Gasoline vs Electric Cars: The Real 5-Year Cost Breakdown

Five years tells the truth about what your car really costs.

What “total cost” actually means

Sticker price is the loudest number, but it’s not the most important one. Over five years, the expenses that matter add up quietly. A proper five-year total cost of ownership includes:

Depreciation (purchase minus resale value)
Energy (gasoline or electricity)
Maintenance and repairs (scheduled service plus the unscheduled stuff)
Tires (often higher for heavy vehicles)
Insurance
Registration and road-use fees
Charging equipment and installation for EVs
Incentives and tax credits (federal, state, utility)
Financing costs (if you want to include interest; I’ll show scenarios before financing)

With a consistent method, you can compare any gasoline car and any EV on level ground. The rest of this piece applies the same framework to three popular use cases: small commuter, family crossover, and full-size pickup.

Core assumptions (and how to adjust them)

Assumptions shape outcomes, so I’ll keep them explicit and conservative. If your numbers differ, plug in your own.

Annual driving: 12,000 miles
Gas price: $3.75 per gallon average across five years
Home electricity: $0.15 per kWh
Public fast charging: $0.35 per kWh
Charging mix: 85% home, 15% public
Charging losses: +10% energy compared with EPA ratings
Insurance: EVs cost 10–15% more to insure than comparable gas models, on average
Registration/road fees: some states add $100–$250 per year for EVs; I’ll use modest figures
Tires: heavier EVs tend to wear faster; I’ll reflect that difference
Federal EV tax credit: $7,500 where eligible, taken into account at purchase (or point-of-sale)
Resale values: conservative for EVs, as recent price cuts and rapid model updates have pressured used values

Those numbers aren’t meant to flatter either side; they reflect a reasonable national average today. Two variables swing results more than any others: energy prices and depreciation. Keep an eye on those as we go.

Scenario A: The compact daily driver

Think Civic/Corolla class for gas, and a mainstream compact EV with about 250–300 miles of EPA range. Numbers here are illustrative, not tied to a single model.

Gas compact purchase: $30,000 out-the-door
EV compact MSRP: $38,000, eligible for $7,500 federal credit; effective cost $30,500
Home charger installed: $1,200 (one-time)
Gas compact efficiency: 32 mpg combined
EV compact efficiency: 27 kWh/100 miles EPA

Energy costs:

Gas per mile: $3.75 ÷ 32 mpg = $0.117/mile; $1,406 per year; $7,030 over five years
EV per mile: 0.27 kWh becomes 0.297 kWh with losses; blended price 0.85×$0.15 + 0.15×$0.35 = $0.18 per kWh; $0.053/mile; $642 per year; $3,210 over five years

Maintenance:

Gas: $0.09/mile → $1,080/year → $5,400 over five years
EV: $0.03/mile → $360/year → $1,800 over five years

Insurance:

Gas: $1,400/year → $7,000 over five years
EV: +10% → $1,540/year → $7,700 over five years

Fees and tires:

Gas registration: $200/year → $1,000
EV registration: $300/year (includes EV road fee) → $1,500
Gas tires: $800 across five years
EV tires: $1,000 across five years

Resale and depreciation:

Gas compact: sell at 50% of purchase → $15,000 resale → $15,000 depreciation cost
EV compact: resale value tied to original MSRP, not your tax credit. Assume 42% of $38,000 → $15,960 resale. Effective depreciation = effective cost ($30,500) – resale ($15,960) = $14,540

Five-year totals:

Gas compact: Depreciation 15,000 + Fuel 7,030 + Maintenance 5,400 + Insurance 7,000 + Registration 1,000 + Tires 800 = $36,230
EV compact: Depreciation 14,540 + Electricity 3,210 + Maintenance 1,800 + Insurance 7,700 + Registration 1,500 + Tires 1,000 + Home charger 1,200 = $30,950

Result: EV wins by about $5,280 over five years in this commuter case, largely from lower energy and maintenance, while purchase parity is achieved via the federal credit.

_{Photo by Kevin Solbrig on Unsplash}

Scenario B: The family crossover

This is the heart of the market: a two-row compact SUV on gas, versus a similarly sized electric crossover.

Gas SUV purchase: $36,000
EV SUV MSRP: $50,000, eligible for $7,500 credit; effective cost $42,500
Home charger: $1,200 (if not already installed)
Gas SUV efficiency: 28 mpg
EV SUV efficiency: 31 kWh/100 miles

Energy costs:

Gas per mile: $3.75 ÷ 28 = $0.134/mile; $1,608/year; $8,040 over five years
EV per mile: 0.31 × 1.10 = 0.341 kWh; × $0.18 = $0.061/mile; $737/year; $3,685 over five years

Maintenance:

Gas: $0.10/mile → $6,000 total
EV: $0.035/mile → $2,100 total

Insurance:

Gas: $1,600/year → $8,000
EV: +15% → $1,840/year → $9,200

Fees and tires:

