EV vs Gas vs Hybrid TCO Calculator
Compare estimated total cost of ownership for electric, hybrid, and gas vehicles based on your location, mileage, and vehicle choices. All results are estimates — adjust the inputs to match your situation.
Cost Breakdown
EV vs Gas vs Hybrid TCO Calculator: Which Powertrain Costs Less?
If you are shopping for a new vehicle in 2026, the decision between an electric vehicle (EV), a hybrid, and a traditional gas-powered car often comes down to one question: which one will actually cost less to own over time? Sticker price alone does not tell the full story. Fuel or electricity costs, maintenance, insurance, and depreciation all matter.
Our EV vs Gas vs Hybrid TCO Calculator lets you enter your state, annual mileage, and specific vehicle choices to see a personalized cost comparison. This article explains how the math works, what factors change the result, and why the cheapest option for one driver may not be the cheapest for another.
Key Takeaways
- Hybrids often win on total cost of ownership — AAA's 2026 Your Driving Costs study found hybrids had the lowest cost per mile in medium sedans, compact SUVs, medium SUVs, and pickup trucks.
- EVs win on fuel cost but lose on depreciation — EV charging was up to 70% cheaper than gasoline, but EVs depreciated faster, making them more than $3,000 pricier to own per year in the AAA study.
- Home charging is the single biggest factor — at 13¢/kWh, home charging costs about $0.046 per mile. Public DC fast charging at $0.35–$0.50/kWh pushes that to $0.10–$0.14 per mile, approaching gas-car costs.
- The federal EV tax credit is gone — the $7,500 credit expired September 30, 2025. Some states still offer their own incentives, but they vary widely.
- Your annual mileage matters more than you think — low-mileage drivers may find that gas or hybrid is cheaper because depreciation dominates, while high-mileage drivers maximize EV fuel savings.
How We Calculate Total Cost of Ownership
Total Cost of Ownership (TCO) is the full cost of owning and operating a vehicle over a specific period, usually expressed in dollars per month or per year. Our calculator models TCO over 3, 5, 7, or 10 years using four main components: depreciation, energy or fuel, maintenance, and insurance.
Depreciation (Value Lost)
Depreciation is the single largest cost of vehicle ownership. It represents the difference between what you pay for the vehicle and what it is worth when you sell it or trade it in. Our calculator estimates depreciation using annual depreciation rates modeled from AAA Your Driving Costs data (2026). For a 5-year ownership period, the model assumes approximate annual depreciation rates of 12.9% for EVs, 8.2% for hybrids, and 9.7% for gas vehicles, compounded annually. Actual depreciation varies significantly by model, condition, and market conditions.
Energy and Fuel Costs
EV annual cost = (annual miles ÷ EV efficiency in miles per kWh) × blended electricity rate
Blended electricity rate = (home charging share × home rate) + (public charging share × public rate)
Hybrid annual cost = (annual miles ÷ hybrid MPG) × gas price
Gas annual cost = (annual miles ÷ gas car MPG) × gas price
EV efficiency is sourced from EPA fuel economy ratings. For example, a 2026 Tesla Model 3 is rated at approximately 25 kWh per 100 miles (equivalent to 4 miles per kWh). Hybrid MPG data is also from EPA ratings — a 2026 Toyota Camry Hybrid is rated at 51 MPG combined for the LE trim.
Maintenance and Insurance
Our calculator applies modeled annual maintenance estimates of $500 for EVs, $900 for hybrids, and $1,000 for gas vehicles. These are approximations based on industry data; actual maintenance costs vary by model and driving conditions. EVs typically require less routine maintenance (no oil changes, fewer moving parts), but tire wear can be higher due to vehicle weight. Insurance is modeled at $1,500 per year for all three powertrains, with an optional adjustment for EV insurance premiums.
Example Scenarios
The best way to understand how these factors interact is to run the numbers for different driving patterns. All examples below use a 5-year ownership period, a $40,000 EV, a $32,000 hybrid, and a $28,000 gas car.
Commuter: 12,000 Miles per Year
Using California averages (29¢/kWh electricity, $4.80/gallon gas) with 80% home charging, the calculator estimates the following:
| Powertrain | Avg. Monthly Cost | 5-Year Total Cost |
|---|---|---|
| EV | ~$597 | ~$35,840 |
| Hybrid | ~$477 | ~$28,640 |
| Gas | ~$554 | ~$33,272 |
In this scenario, the hybrid wins on total cost, primarily because it starts at a lower purchase price and depreciates more slowly than the EV. The EV still wins on energy cost, but the higher upfront price and faster depreciation outweigh those savings over five years.
Road-Tripper: 20,000 Miles per Year
At higher annual mileage, the EV's lower per-mile energy cost has more room to compound. Running the same California inputs at 20,000 miles per year shifts the 5-year totals to approximately: EV ~$44,500, hybrid ~$36,900, gas ~$44,800. The hybrid still leads, but the EV closes the gap significantly and now beats gas.
