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cost per mile9 MIN

How to work out whether an electric car will save you money on fuel

Use each vehicle’s real efficiency and your local energy prices to calculate cost per mile, annual fuel savings and the electricity price at which an EV breaks even with petrol. Then test charging scenarios and total ownership costs.

By CarCody Team

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Calculate each car’s energy cost per mile using the electricity and fuel prices you will actually pay, then multiply the difference by your annual mileage. For an EV rated in kilowatt-hours per 100 miles (kWh/100 mi), use (kWh/100 mi × electricity price per kWh) ÷ 100. For a petrol or diesel car rated in miles per gallon (mpg), use fuel price per gallon ÷ mpg. Multiply the per-mile difference by the same annual distance for both vehicles.

That result estimates fuel or energy savings only. A purchase decision also needs vehicle price, finance, insurance, taxes, incentives, maintenance and any charging-equipment or installation costs. The U.S. Department of Energy (DOE) describes its calculator as a high-level screening tool because assumptions and charging arrangements change the result.

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Start with the two numbers that determine fuel savings

You need an efficiency figure and a price for each energy source. Use the specific EV and combustion car you are comparing, preferably similar in size and intended use. Record the EV’s EPA electricity consumption in kWh/100 mi and the other car’s EPA fuel economy in mpg. Then record the electricity rate and petrol or diesel price relevant to your driving.

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The DOE Vehicle Cost Calculator accepts vehicle-efficiency and driving-habit inputs. It is useful for checking your arithmetic, but enter your own prices rather than accepting a generic national assumption.

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Input What to record Why it matters
EV efficiency kWh/100 miles from the vehicle’s EPA information Lower consumption means fewer kilowatt-hours for the same trip.
Combustion-car efficiency EPA mpg for the petrol or diesel model Higher mpg means fewer gallons for the same distance.
Electricity price Your home tariff and each public-charging fee basis Charging may be billed per kilowatt-hour, minute, session or a combination.
Fuel price The local price per gallon (or local equivalent) Fuel prices vary by location and date.
Annual distance Miles driven by both vehicles in the same year The per-mile difference scales directly with mileage.
Charging split Share of energy bought at home and in public A high public-charging share can materially increase the EV’s energy cost.

Use the direct cost-per-mile formulas

Electric car

EV cost per mile = (EV kWh/100 mi × electricity price per kWh) ÷ 100. For example, an EV using 28 kWh/100 miles at an illustrative electricity price of $0.16/kWh costs (28 × 0.16) ÷ 100 = $0.0448 per mile, or 4.48 cents.

Petrol or diesel car

Combustion-car cost per mile = fuel price per gallon ÷ mpg. At an illustrative $3.60 per gallon and 32 mpg, the result is $3.60 ÷ 32 = $0.1125 per mile, or 11.25 cents.

Annual fuel saving

Annual saving = (combustion cost per mile − EV cost per mile) × annual miles. With the illustrative figures above and 12,000 miles, the difference is $0.0677 per mile and the estimated annual energy saving is about $812.40. These are example assumptions, not a forecast of any particular driver’s prices.

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Keep the units consistent. If your electricity bill is in pence or cents, convert it to the same currency unit used for the fuel price before calculating. Round only at the end; rounding each intermediate figure can distort a small difference.

Build a realistic electricity price when charging is mixed

Home charging is often priced by the utility’s tariff, while public providers can charge by session, time connected, energy consumed or a combination. The DOE’s Electric Vehicles for Consumers guidance explains these public-charging fee arrangements. Treat every fee as part of the energy cost rather than assuming every kilowatt-hour has the home rate.

Weighted electricity rate

When you know the share of energy bought in each setting, calculate a weighted rate:

Weighted rate = (home share × home rate) + (public share × public rate).

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For an illustrative 70% home/30% public split, a home rate of $0.14/kWh and a public rate of $0.45/kWh produce (0.70 × $0.14) + (0.30 × $0.45) = $0.233/kWh. An EV using 28 kWh/100 miles would then cost $0.06524 per mile, or about $783 for 12,000 miles. The exact split should be based on energy purchased, not merely the number of charging sessions, because sessions can deliver very different amounts of energy.

