We Now Know The True Cost Of EVs Vs ICE Vehicles, And It’s Shocking

Charging an EV is still more affordable

The EV market is in severe decline. Automakers, such as Ford, are all but discontinuing production of electrified vehicles and are renewing a focus on hybrids. That’s due, primarily, to federal tax credits expiring and a relaxation of greenhouse gas reduction targets. EVs are roughly $11,000 more expensive than ICE (internal combustion engine) cars on average, and our faltering economic landscape makes swallowing that pill pretty difficult.

The rising cost of electricity is also problematic, but a new study shows that powering up an EV remains far less expensive than filling a gas tank. EVs can be charged overnight, when electricity demand is lower. Depending on your driving habits, an EV saves you quite a bit of money in the long run.

Gas vs the “eGallon”

Veloz, a nonprofit dedicated to education about EVs, recently released a study comparing the eGallon to a gallon of gasoline. It claims that, on average, it costs $43.00 to fill up “a standard” 14-gallon gas tank. This assumes the price for a gallon of gas is $3.07. The cost of gasoline varies widely by location, as state taxes and geographic factors affecting the transport of gasoline to stations can drive up prices.

The study claims the average cost to “fully charge” an EV at home is $12.86. As with gas prices, electricity prices can vary by geography and rise during periods of high demand. Charging overnight, for instance, is likely cheaper than trying to charge up at 2 pm on a hot day when electricity demand is high.

Though the study doesn’t break out the data, EV charging data seems to target an average EV battery size of 65–75 kWh. All told, Veloz claims that drivers pay an average of 5 cents per mile for an EV and 12 cents per mile for an ICE vehicle. But how much do the cost-of-driving savings get you?

EV savings can pile up

Veloz claims an EV costs roughly $30 less to fully charge than filling a gas tank. The average price of an EV is $11,000 higher than that of an ICE vehicle. To “break even,” a driver needs to charge their EV 367 times to mitigate the added upfront cost of an EV ($30 in savings per charge divided by $11,000). EV drivers also spend less on maintenance, but repairs are often prohibitively expensive.

If you’re a heavy commuter who would charge their EV fully every other day, your break-even point happens around two years after purchasing your EV. People keep the vehicles they purchase for about 5 years on average. That means that heavy commuters who charge fully every other day would save thousands of dollars annually in year three of ownership and each year thereafter. Plainly put, the “eGallon” comes out ahead the longer you own your EV and take care of it.

Final thoughts

Car buyers are bad at looking at vehicle ownership through a long lens. It isn’t easy to accept the added cost of an EV, especially if you’re financing a vehicle at the high interest rates we’re currently seeing. The study also assumes homeownership, another major cost that many people are skipping due to interest rates and a slumping economy. 2026 will be an interesting time for the auto industry and EVs, no doubt.