Low-Mileage Driver: 5,000 Miles per Year
At very low annual mileage, depreciation dominates every other cost. The EV's energy savings become almost irrelevant. Running the same inputs at 5,000 miles per year produces 5-year totals of approximately: EV ~$27,300, hybrid ~$22,300, gas ~$25,700. The hybrid's lower purchase price and slower depreciation make it the clear winner.
Key Factors That Change Your Results
Gas Prices
Gas prices have climbed sharply in 2026. The AAA national average reached $4.446 per gallon as of May 2026, with California averaging $6.101. At these prices, the EV and hybrid fuel-cost advantage widens considerably. But if gas prices fall back toward $3.00 per gallon, the calculus shifts in favor of gas vehicles and hybrids with lower upfront costs.
Electricity Rates
Residential electricity rates vary enormously by state. The U.S. average was about 17.91¢ per kWh in early 2026, ranging from roughly 11¢ in North Dakota to 41¢ in Hawaii. California averaged about 30¢ per kWh, while states like Washington and Idaho averaged closer to 11¢. In high-cost electricity states, EV operating costs rise significantly; in low-cost states, the EV advantage grows.
Charging Mix (Home vs Public)
This is the most under-appreciated variable in EV cost calculations. Home charging at 13¢/kWh costs about $0.046 per mile. Public DC fast charging at $0.35–$0.50/kWh costs $0.10–$0.14 per mile — approaching gas-car fuel costs. If you cannot charge at home and must rely on public fast charging, your EV fuel savings largely disappear. Our calculator's "Home Charging Share" slider lets you model any mix between 0% and 100% home charging.
Depreciation
EV depreciation has been higher than gas vehicles in recent years. A 2021 Tesla Model 3 lost roughly 35–40% of its value in three years, while a Toyota Camry Hybrid depreciated 15–20% over the same period. This gap is narrowing as the used EV market matures, but depreciation remains a major factor, especially for buyers who trade in within five years.
EV vs Hybrid vs Gas by State
Electricity and gas prices vary dramatically by state, and those differences directly affect which powertrain is cheapest. The table below shows approximate residential electricity rates and regular gas prices for a selection of states, with the calculated annual energy cost for a 12,000-mile-per-year driver using a Tesla Model 3 (4 mi/kWh), a Camry Hybrid (51 MPG), and a 30 MPG gas car.
| State | Elec. Rate (¢/kWh) | Gas Price ($/gal) | EV Annual Energy | Hybrid Annual Fuel | Gas Annual Fuel |
|---|---|---|---|---|---|
| California | 29.0 | $6.10 | ~$936 | ~$1,435 | ~$2,440 |
| Texas | 14.0 | $3.85 | ~$504 | ~$906 | ~$1,540 |
| Florida | 15.5 | $4.34 | ~$558 | ~$1,021 | ~$1,736 |
| New York | 22.0 | $4.48 | ~$792 | ~$1,054 | ~$1,792 |
| Washington | 11.0 | $5.39 | ~$396 | ~$1,268 | ~$2,156 |
| Hawaii | 42.0 | $5.63 | ~$1,512 | ~$1,325 | ~$2,252 |
| North Dakota | 11.5 | $3.85 | ~$414 | ~$906 | ~$1,540 |
Data sources: Electricity rates from EIA Electric Power Monthly (May 2026). Gas prices from AAA State Gas Price Averages (May 2026). Annual energy cost assumes 12,000 miles per year and 80% home charging for the EV.
Notice how the EV's fuel advantage is largest in states with cheap electricity and expensive gas (Washington), and smallest in states with expensive electricity (Hawaii). In Hawaii, the EV's annual energy cost actually exceeds the hybrid's fuel cost.
Post-Tax-Credit Reality
The federal EV tax credit landscape changed dramatically in 2025. The $7,500 New Clean Vehicle Credit (Section 30D) officially expired on September 30, 2025, under the One Big Beautiful Bill Act. The used EV credit and commercial clean vehicle credit also ended for vehicles acquired after that date.
This means the effective purchase price of a new EV is now roughly $7,500 higher than it was in early 2025, for buyers who previously qualified. Some states have stepped in to fill the gap, but their programs vary widely and are subject to funding limitations. California, for example, launched a "MyFirstEV" rebate program offering up to $3,500 for eligible first-time buyers, but it is income-limited and funded from a fixed pool. Other states like Washington, D.C. (up to $19,000), Delaware (up to $2,500), and Pennsylvania (up to $4,000) offer their own incentives, but eligibility rules and availability differ dramatically.
Our calculator does not include state or federal incentives because they are highly variable and change frequently. If you qualify for a state rebate, subtract that amount from the EV purchase price input to see its effect on your results.
Limitations and Assumptions
This calculator is a modeling tool, not a crystal ball. It produces estimates based on the inputs you provide and the assumptions built into the model. Key limitations include:
- Depreciation is estimated using average rates. Your specific vehicle may depreciate faster or slower depending on model, condition, mileage, and market conditions.
