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To calculate an electric delivery truck’s total cost of ownership (TCO), add every cost of acquiring, charging, operating and maintaining it over a defined period, then account for verified incentives and resale value. Compare that total—and cost per mile—with a diesel truck that can perform the same routes and workload. There is no single current national figure that applies to every fleet: truck class, mileage, payload, electricity tariff, charging setup and location can all change the result.
1. Define the job and comparison period
Start with the service the truck must provide, not its powertrain. Set the ownership period and annual miles, then describe the routes, stops, shifts, payload or cargo-volume constraint, and required availability. Include replacement and resale assumptions. Compare an electric truck and a diesel truck only if both can meet those requirements.
Be explicit about whether the operation is single-shift or multi-shift and whether it is weight-limited or volume-limited. A truck’s range, time available to charge between shifts, and usable payload can affect whether it can serve the same work. DOE’s 2021 truck-cost analysis modeled factors including range, dwell time and payload, and its findings vary by operating scenario: DOE summary of the truck TCO study.
2. Build a complete cost model
Use the same analysis period and mileage for both vehicles. Include one-time costs, recurring operating costs and any measurable effect on route capacity or productivity. A useful undiscounted structure is:
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Lifecycle TCO = acquisition + charging infrastructure + energy + maintenance and repair + labor + insurance + tires + taxes, fees, tolls and permits + financing + downtime, productivity and payload effects − verified incentives − residual value.
For a present-value comparison, convert future costs and resale value to the same present-value basis using a documented discount rate and consistent inflation, financing and replacement assumptions for both alternatives.
Vehicle acquisition and financing
Use current, comparable purchase or lease quotes for the actual truck class and configuration. Include financing costs where relevant, and apply the same treatment to the diesel comparator. Do not substitute a historical study estimate for a current quote.
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Charging equipment and site costs
Include chargers, installation, site work and any utility upgrades. Record who owns and pays for the equipment, including any utility-provided components. Utility service options may affect the capital costs, so confirm them with the utility rather than assuming the truck quote covers charging. DOE fleet guidance recommends budgeting for both vehicle and charging infrastructure costs: AFDC guidance for electric vehicles in fleets.
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Electricity and diesel
For the electric truck, calculate energy cost as kWh per mile × applicable electricity cost per kWh × miles driven. Use the truck’s expected efficiency and the fleet’s actual tariff, including both energy charges and any applicable demand charges. Commercial tariffs can charge for peak power draw; charging several vehicles at once may increase that peak. Charging time and schedule therefore matter as well as the energy rate. DOE’s federal fleet training explains the per-mile method and demand-charge issue: DOE FEMP electric-vehicle financial considerations.
For diesel, estimate fuel use from the comparator’s expected fuel economy and apply a locally appropriate fuel-price assumption over the same mileage and period. Do not use a dated national snapshot as though it were a current fleet price.
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Maintenance, labor and other operating costs
Estimate maintenance and repair from an appropriate service plan or fleet records. Add driver wages and benefits, insurance, tires, registration and other taxes or fees, tolls, permits, and scheduled service. Count charging labor if it adds paid work, and include refueling or charging dwell time if it changes staffing, route coverage or the ability to complete work. DOE’s truck study lists purchase price, fuel, operating and maintenance costs, driver wages and benefits, insurance, tires, permits, tolls, dwell time and lost payload among its cost categories: DOE summary of the truck TCO study.
Payload and productivity
If battery mass reduces usable payload enough to affect deliveries, model the consequence in operational terms: extra trips, a larger vehicle, or reduced revenue capacity, for example. If the truck is volume-limited and payload does not constrain the work, state that assumption instead of adding a speculative payload penalty. Heavy-duty payload capacity and charging labor are addressed in DOE’s comprehensive TCO report: DOE AFDC comprehensive vehicle TCO report.
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Subtract an incentive only after confirming that the specific vehicle, buyer, location and purchase date meet the current program requirements. AFDC’s commercial alternative-fuel vehicle tax-credit page is a starting point for checking eligibility, not confirmation that a particular fleet qualifies: AFDC commercial AFV and fueling infrastructure tax credit. Estimate resale value for both vehicles using a stated assumption and deduct it consistently at the end of the ownership period.
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3. Calculate total cost and cost per mile
Sum the costs for each truck across the chosen ownership horizon. If you are not discounting future costs, keep all figures on a consistent nominal basis. If you are calculating present value, discount future costs and residual value using the same assumptions for both vehicles.
Then calculate lifecycle cost per mile:
Lifecycle cost per mile = lifecycle TCO ÷ total miles driven over the ownership period.
Show both the total and per-mile result. A lower per-mile figure does not automatically mean a better fleet choice if the vehicle requires more upfront capital, cannot carry the required payload, or cannot reliably cover the routes.
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4. Make the comparison auditable
Keep the assumptions visible so another fleet manager can reproduce the result. A compact input sheet should include:
- Vehicle class, configuration and current quote for each truck
- Ownership period, annual and lifetime mileage, route, stops and shifts
- Payload and volume constraints, required range and availability
- Electric-truck energy consumption and diesel-truck fuel economy
- Electricity tariff, including energy and demand charges, plus charging schedule
- Charger, installation, site and utility costs, with ownership responsibilities
- Maintenance, labor, insurance, tires, taxes, fees, tolls and permits
- Downtime, charging or refueling dwell time, and any payload or productivity effect
- Financing, discount rate, inflation basis, residual value and replacement assumptions
- Any incentive, with eligibility and amount confirmed for the fleet’s jurisdiction
Alongside lifecycle TCO and cost per mile, compare capital requirements, energy cost, maintenance, time spent charging or refueling, payload capacity and uptime. Run sensitivity cases for annual utilization and electricity demand charges; also test other inputs that are uncertain for your operation, such as resale value or route changes.
5. Treat published figures as context, not your answer
DOE reported a modeled ten-year total cost of driving of $690,737 for a model-year 2025 diesel Class 4 delivery truck in a July 2021 estimate. That is a historical model result for a diesel truck, not a current purchase quote or an electric-truck TCO. The same DOE item reported $1.82 per mile for a model-year 2025 diesel Class 8 sleeper-cab tractor; that is a different class and not a delivery-truck benchmark: DOE’s 2021 diesel-truck estimate.
DOE’s 2021 analysis examined six truck powertrains and found that battery-electric trucks could be a better fit in scenarios with shorter range or less sensitivity to dwell time, while fuel-cell electric trucks could suit longer-range or higher-uptime needs. Those are scenario conclusions, not a universal ranking of costs: DOE announcement of the 2021 truck TCO report.
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AFDC lists average operation-and-maintenance cost of 6.1 cents per mile for light-duty all-electric vehicles. That figure is explicitly for light-duty vehicles, so it should not be used as a medium- or heavy-duty delivery-truck maintenance estimate: AFDC electric vehicle maintenance guidance.
What the calculation tells you
A useful electric-versus-diesel TCO result is specific to a truck, route, tariff, charging plan and ownership period. Use current quotes and local operating assumptions, make the service requirements identical, and show the sensitivity cases that could change the decision. Broad powertrain comparisons and historical modeled totals cannot replace that fleet-specific calculation.
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