EV vs Gas Car: Total Cost of Ownership Over 5 Years

📅 April 25, 2026 · ⏱️ 8 min read · 💰 Cost Analysis

The sticker price of an EV is often higher than a comparable gas car. But sticker price is just the beginning. When you factor in fuel, maintenance, tax incentives, and depreciation, the picture changes dramatically. Let's run the real numbers.

The Comparison: Tesla Model 3 vs Toyota Camry

We'll compare two of the most popular sedans in their respective categories, both driven 20,000 km per year for 5 years (100,000 km total).

Cost Category	Tesla Model 3 (EV)	Toyota Camry (Gas)
Purchase Price	$38,990	$28,855
Federal Tax Credit	-$7,500	$0
Net Purchase Price	$31,490	$28,855
Fuel (5 years)	$3,600	$12,500
Maintenance (5 years)	$2,100	$5,800
Insurance (5 years)	$8,500	$7,200
Depreciation (5 years)	$13,000 (33%)	$14,400 (50%)
Total 5-Year Cost	$58,690	$68,855
5-Year Savings	EV saves $10,165

Breaking Down Each Category

Fuel Costs

This is the biggest ongoing savings for EV owners:

• Tesla Model 3: ~15 kWh/100 km efficiency × $0.12/kWh (home charging) = $1.80/100 km. Over 100,000 km = $1,800 (we added $1,800 buffer for occasional public charging)
• Toyota Camry: ~7.8L/100 km × $3.20/gallon (~$0.85/liter) = $6.63/100 km. Over 100,000 km = $6,630 (we added buffer for price fluctuations up to $12,500)

Annual fuel savings with EV: ~$1,780

Maintenance Costs

EVs have dramatically lower maintenance costs because they have fewer moving parts:

• No oil changes ($0 vs $75-100 per change, 2x per year)
• No transmission fluid, spark plugs, timing belts, or exhaust system
• Regenerative braking means brake pads last 2-3x longer
• EV maintenance is mainly: tire rotation, cabin filter, wiper fluid, brake fluid

Service Item	EV (5 years)	Gas (5 years)
Oil Changes	$0	$750-1,000
Brake Pads	$0-300	$600-900
Transmission Service	$0	$300-500
Tires	$1,200	$1,000
Other (filters, fluids)	$600	$2,400
Total	$2,100	$5,800

Insurance

EVs typically cost 10-20% more to insure due to higher repair costs (battery, specialized parts). However, this gap is narrowing as repair networks grow and more insurers specialize in EVs.

Depreciation

This one might surprise you. EVs now hold their value better than gas cars:

• Tesla Model 3: ~33% depreciation over 5 years (strong brand, OTA updates keep cars current)
• Toyota Camry: ~50% depreciation over 5 years (industry average for sedans)
• Why: Demand for used EVs is rising, and EVs receive software updates that add features years after purchase

Other Savings You Might Not Consider

• State/local incentives: Many states offer $1,000-5,000 in additional EV rebates
• HOV lane access: Many states allow solo EV drivers in HOV lanes, saving commute time
• Reduced parking rates: Some cities offer free or discounted parking for EVs
• Home solar: If you have solar panels, your fuel cost drops to near $0
• Time savings: No more trips to the gas station — you "refuel" at home

When Does an EV NOT Save Money?

To be fair, EVs aren't always cheaper:

• Very low annual mileage (under 8,000 km/year): You won't drive enough to recoup the higher purchase price
• No home charging: Relying 100% on public DC fast charging cuts the fuel savings significantly
• Luxury EVs vs economy gas cars: Comparing a $90K Mercedes EQS to a $22K Honda Civic isn't a fair fight
• Very short ownership: If you sell after 1-2 years, the upfront cost difference matters more

The Bottom Line

For most drivers who commute 15,000-25,000 km per year and can charge at home, an EV saves $8,000-15,000 over 5 years compared to an equivalent gas car. The higher purchase price is more than offset by dramatically lower fuel and maintenance costs.

The break-even point is typically 2-3 years. After that, you're saving money every month. And that's before factoring in the environmental benefits and the sheer joy of instant torque.

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