EV vs Gas: How Much You Save Charging at Home

One of the biggest reasons people switch to electric vehicles is the lower cost of "fuel." Charging at home is typically much cheaper per mile than filling a tank with gasoline, especially if you charge overnight on a favorable electricity rate. But how much you actually save depends on your car, your local electricity price, and your driving habits. This guide shows you exactly how to calculate the comparison for yourself, using a clearly labeled example, so you can estimate your own savings rather than rely on a generic number.

How to calculate home charging cost per mile

Electric vehicles are measured in kilowatt-hours (kWh) of electricity used, similar to how gas cars use gallons. The formula for your charging cost per mile is simple:

Most EVs use somewhere in the range of roughly 0.25 to 0.35 kWh per mile, though efficiency varies by vehicle, driving style, weather, and terrain. You can find your car's real-world efficiency on its dashboard display or in the owner's app. Your electricity rate appears on your utility bill, usually listed as a price per kWh.

• Cost per mile = (kWh used per mile) × (your electricity rate in dollars per kWh)

How to calculate gas cost per mile

The gas equivalent is just as straightforward:

Use your real-world mpg, not the sticker number, and your local gas price. Once you have both figures, you can compare cost per mile directly and multiply by your annual mileage to see the yearly difference.

• Cost per mile = (gas price per gallon) ÷ (your car's miles per gallon)

An example calculation (illustration only)

The numbers below are an example to show the method, not a promise or a prediction for your situation. Plug in your own figures for an accurate estimate.

EV at home: Suppose an EV uses 0.30 kWh per mile and your electricity rate is $0.16 per kWh.

Gas car: Suppose a gas car gets 28 mpg and gas costs $3.50 per gallon.

In this example, home charging costs roughly a third of the gas cost per mile. Over 12,000 miles a year, that is about $576 for gas versus about $150 for home charging. Again, these are illustrative figures; your own rate, efficiency, and mileage will change the result, potentially a lot.

• 0.30 × $0.16 = $0.048 per mile (about 5 cents).
• $3.50 ÷ 28 = $0.125 per mile (about 12.5 cents).

Why overnight and time-of-use rates make home charging cheap

Many utilities offer time-of-use (TOU) rates that charge less for electricity during off-peak hours, typically overnight when demand is low. Because most EV owners charge while they sleep, they can take advantage of these lower rates. Some utilities also offer special EV charging plans with discounted overnight pricing.

If your utility offers a TOU or EV rate, your effective charging cost can drop well below the standard rate used in the example above, widening the gap with gas even further. Check with your utility to see what plans are available in your area, since these programs and rates vary by location and change over time. Your electrician can also help you set up a charger that schedules charging automatically for off-peak hours.

Public fast charging costs more

It is worth knowing that not all charging is equal. Public DC fast charging, the kind you use on road trips, generally costs significantly more per kWh than charging at home, sometimes approaching or exceeding the per-mile cost of gasoline. Fast charging is a convenience for travel, not an everyday value.

The savings story for EVs is really a home-charging story. Owners who do most of their charging at home overnight capture the biggest savings, while those who rely heavily on public fast chargers see much smaller differences. This is a key reason a proper Level 2 home charger is such a worthwhile investment.

Factors that change your savings

Your actual savings depend on several variables. Keep these in mind when you run your own numbers:

• Your electricity rate. Rates vary widely by region and by time of day. A high standard rate narrows the gap; a low overnight rate widens it.
• Local gas prices. When gas is expensive, EV savings grow. When gas is cheap, they shrink.
• Vehicle efficiency. A heavier, less efficient EV uses more kWh per mile. Cold weather, high speeds, and hilly terrain also increase consumption.
• The gas car you're comparing. Replacing a thirsty SUV yields far bigger savings than replacing an efficient hybrid.
• How much you drive. More annual miles multiply whatever per-mile difference you have.
• Where you charge. Home charging is cheapest; heavy public fast-charging use reduces or erases the advantage.

Charging fuel isn't the whole picture

Fuel cost is the most visible saving, but EVs can also reduce some maintenance expenses, since they have no oil changes and fewer moving parts. On the other hand, upfront vehicle price, insurance, and electricity rate changes all factor into total ownership cost. This article focuses specifically on the fuel-versus-charging comparison, which is usually where EV owners see the clearest day-to-day savings.

Get set up to charge at home the smart way

To capture the savings described here, you need a reliable Level 2 home charger installed on a proper dedicated circuit, ideally one that can schedule charging for off-peak hours. Charge Home Solutions is Tesla Energy Certified and SPAN Certified, licensed and insured, and installs home EV chargers, panel upgrades, and batteries nationwide through local electricians. We handle the permits and inspections and can help you set up scheduled charging to make the most of time-of-use rates. Call us at 888-995-6044 to get started.

The bottom line

To know your real savings, calculate cost per mile both ways: kWh per mile times your electricity rate for the EV, and gas price divided by mpg for the gas car. Home charging, especially on overnight or time-of-use rates, is usually far cheaper per mile than gasoline, while public fast charging costs more. Run your own numbers, and you will see exactly what an EV means for your budget.