Should I buy an electric car?
Compare the true cost of EVs vs gas cars including fuel, maintenance, tax credits, and charging costs to see if going electric makes financial sense for you.
By ShouldICalc Team
Updated January 2025 · See our methodology
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5-Year Savings
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Break Even
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Trade-offs to Consider
Every decision has pros and cons. Here's what to weigh:
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Money
Lower fuel and maintenance costs, but higher upfront price. Break-even depends on miles driven and gas prices.
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Time
Home charging happens overnight (no gas station trips), but road trips require planning around charging stops (15-45 min).
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Quality
Instant torque, quieter ride, and tech-forward experience. But some prefer the feel and sound of gas engines.
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Convenience
No oil changes or many routine maintenance items. But charging infrastructure is still developing in some areas.
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Environment
Zero tailpipe emissions and lower lifetime carbon footprint, even accounting for electricity generation and battery production.
Related Products
Products that can help you save money. (Affiliate links)
ChargePoint Home Flex Level 2 EV Charger
Fastest home charging, works with all EVs
Lectron J1772 Extension Cable
Extend your EV charging reach
NOCO Boost Plus GB40 Jump Starter
Emergency portable power for any vehicle
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Frequently Asked Questions
How much does it cost to charge an electric car at home?
How long do EV batteries last?
Is the federal tax credit still available?
Can I charge an EV at an apartment?
The Bottom Line
Yes, buy an electric car if you drive 12,000+ miles per year, can charge at home, and plan to keep the car for 5+ years. With the $7,500 federal tax credit and fuel savings of $1,000-2,000 annually, most EVs pay back their premium in 4-7 years—then you’re saving money for the next 10+ years.
But watch out for the charging situation. Without home charging, the EV value proposition falls apart. Public charging costs 3-4x more than home charging and is less convenient than gas stations. Make sure you can plug in at home or work before committing.
Skip it if you live in an apartment without charging access, drive less than 8,000 miles per year, or need to tow heavy loads regularly. The math just doesn’t work in these situations.
The Real Economics of Electric Cars
Everyone has an opinion about electric cars. Some say they’re the future. Others say they’re overpriced toys. But opinions don’t pay bills—let’s look at the actual numbers.
I’ve done this calculation for dozens of people, and the answer is always the same: it depends on your situation. Here’s how to figure out if an EV makes financial sense for you.
The Basic Math: EV vs Gas Car Fuel Costs
The biggest EV advantage is fuel costs. Electricity is dramatically cheaper than gasoline per mile.
Fuel cost comparison:
| Factor | Gas Car | Electric Car |
|---|---|---|
| ”Fuel” cost | $3.50/gallon | $0.15/kWh |
| Efficiency | 28 MPG | 3.5 miles/kWh |
| Cost per mile | $0.125 | $0.043 |
| 12,000 miles/year | $1,500 | $514 |
| Annual fuel savings | $986 |
That’s nearly $1,000 per year just in fuel savings. Over 10 years, you’re looking at $10,000+ in savings on fuel alone.
But here’s the catch: Your actual savings depend on:
- Local gas prices (higher = more savings)
- Your electricity rate (lower = more savings)
- How much you drive (more miles = more savings)
- Where you charge (home charging is cheapest)
The True Cost of Home vs Public Charging
This is where people get tripped up. Not all EV charging costs the same.
Charging cost comparison:
| Charging Location | Cost per kWh | Cost for 250-mile charge | Cost per mile |
|---|---|---|---|
| Home (off-peak) | $0.10 | $7.14 | $0.029 |
| Home (average) | $0.15 | $10.71 | $0.043 |
| Home (peak) | $0.25 | $17.86 | $0.071 |
| Workplace (free) | $0.00 | $0.00 | $0.000 |
| Public Level 2 | $0.20-0.35 | $14-25 | $0.06-0.10 |
| DC Fast Charging | $0.35-0.50 | $25-36 | $0.10-0.14 |
The reality: If you’re relying primarily on DC fast charging, your “fuel” costs are about the same as a gas car. Home charging is where the real savings happen.
The Upfront Cost Premium
Yes, EVs cost more upfront. But how much more?
Current EV price premiums (similar-class vehicles):
| Segment | Gas Car | EV Equivalent | Premium |
|---|---|---|---|
| Compact | $26,000 | $35,000 | $9,000 |
| Midsize sedan | $30,000 | $42,000 | $12,000 |
| Compact SUV | $32,000 | $45,000 | $13,000 |
| Full-size SUV | $55,000 | $70,000 | $15,000 |
But wait—what about tax credits?
The $7,500 federal tax credit (if you qualify) cuts that premium significantly:
| Original Premium | After Tax Credit | Real Extra Cost |
|---|---|---|
| $9,000 | $1,500 | $1,500 |
| $12,000 | $4,500 | $4,500 |
| $13,000 | $5,500 | $5,500 |
| $15,000 | $7,500 | $7,500 |
Some states add additional incentives of $1,000-7,500, further reducing the gap.
Break-Even Analysis: When Does an EV Pay Off?
Here’s the calculation that matters: how long until fuel and maintenance savings offset the price premium?
