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How Much Cheaper Is an EV Than a Gas Car Over Time?

How much cheaper is an EV than a gas car over time? Compare charging, fuel, maintenance and ownership costs with real-world examples and simple calculations.

If you're considering an electric vehicle, one of the biggest questions is simple: how much cheaper is an EV than a gas car over time?

The answer can be surprisingly large — but it depends on where you charge, how much you drive, electricity prices, fuel prices and the vehicles you're comparing.

For some drivers, an EV can save hundreds or even thousands of dollars a year in energy and maintenance costs. For others, especially people who rely heavily on expensive public charging or drive very little, the savings may be much smaller.

That is why I wouldn't compare an EV and a gas car by looking at the price of a full battery versus a full tank.

The better question is:

How much does each car cost to travel the same distance, and what happens to those costs over several years?

How Much Cheaper Is an EV Than a Gas Car?

For many drivers, the biggest savings come from two areas: energy and maintenance.

According to the International Energy Agency's Global EV Outlook 2026, a typical battery-electric vehicle uses around 70% less energy per kilometre than a gasoline vehicle of similar size.

The IEA also found that, since 2020, home-charged EVs have generally provided annual running-cost savings of roughly 0 to ,000 compared with gasoline cars across major EV markets.

That doesn't mean every EV owner saves ,000 every year.

It means the potential is real — and your personal result depends on your electricity and fuel prices.

The First Thing to Compare: Cost Per 100 km

Forget the size of the battery and fuel tank for a moment.

Let's compare the cost of driving 100 km.

Imagine an EV that uses 18 kWh per 100 km.

Because charging isn't perfectly efficient, let's assume the vehicle needs approximately 20 kWh from the grid to deliver that driving energy.

If electricity costs

20 kWh ×

Now compare that with a gas car using 7.5 litres per 100 km.

If gasoline costs .70 per litre:

7.5 litres × .70 = .75 per 100 km

In this example, the EV costs approximately .75 less for every 100 km.

That difference doesn't look enormous on one short trip.

But multiply it by thousands of kilometres and the number starts getting interesting.

What Happens After 10,000 km?

Using the same example:

The EV costs approximately per 100 km.

At 10,000 km:

10,000 ÷ 100 × = 0

The gas car costs:

10,000 ÷ 100 × .75 = ,275

Energy savings:

,275 − 0 = 5

So the EV saves approximately 5 per 10,000 km under these assumptions.

And that's before maintenance is considered.

What Happens After 20,000 km?

Now imagine a driver covering 20,000 km per year.

The EV would use approximately 4,000 kWh from the grid under our example assumptions.

At

0 per year

The gas car would use approximately 1,500 litres of fuel.

At .70 per litre:

,550 per year

That creates an annual energy-cost difference of approximately:

,950

Again, this isn't a universal EV savings number.

Change the electricity rate to

That's exactly why using your own electricity price matters.

Try your numbers with the EVChargeLab EV Charging Cost Calculator.

What Does That Look Like Over Five Years?

Let's keep the same example and assume:

• 20,000 km driven per year
• EV electricity cost: 0 per year
• Gas car fuel cost: ,550 per year

Over five years:

EV electricity: ,000

Gasoline: ,750

The difference is:

,750 in energy costs alone.

That's before maintenance, repairs, tyres, insurance, depreciation or financing.

And that's the part that often gets missed when someone says an EV is "more expensive."

The purchase price is only one part of the ownership equation.

EV Charging Is Not Always Cheap

There is an important catch.

The calculation above assumes relatively inexpensive electricity.

That's usually easiest to achieve with home charging.

The IEA's 2026 analysis found that public charging can be significantly more expensive than residential electricity. Public slow charging can be up to 150% more expensive than residential tariffs, while public fast charging can be up to 240% higher.

In other words, an EV charged at home and an EV charged almost exclusively at expensive DC fast chargers can have very different running costs.

This is one of the most important things to understand before buying an EV.

The car doesn't determine your charging cost by itself. Your charging location does.

Our guide Home vs Public EV Charging: Which Is Actually Cheaper? explains this difference in more detail.

