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The short answer: closer than you think
An electric car is cheap to run and expensive to own. It costs far less per mile in energy and a bit less in maintenance, but it usually costs more to buy and loses value faster.
In AAA’s 2026 Your Driving Costs study (15,000 miles a year), the result depends on the type of vehicle:
| Vehicle type | Electric, per year | Gas, per year | Difference |
|---|---|---|---|
| Medium sedan | $13,662 | $10,582 | EV costs $3,080 more |
| Compact SUV | $11,888 | $11,656 | EV costs $232 more |
| Medium SUV | $14,332 | $14,431 | EV costs $99 less |
| Pickup truck | $17,414 | $16,626 | EV costs $788 more |
Source: AAA Your Driving Costs 2026, Sep 2026. Difference is our calculation.
So in most classes the gap is small, and for a medium SUV the EV came out slightly ahead. For the full picture of what any car costs beyond the sticker, see our guide to the true cost of owning a car.
Purchase price: EVs still cost more up front
Kelley Blue Book reports that the average new EV sold for $55,879 in September 2026, while the average for all new vehicles was $50,562. That is a gap of about $5,317, or roughly 10.5% (our calculation).
The gap has narrowed. EV prices were 3% lower than a year earlier, and EV incentives averaged 11% of the transaction price, the lowest point of 2026.
The federal tax credit is gone. The IRS says the new and used clean vehicle credits are not available for vehicles acquired after September 30, 2025. If you buy an EV in 2026, do not count on a federal credit. Some states and utilities run their own rebates, so check locally.
Fuel vs electricity: what a mile really costs
This is where EVs win clearly. Here is our calculation using one model sold both ways, the 2024 Chevrolet Equinox, with current national prices:
| Gas Equinox FWD | Equinox EV FWD | |
|---|---|---|
| EPA efficiency | 28 mpg | 31 kWh per 100 miles |
| Energy price | $4.284 per gallon | 18.31¢ per kWh |
| Cost per mile | 15.3¢ | 5.7¢ |
| Cost for 15,000 miles | $2,295 | $851 |
Sources: fueleconomy.gov (efficiency); EIA regular gasoline, week of Oct 19, 2026; EIA average residential electricity, July 2026. Per-mile and yearly costs are our calculation.
The math: $4.284 divided by 28 mpg is about 15.3 cents a mile. For the EV, 0.31 kWh per mile times $0.1831 is about 5.7 cents. That saves roughly $1,444 a year at 15,000 miles.
Gas prices matter a lot here. EIA’s regular gas average was about $1.27 a gallon higher than a year earlier, which widens the EV’s lead. The numbers assume charging at home at the residential rate; public fast charging is often priced well above that.
Maintenance, insurance and depreciation
AAA’s 2026 numbers for a compact SUV, the closest class to the Equinox comparison above:
| Cost per year | Electric | Gas |
|---|---|---|
| Fuel or charging | $771 | $2,382 |
| Maintenance, repair, tires | $1,402 | $1,954 |
| Full-coverage insurance | $2,277 | $2,188 |
| Depreciation | $5,298 | $3,568 |
| License, registration, taxes | $931 | $631 |
| Finance charges | $1,208 | $933 |
Source: AAA Your Driving Costs 2026, Sep 2026, compact SUV at 15,000 miles a year.
- Maintenance. No oil changes, and AAA’s EV came in about $552 a year cheaper.
- Battery. The big long-term question. Per fueleconomy.gov, a DOE study suggests EV batteries last 12 to 15 years in moderate climates and 8 to 12 years in severe ones. Replacement can be costly if a battery fails outside warranty, so check the battery warranty before you buy, especially on a used EV.
- Insurance. Mixed. The electric compact SUV cost $89 more a year, the electric medium sedan $366 more, and the electric medium SUV $353 less.
- Depreciation. This is the EV’s biggest weak spot. The electric compact SUV lost $1,730 more value per year, and AAA found electric medium sedans depreciated about twice as much as gas ones.
Home charger installation cost
Most EV owners install a Level 2 (240-volt) charger. HomeAdvisor puts the average charger installation project at $967, with a typical range of $554 to $1,380. It lists Level 2 units at $700 to $2,000 and electrician labor at $400 to $1,200. If your home needs an electrical panel upgrade, add $800 to $2,000.
