Vehicle Type Comparisons · EV vs Gas
Electric vs Gas Car Ownership Cost: The True 5-Year Comparison (2026)
Per AAA’s 2025 data, an electric medium sedan costs $13,692/year to own versus $9,956 for a comparable gas sedan — gas wins by $3,736/year. But the gap closes dramatically by body type: compact SUV EVs trail gas by just $912/year, and medium SUV EVs are nearly tied at $126/year. EVs win decisively on fuel (61% cheaper per mile) and maintenance, but lose on depreciation and insurance. With the federal $7,500 tax credit expired (September 30, 2025), the EV-vs-gas decision now hinges on three things: your body-type segment, where you charge, and how long you keep the car.
- Fuel (charging)$729
- Maintenance$1,358
- Depreciation$7,088
- Insurance$2,027
- Finance + Fees$2,491
- Fuel (gas)$1,669
- Maintenance$1,786
- Depreciation$3,462
- Insurance$1,572
- Finance + Fees$1,467
In 2026, the EV-vs-gas cost question finally has an honest answer — and it isn’t what either side claims. AAA’s latest data shows EVs spend less on fuel and maintenance but cost significantly more in depreciation and insurance. Whether an electric car saves you money depends on three things: where you charge, how much you drive, and which vehicle category you’re comparing. The federal $7,500 credit that made EVs price-competitive at the dealer expired on September 30, 2025, so this comparison uses only post-credit data.
Key Findings From Verified Data
- EV medium sedan: $13,692/yr vs $9,956 gas — gas saves $3,736/year (AAA 2025, 15,000 mi/yr, post-credit).
- The gap collapses in SUV segments: compact SUV EV $11,191 vs gas $10,279 ($912/yr); medium SUV EV $12,710 vs gas $12,584 ($126/yr — essentially tied).
- EVs depreciate fastest of any vehicle type: 58.8% loss over 5 years vs 45.6% industry average (iSeeCars, 800,000+ vehicles). This single line decides most EV-vs-gas comparisons.
- EVs cut fuel cost 61% per mile: 5.07¢/mile vs 13.00¢/mile for gas — but only with home charging. Heavy public DC fast-charging ($0.47/kWh) shrinks the fuel advantage from ~$940/yr to ~$200/yr.
- EV maintenance is the most predictable saving: ~$1,358/yr vs ~$1,786/yr for a gas sedan, with no oil changes, spark plugs, or exhaust work. AAA rates EVs second-lowest maintenance of any category.
- EVs favor long-hold, high-mileage, SUV-segment buyers with home charging. Sedan buyers and low-mileage drivers rarely come out ahead post-credit.
Electric SUV vs Gas SUV: 5-Year Total Cost of Ownership
The sedan comparison shows EVs at their worst. The SUV picture is where electric ownership becomes genuinely competitive — because EV depreciation is milder in these segments. AAA’s 2025 data places compact SUV EVs at $11,191/year versus $10,279 for gas compact SUVs, a $912/year gap rather than the sedan’s $3,736. In the medium SUV segment the annual difference narrows to just $126.
| Segment | EV Annual Total | Gas Annual Total | Annual Difference |
|---|---|---|---|
| Medium Sedan | $13,692 | $9,956 | Gas saves $3,736 |
| Compact SUV | $11,191 | $10,279 | Gas saves $912 |
| Medium SUV | $12,710 | $12,584 | Gas saves $126 |
| Pickup Truck | $16,758 | $14,781 | Gas saves $1,977 |
Source: AAA Your Driving Costs 2025. 15,000 mi/yr, 5-year ownership. Federal EV credit (expired Sept 30, 2025) not applied.
Cars.Zone conclusion: the medium SUV segment is the most balanced EV-vs-gas matchup in the 2025 data — at a $126/year gap, state incentives, local electricity rates, and charging access become decisive. Buyers in compact and medium SUV segments face a materially different cost calculation than sedan buyers, where gas holds a clear $3,736/year advantage.
Electric Sedan vs Gas Sedan: The Full Cost Breakdown
AAA’s study benchmarks ownership across six categories: fuel, maintenance, depreciation, insurance, license/registration/taxes, and financing. The medium sedan comparison is the most direct apples-to-apples look at EV-vs-gas cost — and the segment where EVs struggle most.
| Cost Category | EV Sedan | Gas Sedan | Who Wins |
|---|---|---|---|
| Fuel (annual) | $729 | $1,669 | EV by $940 |
| Maintenance (annual) | $1,358 | $1,786 | EV by $428 |
| Depreciation (annual) | $7,088 | $3,462 | Gas by $3,626 |
| Insurance (annual) | $2,027 | $1,572 | Gas by $455 |
| License/Reg/Taxes | $1,064 | $613 | Gas by $451 |
| Finance Charges | $1,427 | $854 | Gas by $573 |
| Total per Year | $13,692 | $9,956 | Gas by $3,736 |
Source: AAA Your Driving Costs 2025. Medium sedan, 15,000 mi/yr, 5-year ownership. Federal EV credit not applied.