Why EVs Use Less Energy

The reason EVs can be so efficient isn't simply that electricity happens to be cheaper than gasoline.

The electric drivetrain itself is much more efficient.

A large portion of the energy stored in gasoline is lost as heat through the engine and exhaust system.

An electric motor can convert a much larger share of its electrical energy into movement.

The IEA estimates that a typical BEV uses around 70% less energy per kilometre than a comparable gasoline ICE vehicle.

That efficiency difference is one of the foundations of the EV running-cost advantage.

Maintenance Is the Other Big Saving

Fuel isn't the only area where an EV can cost less.

Electric vehicles don't have conventional engines, oil filters, spark plugs, exhaust systems or many of the other components found in gasoline cars.

That doesn't make an EV maintenance-free.

Tyres still wear out. Brake components still need attention. Suspension parts still age. Cabin filters still need replacement, and some EVs have coolant and other systems that require servicing.

But there are fewer traditional powertrain components to maintain.

The U.S. Department of Energy explains that all-electric vehicles generally require less maintenance because they have fewer moving parts and fewer fluids than conventional vehicles. :contentReference[oaicite:1]{index=1}

How Much Can EV Maintenance Save?

Consumer Reports' ownership-cost research found that EV and plug-in hybrid owners historically spent about half as much on maintenance and repairs as owners of comparable gasoline vehicles.

The analysis estimated lifetime maintenance and repair savings of approximately ,600 compared with gasoline vehicles.

However, there is an important detail worth understanding.

That research is based on historical vehicle and ownership data. It should not be treated as a guarantee that every modern EV will save exactly ,600.

Newer EVs contain increasingly sophisticated electronics and software, and some repairs can be expensive.

Consumer Reports' more recent reliability research has also highlighted that some EV models can experience more problems than conventional cars.

So I would treat lower routine maintenance as a genuine advantage, but I would still research the reliability of the specific EV model you're considering.

See the Consumer Reports EV maintenance analysis for its historical cost data.

Case Study: The High-Mileage Driver

Let's look at someone who drives 25,000 km every year.

Suppose the gas car uses 7.5 litres per 100 km and gasoline costs .70 per litre.

Annual fuel consumption:

25,000 × 7.5 ÷ 100 = 1,875 litres

Annual gasoline cost:

1,875 × .70 = ,187.50

Now use the EV example from earlier, requiring about 20 kWh from the grid per 100 km.

Annual electricity:

25,000 × 20 ÷ 100 = 5,000 kWh

At

0 per year

Energy-cost difference:

,187.50 − 0 = ,437.50 per year

Over five years, that's approximately:

,187.50 in energy savings.

For a high-mileage driver, this is where EV economics can become particularly compelling.

Case Study: The Low-Mileage Driver

Now let's flip the situation.

Imagine someone who drives only 8,000 km per year.

The same vehicles might produce approximately 0 of annual energy savings under our example assumptions.

That's still useful.

But over five years, the energy savings would be roughly ,900.

If the EV costs ,000 more than the comparable gas car, fuel savings alone aren't going to make up the difference quickly.

This is why I don't agree with the blanket statement that "an EV always saves money."

Annual mileage matters enormously.

Real-World Owner Experience: Where the Savings Feel Different

One of the most interesting things about EV ownership is that the savings don't always feel like traditional fuel savings.

A gas-car driver usually notices the cost every time they visit a fuel station.

An EV owner with home charging may simply plug the car in at night.

There's no separate trip to a petrol station, and the electricity cost can become part of the household energy bill.

For someone driving every day, that convenience can be just as valuable as the financial saving.

On the other hand, drivers who depend heavily on public charging can have a completely different experience.

A charger that looks convenient on an app may have a different price structure, idle fees or a higher per-kWh rate than expected.

That's why I would always check the actual chargers around your home and regular routes before buying an EV.

The Biggest Variable: Your Electricity Price

Consider two EV owners driving the exact same car.

Driver A pays

Driver B pays

Their vehicles are identical.

Their driving distance is identical.

Their energy costs are not.

For the same 20 kWh of grid electricity:

Driver A: .40

Driver B: .00

That's why articles claiming "an EV costs X cents per mile" should always be treated carefully.

