What This Calculator Does
You are standing in a dealership choosing between a Tesla Model 3 and a Honda Civic. The Tesla costs $8,000 more up front. The Civic gets 33 MPG. Gas is $4.15 per gallon. Your electricity rate at home is 18.34 cents per kWh. Will the fuel savings ever pay back the price difference? That is the question this calculator answers. It compares the per-mile and annual fueling cost of an electric vehicle against a gasoline car, then projects the cumulative savings over your ownership period.
The calculator takes five inputs: your annual miles driven, EV efficiency in miles per kWh, electricity rate per kWh, gas car MPG, and gas price per gallon. It outputs the cost per mile for each vehicle, annual fuel cost for each, the annual savings from choosing the EV, the cumulative savings over your chosen ownership period, and the break-even gas MPG that would make the two vehicles cost the same per mile.
According to AAA, the national average for a gallon of regular gasoline was $4.15 as of September 7, 2026, a record high for Labor Day. The EIA reports the average residential electricity rate is 18.34 cents per kWh as of June 2026. These two numbers, combined with vehicle efficiency, determine whether an EV saves you money on fuel.
Inputs Required
- Annual Miles: How far you drive in a typical year (US average is about 12,000)
- EV Efficiency: Miles per kWh for the electric vehicle (2.5 to 4.5 is typical)
- Electricity Rate: Your cost per kWh from your utility bill
- Gas Car MPG: Fuel efficiency of the comparison gasoline vehicle
- Gas Price: Current price per gallon in your area
- Years of Ownership: How long you plan to keep the vehicle
Outputs Provided
- Annual Fuel Savings: How much the EV saves (or costs) per year compared to the gas car
- EV and Gas Annual Cost: Yearly fueling cost for each vehicle with cost per mile breakdown
- Multi-Year Savings: Cumulative fuel savings over your ownership period
- Break-Even MPG: The gas MPG that would equal the EV cost per mile at current prices
- Cost Comparison Chart: Visual comparison of annual costs
- MPG Sensitivity Chart: Shows how the comparison shifts across different gas car efficiencies
How the Calculation Works
Each vehicle has a cost per mile based on its energy consumption and fuel price. The comparison is a straightforward division.
EV Cost per Mile = Electricity Rate / EV Efficiency (mi/kWh)
Gas Cost per Mile = Gas Price / MPG
Annual Savings = (Gas Cost per Mile - EV Cost per Mile) x Annual Miles
Break-Even MPG = Gas Price / EV Cost per Mile
The EV cost per mile divides your electricity rate by how many miles the EV travels on one kWh. The gas cost per mile divides the gas price by how many miles the gas car travels on one gallon. The difference, multiplied by annual miles, gives your yearly savings. The break-even MPG tells you how efficient a gas car would need to be to match the EV on fuel cost alone.
For the Tesla Model 3 vs Honda Civic example: EV cost per mile is $0.1834 / 3.5 = $0.0524. Gas cost per mile is $4.15 / 33 = $0.1258. Annual savings at 12,000 miles: ($0.1258 - $0.0524) x 12,000 = $880.80. Over 5 years, that is $4,404 in fuel savings. The break-even MPG is $4.15 / $0.0524 = 79.2 MPG. No gas car on the market gets 79 MPG, so the EV wins on fuel cost. But the $8,000 price premium means fuel savings alone do not break even in 5 years. You would need to factor in maintenance, tax credits, and depreciation for the full picture. For detailed EV charging costs, use our EV Charging Cost Calculator.
How to Use the Calculator
- Enter your annual miles driven. Use 12,000 if you are unsure, or check your odometer from a year ago.
- Select an EV model preset or enter your EV efficiency in miles per kWh manually.
- Choose a charging type preset or enter your electricity rate from your utility bill.
- Select a gas car preset or enter the MPG of the gasoline vehicle you are comparing against.
- Enter the current gas price in your area. Check gasprices.aaa.com for your local average.
- Set your expected years of ownership to see cumulative savings.
- Review the break-even MPG to understand how efficient a gas car would need to be to match the EV.
Example Calculations
Example 1: Tesla Model 3 vs Toyota Camry
Sarah in Denver drives 15,000 miles per year. She compares a Tesla Model 3 (3.5 mi/kWh) charged at home at 14 cents per kWh against a Toyota Camry getting 32 MPG at $4.15 per gallon. EV cost per mile: $0.14 / 3.5 = $0.04. Gas cost per mile: $4.15 / 32 = $0.13. Annual EV cost: $600. Annual gas cost: $1,945.31. She saves $1,345.31 per year on fuel. Over 7 years of ownership, that is $9,417.17 in fuel savings, which would cover a significant portion of the Model 3 price premium after federal and state EV incentives.
