The average price of oil in the US is down by 40 percent, according to the AAA. That’s an 11 % year-on-year decrease. Yes, there are problems with refineries that are causing fuel prices in some US cities. However, this cut can make you question: Is it cheaper to pack and use a gas-powered vehicles in comparison to an electric vehicle?

How much more money can you save by charging an EV than filling the tank of a gasoline-powered vehicles? The debate is still raging on social media platforms like Reddit and TikTok. &nbsp,

One&nbsp, Reddit user says&nbsp, they now spend$ 70 more on their electricity bill from at-home charging compared with$ 330 a month in gas previously. Some Reddit people contest the real benefits. One dissenter, for instance, argues that public public is expensive and time-consuming, and another says the cost of installing their&nbsp, home Vehicle charger&nbsp, negated any benefits. &nbsp,  

Lowering energy prices could be the primary reason EV-curious individuals consider going all-electric in the first place. Gas prices averaged more than$ 5 per gallon nationwide in June 2022, and despite having fallen by about$ 3.20 as of February, many drivers are looking at alternatives, such as EVs or, say, hybrids. &nbsp,

The more we looked into the Reddit-rabbit needle, the more we realized that not all Americans are ready to meet the EV trend. That message is echoed by a CNET survey&nbsp, from summer 2024 that found 43 % of US adults have concerns with purchasing EVs, with 21 % of respondents citing the cost of charging as a negative factor. &nbsp,

We asked business experts the major issue: Is it cheaper to command an electric car over fueling a gas-powered car? The ruling is in: EV charging currently outperforms US percentages. &nbsp,

Gas prices fluctuate and cost costly in some places. &nbsp, Electricity also varies in price, but “it’s considerably cheaper” than oil, said&nbsp, Anastasia Boutziouvis, alternative product manager at ChargePoint, a business that operates the world’s largest network of EV charging stations in North America and Europe. Recharging an EV will typically be much less expensive than filling up a gas-powered driver’s gas tank.

” Frequently, I find that charging an Volt is less expensive than filling up a gas-powered auto even in my neck of the woods, California, where we have the second-highest energy costs in the US”, said CNET’s 16-year vehicle and EV professional, &nbsp, Antuan Goodwin. ” That’s probably because California also has the highest oil prices in the US, as well,” he said. &nbsp,  

We’ll demonstrate the math for charging an Vehicle less than an internal combustion engine vehicle. &nbsp,

We do the mathematics by comparing EV charging to filling a fuel tank.

When considering the costs of fueling or charging an electric vehicle versus a oil car, the variations are striking and very evident. EVs are driven by batteries that need to be recharged and are stored in a power bank. &nbsp,

Gas is used to power gasoline-powered vehicles or those equipped with internal combustion engines. &nbsp,

We calculated the monthly charging and fueling costs for you to compare using averages from government data sources and AAA fuel prices. &nbsp,

In data points like fuel economy, miles traveled, the price of electricity and gasoline, the average EV’s need for power, and more, US driving averages for both EVs and ICE cars are used in these calculations. You could drive a lot more ( or less ) and accordingly, see your fuel costs vary remarkably.

Fuel costs for electric vehicles versus charging costs ( US averages )

To create the above graphic, we used US averages to multiply what an average cost scenario would look like for both an average ICE car and an average electric vehicle, assuming 1, 250 km traveled in a month. Here are the average US figures we used to do the math. &nbsp,

Using US averages, we found the monthly cost of charging an EV to be$ 70.72 versus$ 158 to fuel an ICE car. &nbsp,

Using the same figures above, here’s a yearly costs comparison: &nbsp,

The average annual average cost to fuel an ICE car is$ 1, 896.
• $ 848.64&nbsp, yearly average cost to charge an EV
• That’s a$ 1, 047.36 difference compared to yearly.

Again, prices for gasoline and electric vary by location– so your actual savings may be more or less. For instance, outlier states like California and Hawaii ( 39.6 cents per k Wh ) are significantly above the national average of 17 cents per kWh that we used in our math above. &nbsp,

The make or model of EV you own also affects cost savings. A Tesla Model 3 and a Ford F-150 Lightning— while both EVs– won’t have the same power efficiency. &nbsp,

Watch this: Expert vs. AI: Is Now the Time to Buy an EV?

