You’ve probably heard the promise: buy an electric car and you’ll “save thousands.” But how much money do you actually save with an electric car once you add up fuel, maintenance, incentives, and resale value? The honest answer is: it depends on how you drive, where you charge, and which EV you choose, so let’s break it down with real numbers you can adapt to your life.
Key takeaway up front
Do you really save money with an electric car?
The core of EV savings is simple: electricity is usually cheaper per mile than gasoline, and EVs need far less maintenance. Over a few years, those quiet, unglamorous savings add up. Where it gets confusing is that you pay more up front, and things like battery health, incentives, and charging habits can tilt the math either way.
Quick snapshot: typical EV savings in 2025
Those are averages, not guarantees. To know what an EV could save you, you need a simple framework, not a spreadsheet that eats your Saturday.
The 4 main ways electric cars save you money
Where EV savings really come from
Fuel, maintenance, incentives, and long-term value all matter
1. Fuel (electricity vs gasoline)
Every mile you drive is where EVs quietly win. A typical EV might use about 0.27–0.30 kWh per mile. If your home electricity is around $0.15 per kWh, that’s roughly 4–5¢ per mile. A 30 mpg gas car at $3.75 per gallon costs about 12–13¢ per mile.
2. Maintenance & repairs
EVs don’t need oil changes, spark plugs, or exhaust system repairs, and they’re easier on brakes thanks to regenerative braking. You’ll still need tires, cabin air filters, and occasional fluid changes, but overall maintenance tends to be noticeably cheaper.
3. Incentives & tax credits
Federal and state incentives can reduce the effective price of an EV by hundreds or thousands of dollars, especially when combined with dealer discounts. Some utilities also offer rebates on home chargers or lower EV charging rates.
4. Long-term value & resale
As more buyers look specifically for electric, well‑cared‑for EVs with healthy batteries can hold value surprisingly well. Battery condition and range matter more than mileage, so picking a used EV with verified battery health can protect your resale value.
Think in cost per mile
A simple formula: how to calculate your EV savings
You don’t need a PhD to answer “how much money do you save with an electric car” for your situation. Use this quick, back‑of‑the‑envelope formula to compare an EV to a gas car you own now, or to two vehicles you’re considering.
EV savings: the simple ownership formula
Estimate annual savings by plugging in your own numbers.
| Step | What to calculate | Example (gas) | Example (EV) |
|---|---|---|---|
| 1 | Miles driven per year | 12,000 miles | 12,000 miles |
| 2 | Fuel cost per mile | $0.125/mi (30 mpg, $3.75/gal) | $0.045/mi (0.30 kWh/mi, $0.15/kWh) |
| 3 | Annual fuel cost (Step 1 × Step 2) | $1,500 | $540 |
| 4 | Annual maintenance + repairs | $800 | $400 |
| 5 | Total running cost (Step 3 + Step 4) | $2,300 | $940 |
| 6 | Annual savings (Gas – EV) | , | $1,360 |
| 7 | Extra annual loan/lease cost for EV (if any) | , | $600 more/yr |
| 8 | Net annual savings (Step 6 – Step 7) | , | $760 |
All values are annual; you can multiply by years of ownership for a long‑term view.
You can tweak each input with your actual gas price, electricity rate, and maintenance history. If your net annual savings (Step 8) is positive, that’s what an EV stands to save you every year.
Watch your assumptions
Example 1: Typical commuter – EV vs gas sedan
Let’s run through a realistic scenario so you can see how the math feels. Imagine you’re replacing a 30 mpg gas sedan with a similar‑size electric car. You drive 12,000 miles per year and can charge mostly at home.
Gas sedan costs
- Miles per year: 12,000
- Fuel economy: 30 mpg
- Gas price: $3.75/gal
- Fuel cost: 12,000 ÷ 30 × 3.75 ≈ $1,500/yr
- Maintenance & repairs: ~$800/yr (oil changes, fluids, filters, brakes, small repairs)
Total annual running cost: ≈ $2,300
Electric car costs
- Energy use: 0.30 kWh/mi
- Electricity price: $0.15/kWh at home
- Charging mix: 80% home, 20% public fast charging
- Effective cost per mile: ~4.5¢/mi
- Fuel (electricity) cost: 12,000 × $0.045 ≈ $540/yr
- Maintenance & repairs: ~$400/yr on average
Total annual running cost: ≈ $940
Annual savings for a typical commuter
In this scenario, you’re ahead about $760 per year even after accounting for a higher monthly payment. Over eight years, you’re looking at something like $6,000 in total savings, and that’s before any tax credit or state incentive helps with the upfront price.
Example 2: Long commute or road-tripper
Now imagine you drive a lot more, say 20,000 miles per year. You travel for work, visit family in other states, or just live far from everything. This is where EVs tend to shine, as long as you’re not paying fast‑charging prices every day.
High‑mileage driver: what changes in the math
1. Fuel savings scale with miles
If your EV saves you 6–8¢ per mile on energy costs versus gas, an extra 8,000 miles per year can add <strong>$480–$640</strong> in additional annual savings by itself.
2. Maintenance spreads out over more miles
Oil changes, timing belts, and other service items in a gas car pile up quickly when you’re doing 20,000+ miles per year. In an EV, you’re mainly watching tire wear and general inspections.
