Car Ownership Cost
Calculate total cost of owning a car including fuel, insurance, maintenance, depreciation & taxes. See the true cost beyond the sticker price.
Car A (e.g. Petrol)
Car B (e.g. EV)
About Car Ownership Cost
Free Online Tool
Petrol vs EV Cost Comparison
Enter purchase price, fuel costs, insurance, and maintenance for a petrol car and an EV — get a year-by-year total cost of ownership comparison and the exact breakeven point where the EV becomes cheaper overall.
How to Use This Tool (30 Seconds)
- 1Enter Purchase Prices: Input the full purchase price for both vehicles — petrol and EV. For EVs, subtract any applicable federal tax credit ($7,500 for qualifying vehicles under the IRA 2022) from the sticker price before entering for a net cost comparison.
- 2Enter Annual Fuel and Energy Costs: For the petrol car, enter your annual fuel spend — miles driven divided by MPG, multiplied by gas price. For the EV, enter annual home charging cost — miles driven divided by miles-per-kWh, multiplied by your electricity rate. Most EV drivers spend 60–75% less on fuel than petrol equivalents.
- 3Enter Annual Insurance and Maintenance: Input annual insurance premiums for each vehicle. EVs typically cost 10–15% more to insure due to higher repair costs. For maintenance, petrol cars average $800–$1,200 annually; EVs average $400–$600 due to fewer moving parts and no oil changes.
- 4View the Breakeven Analysis: The tool calculates cumulative total cost of ownership for both vehicles year by year and identifies the exact year the EV's lower running costs offset its higher purchase price — the ownership breakeven point.
Hidden Costs Breakdown
Depreciation: Your car loses value every day. For new cars, this can be 20% in the first year alone.
Maintenance: Tires, oil changes, and unexpected repairs add up over time.
Insurance: Premiums vary wildly based on the vehicle type, your age, and location.
Total Cost of Ownership Formula and Breakeven Calculation
The comparison uses the Total Cost of Ownership (TCO) model — the standard framework used by fleet managers, the US Department of Energy, and Consumer Reports for vehicle cost comparisons:
// Annual running cost per vehicle
annualRunningCost = fuelCost + insuranceCost + maintenanceCost
// Cumulative TCO at year N
TCO_N = purchasePrice + (annualRunningCost × N)
// Annual running cost advantage of EV
annualSaving = runningCostPetrol − runningCostEV
// Breakeven year — when EV TCO equals Petrol TCO
pricePremium = purchasePriceEV − purchasePricePetrol
breakevenYears = pricePremium ÷ annualSaving
// Example: EV $42,000 vs Petrol $28,000
pricePremium = $14,000
annualSaving = ($2,400 fuel + $400 maintenance) = $2,800/yr
breakevenYears = $14,000 ÷ $2,800 = 5 years
The breakeven calculation is the most critical output — and the one most car buyers never compute. A $14,000 EV price premium sounds prohibitive until the annual savings of $2,800 reduce it to a 5-year payback period. After year 5, every year of EV ownership saves $2,800 net — meaning a 10-year ownership period produces $14,000 in cumulative savings beyond the initial premium, effectively making the EV $14,000 cheaper over a decade.
Petrol vs EV — Annual Cost Benchmarks
| Cost Category | Petrol Car (Avg) | EV (Avg) | EV Advantage |
|---|---|---|---|
| Fuel / Energy | $2,000–$3,500/yr | $600–$1,200/yr | 60–75% cheaper |
| Insurance | $1,500–$2,200/yr | $1,700–$2,500/yr | 10–15% more expensive |
| Maintenance | $800–$1,200/yr | $400–$600/yr | 50% cheaper |
| Purchase Price | $28,000–$40,000 | $35,000–$55,000 | $7,000–$15,000 premium |
| Federal Tax Credit | None | Up to $7,500 (IRA 2022) | Reduces EV premium significantly |
| 10-Year Running Cost | $43,000–$68,000 | $27,000–$43,000 | $16,000–$25,000 savings |
Benchmarks based on US DOE Alternative Fuels Data Center, AAA's 2024 Your Driving Costs report, and Consumer Reports annual ownership cost data. Fuel costs assume 15,000 miles/year at $3.50/gallon (petrol) and $0.15/kWh home charging rate (EV). Actual figures vary by driving pattern, location, and vehicle model.