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Convert non-energy public fees

If a provider charges by the minute or session, divide the complete charge by the kilowatt-hours delivered to obtain an effective price per kWh for that visit. Include connection fees, minimum charges and parking fees that are unavoidable for charging. If you cannot measure delivered energy, use a range rather than a falsely precise single rate and show how the result changes at the low and high ends.

Find the electricity price that would equal petrol cost

A break-even electricity price shows how expensive charging could become before the EV loses its energy-cost advantage:

Break-even electricity price per kWh = (fuel price per gallon ÷ mpg) × 100 ÷ EV kWh/100 mi.

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Using the illustrative $3.60/gallon, 32-mpg car and 28-kWh/100-mile EV gives ($3.60 ÷ 32) × 100 ÷ 28 = about $0.402/kWh. At an all-in electricity rate below that, the EV has the lower calculated energy cost; above it, the combustion car is cheaper on this narrow measure. This is a price comparison, not a prediction of future fuel prices or a total-ownership break-even point.

You can reverse the equation to test a different petrol price, mpg or EV efficiency. A less efficient EV lowers the break-even electricity rate, while a more efficient petrol car does the same. Recalculate whenever rates, public fees or vehicle choices change.

Read the EPA figures correctly

Why kWh/100 miles is the preferred EV input

The EPA EV label reports electricity consumption in kWh/100 miles. That measure connects directly to what you buy from an electricity provider, so it is the most straightforward input for cost arithmetic. A lower number means less electricity is required to travel the same distance, all else being equal. Use the rating for the exact trim and wheel configuration when available.

The label may also show an annual fuel-cost example based on assumptions such as 15,000 miles per year and $0.12/kWh. That example is not your tariff and is not a personalized estimate; replace both assumptions with your own figures.

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What MPGe does and does not tell you

EPA’s Electric & Plug-In Hybrid Electric Vehicles explanation describes MPGe as an energy-content metric that allows comparisons across vehicle technologies. It is useful for comparing an EV with a petrol car on an equivalent-energy basis, but it is not a local price. Your actual cost still requires the EV’s kWh/100-mile figure and your electricity rate, plus the petrol car’s mpg and fuel price.

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Do not multiply MPGe by your electricity tariff or treat MPGe as miles per dollar. MPGe and kWh/100 miles describe efficiency; prices determine expenditure.

A repeatable calculation workflow

  1. Choose comparable vehicles. Match body size, performance and use as closely as practical. A small hatchback versus a large SUV can make the efficiency comparison more about vehicle class than powertrain.
  2. Record official efficiency. Write down the EV’s kWh/100 miles and the combustion car’s mpg from the relevant EPA information. Keep the model year and trim with your notes.
  3. Gather current prices. Check your electricity tariff, public-charging terms and local fuel price on the same date. The DOE calculator and Argonne National Laboratory’s Fuel Cost Comparison Calculator can provide structured comparison data, but local bills and provider terms are better for a personal estimate.
  4. Estimate annual mileage. Use odometer history, commuting distance and typical trips. Apply the same miles to both cars; otherwise the comparison is not like-for-like.
  5. Calculate each cost per mile. Apply the two formulas above without mixing gallons, litres, miles and kilometres.
  6. Adjust for charging mix. Calculate a weighted electricity rate when home and public charging are both used. If the rate varies by time of day, weight each time-of-use period by the energy bought there.
  7. Scale to a year. Multiply each cost per mile by annual miles, then subtract the EV total from the combustion-car total.
  8. Stress-test the result. Recalculate with realistic high and low fuel prices, electricity rates and public-charging shares. Report a range when those inputs are uncertain.
  9. Separate energy from ownership. Use a total-cost comparison only after adding purchase, finance, insurance, taxes, incentives, maintenance and charging-installation assumptions.

Illustrative comparison with transparent assumptions

The following example demonstrates the method; it is not a claim about national prices or a specific vehicle. Assume an EV rated at 28 kWh/100 miles, a petrol car rated at 32 mpg, 12,000 miles per year, $0.16/kWh electricity and $3.60/gallon petrol.

