EV or Gas Car? A Financial & Environmental Comparison

Priya lives in San Jose, CA, and commutes 60 miles round-trip to work. She drives a lot and faces California's high gas prices and a clean energy grid. She's comparing a Tesla Model Y ($50,000) to a new Toyota RAV4 ($40,000) over 6 years.

Key Inputs:

Step-by-Step Calculation:

1. Annual Fuel Costs:
- EV: (18,000 miles / 3.8 mi/kWh) * $0.287/kWh = $1,358 per year
- Gas: (18,000 miles / 30 MPG) * $4.85/gal = $2,910 per year

2. Total Cost of Ownership (TCO) over 6 Years:
- EV: ($50k Price - $7.5k Credit + $1.2k Charger) + ($1,358 Fuel + $400 Maint. + $2.2k Ins.) * 6 yrs - $24k Resale = $42,548
- Gas: $40k Price + ($2,910 Fuel + $900 Maint. + $1.8k Ins.) * 6 yrs - $18k Resale = $56,460

3. Total CO₂ Emissions over 6 Years:
- EV: ((18,000 mi / 3.8 mi/kWh) * 6 yrs) * 207 gCO₂/kWh = 5,887 kg CO₂
- Gas: ((18,000 mi / 30 MPG) * 6 yrs) * 8,887 gCO₂/gal = 31,993 kg CO₂

Verdict: Clear EV Win

Despite California's high electricity prices, the savings are immense due to extremely high gasoline costs and high mileage. The EV saves Priya over $13,900 in total cost and produces nearly 82% less CO₂ thanks to the state's clean power grid.

David and his family in Houston, TX, need a new SUV. They drive a moderate amount and benefit from Texas's low energy and gas prices. They're comparing a Kia EV9 ($55,000) with a Honda Pilot ($45,000) over 5 years.

Key Inputs:

Step-by-Step Calculation:

1. Annual Fuel Costs:
- EV: (14,000 miles / 3.0 mi/kWh) * $0.146/kWh = $681 per year
- Gas: (14,000 miles / 22 MPG) * $3.16/gal = $2,013 per year

2. Total Cost of Ownership (TCO) over 5 Years:
- EV: ($55k Price - $7.5k Credit + $1.2k Charger) + ($681 Fuel + $400 Maint. + $2.2k Ins.) * 5 yrs - $28k Resale = $37,305
- Gas: $45k Price + ($2,013 Fuel + $900 Maint. + $1.8k Ins.) * 5 yrs - $23k Resale = $45,565

3. Total CO₂ Emissions over 5 Years:
- EV: ((14,000 mi / 3.0 mi/kWh) * 5 yrs) * 403 gCO₂/kWh = 9,403 kg CO₂
- Gas: ((14,000 mi / 22 MPG) * 5 yrs) * 8,887 gCO₂/gal = 28,290 kg CO₂

Verdict: EV Still Wins, But Closer

Even with cheap gasoline, the EV's fuel and maintenance savings are substantial enough to save David's family over $8,200. The environmental benefit is still strong, with 67% less CO₂, though the gap is smaller than in California due to Texas's more carbon-intensive grid.

Maria in Columbus, OH, is looking for a reliable car and drives an average amount. Her main concern is the total cost over a long ownership period. She's comparing a Chevy Bolt EUV ($35,000) to a Toyota Corolla ($28,000) over 8 years. Ohio has a relatively carbon-intensive grid.

Key Inputs:

Step-by-Step Calculation:

1. Annual Fuel Costs:
- EV: (12,000 miles / 3.9 mi/kWh) * $0.164/kWh = $505 per year
- Gas: (12,000 miles / 35 MPG) * $3.41/gal = $1,169 per year

2. Total Cost of Ownership (TCO) over 8 Years:
- EV: ($35k Price - $7.5k Credit + $1.2k Charger) + ($505 Fuel + $400 Maint. + $1.8k Ins.) * 8 yrs - $10k Resale = $40,340
- Gas: $28k Price + ($1,169 Fuel + $900 Maint. + $1.6k Ins.) * 8 yrs - $9k Resale = $47,712

3. Total CO₂ Emissions over 8 Years:
- EV: ((12,000 mi / 3.9 mi/kWh) * 8 yrs) * 495 gCO₂/kWh = 12,185 kg CO₂
- Gas: ((12,000 mi / 35 MPG) * 8 yrs) * 8,887 gCO₂/gal = 24,379 kg CO₂

Verdict: Long-Term EV Savings

Initially, the gas car is much cheaper. However, over a long 8-year period, the consistent fuel and maintenance savings of the EV add up, making it over $7,300 cheaper in the long run. The EV is also environmentally better, producing 50% less CO₂, demonstrating that EVs usually win on emissions even on a less-than-perfect grid.

Hybrids and PHEVs offer a great middle ground. A traditional hybrid (like a Toyota Prius) uses a gas engine and an electric motor to achieve excellent MPG, but it cannot be plugged in. A PHEV (like a Toyota RAV4 Prime) has a larger battery that allows for 20-50 miles of all-electric range before a gas engine kicks in. For calculation purposes, you could model a PHEV by treating it as an EV for a portion of your annual miles and as a gas car for the remainder, but this calculator is primarily designed for a direct EV vs. Gas comparison.

Historically, EV resale values were lower due to rapidly changing technology and battery concerns. However, this trend has largely reversed. Many popular EVs now hold their value as well as, or even better than, their gasoline counterparts. Factors like brand reputation, battery range, and the overall demand for used EVs in your area play a huge role. Websites like Edmunds or Kelley Blue Book (KBB) are excellent resources for researching projected resale values for specific models.

Cold weather is a significant factor for EVs. Battery efficiency drops in the cold, and running the cabin heater uses a considerable amount of energy. You can expect a range reduction of 20-40% in freezing temperatures. This means your "Miles per kWh" will be lower in the winter, increasing your energy costs slightly. While this calculator uses an annual average for efficiency, if you live in a cold climate, it's wise to use a more conservative (lower) Miles per kWh value for a more accurate estimate.

It depends almost entirely on your local power grid. An EV charged on a grid powered by coal is responsible for significant upstream emissions. However, even in most coal-heavy regions, the lifetime emissions of an EV are typically lower than a comparable gasoline car. As grids become greener with more renewables (like in the Pacific Northwest), the environmental benefit of EVs increases dramatically.

Grid Carbon Intensity measures how many grams of carbon dioxide (CO₂) are emitted to produce one kilowatt-hour (kWh) of electricity. A low number means a clean grid (e.g., Vermont, Washington). A high number means a grid with more fossil fuels (e.g., West Virginia, Kentucky). Our state selector provides a good estimate, but for real-time data you can visit the EPA's Power Profiler.