Electric cars usually cost more to buy but less to run. Whether that trade pays off comes down to one simple calculation.
The break-even formula
Break-even years = (EV price − gas car price) ÷ annual fuel saving
If the EV is both cheaper to buy and cheaper to run, it wins from day one. Otherwise, its yearly fuel saving slowly pays back the higher sticker price.
Real running-cost gap
At June 2026 EIA average prices ($3.40/gal gasoline, $0.176/kWh electricity), here’s what it costs to drive 1,000 miles:
| Car | Type | Cost / 1,000 mi | EPA fuel/yr |
|---|---|---|---|
| Tesla Model 3 | EV | ~$43 | $550 |
| Toyota Prius | Hybrid | ~$63 | $1,150 |
| Toyota Corolla | Gas | ~$100 | $1,850 |
| Ford F-150 | Gas truck | ~$170 | $3,100 |
A Model 3 driver spends about $550 a year on electricity; a Corolla driver spends $1,850 on gas — a $1,300/year gap. Over five years that’s $6,500, enough to offset a meaningful price premium.
A worked example
Say an EV costs $42,000 and a comparable gas car costs $33,000 — a $9,000 difference — and the EV saves $1,400 a year in fuel. Break-even is 9,000 ÷ 1,400 ≈ 6.4 years. Apply a $7,500 tax credit and the effective premium drops to $1,500, breaking even in barely a year.
Run your own numbers in the EV-vs-gas calculator, or browse ready-made EV-vs-gas comparisons like the Tesla Model 3 vs Toyota Camry.
What the formula leaves out
The break-even above counts purchase price and fuel only. In the EV’s favour it usually ignores lower maintenance; against it, EVs have historically depreciated faster and can cost more to insure. For the full picture, use the cost-to-own calculator.