Gas registration: $250/year → $1,250
EV registration: $350/year → $1,750
Gas tires: $1,000 over five years
EV tires: $1,200 over five years

Resale and depreciation:

Gas SUV: sell about 50% → $18,000 resale → $18,000 depreciation cost
EV SUV: use 40% of MSRP ($50,000) → $20,000 resale → depreciation cost = $42,500 – $20,000 = $22,500

Five-year totals:

Gas SUV: Depreciation 18,000 + Fuel 8,040 + Maintenance 6,000 + Insurance 8,000 + Registration 1,250 + Tires 1,000 = $42,290
EV SUV: Depreciation 22,500 + Electricity 3,685 + Maintenance 2,100 + Insurance 9,200 + Registration 1,750 + Tires 1,200 + Home charger 1,200 = $41,635

Result: EV narrowly undercuts the gas SUV by about $655 over five years in this setup. If your electricity is cheaper at night, or you drive more than 12,000 miles per year, the EV spread widens. If you can’t claim the tax credit or you rely heavily on public fast charging, the gas SUV can pull ahead.

Scenario C: The full-size pickup

Trucks live a tougher life. Weight, aerodynamics, and towing change the math.

Gas pickup purchase: $50,000
EV pickup MSRP: $62,000, eligible for $7,500 credit; effective cost $54,500
Home charger and circuit upgrade: $1,500
Gas pickup efficiency: 20 mpg
EV pickup efficiency: 48 kWh/100 miles (no towing), which can rise quickly under load

Energy costs:

Gas per mile: $3.75 ÷ 20 = $0.1875/mile; $2,250/year; $11,250 over five years
EV per mile: 0.48 × 1.10 = 0.528 kWh; × $0.18 = $0.095/mile; $1,140/year; $5,702 over five years

Maintenance:

Gas: $0.11/mile → $6,600
EV: $0.05/mile → $3,000

Insurance:

Gas: $1,900/year → $9,500
EV: +15% → $2,185/year → $10,925

Fees and tires:

Gas registration: $300/year → $1,500
EV registration: $450/year → $2,250
Gas tires: $1,600 over five years
EV tires: $2,000 over five years

Resale and depreciation:

Gas pickup: 55% resale typical for popular trims can happen, but to stay conservative use $27,500 resale → $22,500 depreciation cost
EV pickup: assume 38% of MSRP → $23,560 resale. Depreciation cost = $54,500 – $23,560 = $30,940

Five-year totals:

Gas pickup: Depreciation 22,500 + Fuel 11,250 + Maintenance 6,600 + Insurance 9,500 + Registration 1,500 + Tires 1,600 = $52,950
EV pickup: Depreciation 30,940 + Electricity 5,702 + Maintenance 3,000 + Insurance 10,925 + Registration 2,250 + Tires 2,000 + Home charger 1,500 = $56,317

Result: In this configuration, the EV pickup costs about $3,367 more over five years. Towing, roof racks, winter headwinds, and large off-road tires push EV energy use higher still. Lower off-peak electricity and higher gasoline prices can swing it back, but the key driver is depreciation: big, heavy EV trucks have been volatile in the used market.

The levers that move the result

Local electricity rates: Off-peak plans at $0.08–$0.12/kWh turn EVs into fuel misers. Level 2 charging at home is the single biggest advantage an EV can have.
Public fast charging usage: If your mix flips to 70–80% public at $0.40–$0.55/kWh, energy costs can double vs home rates. That erodes or eliminates the EV advantage for light-duty use.
Gasoline price swings: At $5 per gallon, every 30 mpg gas car spends about $2,000 more on fuel across five years at 12,000 miles/year. Spikes strongly favor EVs.
Annual mileage: The more you drive, the more an EV’s low per-mile energy and maintenance stack up. At 15,000–20,000 miles/year, the EV’s fuel and service savings dominate.
Eligibility for incentives: The $7,500 federal credit (or lack of it), plus state rebates and sales tax exemptions, can add or remove thousands from the equation at purchase.
Resale volatility: Rapid EV price cuts and new models can compress used values. On the flip side, emission-zone rules and rising fuel costs can buoy EV resale in some markets.
Weather and terrain: Cold climates raise EV energy use by 15–30% in winter. With gas cars, short trips in the cold also hurt mpg. Hilly terrain increases consumption for both.

Depreciation: the quiet heavyweight

Depreciation is usually the largest line on the five-year ledger. Gasoline cars are known quantities; used values move with age, mileage, brand, and demand. EVs add extra variables:

Incentive stacking: A new-car tax credit can deflate the effective transaction price, which sets the bar for used values later on.
Battery confidence: Shoppers pay for peace of mind. Models with long warranties, strong reliability data, and liquid cooling tend to hold value better.
Software and trim churn: Frequent hardware refreshes and dramatic price cuts can push used prices down faster than mileage alone would predict.

None of that means EVs are a depreciation trap, but it does mean you should look up model-specific used values and warranty terms before you buy. Also note that buying used can flip the script: a two- to three-year-old EV that already took its big depreciation hit can be a bargain to run.