3. Fast‑charging costs matter more
If half your miles are powered by DC fast charging at around 35–45¢ per kWh, your electricity cost per mile can jump close to <strong>8–10¢ per mile</strong>. Still often cheaper than gas, but the gap narrows.
4. Depreciation hits differently
High mileage usually punishes gas cars in resale value. With EVs, buyers care a lot about <strong>battery health and usable range</strong>, so a well‑cared‑for car with a healthy pack can still be desirable, even with higher odometer readings.
When high mileage is your friend
Upfront price, incentives, and used EV bargains
Upfront cost is where many people pause. New EVs can still be pricier than comparable gas cars, although mainstream options have become more competitive. The good news: incentives and the used market can tilt that balance back in your favor.
- Federal and some state incentives can lower your net price, often by thousands, depending on the model and rules in effect when you buy.
- Manufacturers and dealers regularly offer EV‑specific discounts, especially when they’re chasing sales targets or making room for new model years.
- The used EV market has matured. Many three‑ to five‑year‑old EVs now sell at a substantial discount versus new, but still have plenty of battery life and modern features.
Why used EVs can be a sweet spot
Maintenance, repairs, and battery health costs
EV maintenance is different, not nonexistent. You’ll still visit a service bay from time to time, but fewer moving parts mean fewer surprises. The big wild card is the battery, so let’s separate everyday costs from worst‑case fears.
EV maintenance vs gas: where you save
What you stop paying for, and what stays the same
Things you stop buying
- Oil changes
- Spark plugs & coils
- Exhaust system repairs
- Emissions equipment work
Things you still need
- Tires and alignments
- Cabin air filters
- Brake fluid and coolant checks
- Wiper blades, bulbs, etc.
Battery health question
The main anxiety with used EVs is the high‑voltage battery. In reality, many modern packs age slowly when they’re cared for.
What matters most: verified battery health, not just the odometer.
Don’t skip battery health on a used EV
Charging at home vs public: how it changes savings
Where you charge might be the single biggest swing factor in how much money you save with an electric car. Home charging is usually the hero of the story; fast charging is the expensive supporting actor you call in for road trips and emergencies.
Home charging vs public fast charging
Illustrative numbers for how electricity costs change with where you plug in.
| Charging type | Typical cost | Cost per kWh (example) | Approx. cost per mile |
|---|---|---|---|
| Home Level 2 (standard rate) | Lower | $0.15/kWh | ~4.5¢/mi |
| Home Level 2 (off‑peak EV plan) | Lowest | $0.08–$0.10/kWh | ~2.5–3.0¢/mi |
| Workplace / free Level 2 | Best | $0.00–$0.10/kWh (or subsidized) | Often near 0–3¢/mi |
| Public DC fast charging | Highest | $0.35–$0.45/kWh | ~10–14¢/mi |
Your actual rates will vary by utility and charging network, but the relative gap is similar in most regions.
Small habit, big savings
When an electric car might not save you money
EVs aren’t magic. There are real‑world situations where switching to electric may not save you much, or could even cost a bit more overall. It’s better to know that going in than to discover it afterward.
- You drive very little, say, under 6,000 miles per year. Your fuel spend is already low, so the EV’s savings take longer to offset any higher purchase price.
- You can’t charge at home or work, and your area has expensive public charging. If most of your energy comes from high‑priced DC fast chargers, fuel savings may be small.
- You find a deeply discounted gas car but only modest deals on EVs, and incentives don’t apply to your situation.
- You need to tow heavy loads or drive extremely long distances in rural areas where charging is sparse, practical considerations override pure cost per mile.
When a hybrid may be smarter
How Recharged helps you lock in EV savings
Understanding how much money you save with an electric car is one thing. Buying the right EV at the right price is where those projected savings become real. That’s where Recharged is designed to help.
What Recharged adds to the savings equation
From battery health to financing, we’re built for EV buyers
Recharged Score Report
Every vehicle on Recharged includes a Recharged Score Report with verified battery health, range estimates, and fair market pricing. That means you can weigh fuel and maintenance savings against a clear picture of battery condition.
Trade‑in & instant offers
If you’re moving from a gas car to an EV, you can trade in or get an instant offer directly through Recharged. Rolling your existing vehicle into the deal simplifies the math and can lower your monthly payment.
Financing & nationwide delivery
Recharged offers financing options, consignment, and nationwide delivery, plus an EV Experience Center in Richmond, VA if you want to see and feel the cars in person before you buy.
From research to keys
FAQ: Electric car savings questions, answered
Frequently asked questions about EV savings
Bottom line: How much money you can save with an electric car
When you zoom out, an electric car is less about a single big discount and more about a stream of small wins: cheaper energy per mile, fewer trips to the shop, and the quiet confidence that your car’s value is anchored by a healthy battery and usable range.
For a typical American driver in 2025, it’s realistic to save somewhere around $600–$1,200 per year with an electric car compared to a similar gas vehicle, more if you drive a lot and charge mostly at home, less if you drive rarely or rely on pricey public charging. Over the life of the car, that can easily add up to several thousand dollars in your favor.
If you’re ready to turn those what‑ifs into actual numbers, start by browsing used EVs with Recharged Score battery reports, or pre‑qualify for financing with no impact to your credit. Once you see how an EV payment lines up against your current fuel and maintenance costs, the savings question becomes much easier to answer for yourself.