07:45

Monthly cost of charging an electric vehicle

The cost to fuel or charge an EV depends on several factors, but the cheapest way to do it is to charge your EV at home, during off-peak hours. In other words, overnight charging your EV with an at-home charging system is likely the least expensive way to recharge, and in some cases, it may only cost a dollar or two, or a fraction of the price of a gallon of gasoline.

Boutziouvis said that “at a high level, what we’re seeing is that the costs are about one-half or one-third of the costs of a gas-powered car” in terms of getting a “full tank”, so to speak.

She claimed that charging an EV can typically be done for a few dollars. Assuming that you’re charging your EV at home using your own charger, the price of doing so really boils down to what you pay for electricity. It completely depends on local utility rates, which vary throughout the US, she said. &nbsp,

The overall cost of charging may also depend on whether you have a fixed-rate or variable electric rate, as well as how your preferred energy plan specifies, for example, its day-to-day usage rates.

The cost of EV charging at home vs. public EV charging&nbsp,

Another important factor that EV owners should take into account is the cost difference between charging at home and charging in public. If you don’t have a charger or the ability to charge your EV at home, you’ll need to do it somewhere else. Public charging stations are available in numerous locations, including retail parking lots. Here’s an in-depth guide to where you can charge for free.

Although there may be upfront costs associated with installing an EV charger and possibly upgrading your home’s electrical system, at-home charging is typically less expensive. AAA added a price tracker for public EV charging to its fuel prices coverage last November, and the current average cost as of Feb. 12, 2025 is 34.5 cents per k Wh, more than double the cost of charging at home.

Home charging costs&nbsp,

The costs of charging at home will, as noted, depend on what you pay for electricity, which will vary depending on where you live. In western and midwestern states like North Dakota, Utah, and Washington, electricity costs tend to be higher in Hawaii, New England, and California, while it is lower in those states. The nationwide average is just over 17 cents per kilowatt hour.

Another thing to keep in mind is that some states with deregulated energy markets, more commonly known as energy choice markets, may have access to additional incentives for EV drivers. Some states “offer really cool plans where they’ll give you]EV] charging for free”, said Boutziouvis. She also mentioned that some energy companies may offer incentives that “almost resemble a cellphone plan, with unlimited charging for$ 20 per month” or something similar. &nbsp,

You Can Select Your Electricity Provider in These States With Deregulated Markets, Read More.

Those plans or incentives vary from state to state. For instance, TXU Energy and Gexa offer energy plans in Texas that aim to entice EV drivers to use free charging stations.

One other thing is that you may be able to use smartphone apps to schedule EV charging during off-peak hours, or when electricity rates are the cheapest (usually overnight ), to save more money.

Driving electric can give you some control over how much money you spend on the computer, Goodwin said. ” I can save money by charging at home or pay more for the convenience of fast charging on longer trips” &nbsp,

” Or you go to the extreme, investing in solar or home energy storage for even more flexibility and independence in the long run, versus combustion cars where I’m merely at the mercy of gas prices,” Goodwin said. &nbsp,  

Public charging fees

As for public charging, Boutziouvis said there are “different ways to price it”, as most public charging stations are independently owned and pricing is therefore up to the owner. An excellent illustration is Tesla. It has its own fleet of charging stations, and in addition to the cost of electricity, it&nbsp, charges 50 cents per minute&nbsp, in “idle fees” to encourage you to drive away and free up chargers for other users.

Other stations typically charge either a flat rate, a fee based on consumption, or a fee based on how long an EV driver uses the charger, Boutziouvis said. The costs are determined by local electricity rates plus any applicable fees or markup that the charger’s owner implements. &nbsp,

There are two “levels” or types of charging to know about, which are AC and DC– or level 2 and level 3 charging ( more on this below ). DC charging at a public charging station is much faster and likely more expensive. “DC charging could be$ 10 to$ 30 per session”, Boutziouvis said, and takes 20 or 30 minutes to recharge a battery from 0 % to 80 %. Contrary to what she said, “AC public charging could cost a few dollars.”

” Two to three hours gets you enough range to get back on the road”, said Goodwin. According to the charging station and your car,” a true full charge at Level 2 could take 6 to 12 hours.” This is why Goodwin recommends the practice of fully charging your EV overnight at home. That’s typically the least expensive, most convenient choice, he said. &nbsp,

Put another way, the more expensive the charger will be. You could also find free public charging at some locations. &nbsp,

There are more ways to save on electric driving costs that require some planning, says Goodwin. Making the most of off-peak charging at home if you’re able, maximizing local incentives at work or while shopping, and utilizing&nbsp, free EV charging at work are great starting points.

