โฑ Break-Even Point
Ready to Make the Switch?
Explore EV financing options and find the best rates for your next vehicle.
Enter your annual miles to see estimated 5-year costs for real-world EV vs gas matchups.
What Is Total Cost of Ownership?
The sticker price is only part of the story. Total Cost of Ownership (TCO) includes everything you'll spend over the life of the vehicle โ financing, fuel, insurance, maintenance, and repairs.
EVs often cost more upfront but significantly less to fuel and maintain. The break-even point is when cumulative EV savings offset the higher purchase price.
Federal EV Tax Credits (2025โ2026)
| Credit | Amount | Requirements |
|---|---|---|
| New EV โ Full | $7,500 | Income โค $150k single / $300k joint; MSRP limits apply |
| New EV โ Partial | $3,750 | Battery/mineral sourcing requirements partially met |
| Used EV | $4,000 | Vehicle โค $25k, income โค $75k single |
| Luxury / Ineligible | $0 | SUV MSRP over $80k, sedan over $55k, or foreign assembly |
EV Maintenance Savings
EVs have far fewer moving parts than gas vehicles, which translates to real savings:
- No oil changes (~$100โ$150/year savings)
- Regenerative braking extends brake life 2โ3ร
- No transmission fluid, spark plugs, or timing belts
- Average EV maintenance cost: $400โ$700/yr vs $1,000โ$1,500 for gas
Electricity vs. Gas: Cost Per Mile
At average US prices ($0.16/kWh, $3.50/gal), charging an EV typically costs 3โ4ร less per mile than fueling a gas car. A vehicle getting 30 MPG costs about $0.12/mile in fuel. A 100 MPGe EV costs about $0.05/mile โ a 58% reduction.
Home charging rates can be even lower with off-peak electricity plans, often under $0.10/kWh overnight.
How This Calculator Works
Enter the purchase price of each vehicle, your financing details, annual mileage, local fuel and electricity rates, and typical ownership costs. The calculator computes true 5-year total cost of ownership, finds your exact break-even point, and shows year-by-year cumulative savings.