EV total cost of ownership: the complete picture

Calculate EV total cost of ownership over 5 years including purchase, fuel, maintenance, insurance, and resale.

Finance guide

Put the advice next to real savings examples

The guide gives you the decision framework. The rolling examples show how much the numbers can move once model and location enter the picture.

EV savings · real examples

EV model

Location

Saves / yr

Model Y LR

Los Angeles, California

$1,847

⚡

EVs have ~20 moving parts vs 2,000+ in a gas engine

vs equivalent gas car · 13,500 mi/yr

live

Why sticker price misleads

An EV might cost $5,000–$10,000 more than a comparable gas car at purchase. But ownership cost isn't just purchase price. Fuel savings of $1,000–$1,500 per year, maintenance savings of $700–$1,000 per year, and tax credits of $3,750–$7,500 can flip the comparison entirely over 5 years.

5-year cost breakdown

For a Model Y Long Range at $47,000 (before credit) vs a Toyota RAV4 at $32,000, the gap looks like $15,000. After the $7,500 credit, it's $7,500. After 5 years of fuel savings ($1,200/yr × 5 = $6,000) and maintenance savings ($800/yr × 5 = $4,000), the gap is essentially closed — and that's before accounting for better resale on the Model Y.

·Purchase gap: $15,000 (before credit)
·Federal tax credit: −$7,500
·5-yr fuel savings: −$6,000
·5-yr maintenance savings: −$4,000
·Net cost difference: ~$2,500 (Model Y still ahead in depreciation)

Insurance: often higher for EVs

EV insurance typically runs $200–$600/year more than a comparable gas car. This partially offsets fuel savings. Tesla insurance is particularly expensive due to high repair costs. Shop at least 3–4 insurers; some specialize in EVs and offer more competitive rates.

Home charger installation

Add $500–$1,500 for a Level 2 charger installation if you don't already have one. This is a one-time cost that pays off in the first 1–2 years through the convenience of not visiting gas stations. Many utilities offer rebates of $200–$600 to offset this.

Depreciation: the biggest variable

EVs depreciate differently by model. A Tesla Model Y loses about 35–40% of value over 5 years under normal conditions — similar to other popular crossovers. A Nissan Leaf or first-generation Bolt may lose 55–65%. Choosing a well-supported model matters for total cost.

The bottom line

For drivers who keep their car 5+ years and charge mostly at home, EVs are usually cheaper to own than equivalent gas vehicles after factoring in all costs. The math is most favorable in states with high gas prices, low electricity rates, or strong state incentives on top of the federal credit.

Buy your Tesla