Electricity prices vary enormously by location and charging method.

What About Gas Prices?

Gasoline prices also move.

If fuel prices rise, the EV's running-cost advantage generally becomes larger.

If gasoline becomes unusually cheap, the advantage shrinks.

The IEA's 2026 analysis shows exactly this effect across different markets and energy-price periods. In the United States, for example, home-charged BEVs offered around 0 per year in running-cost savings compared with gasoline vehicles in 2025 based on the IEA's assumptions.

Energy prices can therefore move the break-even point by years.

That is another reason to calculate your own situation rather than relying on a single headline number.

What About Battery Replacement?

This is where many EV cost comparisons become unnecessarily frightening.

Yes, EV batteries degrade.

But degradation isn't the same thing as imminent battery failure.

Modern EV batteries are designed to operate for many years, and real-world battery-health data has become increasingly reassuring.

Geotab's 2026 analysis of more than 22,700 EVs found average annual battery degradation of around 2.3% across the vehicles studied.

The study also found that usage patterns, high-power charging and climate can affect degradation rates.

That doesn't mean you should expect your battery to lose exactly 2.3% every year.

It means battery ageing is measurable and varies depending on the vehicle and how it is used.

You can read more about the subject in our guide EV Battery Degradation: How Much Range Do EVs Lose Each Year?.

Does Fast Charging Destroy the Savings?

No.

But it can reduce them.

Fast charging is normally more expensive than home charging.

If you use DC fast charging occasionally on road trips, it probably won't dominate your annual energy bill.

If you use it several times every week because you cannot charge at home, your cost per kilometre can look very different.

There's also a battery-health consideration. Geotab's 2026 study found higher average degradation among vehicles heavily reliant on high-power DC charging.

That doesn't mean fast charging should be avoided.

It means your charging pattern is worth considering as part of the long-term ownership equation.

Our article Does Fast Charging Damage an EV Battery? covers the battery side of this question.

Purchase Price Can Change Everything

Here's the part that gets left out of many EV savings articles.

A car can be cheaper to run and still be more expensive to own.

Imagine:

• Gas car purchase price: ,000
• EV purchase price: ,000
• EV annual energy savings: ,500

It would take more than five years just to recover the ,000 purchase-price difference through energy savings.

And that's before considering financing and depreciation.

On the other hand, if the EV is only ,000 more expensive, the payback period could be much shorter.

This is why the right comparison is always between similar vehicles.

Don't Compare a Cheap Gas Car With an Expensive EV

If you're comparing a ,000 economy gasoline car with a ,000 luxury EV, you're not really measuring the cost of electric versus gasoline power.

You're measuring two completely different vehicles.

A much better comparison is:

• Similar size
• Similar equipment
• Similar performance
• Similar range requirements
• Similar expected ownership period

Then calculate the operating costs.

What About Depreciation?

Depreciation can easily outweigh several years of fuel savings.

This is particularly important for buyers who replace cars frequently.

If you buy a vehicle and sell it after two years, depreciation may matter much more than a decade of theoretical fuel savings.

Someone who keeps the vehicle for eight or ten years has a completely different calculation.

That's why ownership period should always be part of an EV-versus-gas comparison.

EV vs Gas: A Simple Five-Year Example

Let's create a simplified example.

Assume both vehicles travel 20,000 km per year.

Gas car

• Fuel economy: 7.5 L/100 km
• Fuel price: .70/L
• Annual fuel: ,550
• Five-year fuel: ,750

EV

• Grid energy requirement: 20 kWh/100 km
• Electricity price:
  The free EV Charging Cost Calculator

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  Use the EV charging cost calculator for home AC, public AC and DC fast charging, browse the EV database for vehicle specifications, or read EV charging guides and battery information on the blog.

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  .15/kWh
• Annual electricity: 0
• Five-year electricity: ,000

Energy difference

,750 − ,000 = ,750

So the EV saves approximately ,750 in energy over five years in this particular example.

Now add potential maintenance savings and the result could become even more favourable.

But if the EV costs ,000 more to buy, the picture is no longer obvious.

That's the key lesson.

