EV Savings Calculator

The cost of driving an electric vehicle versus a gas-powered car differs significantly across fuel, maintenance, insurance, and depreciation. While EVs typically have a higher purchase price, they cost substantially less to operate over time. The average American drives about 13,500 miles per year, making the per-mile fuel cost difference add up quickly.

At the national average electricity rate of $0.1663/kWh and the average EV efficiency of 3.5 miles per kWh, driving an EV costs approximately $0.048 per mile in fuel. Compare that to a 25 MPG gas car at $3.50 per gallon, which costs $0.140 per mile. That is a 66% reduction in fuel costs, saving the average driver over $1,110 per year on fuel alone.

When you pair an EV with a home solar system, your fuel cost can drop to near zero. Use our EV Charging Cost Calculator to determine the exact cost to charge your specific vehicle at home, and check our Electricity Cost Calculator to understand how charging affects your overall electricity bill.

Understanding cost per mile is the most direct way to compare EV and gas vehicle operating costs. The calculation depends on just four variables: gas price, vehicle MPG, electricity rate, and EV efficiency.

Where you charge your EV makes a significant difference in cost. Home charging using a Level 2 charger (240V) is by far the cheapest option. Public DC fast charging is convenient for road trips but costs 2-4x more per kWh.

Fuel savings are only part of the EV cost advantage. Electric vehicles have far fewer moving parts than gas cars, which translates to significantly lower maintenance costs over the life of the vehicle.

The best EVs for maximizing savings combine high efficiency (more miles per kWh), reasonable purchase price, and federal tax credit eligibility. Here are the top value picks for 2026:

The Clean Vehicle Credit (IRC Section 30D) provides up to $7,500 in federal tax credits for new qualifying electric vehicles. To qualify for the full credit, the vehicle must meet both critical mineral sourcing requirements ($3,750) and battery component requirements ($3,750), as specified by the Inflation Reduction Act.

Key eligibility requirements for the full $7,500 credit include: the vehicle must be assembled in North America, the manufacturer's suggested retail price cannot exceed $55,000 for sedans or $80,000 for SUVs/trucks/vans, and your adjusted gross income must be under $150,000 (single) or $300,000 (joint filers).

Starting in 2024, buyers can transfer the credit to the dealer at the point of sale, effectively reducing the purchase price immediately rather than waiting until tax filing. Used EVs also qualify for a separate $4,000 credit (30% of the sale price, whichever is less) for vehicles priced under $25,000.

Total cost of ownership (TCO) includes the purchase price, fuel, maintenance, insurance, and depreciation. When all factors are considered, EVs are increasingly competitive with or cheaper than comparable gas cars, especially over longer ownership periods.