A Level 1 charger uses a regular 120-volt outlet and costs $300 to $600, but adds only about 3 to 5 miles of range per hour.
5-year cost comparison
Here is our calculation for a compact SUV over 5 years and 75,000 miles, using AAA’s yearly figures times five, plus HomeAdvisor’s average charger install for the EV.
| 5-year cost | Electric compact SUV | Gas compact SUV |
|---|---|---|
| Fuel or charging | $3,855 | $11,910 |
| Maintenance, repair, tires | $7,010 | $9,770 |
| Insurance | $11,385 | $10,940 |
| Depreciation | $26,490 | $17,840 |
| License, registration, taxes | $4,655 | $3,155 |
| Finance charges | $6,040 | $4,665 |
| Home charger install | $967 | $0 |
| Total | $60,402 | $58,280 |
Source: our calculation from AAA Your Driving Costs 2026 (Sep 2026) and HomeAdvisor (Jun 2026).
Over five years, the gas SUV comes out about $2,122 cheaper in this example. The EV saves about $8,055 on fuel and $2,760 on maintenance, but loses $8,650 more in depreciation. If you keep the car longer than five years, drive more than 15,000 miles a year, or pay higher gas prices, the balance tilts toward the EV.
How to decide
- Price your own miles. Use your real electricity rate and local gas price. If you plan long drives, our road trip cost calculator shows how fuel adds up.
- Think about how long you will keep it. Depreciation hurts most in the early years, so long-term owners feel it less.
- Check home charging first. Without a garage or driveway, you may rely on public charging, which costs more per mile.
- Compare like with like. Quote insurance for the exact models you are considering, since the EV is not always pricier.
- Keep a cushion. Whatever you choose, an emergency fund covers surprise repairs.
See how we research every number on our method page, or browse more car costs.
Common questions
Is there still a federal tax credit for electric cars in 2026?
No. The IRS says the new and used clean vehicle credits are not available for vehicles acquired after September 30, 2025. A car counted as acquired by that date only if you signed a binding written contract and made a payment by then.
How much does it cost to charge an EV at home?
Using EIA's July 2026 average residential rate of 18.31 cents per kWh and the 31 kWh per 100 miles that fueleconomy.gov lists for a 2024 Chevrolet Equinox EV, home charging costs about 5.7 cents a mile, or about $851 for 15,000 miles (our calculation). Your local rate can be much higher or lower.
Are electric cars cheaper to maintain?
Usually somewhat. In AAA's 2026 study, maintenance, repair and tires for a compact electric SUV came to $1,402 a year versus $1,954 for a gas compact SUV.
Do electric cars cost more to insure?
It depends on the vehicle type. AAA found full coverage for an electric medium sedan cost $2,070 a year versus $1,704 for gas, but for medium SUVs the EV was cheaper ($2,070 versus $2,423).
Sources
Every number above comes from these pages. We list the date each page showed when we checked it.
- AAA, Your Driving Costs 2026 brochure
- Cox Automotive, Kelley Blue Book September 2026 ATP Report
- U.S. EIA, Gasoline and Diesel Fuel Update
- U.S. EIA, Electric Power Monthly, End-Use sales and prices
- fueleconomy.gov, 2024 Chevrolet Equinox
- fueleconomy.gov, All-Electric Vehicles
- IRS, Clean Vehicle Tax Credits
- HomeAdvisor, Electric Car Charging Station Installation Cost
Estimates are for general information only. Get written quotes from licensed local pros before you decide.
- Passed Level II of the CFA® Program
- Canadian Securities Course (CSC)
- Conduct and Practices Handbook (CPH)
Sepehr Parsa is a financial planner and the founder and editor of DollarMap. He has passed Level II of the CFA Program and completed the Canadian Securities Course (CSC) and the Conduct and Practices Handbook (CPH) course. He writes and edits our guides on cars, home repairs, budgeting, saving and investing, and checks that every number has a source.
“In a slowing economy, a budget is what keeps you afloat.”
How we check every number
