EV vs Gas Cost: Which Saves More Per Mile?
The average American spends $1,400-$2,100 per year on gasoline. An EV owner driving the same miles spends $500-$700 on electricity. That's a $700-$1,400 difference — every single year. But the exact savings depend on three numbers most people never calculate together: your local gas price, your electricity rate, and your vehicle's efficiency.
The per-mile formula for both fuel types
The comparison boils down to two simple formulas:
- Gas cost per mile = Gas price per gallon ÷ Miles per gallon (MPG)
- EV cost per mile = Electricity rate per kWh ÷ EV efficiency in miles per kWh
Worked example: a gasoline car at 30 MPG with gas at $3.50/gallon vs. an EV at 3.5 mi/kWh with electricity at $0.16/kWh:
EV cost per mile: $0.16 ÷ 3.5 = $0.046/mile
Savings per mile: $0.117 - $0.046 = $0.071/mile
Annual savings (12,000 mi): $0.071 × 12,000 = $849
Side-by-side scenarios
| Scenario | Gas $/gal | MPG | Gas $/mile | Elec $/kWh | mi/kWh | EV $/mile | Annual Savings |
|---|---|---|---|---|---|---|---|
| US average | $3.50 | 30 | $0.117 | $0.16 | 3.5 | $0.046 | $849 |
| Cheap electricity | $3.50 | 30 | $0.117 | $0.10 | 3.5 | $0.029 | $1,060 |
| Expensive electricity | $3.50 | 30 | $0.117 | $0.30 | 3.5 | $0.086 | $374 |
| High gas, cheap EV | $4.50 | 30 | $0.150 | $0.10 | 3.5 | $0.029 | $1,459 |
| Premium SUV | $3.50 | 20 | $0.175 | $0.16 | 3.0 | $0.053 | $1,459 |
In every scenario above, the EV is cheaper per mile. The margin narrows with expensive electricity and widens with high gas prices — but the EV wins across the board in typical US markets.
Run your own scenario with the EV Home Charging Cost Calculator — enter your exact battery size, charging level and electricity rate for a personalized estimate.
Why EVs almost always win on fuel cost
The physics are straightforward: electric motors convert about 85-90% of grid energy into motion. Internal combustion engines convert about 20-35% of gasoline energy into motion, with the rest lost as heat. Even accounting for charging losses (10-15%), the EV's fundamental efficiency advantage is large enough to overcome variations in local fuel prices in almost every US market.
Where the comparison gets more nuanced
1. Upfront vehicle cost
EVs often cost more to purchase than comparable gasoline cars. The fuel savings offset this over time — but the payback period depends on how many miles you drive and the price gap between the vehicles.
2. Charging infrastructure
If you can charge at home on Level 2, the cost advantage is clear. If you rely on public DC fast charging exclusively, the cost per kWh can be 2-3x higher, narrowing the gap significantly.
3. Electricity rate volatility
Gas prices are volatile, but so are electricity rates in some markets. Time-of-use charging can lock in lower rates — see the best time to charge guide.
Make your EV charging free with solar
If you have rooftop solar panels, the per-mile cost of EV driving drops to essentially zero once the panels are paid off. The Solar Savings & Payback Calculator shows how fast solar can pay for itself when it powers your daily commute.
Frequently asked questions
How much cheaper is an EV to fuel than a gas car?
In typical US markets, EV charging costs about 60% less per mile than gasoline. At $0.16/kWh and 3.5 mi/kWh, an EV costs $0.046/mile. A 30 MPG gas car at $3.50/gallon costs $0.117/mile. That's $849 per year in savings at 12,000 miles.
Does it matter where I charge?
Yes. Home Level 2 charging at $0.16/kWh is the cheapest option. Public Level 2 stations charge $0.20-$0.50/kWh, and DC fast chargers can exceed $0.40/kWh. Charging at home during off-peak hours (if your utility offers TOU rates) makes the cost advantage even larger.
What about EV battery degradation?
Most EV batteries retain 80-90% capacity after 200,000 miles. Degradation slightly reduces efficiency over time, but the per-mile cost advantage over gasoline remains substantial throughout the vehicle's life.
How this guide was checked
The formulas and scenarios above use publicly available data from the EIA and DOE. EV efficiency figures (3.0-3.5 mi/kWh) reflect real-world averages across popular models, not manufacturer claims. Corrections and questions are welcome at info@dailyutilitylab.com; see our editorial policy.
Sources
- U.S. Energy Information Administration — Gasoline prices
- U.S. Energy Information Administration — Electricity prices
- U.S. Department of Energy — Electric vehicle charging costs
- Alternative Fuels Data Center — EV cost calculator