⚡ Pro Tip
The breakeven calculation changes dramatically based on where you charge. Home charging at $0.13/kWh costs roughly $550/year for 15,000 miles. Public DC fast charging at $0.35–$0.50/kWh costs $1,500–$2,100/year for the same mileage — nearly matching petrol fuel costs. The EV cost advantage depends almost entirely on home charging access. If you cannot charge at home and rely primarily on public fast chargers, recalculate your annual energy cost using public charging rates. The breakeven point can shift from 5 years to 12+ years purely from charging location — a variable most EV cost calculators default away from.
Disclaimer: This tool provides estimates for informational purposes only. Calculations exclude depreciation, registration fees, financing costs, charging infrastructure installation, and battery replacement costs which materially affect EV total cost of ownership. Tax credit eligibility depends on income, vehicle price, and battery sourcing requirements under the IRA 2022. Consult a financial advisor before making vehicle purchase decisions.
Frequently Asked Questions
Q: How do I calculate my annual EV energy cost?
Use this formula: (annual miles ÷ EV efficiency in miles per kWh) × electricity rate per kWh. Most EVs achieve 3–4 miles per kWh. For a Tesla Model 3 at 4 miles/kWh, driving 15,000 miles requires 3,750 kWh. At $0.13/kWh home rate, annual energy cost is $487.50. At $0.40/kWh public charging rate, the same mileage costs $1,500 — a $1,012 annual difference from charging location alone.
Q: Does the EV federal tax credit apply to used vehicles?
Yes — the IRA 2022 introduced a Used EV Tax Credit of up to $4,000 for qualifying pre-owned electric vehicles purchased from a licensed dealer. Income limits apply: $75,000 for single filers, $150,000 for joint filers. The vehicle must be priced under $25,000 and at least 2 years old. Enter the post-credit price for an accurate purchase price comparison.
Q: Why is EV insurance more expensive than petrol car insurance?
EVs have higher repair costs due to specialized components, high-voltage battery systems that may require full replacement after significant accidents, and a more limited network of certified repair shops. Battery replacement costs — ranging from $10,000 to $20,000 — also elevate insurers' total-loss risk assessments. As EV repair infrastructure matures, this premium is gradually narrowing.
Q: How much does EV maintenance actually cost annually?
Consumer Reports' 2023 owner survey found EV drivers spend approximately $0.031 per mile on maintenance versus $0.061 per mile for petrol vehicles — roughly 50% less. EVs eliminate oil changes ($150–$300/year), transmission service, spark plugs, and exhaust repairs. Remaining costs are tires, brake fluid, cabin air filters, and wiper blades — items common to both vehicle types.
Q: What is the average EV battery lifespan and replacement cost?
Most EV manufacturers warranty batteries for 8 years or 100,000 miles. Real-world data from Tesla and Nissan Leaf owners shows battery degradation of 2–3% per year on average, reaching 80% capacity around 150,000–200,000 miles in well-maintained vehicles. Replacement costs range from $5,000–$20,000 depending on battery size. This cost is not included in the tool's comparison and should be factored into long-duration ownership scenarios.
Q: Does the comparison account for vehicle depreciation?
No — the tool compares running costs from purchase price forward. Depreciation significantly affects the true financial outcome. EVs depreciated faster than petrol cars in 2022–2023 due to rapid model price cuts and range anxiety. Petrol vehicles have more predictable residual values. For a comprehensive TCO including resale value, subtract projected 5 or 10-year resale value from the purchase price before entering it into the comparison.
Q: At what annual mileage does an EV definitively beat a petrol car on cost?
Higher annual mileage accelerates the EV breakeven point because fuel savings compound faster. At 20,000 miles per year, the annual fuel saving increases proportionally — reducing a 5-year breakeven at 12,000 miles to approximately 3–4 years at 20,000 miles. The US DOE's Alternative Fuels Cost Calculator shows EVs become clearly cheaper on a per-mile basis above 10,000 annual miles at average US electricity and gas prices.