EV vs Gas Car: Total Cost of Ownership Explained
When comparing electric vehicles to gas cars, the sticker price tells only part of the story. Total Cost of Ownership (TCO) encompasses every dollar you spend on a vehicle over its life: purchase price, fuel or electricity, routine maintenance, insurance, and eventually depreciation and resale value. For most buyers making a 5–10 year ownership decision, TCO is the most financially rational comparison metric.
EVs typically cost 15–30% more upfront than equivalent gas vehicles, but recoup this premium through lower running costs. The key variables that determine whether an EV breaks even within your ownership period are: how many kilometres or miles you drive annually, the difference between your local electricity rate and petrol/gas price, and the maintenance cost differential.
The Four Cost Components
Purchase Price
The most visible cost, but often not the most significant over a 10-year ownership period for high-mileage drivers. In Australia in 2025, popular EVs like the BYD Atto 3 and MG4 have reached price parity with mid-range petrol vehicles. In the US, the removal or reduction of federal EV tax credits post-2025 increases the effective purchase price premium. This calculator does not include tax credits — subtract any applicable credits from the EV purchase price manually.
Fuel vs Electricity Cost
This is where EVs typically recoup their premium. An EV consuming 18 kWh/100km at $0.25/kWh costs $4.50 per 100 km. A petrol vehicle at 9 L/100km and $1.90/litre costs $17.10 per 100 km — nearly four times more. Over 20,000 km annually, that is $2,520/year in fuel savings. The gap narrows when EV owners rely heavily on public DC fast chargers (which cost $0.40–$0.60/kWh) rather than home charging.
Maintenance
EVs eliminate most scheduled maintenance: no oil and filter changes (saving $150–$300/year), no spark plug replacement, no timing belt service, no transmission fluid changes, and no exhaust system repairs. EV-specific maintenance includes tyre rotation (at higher frequency due to heavier weight and instant torque), cabin air filter replacement, and brake fluid checks. Regenerative braking significantly reduces brake pad wear — many EV owners report brake pads lasting 100,000+ km. Consumer Reports consistently finds EV owners spend 40–50% less on maintenance than gas car owners.
Insurance
EVs typically cost 15–25% more to insure than equivalent gas vehicles due to higher repair costs (specialised technicians, expensive battery packs) and higher vehicle values. This cost disadvantage narrows as EV repair infrastructure expands. Use your actual insurance quotes in this calculator for the most accurate comparison — the pre-filled estimates are averages only.
When Does an EV Break Even?
Break-even typically occurs when cumulative EV savings on fuel and maintenance equal the upfront purchase price premium. For a $15,000 premium and $3,000/year in combined savings, break-even occurs at year 5. For a $10,000 premium and $4,000/year savings (high-mileage urban driver with cheap home charging), break-even arrives at year 2.5. For lower-mileage drivers in areas with expensive electricity, break-even may never occur within a typical ownership period.
The calculator shows break-even year automatically — use this to determine whether your driving profile makes an EV financially attractive within your intended ownership period.