- Insurance costs vary by driver, location, driving record, and coverage level. The model uses a flat $1,500/year estimate for all powertrains, with an optional EV adjustment.
- Maintenance costs are modeled averages and do not reflect model-specific repair costs, unexpected failures, or tire replacement frequency.
- State incentives are not included because eligibility and amounts change frequently. Check your state's current programs.
- Electricity and gas prices are state-level approximations, pre-filled as editable defaults. Your actual rates depend on your utility, rate plan (e.g., time-of-use), and local gas stations.
- The calculator does not model financing costs (loan interest, lease terms) or opportunity costs.
Use the calculator as a starting point for comparison, then refine the inputs with your actual local rates and vehicle choices.
Frequently Asked Questions
Is it cheaper to own an EV or a hybrid?
It depends on your driving patterns, electricity rates, and how you charge. AAA's 2026 study found hybrids had the lowest cost per mile in most vehicle categories, primarily because they combine meaningful fuel savings with lower purchase prices and slower depreciation than EVs. However, in states with very cheap electricity and high gas prices, EVs can win over longer ownership periods. Use the calculator with your specific inputs to see which is cheaper for you.
How do I calculate total cost of ownership for a car?
TCO = depreciation + energy/fuel + maintenance + insurance + any other costs (e.g., home charger installation). Depreciation is the purchase price minus the estimated resale value at the end of the ownership period. Energy cost is annual miles divided by efficiency, multiplied by the energy price. Our calculator performs all of these calculations automatically.
What is the break-even point for an EV vs a hybrid?
The break-even point is the number of years or miles at which the EV's cumulative savings (from lower energy and maintenance costs) offset its higher upfront purchase price. In many scenarios, the EV's price premium is never recovered within a 5-year ownership period, especially with the federal tax credit now expired. The calculator shows a break-even estimate when the EV's operating savings are positive and the purchase price premium exists.
Do hybrids or EVs save more money?
Hybrids tend to save more money over shorter ownership periods and in lower-mileage scenarios because they cost less upfront and depreciate more slowly. EVs can save more over longer ownership periods (7–10 years) and in high-mileage scenarios, provided you have access to home charging. The calculator lets you toggle between 3, 5, 7, and 10-year periods to see how the answer changes.
How does depreciation affect EV vs hybrid costs?
EVs have depreciated faster than hybrids and gas cars in recent years, largely due to rapid price cuts by Tesla and other manufacturers. A 2021 Tesla Model 3 lost 35–40% of its value in three years, while a Camry Hybrid lost 15–20%. This depreciation gap is a major reason hybrids often win on 5-year TCO. The gap is narrowing as the used EV market matures, but it remains a significant factor.
What maintenance costs should I expect for an EV vs a hybrid?
EVs typically have lower routine maintenance costs because they have fewer moving parts (no oil changes, no transmission fluid, regenerative braking reduces brake wear). Our calculator models $500/year for EVs and $900/year for hybrids. However, EV tires can wear faster due to vehicle weight, and repairs can be more expensive when they are needed.
Do I qualify for any EV tax credits in 2026?
The federal EV tax credit (Section 30D) expired September 30, 2025. Some states still offer their own rebates or tax credits, but eligibility and amounts vary. Check your state's energy office or environmental agency for current programs. Our calculator does not include incentives; subtract any rebate you qualify for from the EV purchase price input.
How does charging mix affect my EV savings?
Charging mix is the percentage of your charging that happens at home versus at public stations. Home charging is typically 2–3 times cheaper per kWh than public DC fast charging. If you can charge at home 80% of the time, your EV fuel cost is much lower than if you rely primarily on public charging. Use the "Home Charging Share" slider in the calculator to see how this changes your results.
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Sources
- U.S. Energy Information Administration (EIA), Electric Power Monthly, May 2026 data, released July 23, 2026. https://www.eia.gov/electricity/monthly/
- AAA, State Gas Price Averages, accessed May 2026. https://gasprices.aaa.com/state-gas-price-averages/
- U.S. Environmental Protection Agency, fueleconomy.gov, 2026 model year data. https://www.fueleconomy.gov/feg/byfuel/Hybrid2026.shtml
- AAA, Your Driving Costs 2026, as reported by Kelley Blue Book. https://www.kbb.com/car-news/aaa-hybrids-come-out-on-top-in-2026-ownership-cost-study/
- Internal Revenue Service, clean vehicle tax credit provisions under the One Big Beautiful Bill Act, effective September 30, 2025. https://www.irs.gov/instructions/i8936
- U.S. Department of Energy, Alternative Fuels Data Center, maintenance and fuel cost data. https://afdc.energy.gov/
Data last verified: September 2026. Next scheduled review: December 2026. This article provides estimates for educational purposes and does not constitute financial advice. Actual costs vary by vehicle, location, and individual circumstances.