Comparing cars on purchase price alone is misleading: what matters is what you pay over all the years you own it. That is the total cost of ownership (TCO).
What to include
- Purchase: final price, minus incentives you have confirmed.
- Energy: fuel or electricity for your mileage.
- Maintenance: servicing, tyres, brakes.
- Insurance and tax: can differ between versions of the same model.
- Resale value: hard to predict; if you estimate it, subtract it from the purchase price.
Energy cost per mile
EV: (kWh/100 mi ÷ 100) × (1 + charging losses) × blended price per kWh
The blended price mixes home and public charging. Charging 80% at home at $0.15/kWh and 20% publicly at $0.45/kWh gives 0.15 × 0.8 + 0.45 × 0.2 = $0.21/kWh.
Worked example
At 10,000 miles a year: a 32 mpg car with gas at $3.50 spends about $0.109 per mile ($1,094 a year). An EV using 28 kWh/100 mi with 10% losses at $0.21/kWh spends about $0.065 per mile ($647 a year). The running difference is roughly $450 a year before maintenance and insurance.
The break-even point
If the EV costs $7,000 more and saves $1,000 a year including maintenance, it takes 7 years to break even. Keep the car for less time and the gas car is cheaper overall; keep it longer and the EV wins.
What changes the answer most
Annual mileage, your home electricity rate and the share of public charging. Try several scenarios in the comparison tool before you decide.