EVs win cleanly on two lines: fuel and maintenance. On the other four — depreciation, insurance, registration, and financing — gas wins. The $940/year fuel saving and $428/year maintenance saving don’t offset the $3,626/year depreciation penalty in the sedan segment.
EV vs Gas Depreciation: Why EVs Drop Faster
Depreciation is the number that decides the EV cost debate in most segments. iSeeCars analyzed over 800,000 five-year-old vehicles sold between March 2024 and February 2025: EVs lost an average of 58.8% of their value over five years — the highest of any vehicle segment — versus a 45.6% industry average. Gas and hybrid vehicles both lose roughly 40%. On a $55,000 EV, that’s about $32,340 in lost value over five years versus roughly $22,000 for a comparable gas vehicle.
Several factors drive it: battery technology improves rapidly, making older models feel dated faster; Tesla’s repeated new-car price cuts dragged down used values market-wide; and an oversupply of used EVs from 2024–2025 lease returns and fleet disposals outpaced value-oriented used-buyer demand. The gap is expected to narrow as the market matures, but in 2026 it remains the EV’s most significant cost disadvantage. For the full depreciation picture across all vehicle types, see the car depreciation & resale value guide.
Cars.Zone conclusion: the EV depreciation penalty is front-loaded and segment-dependent. It punishes sedan buyers most ($7,088/yr) and softens in SUVs ($4,960/yr compact SUV). For anyone planning to sell within 5 years, depreciation is the single line that most often tips the math toward gas.
Electric vs Gas Maintenance & Fuel: The Running-Cost Gap
EVs don’t need oil changes, spark plugs, timing belts, or exhaust work. Fewer drivetrain moving parts plus regenerative braking (which extends brake-pad life 2–3× in city driving) make EV maintenance the most predictable saving in the comparison. AAA rates EVs second-lowest maintenance of any category for 2025, behind only hybrids. Typical EV maintenance runs $150–$400/year versus $900–$1,800 for a comparable gas vehicle — roughly $3,750–$7,000 saved over five years.
On fuel, EVs cost 5.07¢/mile at the national average electricity rate versus 13.00¢/mile for gas — a 61% per-mile reduction that compounds with mileage. A 20,000-mile/year driver saves about $1,587/year on fuel with home charging; a 10,000-mile driver saves about $793. The one category where EVs carry higher repair risk is collision damage to the battery pack, where repairs of $6,000+ aren’t unusual — a risk already priced into the ~$455/year higher EV insurance.
Cars.Zone conclusion: maintenance is the EV’s most reliable advantage because it doesn’t depend on volatile fuel or electricity prices — it comes from entire service categories that simply don’t exist on an EV. Over 10 years, EV maintenance savings of $7,500–$15,000 are realistic, which is why long-hold owners capture the strongest EV economics.
Do EVs Actually Save Money? Your Break-Even Point
The averages above use AAA’s standard assumptions. Your real answer depends on your mileage, local gas and electricity prices, charging mix, and segment. The calculator below estimates when — or if — an EV pays off against a comparable gas car for your situation. The factors that move the result most are charging mix (home vs public) and vehicle segment.
EV vs Gas Decision Engine
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Cars.Zone estimate: A medium sedan driven 15,000 miles annually costs approximately $3,736 less per year to own as a gasoline vehicle than as a comparable EV — about $18,680 over a 5-year ownership period — based on AAA Your Driving Costs 2025 ownership-cost data and U.S. Department of Energy efficiency assumptions. The gap narrows in SUV segments and over longer ownership horizons.
Source: AAA Your Driving Costs 2025 · DOE efficiency averages · iSeeCars 2025 depreciation study. Figures are estimates for comparison.
See the cost-driver breakdown & holding-period detail
The Charging Variable That Changes Everything
The EV fuel advantage assumes home charging — and that assumption is worth examining before you run the numbers. At home on Level 2 at the national average 16.7¢/kWh, a vehicle getting 3.5 miles/kWh costs about 4.8¢/mile, roughly a third of gas at $3.15/gallon in a 30-mpg car. At 15,000 miles/year that’s about $720–$750 annually — the $729 figure in the AAA table.
But most EV owners don’t charge exclusively at home. Public Level 2 averages $0.25/kWh; DC fast charging averages $0.47/kWh. Run 40% of your miles on DC fast chargers and your fuel cost more than doubles — the advantage over gas shrinks from $940/year to closer to $200. A Level 2 home charger installation runs $800–$3,000 (most attached-garage homes pay $1,000–$1,500), partially offset by the 30% federal charger credit (IRS Form 8911, up to $1,000, through June 30, 2026) and utility rebates of $200–$500.
