Does an Electric Car Actually Save You Money?
One Prius owner worked out he saved $15,000 on fuel over 250,000 miles. An EV can beat that, or lose to petrol entirely, and the deciding factor is usually where you charge.
By Rohit Sharma, Founder, SEOShouts
Whether an electric car saves money has a real answer, but it is not a single answer. It depends on how you drive, how you charge, and how long you keep the car, and the honest comparison ignores the headlines on both sides in favour of your own numbers.
The running-cost comparison
fuel price per gallon / miles per gallon
At $3.50/gal and 30 MPG, that is about 12 cents per mile.
(electricity price per kWh) / (miles per kWh)
At $0.15/kWh and 3.5 miles/kWh, that is about 4 cents per mile.
On those typical numbers the EV costs roughly a third as much per mile to fuel. Over 12,000 miles a year that is about $1,440 in petrol against $514 in home electricity, a saving near $900 a year. A Prius owner on r/prius ran the same sum over 250,000 miles and found $15,000 saved versus a 25-MPG car, and an EV widens that gap further, as long as one condition holds.
Home charging changes everything
That 4-cents-per-mile figure assumes cheap home electricity. Rely on public rapid chargers and the price per kWh can triple or quadruple, pushing the EV's cost per mile up to or past petrol. The single biggest factor in whether an EV saves you money is not the car, it is whether you can charge it cheaply at home overnight. No home charging, and the running-cost advantage can evaporate.
| Charging mostly at | Rough cost per mile | Versus 30 MPG petrol |
|---|---|---|
| Home, off-peak | 3 to 5 cents | Much cheaper |
| Home, standard rate | 5 to 7 cents | Cheaper |
| Public rapid chargers | 12 to 18 cents | Similar or worse |
What both sides forget
Fuel is only one cost, and as our guide to what a car really costs explains, depreciation usually dwarfs it. EVs have historically depreciated faster than equivalent petrol cars, though that is narrowing, and a big first-year value drop can wipe out years of fuel savings. On the other side, EVs have far fewer moving parts, so servicing and repair costs tend to be lower. An honest comparison puts fuel, depreciation, insurance, and maintenance on the same page, not just the pump.
- Work out petrol cost per mile: fuel price divided by MPG.
- Work out EV cost per mile at YOUR charging price, not a best case.
- Multiply the gap by your annual mileage for the yearly fuel saving.
- Set that against likely depreciation and any new EV road charges.
- Judge over several years of total cost, not one tank versus one charge.
Frequently asked questions
Do electric cars really save money on fuel?
Usually yes, if you charge at home. Home charging often costs a third to a half of petrol per mile. But relying on public rapid chargers can push the cost per mile up to or beyond petrol, which is why home charging is the deciding factor.
What is the catch with EV savings?
Two things: depreciation and charging access. EVs have tended to lose value faster, which can offset fuel savings, and without cheap home charging the running-cost advantage shrinks. Newer road taxes on EVs are also starting to narrow the gap in some countries.
How do I compare an EV to a petrol car fairly?
Compare total cost over several years, not just fuel. Add fuel or charging at your real prices, expected depreciation, insurance, and maintenance for each car, then divide by the years you will keep it. Fuel alone tells only part of the story.
Calculators from this guide
About the author
Rohit Sharma is the founder of SEOShouts, a search consultancy in India, and has worked in technical SEO and content strategy since 2014. He builds and maintains Calcshark.