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FREEDOM251

Freedom251 › Blog › electric vehicles

How to Calculate Whether an Electric Car Will Save You Money on Fuel

By Freedom251 Team · · 5 min read

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Compare the vehicles’ fuel costs per mile using your local gas and electricity prices, then multiply the difference by how far you drive each year. An EV costs less to fuel when its electricity cost per mile is below the gasoline car’s fuel cost per mile. That answers the fuel question—not whether the EV will cost less to own overall.

Calculate each vehicle’s cost per mile

Use the gasoline vehicle you would actually drive or buy as the comparison, rather than an unrelated average. For the EV, use its combined electricity consumption in kilowatt-hours per 100 miles (kWh/100 mi). For the gas car, use a representative miles-per-gallon (MPG) figure. Official EPA vehicle information is one source for EV consumption figures; EPA explains that consumption “relates directly to the amount of electricity used, and thus to expenditures on electricity” (EPA vehicle information; EPA electric vehicle label).

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  • Gasoline cost per mile = local gasoline price per gallon ÷ gas-car MPG.
  • EV electricity cost per mile = (EV kWh/100 mi ÷ 100) × electricity price per kWh.
  • EV fuel savings per mile = gasoline cost per mile − EV electricity cost per mile.
  • Annual fuel savings = fuel savings per mile × annual miles driven.

A positive difference means the EV is cheaper to fuel under those assumptions; a negative result means it is more expensive. MPGe can help compare energy efficiency across vehicle types, but kWh/100 mi is the direct input for estimating an EV’s electricity cost.

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Use the prices and charging mix you will actually pay

Use your local gas price and the electricity price that applies when you charge. Include relevant delivery charges and time-of-use rates where they affect the per-kWh cost. Home and public charging may have different prices; public charging can cost more than home charging, so a home-only rate may overstate savings if you rely on public stations. The U.S. Department of Energy Alternative Fuels Data Center (AFDC) says most EV charging is typically done at home, but your own mix matters (AFDC electric vehicles for consumers; AFDC electricity infrastructure).

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If you charge in more than one setting, calculate the cost for each portion of your driving and add the results, or use an energy-weighted average electricity rate. Do not simply average the home and public rates unless you use the same amount of electricity at each rate. Argonne’s Fuel Cost Comparison Calculator includes separate residential and public electricity prices and a public-charging share input (Argonne Fuel Cost Comparison Calculator).

Worked example: turn a per-mile difference into a yearly estimate

Suppose gasoline costs $3.50 per gallon, the gas car gets 30 MPG, the EV uses 30 kWh/100 mi, and electricity costs $0.15 per kWh. These are illustrative inputs, not a forecast or a published average.

  • Gas car: $3.50 ÷ 30 = about $0.117 per mile.
  • EV: (30 ÷ 100) × $0.15 = $0.045 per mile.
  • Difference: about $0.117 − $0.045 = $0.072 per mile.
  • At 12,000 miles per year: $0.072 × 12,000 = about $864 in annual fuel-cost savings.

Replace every input with the rates and vehicles relevant to you. Small changes in energy prices, vehicle efficiency, or charging mix can change the result.

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Find the electricity price where the EV breaks even

You can also ask how expensive electricity would have to be for the two vehicles to have the same energy cost per mile. With the example vehicles above—a 30-kWh/100-mi EV and a 30-MPG car—and gasoline at $3.50 per gallon, the break-even electricity price is about $0.389 per kWh. Below that price, the EV has the lower fuel cost per mile; above it, the gas car does, given those assumptions.

For your vehicles, calculate the threshold as: (EV kWh/100 mi ÷ 100) electricity units per mile inverted through the equality, or more simply, break-even electricity price per kWh = (gasoline price per gallon ÷ gas-car MPG) ÷ (EV kWh/100 mi ÷ 100). This threshold changes with the gas price and both vehicles’ efficiency.

Compare hybrids and plug-in hybrids on their actual use

If you are deciding among more than an EV and a gasoline car, include a conventional hybrid or plug-in hybrid. A hybrid’s fuel cost can be calculated using its MPG. For a plug-in hybrid, count electric miles at the electricity rate and gasoline miles at the gas rate; treating it like a battery-only EV or assuming every mile is electric will misstate its fuel cost. Argonne’s calculator supports conventional internal-combustion vehicles, hybrids, plug-in hybrids, and battery EVs, with location, mileage, and price inputs (Argonne Fuel Cost Comparison Calculator).

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Use a calculator to check your inputs

For U.S. comparisons, DOE’s AFDC Vehicle Cost Calculator lets you customize vehicle specifications, fuel prices, driving patterns, and state electricity inputs (DOE AFDC Vehicle Cost Calculator). Argonne’s Fuel Cost Comparison Calculator is another option for comparing gasoline vehicles, hybrids, plug-in hybrids, and battery EVs; Argonne lists its update date as August 5, 2026. Treat any defaults or example results as tool assumptions, not as your personal savings.

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For a quick calculation, collect the following before using a calculator:

  • The exact vehicles or representative efficiency figures: gas-car MPG and EV kWh/100 mi.
  • Your local gasoline price and applicable home and public electricity prices.
  • Your expected charging split if you will use both home and public charging.
  • Your annual miles driven.
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Keep fuel savings separate from total ownership cost

A lower fuel bill does not by itself prove that an EV will save money overall. Purchase price, incentives, financing, insurance, maintenance, and home-charging equipment or installation are separate costs. DOE’s AFDC Vehicle Cost Calculator is intended for total vehicle-cost comparisons, while its consumer guidance notes that EV purchase prices can be higher and that charging equipment and installation may add cost (AFDC Vehicle Cost Calculator; AFDC electric vehicles for consumers).

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A Level 2 charger is optional for this fuel calculation and is not required by every EV owner. DOE says EVs typically include a Level 1 cordset; its AFDC page gives a typical Level 2 equipment cost range of $500 to $4,000 before installation and incentives, with compatibility and local installation requirements to check (AFDC electricity infrastructure). Include any equipment and installation expense separately if you are assessing total ownership cost.

How to interpret published fuel-cost examples

AFDC lists annual fuel-cost examples for 2023 of $1,100 for the Kia Niro Hybrid, $850 for the Kia Niro Plug-In Hybrid, and $650 for the Kia Niro Electric; it also lists $650 for the 2023 Chevrolet Bolt and $750 for the 2023 Ford Mustang Mach-E RWD. These are historical model examples sourced by AFDC from FuelEconomy.gov and its Vehicle Cost Calculator, not current quotes or a promise of what any driver will save (AFDC electric vehicles for consumers).

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AFDC also gives examples based on an electricity price of 12.3 cents per kWh: adding 100 miles of range costs $2.46, and an EV traveling 15,000 miles per year would use around 5,000 kWh. Those are source assumptions and examples, not current electricity rates or universal consumption figures (AFDC electric vehicles for consumers).

Prices, vehicle efficiency, charging costs, and incentives vary and change. Recalculate with current local prices and the exact vehicles under consideration; no single savings figure applies to every driver.

Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

electric vehiclesElectricity CostsEV costsfuel savingsvehicle comparison

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