The public-charging math: a driver who charges primarily at public stations may save only $200–$400/year on fuel versus gas — not the $900+ that home-charging comparisons show. If you don’t have reliable home or workplace Level 2 access, factor this in before assuming EV fuel savings.
The 10-Year Picture: Where EVs Win Long-Term
AAA’s study assumes a 5-year ownership cycle ending in a trade-in — which is exactly when the EV depreciation penalty bites hardest. Extend the horizon and the math inverts. Depreciation loss is front-loaded in years one through three; fuel and maintenance savings compound every year you keep the car. Once the loan is paid off, finance charges disappear and the operating-cost advantage keeps accumulating.
Over 10 years, realistic EV maintenance savings reach $7,500–$15,000 versus a comparable gas vehicle, and fuel savings at home-charging rates add roughly $8,000–$16,000 for a typical-mileage driver. A buyer who holds an EV 8–10 years captures the operating savings without re-paying the front-loaded depreciation — which is where EVs become the cheaper choice. The shorter your ownership horizon, the more depreciation dominates and the better gas looks.
Cars.Zone conclusion: the EV-vs-gas answer is largely a function of holding period. Under 5 years, gas usually wins outside the SUV segments. Beyond 7–8 years, the compounding fuel and maintenance savings overtake the one-time depreciation hit, and the EV pulls ahead — especially for high-mileage, home-charging owners.
Who Should Consider an EV Right Now
Post-credit EV economics favor a specific profile. An EV likely saves money over a 5–7 year hold — even without the federal credit — if you match most of these: you drive 15,000+ miles/year; you have a garage or reliable Level 2 access at home or work; you’re buying in the compact or medium SUV segment (where the gap is $912 or $126, not $3,736); you plan to keep the vehicle 7+ years; and your state has active incentives (California $4,000–$7,500, Colorado $5,000, and others still offer rebates that offset the lost federal credit). Buyers not ready for full EV ownership costs should consider the hybrid middle ground — the hybrid vs gas car cost comparison shows how hybrids close most of the fuel gap without the depreciation penalty.
The used-EV opportunity: high first-owner depreciation has reshaped the used market in buyers’ favor. A buyer of a 3-year-old EV absorbs none of the first-owner depreciation shock while inheriting the same fuel and maintenance advantages — often the strongest EV value proposition in 2026.
Frequently Asked Questions
It depends on segment and charging. For medium sedans, gas is cheaper by about $3,736/year (AAA 2025). For compact and medium SUVs, the gap narrows to $912 and $126/year. EVs win on fuel (61% cheaper per mile with home charging) and maintenance (roughly half the annual cost), but carry a depreciation penalty — 58.8% over five years vs 45.6% industry average (iSeeCars). The federal $7,500 credit expired September 30, 2025, removing a key equalizer.
At the national average 16.7¢/kWh, an EV getting 3.5 miles/kWh costs about 4.8¢/mile. For 15,000 miles/year with 80%+ home charging, that’s roughly $720–$750/year — about $60–$63/month — versus $1,669/year in gas for a comparable sedan. Charging mostly at public DC fast chargers ($0.47/kWh) raises it to about $160–$170/month. Your charging mix is the single biggest variable in EV fuel cost.
Battery technology improves rapidly, making older models feel dated; Tesla’s repeated price cuts dragged down used EV values; and an oversupply of used EVs from 2024–2025 lease returns and fleet sales outpaced value-oriented used-buyer demand. EVs lost 58.8% over five years vs 45.6% industry average (iSeeCars, 800,000+ vehicles). The gap is expected to narrow as the market matures, but in 2026 it remains the EV’s biggest cost disadvantage.
Often yes, unlike the 5-year picture. Depreciation loss is front-loaded in the first 3 years, while fuel and maintenance savings compound every year. Over 10 years, EV maintenance savings of $7,500–$15,000 plus fuel savings are realistic for a home-charging driver. A buyer holding 8–10 years captures the operating savings without re-paying the front-loaded depreciation — which is where EVs become the cheaper choice.
Yes, significantly. Fuel and maintenance savings scale with mileage. A driver doing 20,000 miles/year saves roughly $1,587/year on fuel alone with home charging (versus about $940 at 15,000 miles). The depreciation penalty is largely fixed regardless of mileage, so high-mileage drivers with home charging see the strongest EV economics. Low-mileage drivers (under 8,000 miles/year) rarely benefit financially.
About the Author — Ashvin J. Sonani
Founder & Lead Researcher at Cars.Zone. Digital marketer, data analyst, and domain investor with 28+ years of internet experience. Specializes in extracting actionable conclusions from complex, multi-variable datasets across insurance, depreciation, and total cost of ownership. Cars.Zone analyses are built from primary industry sources (AAA, iSeeCars, Kelley Blue Book, Edmunds, DOE) — never aggregator summaries — and cross-verified before publication. No manufacturer or dealer relationships influence editorial content.