Loan EV vs Gas Calculator
An EV usually costs more to buy and less to run. This finds the exact point where the running savings pay back the price premium — with your fuel prices, your electricity rate, your mileage and any incentive you actually qualify for.
Incentives change often and depend on the vehicle, where it was built, and your income — enter only what you have confirmed you qualify for (the $7,500 default is an example value, not a promise; set it to 0 to see the no-incentive case). Electricity is priced at home-charging rates; heavy public fast-charging costs two to three times more per kWh and narrows the savings. Home charging setup costs can be added to the EV price.
How it works
Price premium = EV price − incentive − gas car price. Annual fuel saving = (miles ÷ MPG × gas price) − (miles ÷ 100 × kWh-per-100 × electricity price). Add the maintenance saving (no oil, fewer brakes, no exhaust or transmission service) for total yearly savings. Break-even year = premium ÷ yearly savings. On the defaults: a $1,990 premium after the example incentive, $1,013 saved a year, break-even at about 2.0 years, and $6,114 ahead after 8 years.
Formula & worked example
Formula: Premium = EV price − incentives − gas car price. Yearly saving = (miles ÷ MPG × gas price − miles ÷ 100 × kWh/100mi × electricity price) + maintenance saving. Break-even years = premium ÷ yearly saving. Net position = yearly saving × years − premium.
Worked example: Defaults: premium $1,990 after the example incentive; gas $1,275/yr vs electricity $612/yr plus $350 maintenance = $1,013 saved a year; break-even ≈ 2.0 years; $6,114 ahead after 8 years.
When to use this
- A dealer claims the EV 'pays for itself' and you want your numbers, not theirs
- You are choosing between a hybrid and a full EV for a long commute
- Your state or utility offers an incentive and you want it priced into the decision
- You charge at home and want to know the real per-mile cost against your old car
How to use it, step by step
- Enter both prices for the trims you would actually buy.
- Set incentives to what you have verified — or zero.
- Enter your real annual mileage; use last year's odometer readings.
- Put in your local gas price and your home electricity rate including delivery.
- Set the horizon to how long you keep cars and read the break-even year.
- Stress-test it: zero the incentive and raise the electricity price before deciding.
What the inputs mean
| Input | What it is | Typical values |
|---|---|---|
| EV price vs gas car price | Sticker-to-sticker for genuinely comparable models and trims. | Use out-the-door quotes if taxes differ |
| Incentives you qualify for | Federal, state and utility incentives — only the ones you have verified. | Rules change often; $0 is the safe default |
| Miles per year | Multiplies every saving. The higher this is, the faster the payback. | US average ≈ 13,500; commuters 20,000+ |
| MPG vs kWh/100 mi | Efficiency in each car's own units. | 32 MPG typical; EVs 26–34 kWh/100 mi |
| Maintenance saved per year | Oil, brakes, fluids and exhaust work the EV skips. | $300–$500 is the well-supported band |
Another worked example
Remove the incentive and raise the mileage: same cars, incentive $0, so the premium is the full $9,490 — but at 25,000 miles a year the fuel saving alone is $2,656 − $1,275 = $1,381, plus $350 maintenance makes $1,731 a year. Break-even arrives at about 5.5 years even with no incentive at all. Mileage is the great equalizer in EV math: the more you drive, the less the purchase premium matters.
Frequently asked questions
How long until the EV pays back its higher price?
On the defaults, about 2.0 years: the example incentive cuts the premium to $1,990 and the EV saves $1,013 a year in fuel and maintenance. Set the incentive to $0 and the premium is $9,490 — the break-even stretches to about 9.4 years. The incentive is doing heavy lifting in most EV math, which is why it is an input, not an assumption.
What does a mile cost in each car?
At the defaults: gasoline $0.106 a mile (32 MPG at $3.40) against electricity $0.051 a mile (30 kWh/100 mi at $0.17/kWh). Home charging is the whole game — at a $0.45/kWh fast charger the electric mile costs $0.135 and the fuel advantage disappears.
How much maintenance does an EV really save?
No oil changes, no spark plugs, no exhaust or transmission work, and brakes last far longer thanks to regenerative braking — partly offset by faster tire wear. Studies and owner data cluster around $300–$500 a year saved against a comparable gas car; $350 is the conservative default here.
Do high-mileage drivers benefit more from an EV?
Proportionally, yes — savings scale with miles. At 25,000 miles a year the default fuel saving alone is about $1,380 a year, pulling the break-even inside 18 months even before maintenance. Low-mileage drivers may never recover a large premium, which the break-even line will show honestly.
What about home charger installation?
A Level 2 home charger install typically runs $500–$2,000 depending on panel capacity and distance. Add it to the EV price input — it is a real cost of the switch, and at the default savings it adds roughly half a year to the break-even for every $500 spent.
⚡ What will charging at home cost?
The EV Charging Cost Estimator prices a full charge, a month of charging and the per-mile cost from your battery size and rate.
What if I mostly use public fast charging?
Enter a fast-charging electricity price ($0.40–$0.50 per kWh is common) and watch the fuel advantage shrink or vanish — at $0.45 the electric mile in the default example costs $0.135, more than the gas mile. Home or workplace charging is where EV economics live.
Does an EV battery replacement wreck the math?
Modern packs are typically warranted 8 years / 100,000 miles and outlast most ownership horizons; degradation reduces range gradually rather than failing outright. If you plan to keep the car 12+ years, treat a possible out-of-warranty pack cost as a risk factor the calculator deliberately leaves out — it is rare but not imaginary.