"EVs are too expensive" is the most common objection to going electric — and it's only half true. Electric vehicles almost always carry a higher sticker price than a comparable gas car, sometimes by $5,000-$10,000. But sticker price isn't total cost. Once you add up fuel, maintenance, insurance, and depreciation over a realistic 5-year, 60,000-mile ownership window, the gap often shrinks dramatically or flips entirely in the EV's favor. Let's run the actual numbers using a Tesla Model 3 (or similar mid-size EV) against a Toyota Camry (a comparable gas sedan), both purchased new.
Upfront Price: The Gap Is Real But Shrinking
A new mid-size EV like the Model 3 or Chevy Equinox EV starts around $38,000-$42,000. A comparable gas sedan like a Camry or Accord starts around $28,000-$32,000. That's a starting gap of roughly $8,000-$10,000. If you qualify for the federal EV tax credit (up to $7,500 for new EVs meeting battery and assembly requirements), that gap can shrink to $500-$2,500 — genuinely close to parity.
Fuel vs. Charging: Where EVs Start Winning
This is where the math turns. At the U.S. average residential electricity rate of about 16 cents/kWh, charging a 60 kWh battery from empty costs roughly $9.60 and delivers 200-240 miles of range. A gas Camry at 32 mpg combined and $3.40/gallon covers that same distance for about $25-$30. Per mile, that's roughly 4 cents for the EV vs. 11 cents for gas — the EV costs about a third as much to fuel.
| Annual driving: 12,000 miles | EV (home charging) | Gas sedan (32 mpg) |
|---|---|---|
| Cost per mile | ~$0.04 | ~$0.11 |
| Annual fuel/energy cost | $480 | $1,275 |
| 5-year fuel/energy cost | $2,400 | $6,375 |
| 5-year savings | $3,975 in the EV's favor | |
Maintenance: No Oil Changes, No Spark Plugs
An EV has no engine oil, no timing belt, no spark plugs, no exhaust system, and far fewer moving parts overall. Regenerative braking also means brake pads typically last 2-3x longer. A gas car needs oil changes every 5,000-7,500 miles (~$50-$80 each), plus periodic transmission fluid, spark plugs, and belts. Over 5 years and 60,000 miles, typical maintenance costs run about $2,800 for a gas sedan versus $1,400-$1,700 for an EV — roughly half.
Insurance and Depreciation
EV insurance premiums are often 10-25% higher than comparable gas cars, mainly because battery packs and specialized parts are expensive to repair. On a $1,400/year gas policy, that's an extra $140-$350/year, or $700-$1,750 over 5 years. Depreciation has historically been a weak spot for EVs — some models lost 50%+ of value in 3 years as newer, longer-range models launched and tax credits shifted to used buyers — though this gap has narrowed considerably in 2025-2026 as EV resale markets matured. Always check depreciation data for the specific model you're considering rather than assuming a blanket rule.
The 5-Year Bottom Line
Putting it together for our Model 3 vs. Camry example, assuming the EV buyer captures a $7,500 tax credit:
- Upfront price gap after credit: ~$1,000-$2,500 (EV higher)
- 5-year fuel/energy savings: ~$3,975 (EV favor)
- 5-year maintenance savings: ~$1,100-$1,400 (EV favor)
- 5-year extra insurance cost: ~$700-$1,750 (gas favor)
- Home charger install: ~$800-$2,200 one-time (gas favor)
Net result: in most scenarios, the EV comes out roughly even to $2,000-$3,000 ahead over 5 years — before even counting potential state incentives, HOV lane access, or lower depreciation in some models. The exact answer depends heavily on your local electricity rate, gas price, annual mileage, and whether you qualify for tax credits, which is exactly why running your own numbers matters more than any generic rule of thumb.