Is Charging an Electric Car Cheaper Than Buying Gas?
Charging an electric vehicle (EV) at home, especially overnight, is generally the most economical option. While gas prices fluctuate and electricity rates vary by region, in most instances, it costs less per month to charge an EV than to fuel a traditional gasoline-powered vehicle. Although free charging options are available, public charging stations typically charge fees, making home charging the more affordable choice.
The primary question for many considering an electric car is: How much will it cost to charge the vehicle? Comparing charging expenses with gas costs is crucial for making an informed decision when evaluating EVs versus gasoline cars. Remember that numerous new EVs include a limited amount of complimentary charging at public stations, and charging networks often provide subscription plans that help decrease costs for frequent EV users.
To provide insight into these costs, we consulted John Voelcker, a long-time automotive journalist and industry analyst specializing in electric vehicles. He has extensive experience with discussions about EV ownership, including recharging costs compared to traditional refueling.
Do the Math: Cost Per kWh
The calculation involved is relatively straightforward. Obtaining your recent electricity bill for the most accurate estimate is helpful. You’ll need to calculate the amount you pay for electricity in any given month. The examples will help you determine how much you spend on each kilowatt-hour (kWh) of electricity used.
“For home charging, find your electric bill, then divide the [number] of kilowatt-hours you used into the bottom-line dollar total. That’ll give you the price you paid per kWh,” Voelcker explained.
According to the United States Energy Information Administration at the time of writing, U.S. households pay an average of 16.26 cents per kWh.
What Is the Cost to Charge an EV in kWh?
“A conservative rule of thumb is that an electric car gets three to four miles per kWh. So divide the total miles you drive each month by three to get the kWh you would use monthly. Multiply that number by your cost per kWh. The dollar amount you get will most likely be lower than what you pay each month to buy gasoline,” Voelcker says.
To illustrate, imagine you drive about 1,207 miles per month (the average American drives about 14,489 miles annually). For an EV, you will use about 402 kWh in that time. Using the existing U.S. household average of 16.26 cents per kWh, charging an electric car at home would cost about $65.37 each month.
Using a DC fast charger at a public charging station when away from home, an EV driver may pay 50 cents per kWh, or $201 for that amount of energy.
Is EV Charging Cheaper Than Gas?
According to AAA, the average price of gas currently hovers around $3.10 per gallon. Filling a 12-gallon gas tank currently costs about $37.12. This is the cost for a full tank, but it’s not the whole picture, especially when comparing it with an EV. Let’s look at fuel efficiency for an average car.
Consider a car with a combined average of 30 mpg during city and highway driving. Using that same 12-gallon tank as a reference point, you’ll have 360 miles of driving range. If you drive the national average of 1,207 miles per month, you’ll need to refuel over three times and spend about $111.60 ($37.12 x 3) for gas monthly, compared to $65.37 for charging an EV at home in the previous example. The financial gap narrows with a more fuel-efficient vehicle, but it remains.
Costs of Charging an EV at Home
Electricity rates fluctuate based on various factors, including your region, the season, and even the time of day when peak charges apply. The good news for EV owners is that electricity use and cost are typically lowest late at night.
Voelcker notes, “While consumers worry about access to public charging stations, they need to know that as much as 90% of electric car charging is done overnight at home. The cheapest way to charge your electric car is almost always at home overnight. Some utilities offer special low rates for the overnight period when their demand is lightest.”
The Cost of Level 2 and Faster Charging
When considering public Level 2 and Level 3 fast-charging systems, pricing becomes more complicated than the straightforward home costs. Charging networks have varied prices, in addition to the availability across the country.
Many EV owners choose to install a Level 2 charger at home, especially when comparing the costs. The cost of installation and supplies is around $2,000 before discounts or incentives. Level 2 chargers can cut charging time significantly, possibly by half, and increase home value.
“Every electric car (Tesla included) can use public Level 2 stations, but Nissan Leaf [models] use one fast-charging standard (called CHAdeMO) while every other EV uses a different fast-charging standard called CCS,” Voelcker says.
Additional automakers and charging networks have begun or plan to adopt Tesla’s proprietary NACS charge port, including many debuting them for the 2025 model year. Check for rebates and incentives from your state, municipality, and utilities to lower costs further for installing home chargers.
Finding the Right Plug to Charge an EV
Voelcker explains that to understand the difference, “The vast majority of fast-charging locations have both kinds, with a different cable on each side of the station. It’s like the same gas pump could dispense both regular gasoline and diesel fuel from different hoses.”
For the price to charge, a 240-volt (Level 2) recharge could cost you anywhere from zero dollars to a fixed hourly rate or the price of electricity transferred to the EV. Charging networks often provide membership programs to minimize recharge costs.
The Electrify America network determines fast charger pricing by location, your plan, and the maximum power level of your vehicle. For example, using a DC fast charger in an Atlanta-area grocery store costs 64 cents per kWh.
Other popular charging networks include ChargePoint and EVgo.
The Faster the Charging, the Higher the Rate
Unlike a 240-volt Level 2 home charger system, you’ll typically find Level 3 (DC Fast Charging) chargers in commercial areas because the cost is too high for private individuals to install at home. Tesla also has its proprietary Supercharger network, with over 60,000 users worldwide. However, the rates can fluctuate depending on the region, time of charging, the Tesla model, and the tier of charging speeds.
Tesla offers four charging tiers. An important caveat: Select Tesla Superchargers now work for non-Tesla vehicles. In 2023, the Supercharger network started opening select locations to Tesla and NACS-enabled vehicles with CCS compatibility.
Voelcker stresses that home charging is the best option for anyone considering an electric car. Learning where to find EV perks close to home is just as important.
“Some workplaces offer charging for employees’ cars … But electric-car owners quickly learn which public stations near them are free, which charge for charging, and how much [they] cost,” he said.
Drivers may find a growing network of chargers with many free options, including malls, hotels, grocery stores, and more. Voelcker’s final advice to EV owners: “Always ask before plugging in!”