The EV Savings Formula Is Actually Simple

You don't need complicated mathematics.

For an EV:

EV cost per 100 km = electricity used from the grid × electricity price

For a gas car:

Gas cost per 100 km = fuel consumption × fuel price

Then:

Annual energy savings = (gas cost per 100 km − EV cost per 100 km) × annual kilometres ÷ 100

That gives you a much more useful answer than comparing fuel tanks and batteries.

What If Electricity Prices Rise?

This is worth considering because electricity isn't free.

If electricity becomes more expensive, EV savings decrease.

But EV efficiency provides a useful buffer.

For example, if electricity doubled from

20 kWh ×

The EV would still be cheaper than the .75 gas-car example.

It would simply have a smaller advantage.

That's one reason EV efficiency matters just as much as electricity price.

What If Gas Prices Fall?

The same principle works in reverse.

If gasoline becomes significantly cheaper, the gas car becomes more competitive.

But because EVs generally use much less energy to travel the same distance, a sufficiently large efficiency advantage can remain even when fuel prices fall.

The IEA's analysis has repeatedly shown that home charging tends to preserve an EV running-cost advantage across major markets under a range of energy-price conditions.

Who Saves the Most With an EV?

In my view, the strongest financial EV candidate looks something like this:

• Drives 15,000–30,000+ km per year
• Can charge at home
• Has reasonably priced electricity
• Would otherwise buy a similar gasoline vehicle
• Plans to keep the car for several years
• Doesn't depend on expensive public fast charging

For that driver, the combination of energy and maintenance savings can become substantial.

Who Might Save Less?

I'd be more cautious if you:

• Drive only a few thousand kilometres per year
• Have no convenient charging location
• Pay high public charging rates
• Replace vehicles every two or three years
• Are comparing a very expensive EV with a cheap used gas car
• Already own a reliable, paid-off gasoline vehicle

In those situations, an EV can still be a great vehicle.

It just may not be the cheapest financial choice.

What About Someone Who Already Owns a Gas Car?

This is an important distinction.

If you already own a reliable gas car with no monthly payment, replacing it with a new EV purely to save on fuel may not make financial sense.

You have to account for the cost of buying the replacement vehicle.

But if you're already shopping for your next car, the comparison changes.

Now you're deciding between two vehicles you're going to purchase anyway.

That's when the lower running costs of an EV become much more meaningful.

My Take: Don't Ask "Are EVs Cheaper?"

Ask a better question.

"Would this particular EV be cheaper for my particular driving pattern?"

That's the question that actually matters.

An EV doing 20,000 km a year on cheap home electricity can have dramatically lower energy costs than a gas car.

The same EV doing 5,000 km a year while relying on expensive public charging might not.

The technology hasn't changed.

The owner's circumstances have.

Calculate Your Own EV vs Gas Savings

Before buying anything, enter your vehicle's efficiency, electricity price and driving distance into the EVChargeLab EV Charging Cost Calculator.

Then compare that number with what you're currently spending on gasoline.

If you're not sure what charging losses do to the calculation, our guide How Much Does It Cost to Charge an Electric Car? explains the calculation in more detail.

The Bottom Line

So, how much cheaper is an EV than a gas car over time?

There isn't one universal number.

For a driver with cheap home charging and high annual mileage, the difference can reach thousands of dollars over several years.

For a low-mileage driver who relies on expensive public charging, the difference can be much smaller.

And once you include purchase price, depreciation, financing, insurance, maintenance and repairs, the overall ownership calculation becomes more complicated.

But the basic economics are clear:

• EVs are generally much more energy efficient.
• Home charging is usually the cheapest way to operate an EV.
• Public fast charging can significantly reduce the savings.
• EVs generally need less routine powertrain maintenance.
• Higher annual mileage increases the value of lower running costs.
• A higher purchase price can delay the payback period.
• Keeping the vehicle longer gives operating savings more time to accumulate.

So don't ask whether an EV is automatically cheaper than a gas car.

Calculate the difference using your own kilometres, electricity rate, fuel price and vehicle efficiency.

That's where the real answer starts.

Use the EVChargeLab EV Charging Cost Calculator to see what your numbers look like.