EV vs Petrol TCO Calculator
Compare 5-year total cost of ownership for an electric vehicle vs an internal-combustion equivalent: depreciation, energy, insurance, servicing, and breakeven year.
Last reviewed:
Total cost of ownership (TCO) is the only honest way to compare an EV against a petrol or diesel car. Sticker price tells you about month-one cash flow; TCO tells you what the car actually costs over the time you keep it. The verdict often flips: EVs are typically more expensive to buy and noticeably cheaper to run, and the breakeven year tells you when the lower running costs catch up to the higher purchase price.
Examples
Mid-size EV vs ICE, 5 years, 12k miles/year
Higher-mileage driver flips the math
High electricity, low petrol → ICE wins
Frequently Asked Questions
How does this account for tax credits or EV grants?
Is depreciation really 40% for an EV?
What about home charger installation?
Why does the calculator under-estimate EV operating savings?
What should I use for ICE MPG if I drive a UK car?
References
- US DOE — Vehicle Cost Calculator methodology — https://afdc.energy.gov/calc/
- UK gov.uk — Cost of charging an electric car — https://www.gov.uk/guidance/electric-vehicle-charging
Quick Tips
Double check your inputs. Ensure units match (e.g., inches vs cm).
Total cost of ownership (TCO) is the only honest way to compare an EV against a petrol or diesel car. Sticker price tells you about month-one cash flow; TCO tells you what the car actually costs over the time you keep it. The verdict often flips: EVs are typically more expensive to buy and noticeably cheaper to run, and the breakeven year tells you when the lower running costs catch up to the higher purchase price.
How to Use This Calculator
Set your ownership horizon (5 years is typical), annual miles, and the EV and ICE inputs side by side: purchase price, expected depreciation %, energy efficiency, energy price, and annual insurance and servicing. The calculator returns total cost over the horizon for each car, the cheaper option, the per-mile cost, and the breakeven year (how long you need to keep the EV for its operating savings to recover the price premium).
Understanding the Formula
TCO = depreciation + energy cost + insurance + servicing. Depreciation = price × depreciation%. EV energy = miles ÷ mi/kWh × $/kWh. ICE fuel = miles ÷ MPG × $/gal. Breakeven year = (EV price − ICE price) ÷ (annual ICE operating cost − annual EV operating cost).
Examples
Mid-size EV vs ICE, 5 years, 12k miles/year
$45k EV (40% dep, 3.5 mi/kWh, $0.16/kWh, $1,500 insurance, $300 service) vs $35k ICE (35% dep, 30 MPG, $3.60/gal, $1,300 insurance, $800 service). Total miles 60k. EV: $18k dep + $2.7k electricity + $7.5k insurance + $1.5k service = $29.7k. ICE: $12.25k dep + $7.2k fuel + $6.5k insurance + $4k service = $29.95k. ~$250 in EV's favor — borderline. Breakeven ~4 years.
Higher-mileage driver flips the math
Same cars but 20k miles/year. ICE fuel jumps to $12k, total $34.7k. EV energy goes to $4.6k, total $31.6k. EV saves $3.1k and breaks even sooner. Heavy-mileage drivers see EV economics earliest.
High electricity, low petrol → ICE wins
EV at $0.45/kWh (UK peak rate) vs $3.00/gal petrol, 12k miles. EV energy $7.7k. Combined with $10k EV price premium and similar insurance/service, ICE wins by ~$5k. Why home solar / off-peak charging matters for EV economics.
Frequently Asked Questions
How does this account for tax credits or EV grants?
It does not directly. To incorporate, reduce the EV price input by the credit amount. US Clean Vehicle Credit can be up to $7,500 (income-tested); UK plug-in grant is currently £0 for cars (ended 2022); AU FBT exemption for EVs under $89,332 is significant if salary-packaged.
Is depreciation really 40% for an EV?
Historically EV depreciation has been higher than ICE (40-50% over 5 years vs 30-35% ICE) due to rapid technology improvements making earlier models feel outdated. As the market matures (post-2024), EV depreciation is converging on ICE rates. Use 35-40% for a 2026+ EV; 45-50% for older inventory.
What about home charger installation?
A home Level-2 charger installed in the US runs $1,000-2,500 (hardware + electrician). UK install is £800-1,500. Add this as a one-time cost to the EV price input. Public-charging-only owners can skip the cost but pay a higher per-kWh rate (US public DC fast charge ~$0.45/kWh vs $0.16 home).
Why does the calculator under-estimate EV operating savings?
Because it does not model time-of-use rates. Many utilities offer EV-specific overnight rates of $0.06-0.10/kWh in the US, half the standard rate. If you have a TOU plan, halve your kWh input — the EV side gets dramatically cheaper.
What should I use for ICE MPG if I drive a UK car?
Convert L/100km to MPG using MPG = 235.21 / (L/100km). A car listed at 6 L/100km is 39 MPG. UK MPG ratings (using imperial gallons) are 20% higher than US MPG — divide by 1.2 to compare.
Assumptions & Limitations
- Currency-neutral: no currency symbol is shown. Enter prices in any currency — outputs will be in the same currency.
- Depreciation is entered as a single % over the full horizon, not modeled year by year. Real cars depreciate more steeply in the first 1-2 years.
- Energy prices are fixed for the horizon. Electricity has been more stable than petrol historically, but neither is constant — sensitivity-test by re-running with ±20%.
- Tax credits, EV grants, registration tax differences, congestion-charge exemptions, and home-charger installation cost are NOT included. Add them to the EV price (negative for incentives) to incorporate.
- Maintenance is a flat annual figure rather than a curve. Real EV servicing is back-loaded (battery checks, eventual coolant flush) and ICE is front-loaded (wear items in years 1-3).
- Same vehicle class assumed. Comparing a Tesla Model Y to a base Camry is unfair; compare similar-segment cars.
- Resale value at end of horizon is the inverse of depreciation %. EV resale has been more volatile than ICE — particularly for early-tech vehicles.
References
- US DOE — Vehicle Cost Calculator methodology — https://afdc.energy.gov/calc/
- UK gov.uk — Cost of charging an electric car — https://www.gov.uk/guidance/electric-vehicle-charging