Maintenance and repairs: what actually breaks

The mechanical difference is stark. A modern gas car has hundreds of moving parts in the engine and transmission. An EV’s powertrain is closer to an appliance: motor, inverter, reduction gear. Over five years:

Gasoline cars: oil and filters, spark plugs, belts, transmission service, coolant, brake fluid, exhaust components, emissions controls, and, eventually, repairs to complex subsystems.
EVs: brake pads last longer thanks to regenerative braking; no oil changes; coolant service intervals vary; cabin filters and brake fluid still need attention. Tires can be a frequent expense because of weight and instant torque.

Shops increasingly know how to work on EVs, but some body repairs are still pricier due to specialized procedures. That shows up in insurance.

Insurance: why the delta exists

Insurers price risk and cost to repair. EVs often cost more to insure because:

Battery packs are expensive components, and any structural damage near the pack requires careful assessment.
Some parts and calibration procedures are new to many body shops.
Torque and weight can translate into higher claim severities, at least in early fleets.

Counterweights exist. Telematics discounts, strong crash-avoidance tech, and maturing repair ecosystems are already smoothing premiums. Always get quotes for the specific models you’re cross-shopping; the averages hide outliers.

Charging logistics and the value of your time

For people with home parking and a wall outlet, the EV experience is simple: you leave every morning with a “full tank.” The time cost flips compared with gas cars:

Daily life: One two-minute plug-in at home replaces weekly 10–15 minutes at a gas pump.
Road trips: Fast charging adds 20–40 minutes per stop, depending on station power and state of charge. Those minutes matter if you do many long highway drives.

If your reality is street parking or a garage that won’t allow charging, the EV calculation changes materially. Relying on public charging can work, but you should assign a dollar value to those hours.

Financing and interest rates

I left interest out of the headline scenarios to focus on the machines themselves. If you finance, consider:

Higher purchase price amplifies interest paid. If an EV lists for more than a comparable gas car and you can’t claim incentives at the point of sale, your monthly payment may be higher even if TCO is lower.
Leasing can sidestep tax-credit eligibility issues and sometimes passes the federal credit through as a capitalized cost reduction. Watch residual assumptions; they signal what the bank thinks the car will be worth.

Practical ways to lower your five-year cost

Install a Level 2 home charger on a time-of-use plan. Off-peak charging can cut your electricity cost by one-third to one-half.
Use workplace charging if it’s free or discounted. Even a few days per week adds up.
Right-size the battery. Bigger packs cost more and weigh more. If you rarely road trip, a mid-size battery can be the sweet spot.
Buy slightly used. Two-year-old EVs often sell at a deep discount to new, yet still carry most of their battery warranty.
Keep tires rotated and properly inflated. Rolling resistance matters.
For gas cars, maintain fuel system health and stick to service intervals. Small efficiency gains compound over five years.

When gas wins, when EV wins

EV wins decisively when: you drive 15,000+ miles per year, charge mostly at home on off-peak rates, qualify for incentives, and plan to keep the car for at least five years.
Gas wins or is close when: you drive under 8,000 miles per year, lack reliable home charging, or buy in a segment where EV depreciation is still unsettled (large trucks, niche luxury trims).
It’s a toss-up when: you’re in the mainstream crossover market with average mileage and average rates. In that middle ground, features, comfort, and charging convenience often tip the decision more than dollars alone.

A note on battery health and winter

Real-world EV range sags in cold weather due to cabin heating and battery chemistry. Plan for a 15–30% winter penalty in cold climates. That affects convenience more than cost, because electricity remains cheap per mile relative to gasoline. Battery degradation over five years is usually in the 8–15% range for well-managed packs, often covered by warranty if it’s severe. It does, however, influence resale value, which loops back into depreciation.

Putting it together

Across mainstream segments, the five-year picture is no longer a mystery. For small cars, an EV tends to be meaningfully cheaper to own once you factor in energy and maintenance, provided you can claim incentives and charge at home. In the compact SUV tier, the EV edge is slimmer but still present under typical assumptions. In full-size pickups, today’s EVs need either better resale stability, cheaper batteries, or consistently higher gasoline prices to outrun their gas counterparts on cost alone.

The rest comes down to your life. If you have access to reliable home charging and you rack up miles, the quiet arithmetic of electricity and lower upkeep is hard to ignore. If you spend weekends towing a boat into headwinds, or your only “garage” is a street curb, the calculus changes. Either way, using a simple five-year ledger—depreciation, energy, maintenance, insurance, fees, tires, and incentives—turns a loud debate into a clear decision.

External Links

How EVs and gasoline cars compare on total cost J.D. Power reveals EVs cost less to own over 5 years … EVs prove cheaper to own than gas cars over five years … Electric vs Petrol Cars: Complete Cost Comparison (2025) Electric vs. Gas Cars: Is It Cheaper to Drive an EV?