Item EV Petrol car
Efficiency 28 kWh/100 mi 32 mpg
Energy price $0.16/kWh $3.60/gal
Cost per mile (28 × 0.16) ÷ 100 = $0.0448 $3.60 ÷ 32 = $0.1125
Annual energy cost at 12,000 miles $537.60 $1,350.00
Annual difference $812.40 lower for the EV in this example

If the EV instead obtains 70% of its energy at $0.14/kWh home charging and 30% at $0.45/kWh public charging, its weighted rate is $0.233/kWh. The EV’s annual energy cost becomes about $782.88, reducing the illustrative advantage to about $567.12. The vehicle efficiencies and annual mileage did not change; only the charging price did.

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What can make the estimate wrong?

Using a national average instead of your tariff

A national electricity average may not resemble your utility bill, particularly if you have time-of-use pricing, demand charges or a flat-rate public plan. Use the marginal rate you pay for additional charging energy, and state whether taxes and fees are included.

Ignoring public-charging billing rules

A headline per-kWh figure can omit session, parking or idle-time charges. Convert the complete unavoidable cost into an effective energy price or include a separate per-session cost in your annual estimate.

Comparing unlike vehicles

Power, weight, tyres, weather and driving pattern affect real consumption. EPA ratings provide a consistent starting point, but they are not a guarantee of your personal result. A fair purchase comparison should include vehicles that meet the same transport need.

Applying the wrong model year or trim

Battery size, wheels and equipment can change an EV’s rated consumption; engine, transmission and drivetrain choices can change mpg. Verify the exact configuration before entering a number.

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Changing annual mileage between cars

If you assume the EV is driven more miles than the petrol car, the apparent saving reflects usage rather than efficiency. Use the same annual distance first, then run separate scenarios if one vehicle is genuinely used for different trips.

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Rounding too early

Differences of a few cents per mile become hundreds of dollars over a year. Keep at least four decimal places in intermediate cost-per-mile calculations and round the annual result to a sensible currency amount.

Fuel savings are not total ownership savings

Lower energy cost does not prove that an EV will cost less overall. A complete comparison should separately list:

  • Purchase price or lease payment and financing interest.
  • Applicable purchase incentives, tax credits or registration charges, with eligibility and expiry dates checked for your location.
  • Insurance premiums and taxes.
  • Scheduled maintenance and consumables.
  • Home electrical work, charging equipment and installation, if required.
  • Expected resale value and the period you intend to keep each vehicle.

The DOE’s Vehicle Cost Calculator Assumptions and Methodology explains that ownership estimates depend on electrical service, incentives, charging arrangements and other assumptions. Keep one worksheet for energy cost and another for total ownership so a favorable fuel result is not mistaken for a complete financial verdict.

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Home charging equipment: include it only when applicable

AFDC calls home charging equipment electric-vehicle supply equipment (EVSE). It safely delivers grid electricity to the vehicle battery; see Electric Vehicle Benefits and Considerations. You do not automatically need to buy a new charger to calculate energy cost. First check what equipment and circuit your home already has, what charging power your car supports and whether an electrician or utility upgrade is needed.

Put EVSE purchase and installation in the ownership worksheet, amortized over the period you expect to use it if that helps your decision. Do not add the one-time equipment price to every kilowatt-hour unless you are intentionally calculating a separate payback period.

Use scenarios instead of a single fragile number

A useful result shows how the answer changes when conditions change. Create at least three cases:

  • Home-heavy case: the largest realistic share of charging at your lowest household rate.
  • Mixed case: your expected home/public split with all applicable public fees.
  • Public-heavy case: a travel-heavy or apartment-living pattern with little home charging.

For each case, vary annual mileage and fuel prices within a range you consider plausible. The EV’s advantage usually grows with mileage when its cost per mile is lower, but a high public-charging rate can narrow or eliminate it. The break-even electricity-price calculation identifies the threshold without pretending to know future tariffs.

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Keep the result current and geographically appropriate

Vehicle specifications, petrol prices, utility tariffs, public-charging prices, incentives and calculator data change. Date-stamp your inputs and revisit them when you are close to buying, moving, changing tariffs or changing vehicles. The linked guidance and calculators are U.S.-focused; readers elsewhere should substitute their local vehicle-rating system, currency, taxes and energy prices while retaining the same arithmetic.

Your final note should state the vehicles, model years, efficiency figures, electricity rates, public-charging assumptions, fuel price, annual miles and calculation date. That makes the estimate auditable and easy to update instead of presenting an apparently precise number with hidden assumptions.

Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

cost per mileElectric CarsEV running costsfuel cost calculatorhome charging

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