EV Vs Gas Total Cost Of Ownership Calculator

What Does “Total Cost of Ownership” Mean?

Total cost of ownership (TCO) is the full amount you pay to own and use a vehicle over a set period. It goes far beyond the purchase price.

A proper EV vs gas TCO comparison includes:

• Purchase price and incentives
• Loan interest
• Fuel or electricity costs
• Maintenance and insurance
• Registration fees
• Charger installation (for EVs)
• Depreciation and resale value

When you add these together, the cheaper car upfront is not always the cheaper car long term.

Why a Calculator Matters

Many people assume EVs cost more because their prices are higher. Others assume EVs are always cheaper because electricity costs less than gas.

Both assumptions can be wrong.

A calculator removes guesswork by letting you plug in your own driving habits, local energy prices, and ownership timeline. The result is a personalized comparison instead of a generic claim.

How This EV vs Gas TCO Calculator Works

The calculator you shared is designed to give a full, balanced comparison. It breaks costs into clear sections and shows the difference visually.

Below is a plain English explanation of each part.

1. Vehicle Price and Financing

Gas Car Price and EV Price

These are the upfront prices before financing and incentives.

EV Rebates

EV tax credits and rebates reduce the effective purchase price. This calculator subtracts them before long-term costs are calculated.

Loan Rate

The interest rate affects both vehicles. Over several years, interest alone can add thousands of dollars to ownership cost.

Why this matters:
A higher EV price with a strong rebate and similar loan terms can end up closer to a gas car than expected.

2. Ownership Usage Assumptions

Annual Miles

How much you drive per year has a major impact on fuel and electricity costs.

High mileage favors EVs. Low mileage often favors gas cars.

Ownership Term

The calculator allows 3, 5, 8, or 10 years.

Short ownership periods highlight purchase price.
Long ownership periods highlight running costs and depreciation.

3. Operating Costs: Fuel vs Electricity

Gas Price and MPG

Fuel cost depends on:

• Price per gallon
• Fuel efficiency (MPG)
• Miles driven
• Years owned

Electricity Cost and EV Efficiency

EV energy cost depends on:

• Price per kWh
• Miles per kWh
• Miles driven
• Years owned

Even small changes in electricity price can affect the outcome, especially over longer terms.

4. EV Charger Installation

Home charging is one of the biggest hidden EV costs.

The calculator includes:

• One-time charger and installation cost
• Added directly to EV ownership cost

This prevents underestimating EV expenses.

5. Maintenance, Insurance, and Fees

Maintenance and Insurance

EVs typically have lower maintenance but insurance can vary. This calculator allows you to set both values manually.

EV Registration Surcharge

Some states charge EV owners extra to replace gas tax revenue. This annual cost is included to keep results realistic.

6. Depreciation and Resale Value

Depreciation is often ignored, but it is one of the largest costs of ownership.

The calculator estimates resale value using:

• Gas car depreciation rate
• EV depreciation rate

The resale value is subtracted from total cost, reflecting money you get back when you sell the car.

7. Final Results Explained

After calculation, the tool shows:

Net Lifetime Cost Difference

This tells you which vehicle costs less overall and by how much.

Example:

• “EV saves $4,200”
• “Gas saves $1,300”

Visual Cost Bars

A bar chart shows total gas vs EV cost at a glance.

Detailed Cost Breakdown

You also see:

• Total ownership cost for each vehicle
• Fuel vs electricity cost difference
• Cost per mile
• Estimated resale values
• Total interest paid

Break-Even Verdict

The calculator summarizes the result in plain language, such as:

• Clear EV winner
• Slight EV advantage
• Gas car is cheaper

This helps non-technical users understand the takeaway quickly.

How to Use the Results Wisely

Do not treat the calculator as a prediction. Treat it as a decision tool.

Good practices:

• Test different annual mileage values
• Adjust electricity and gas prices to local averages
• Compare short-term vs long-term ownership
• Run scenarios with and without EV rebates

The goal is not a perfect number. The goal is a realistic range.

Who Benefits Most from an EV According to TCO

EVs usually make more financial sense if you:

• Drive a lot each year
• Keep vehicles for 5 years or longer
• Have access to home charging
• Live in areas with moderate electricity prices
• Qualify for EV incentives

Gas cars often remain cheaper if you:

• Drive very little
• Plan to sell within 3 years
• Face high electricity rates
• Do not qualify for EV rebates