Americans have heard a lot of talk about how EVs are cheaper to own than gas cars. EVs do tend to have higher sticker prices, an issue car manufacturers are working to address with more affordable options and that tax credits can help with. But other factors also come into play, like maintenance and fuel, which both tend to be cheaper for EVs.
Exactly how much cheaper? Based on average current gas and electricity prices, an American driver saves 8.1 cents per mile on fuel when driving an EV over a gas car, according to a new report from Coltura, an environmental nonprofit that aims to end the use of gasoline.
Those cents add up, to an average savings of $100 a month—or $1,200 a year—based on figures from the second quarter of 2024. (That 8.1 cents is up from 7.6 cents at the end of 2023.) Gasoline superusers—drivers in the top 10% of gas consumption who use more than 100 gallons a month—could save $400 a month, or nearly $5,000 a year, by switching to an EV. The report also shares savings on certain road trips: driving from Los Angeles to San Diego, a 250-mile round trip, would save you $25.22 in an EV over a gas car.
How to calculate EV cost savings
Analyses on EV expenses can include different costs. Some factor in the time it takes to charge versus filling up at a gas station (though EV drivers tend to do most of their charging at home). Others include the upfront costs of that home charging infrastructure. Matthew Metz, founder and co-executive director of Coltura, wanted to release a simple, straightforward analysis on the difference in operating costs—primarily fuel, along with maintenance—of EVs versus gas vehicles.
Coltura’s report used GasBuddy to track gas prices by state, as well as government data on residential electricity rates across the country. It factored in Argonne National Laboratory’s figures on charging habits—80% at home, 20% on the road—and Consumer Reports data that says EV drivers save 3 cents per mile just on maintenance costs. That’s in addition to the average 8.1 cents per mile fuel savings, and is what helps the average EV driver save $1,226 a year. They also took into account different vehicle types, so you can compare a gas truck to an EV truck, and so on. A calculator lets drivers plug in their own details and miles driven to find their specific EV savings.
This EV cost savings report, based on data from Q2 2024, is Coltura’s first, but the nonprofit plans to update it with new numbers every quarter. That means those EV cost savings might move up and down. Still, data over the last five quarters shows EVs have consistently been cheaper to operate than gas-powered cars.
EV cost savings vary by state
States have different gas and utility prices, affecting EV cost savings. Washington, for example, has the highest gas prices in the country, and among some of the lowest electricity rates, giving the largest savings to EV drivers at 13.1 cents per mile. Massachusetts had the smallest savings at 4.7 cents per mile—though Metz noted that the state does give a rebate of 5 cents per kilowatt hour if EV drivers charge at off-peak hours (from 9 p.m. to 1 p.m.).
For simplicity, the Coltura report used the standard residential electricity rate in its analysis, but because of programs like the Massachusetts rebate (or free charging for EV drivers in Texas overnight) the analysis doesn’t always include the lowest electricity price EV drivers could see.
In this way, there are a lot of factors that go into EV cost savings calculations—which Metz says many drivers may not be aware of. “There’s a sort of tagline that ‘EVs are too expensive for me,’” Metz says. There’s two parts to that thought: the upfront cost, which EV tax credits can help with, and then the question of “What does it cost to operate once you own a car?” he says. “That’s what this index is supposed to answer for people.”