Example 2: Ford F-150 Lightning vs F-150 V8
Mike in Texas drives 18,000 miles per year. He compares the Ford F-150 Lightning (2.2 mi/kWh) at 12 cents per kWh (Texas off-peak rate) against a gas F-150 with the 5.0L V8 getting 17 MPG at $4.15 per gallon. EV cost per mile: $0.12 / 2.2 = $0.0545. Gas cost per mile: $4.15 / 17 = $0.2441. Annual EV cost: $981.82. Annual gas cost: $4,394.12. He saves $3,412.30 per year. Over 5 years, that is $17,061.50 in fuel savings. Even with the Lightning's higher purchase price, the fuel savings are substantial for high-mileage truck owners.
Real World Scenarios
When Public Fast Charging Erases the Advantage
Lisa lives in an apartment without home charging in San Francisco. She drives 11,000 miles per year in a Hyundai Ioniq 5 (3.2 mi/kWh) and relies entirely on public DC fast charging at 48 cents per kWh. She compares against a Honda Accord getting 30 MPG at $4.15 per gallon. EV cost per mile: $0.48 / 3.2 = $0.15. Gas cost per mile: $4.15 / 30 = $0.1383. The gas car is actually cheaper per mile. Annual EV cost: $1,650. Annual gas cost: $1,521.67. The EV costs $128.33 more per year in fuel. Without access to home charging, the EV fuel savings disappear entirely. This is why charging access matters more than vehicle choice for EV economics.
The Hybrid Sweet Spot
A Toyota Prius gets 50 MPG. At $4.15 per gallon, its cost per mile is $0.083. A Tesla Model 3 at 3.5 mi/kWh and 18.34 cents per kWh costs $0.0524 per mile. The EV saves $0.0306 per mile, or $367.20 per year at 12,000 miles. Over 5 years, that is $1,836 in fuel savings. The Prius is close enough that the EV fuel advantage is modest. The buying decision should weigh the EV's higher purchase price against lower maintenance costs and potential tax credits, not just fuel savings. For gas vehicle trip costs, use our Fuel Cost Calculator.
High-Mileage Rideshare Driver
Carlos drives 45,000 miles per year for Uber in Phoenix. He compares a Chevy Bolt (3.5 mi/kWh) at 15 cents per kWh against a Toyota Corolla getting 30 MPG at $4.15 per gallon. EV cost per mile: $0.15 / 3.5 = $0.0429. Gas cost per mile: $4.15 / 30 = $0.1383. Annual EV cost: $1,928.57. Annual gas cost: $6,225.00. He saves $4,296.43 per year. Over 3 years, that is $12,889.29 in fuel savings. For high-mileage drivers, the EV fuel savings are large enough to pay back the purchase price premium quickly.
Common Mistakes to Avoid
- Comparing only fuel costs: This calculator covers fuel only. EVs also have lower maintenance costs (no oil changes, fewer brake replacements due to regenerative braking) but may have higher insurance and depreciation. A full cost of ownership analysis should include all factors.
- Using peak public charging rates for all charging: If you charge 80% at home and 20% on the road, your effective rate is a weighted average. Run the comparison with your home rate for a realistic picture, then separately estimate the public charging premium.
- Ignoring cold weather efficiency loss: EV efficiency drops 15 to 30% in cold weather. A Model 3 rated at 3.5 mi/kWh may deliver 2.5 mi/kWh in a Minnesota winter. This raises the EV cost per mile and narrows the gap with gas cars.
- Forgetting the federal EV tax credit: The Inflation Reduction Act provides up to $7,500 in federal tax credits for qualifying EVs. Many states add their own incentives. These reduce the effective purchase price and should be factored into the break-even calculation alongside fuel savings.
Limitations of This Calculator
This tool compares fueling costs only. It does not account for vehicle purchase price, depreciation, insurance, maintenance, registration fees, or tax incentives. It uses a single electricity rate and gas price, which may not reflect your actual mixed charging pattern or regional price variations. Charging losses (10 to 15% of energy from the wall is lost as heat) are not included. Cold weather efficiency reductions are not modeled. For a complete cost of ownership analysis, consult a comprehensive EV comparison tool or speak with a financial advisor. To estimate the environmental impact of your choice, use our Carbon Footprint Calculator.
Authoritative Research and Resources
- Fueleconomy.gov: Electric Vehicles - The EPA's official resource for EV efficiency ratings, MPGe, range, and side-by-side comparisons with gasoline vehicles.
- DOE Alternative Fuels Data Center - The Department of Energy provides state-by-state electricity prices, charging cost comparisons, and EV cost calculators.
- AAA Gas Prices - Daily updated national and state-level average gas prices. The national average was $4.15 per gallon as of September 7, 2026.
For related tools, try our EV Charging Cost Calculator for detailed charging cost breakdowns, our Fuel Cost Calculator for gas vehicle trip costs, or our Auto Loan Calculator to factor in monthly payments.