: $50-75
- Brake pads/rotors: $600 (over 5 years)
- Air filters: $100 (over 5 years)
- Spark plugs: $300 (at 60k miles)
- Transmission service: $300 (over 5 years)
- Coolant flush: $150 (over 5 years)
Average Annual Cost: $600
5-Year Maintenance: $3,000
Maintenance Savings: EV wins by $1,750
Cost Category #3: Insurance
Insurance for EVs tends to be higher due to repair costs and parts availability.
Electric Insurance (Model 3)
Average Annual Premium: $1,900
5-Year Insurance: $9,500
Gas Insurance (330i)
Average Annual Premium: $1,700
5-Year Insurance: $8,500
Insurance: Gas wins by $1,000
Cost Category #4: Depreciation
This is the biggest cost for any vehicle—and where things get interesting.
Electric Depreciation (Model 3)
Tesla holds value better than most EVs due to brand strength and software updates.
Purchase Price: $47,500
Value After 5 Years: ~$28,500 (60% retention)
Depreciation: $19,000
Gas Depreciation (330i)
Purchase Price: $44,500
Value After 5 Years: ~$20,000 (45% retention)
Depreciation: $24,500
Depreciation: EV wins by $5,500
Note: Depreciation varies significantly by model. Some EVs depreciate faster than gas equivalents, while Teslas and popular models hold value well.
Cost Category #5: Registration & Taxes
Electric Vehicle Fees
Federal Tax Credit: -$7,500 (if eligible)
State EV Registration Fee: $100-300/year (varies by state)
Sales Tax: Varies (some states exempt EVs)
5-Year Net: -$6,000 (assuming federal credit)
Gas Vehicle Fees
Registration: Standard rates
Gas Tax: Built into fuel prices (~$0.50/gallon)
Over 5 years (2,000 gallons): $1,000 in gas taxes
5-Year Net: $0 (no credits)
Taxes/Fees: EV wins by $6,000+
Note: EV registration fees are increasing in many states to offset lost gas tax revenue.
Cost Category #6: Home Charging Setup
A one-time cost for home charging capability.
Electric: Home Charger Installation
Charger Unit: $500
Installation: $700
Total One-Time Cost: $1,200
(May be offset by utility rebates and tax credits)
Gas: N/A
5-Year Cost Difference: Gas wins by $1,200
Total Cost of Ownership: 5-Year Summary
| Category | Electric (Model 3) | Gas (330i) | Difference |
|---|---|---|---|
| Purchase Price | $47,500 | $44,500 | +$3,000 |
| Federal Tax Credit | -$7,500 | $0 | -$7,500 |
| Fuel/Energy | $3,120 | $8,000 | -$4,880 |
| Maintenance | $1,250 | $3,000 | -$1,750 |
| Insurance | $9,500 | $8,500 | +$1,000 |
| Depreciation | $19,000 | $24,500 | -$5,500 |
| Home Charger | $1,200 | $0 | +$1,200 |
| EV Registration Fees | $1,000 | $0 | +$1,000 |
| Total 5-Year Cost | $75,070 | $88,500 | -$13,430 |
The Bottom Line
The Tesla Model 3 costs $13,430 less over 5 years than the BMW 330i.
This breaks down to $2,686/year or $224/month in savings.
Factors That Change the Math
EVs Save More When:
- Gas prices are high ($4.50+/gallon)
- Electricity is cheap (<$0.12/kWh)
- You have home charging
- You drive more miles annually
- Your state offers additional incentives
- You qualify for the federal tax credit
EVs Save Less (or Cost More) When:
- Gas prices are low (<$2.50/gallon)
- Electricity is expensive (>$0.20/kWh)
- You rely on public DC fast charging
- You drive very few miles
- You don't qualify for tax credits
- Your EV depreciates faster than average
Scenario Analysis
High-Mileage Driver (20,000 miles/year)
5-Year Fuel:
- EV: $5,200
- Gas: $13,333
Additional EV Savings: $3,253/year
No Home Charging (100% Public)
5-Year Fuel:
- EV: $6,000 (at $0.35/kWh)
- Gas: $8,000
EV Still Saves: $2,000 on fuel
No Federal Tax Credit
5-Year Difference: -$5,930 (EV still cheaper)
High Gas Prices ($5/gallon)
5-Year Fuel:
- EV: $3,120 (unchanged)
- Gas: $10,000
Additional EV Savings: $2,000
Beyond the Numbers
Cost isn't everything. Consider these factors:
EV Advantages Beyond Cost:
- Environmental impact
- Smoother, quieter driving
- Instant torque performance
- HOV lane access (some states)
- Less time at gas stations
- Home charging convenience
Gas Car Advantages:
- No range anxiety
- Faster refueling
- More charging/fueling infrastructure
- Familiar technology
- Potentially better for towing (currently)
Should You Switch?
Strong Yes If:
- You have home charging capability
- You drive 10,000+ miles annually
- You qualify for tax credits
- Gas prices are high in your area
- You want to reduce your carbon footprint
Maybe Wait If:
- You can't charge at home or work
- You drive very few miles
- You frequently take long road trips without charging infrastructure
- You need to tow heavy loads regularly
The Math Usually Works: For most drivers with home charging, EVs are already cheaper. The gap will widen as battery costs drop and charging infrastructure expands.
Conclusion
When comparing total cost of ownership, EVs win for most drivers—even at today's prices. The combination of lower fuel costs, reduced maintenance, potential tax credits, and improving resale values creates significant savings.
The $13,430 we calculated for Model 3 vs. 330i is typical. Your actual savings depend on your specific situation, but the directional advantage toward EVs is clear.
The best way to know your personal savings? Calculate it with your local electricity and gas prices, your annual mileage, and available incentives.
Ready to start saving? Find charging stations near you with ChargeFind.