Scenario 1: Best case for EVs
| Factor | Value |
|---|---|
| EV price premium | $10,000 |
| Federal tax credit | -$7,500 |
| Net premium | $2,500 |
| Annual fuel savings | $1,200 |
| Annual maintenance savings | $500 |
| Total annual savings | $1,700 |
| Break-even | 1.5 years |
Scenario 2: Average case
| Factor | Value |
|---|---|
| EV price premium | $12,000 |
| Federal tax credit | -$7,500 |
| Net premium | $4,500 |
| Annual fuel savings | $900 |
| Annual maintenance savings | $400 |
| Total annual savings | $1,300 |
| Break-even | 3.5 years |
Scenario 3: Challenging case (no tax credit)
| Factor | Value |
|---|---|
| EV price premium | $12,000 |
| Federal tax credit | $0 |
| Net premium | $12,000 |
| Annual fuel savings | $800 |
| Annual maintenance savings | $400 |
| Total annual savings | $1,200 |
| Break-even | 10 years |
The tax credit makes or breaks the deal for many buyers.
The Maintenance Advantage
EVs have fewer moving parts. A lot fewer.
Parts EVs don’t have:
- Engine oil and filter
- Spark plugs
- Transmission fluid
- Timing belt
- Fuel filter
- Exhaust system
- Radiator/coolant system
Annual maintenance comparison:
| Service | Gas Car (Annual) | EV (Annual) |
|---|---|---|
| Oil changes | $150-200 (3x) | $0 |
| Transmission service | $50 (amortized) | $0 |
| Brake pads | $100 (amortized) | $30* |
| Coolant | $25 | $15 |
| Air filter | $30 | $30 |
| Spark plugs | $20 (amortized) | $0 |
| Annual total | $375-425 | $75 |
*EVs use regenerative braking, so brake pads last 2-3x longer.
Estimated savings: $300-350 per year
The Hidden Costs of EV Ownership
Let’s be honest about the costs people don’t always mention:
1. Home charger installation
- Level 2 charger: $300-700 for the unit
- Installation: $500-2,000 depending on electrical panel
- Total: $800-2,700 one-time cost
2. Potential insurance premium increase
- EVs can cost 15-25% more to insure
- Repair costs are higher (specialized parts, battery concerns)
- Shop around—rates vary significantly by insurer
3. Battery replacement (eventually)
- Current replacement costs: $5,000-15,000
- Most batteries last 200,000+ miles
- Warranties typically cover 8 years/100,000 miles
- Not a concern for most owners during ownership period
4. Depreciation uncertainty
- EVs are holding value well currently
- Technology changes could affect future resale
- Used EV market is still developing
Who Shouldn’t Buy an EV (Yet)
Be honest with yourself about these deal-breakers:
No home charging: If you can’t install a Level 2 charger at home (or have a very short commute), an EV is probably not right for you. Relying on public charging is expensive and inconvenient.
Low mileage drivers: If you drive less than 8,000 miles per year, the fuel savings don’t add up fast enough to offset the premium. A fuel-efficient gas car or hybrid makes more sense.
Long-distance hauling: If you regularly drive 300+ miles in a day, EVs add complexity. Fast charging works, but it’s slower than gas stations and requires planning.
Towing heavy loads: EV range drops 30-50% when towing. A 300-mile EV becomes a 150-200 mile EV with a trailer.
Budget-constrained buyers: If you’re stretching financially to afford an EV, a reliable used gas car is a smarter choice. Don’t buy a car you can’t afford.
The 5-Year Total Cost Calculation
Let’s put it all together for a real comparison:
Scenario: 12,000 miles/year, $3.50 gas, 15¢/kWh electricity
| Cost Category | Gas Car (5 yr) | EV (5 yr) |
|---|---|---|
| Purchase price | $30,000 | $42,000 |
| Tax credit | $0 | -$7,500 |
| Net purchase | $30,000 | $34,500 |
| Fuel | $7,500 | $2,571 |
| Maintenance | $1,875 | $375 |
| Home charger | $0 | $1,500 |
| Total 5-year cost | $39,375 | $38,946 |
In this scenario, the EV comes out slightly ahead over 5 years. Over 10 years, the EV advantage grows to $5,000-8,000.
Making Your Decision
An EV is likely right for you if:
- You can charge at home (garage, driveway, dedicated parking)
- You drive 10,000+ miles per year
- You qualify for the federal tax credit
- You plan to keep the car 5+ years
- You have access to fast charging for road trips
Stick with gas (or hybrid) if:
- You can’t install home charging
- You drive less than 8,000 miles per year
- You don’t qualify for tax incentives
- You regularly take 400+ mile road trips
- You need to tow frequently
Consider a hybrid if:
- You want better fuel economy without EV complexity
- Charging infrastructure isn’t available
- You’re not ready to commit to full electric
- You take frequent long road trips
The Long-Term Outlook
Gas prices are volatile. Electricity prices are stable. Charging infrastructure is expanding rapidly. EV prices are dropping while battery technology improves.
The math is getting better for EVs every year. If you’re on the fence today, you’ll likely be solidly in EV territory within 2-3 years.
But don’t wait if the numbers work now. Every year you drive a gas car when an EV makes financial sense is money left on the table.
The Verdict
For most drivers who can charge at home and drive 12,000+ miles per year, an electric car is a solid financial decision—especially with the federal tax credit. The break-even point is typically 3-5 years, after which you’re saving $1,500+ annually.
The key is being honest about your charging situation. Home charging makes EVs work financially. Without it, the numbers often don’t pencil out.
Run your specific numbers through the calculator above. The math is usually clearer than the marketing.
Cost estimates based on 2025 national averages for electricity ($0.15/kWh), gas ($3.50/gallon), and vehicle pricing. Individual results vary significantly based on local utility rates, gas prices, driving patterns, and available incentives. Tax credit eligibility depends on income limits and vehicle requirements—verify with IRS.gov.