The cost of level 2 vs. level 3 charging

Speed and how much electricity is moving through an EV’s battery are key factors when level 2 and level 3 charging are typically different. &nbsp,

Level 2 charging and nbsp,

Level 2 charging “is what you’d find in your house”, said Boutziouvis, and usually delivers between 7 and 11 kilowatts to an EV’s battery. If they are charged for a few hours, the typical EV will have 30 or 40 miles of range. Given that the charging is slower, it may cost a few dollars to charge your EV at a level 2 public charging station. Some EV charging stations are even free in some public spaces. &nbsp,

Level 3 charging&nbsp,

Level 3 or DC fast-charging, on the other hand, delivers between 50 and 350 kilowatts within the same time frame. It’s typically not practical to have a level 3 charging setup at home, so these chargers are typically found in public places because most, if not most, EV homeowners typically charge at home and overnight. Given that they’re faster, it may cost between$ 10 and$ 30 to charge at one, as Boutziouvis mentions.

The costs of charging an EV at home are,

Charging your EV at home may be the cheapest way to refill the battery, but getting a charger hooked up can be a relatively big expense. &nbsp,

The cost really hinges on whether your at-home electrical setup can handle the addition of a charger. If not, you might need an electrician to have your electrical panel replaced ( the breaker box is most likely located in your garage or basement ). That can be expensive depending on where you live and other factors. &nbsp,

Assuming you don’t need an upgrade, Boutziouvis said a charger installation could cost around$ 700, and the costs may vary depending on how physically far away from your electrical panel the charger is. Higher costs are associated with greater distance because more resources are needed. If you do need an upgraded electrical setup, a new electrical panel can cost a few thousand dollars.

Take note that there are incentives and tax credits available for installation costs that are billed at home. For instance, there’s a federal tax credit of 30 % of hardware and installation costs up to$ 1, 000, which was put into effect as a part of the Inflation Reduction Act. Additionally, there might be incentives and utility discounts. Duke Energy, for instance, provides a one-time credit of more than$ 1, 100 per charger in some areas.

A good rule of thumb is to check with multiple companies before purchasing a charger, check with your utility for credits and rebates, and look into all tax incentives to ensure you get the best deal.

Read more: Best Home EV Chargers for 2025

How do we calculate the costs associated with charging or filling an EV?

How we do the math to determine average monthly gasoline costs

Step 1: Divide the monthly miles traveled by the gallon traveled by your car. That number gives you the amount of gallons of fuel needed for the month.

Here’s the formula: [Miles driven per month ] / [Miles per gallon ( MPG) of your car ] =]Gallons of fuel needed monthly.

Example using US averages: 1, 250 km / 25 MPG = 50 gallons

Step 2: Divide the monthly gallons needed to power your combustion car by the gas price per gallon. This will tell you the monthly cost to fill up your car each month.

The formula is this: [ Gallons of fuel needed per month ] x]Gross gas price per gallon =]Monthly fuel expense.

Example using US averages: &nbsp, 50 monthly gallons x$ 3.20 per gallon =$ 160 monthly fuel expense

How do we calculate monthly charging costs for electric vehicles?

Step 1: Take the average miles driven per month and divide it by the average miles per kWh your EV is capable of. This calculates the kWh that will be needed to power your EV each month.

Here’s the formula: &nbsp ,]Miles driven per month ] /]EV miles per k Wh] ] =]k Wh used per month for EV]

Using US averages, consider the following: 1, 250 monthly miles / 3 kWH per mile = 416 kWh per month.

Step 2: Then, you’d calculate the costs of generating those kilowatts by multiplying the cost per kilowatt hour of electricity (k Wh ) by the total kWh needed to power your EV in a month. You will be able to charge your EV’s monthly total at this price.

Here’s the formula: &nbsp ,]Cost per kWh for electricity ] x]k Wh used per month for EV] =]Monthly EV charging costs ]
Example using US averages: $0.17 x 416 = $ 70.72 monthly recharging costs

If you don’t have a&nbsp, fixed-rate for electricity, &nbsp, then your cost per kWH could vary each month.