EV vs Gas Car Cost of Ownership 2026
By Axis Intelligence Research
Co-author: Aidan Jad | Last updated: October 8, 2026 | License: CC BY 4.0
At $4.354 a gallon, an electric medium SUV now costs $1,195.32 less to own over five years than its gas twin, while an electric medium sedan still costs $14,903.27 more. Axis Intelligence Research re-priced AAA’s 2026 ownership data at October 2026 fuel and power prices and calculated the pump price where each EV breaks even.
Quick Answer: Is an EV Cheaper to Own Than a Gas Car in 2026?
It depends on the body style and, more than anything, on the price of gasoline. Over five years and 75,000 miles, Axis Intelligence Research estimates the EV wins in medium SUVs (−$1,195.32), nearly ties in compact SUVs (+$618.40) and loses in pickups (+$3,132.65) and medium sedans (+$14,903.27). A hybrid is cheapest in all four classes.
The number that decides it is the Parity Gas Price (PGP): the pump price at which an EV and its gas twin cost the same to own. Today’s PGP readings are $4.03 (medium SUV), $4.57 (compact SUV), $5.08 (pickup) and $9.94 (medium sedan), against a national average of $4.354.
Key Findings
- Axis Intelligence Research estimates an electric compact SUV breaks even with its gas twin at $4.57 a gallon, 22 cents above the October 5, 2026 U.S. average of $4.354 (EIA).
- At October 2026 prices, an electric medium SUV costs $71,710.50 to own over five years versus $72,905.82 for the gas model, an EV advantage of $1,195.32 (Axis Intelligence Research, from AAA 2026 data).
- Depreciation is 44.5% to 49.6% of an EV’s ownership cost across all four AAA classes, more than charging, insurance and maintenance combined in every class (Axis Intelligence Research).
- In Washington state, cheap power and $5.424 gasoline make the EV cheaper than its gas twin in three of four classes, including a $6,144 five-year advantage for a medium SUV (Axis Intelligence Research, EIA).
- A hybrid costs less to own than both the EV and the gas model in every AAA class: $3,046.75 less than the electric compact SUV over five years (Axis Intelligence Research, AAA 2026).
What Does an EV Cost to Own Compared With a Gas Car? (5-Year Table)
The table below is AAA’s own 2026 head-to-head of top-selling electric, gas and hybrid models in four classes, with one change: Axis Intelligence Research swapped AAA’s fuel prices ($4.152 a gallon and 18.0¢ per kWh, averaged over the 12 months to May 2026) for the latest government figures ($4.354 and 18.2¢). Every other line is AAA’s.
5-year total cost of ownership at October 2026 prices (75,000 miles)
| Vehicle class | Electric | Gas | Hybrid | EV vs gas | Source |
|---|---|---|---|---|---|
| Medium SUV | $71,710.50 | $72,905.82 | $68,992.68 | −$1,195.32 | AAA 2026; EIA; Axis |
| Compact SUV | $59,477.83 | $58,859.44 | $56,431.08 | +$618.40 | AAA 2026; EIA; Axis |
| Pickup truck | $87,137.89 | $84,005.24 | $81,356.99 | +$3,132.65 | AAA 2026; EIA; Axis |
| Medium sedan | $68,352.08 | $53,448.81 | $51,374.32 | +$14,903.27 | AAA 2026; EIA; Axis |
Negative means the EV is cheaper. Source: AAA Your Driving Costs 2026 brochure; EIA Gasoline and Diesel Fuel Update; EIA Short-Term Energy Outlook; Axis Intelligence Research calculation.
AAA published its comparison on September 15. At AAA’s own fuel prices, the electric medium SUV was already $99 a year cheaper than the gas version and the compact SUV $232 a year dearer. The two-tenths of a dollar that gasoline has gained since AAA’s measurement window closed is enough to widen the first gap and nearly close the second.
Aidan Jad’s read: The sedan result is not a mystery, and it is not about electricity. AAA’s electric medium sedan loses $6,786 a year to depreciation against $3,330 for the gas car, a ratio of 2.04 to 1. No pump price fixes that until gas hits $9.94. The SUV classes are different because the gas SUVs AAA picked burn more fuel and lose more value themselves, so the EV’s residual penalty is a smaller share of the bill.
Where the money goes: annual cost lines at October 2026 prices (15,000 miles)
| Cost line | Compact SUV EV | Compact SUV gas | Medium SUV EV | Medium SUV gas | Source |
|---|---|---|---|---|---|
| Fuel or home charging | $779.57 | $2,497.89 | $919.10 | $3,215.16 | AAA; EIA; Axis |
| Maintenance, repair, tires | $1,402 | $1,954 | $1,784 | $1,829 | AAA 2026 |
| Depreciation | $5,298 | $3,568 | $7,077 | $5,052 | AAA 2026 |
| Full-coverage insurance | $2,277 | $2,188 | $2,070 | $2,423 | AAA 2026 |
| License, registration, taxes | $931 | $631 | $1,052 | $827 | AAA 2026 |
| Finance charges | $1,208 | $933 | $1,440 | $1,235 | AAA 2026 |
| Total per year | $11,895.57 | $11,771.89 | $14,342.10 | $14,581.16 | Axis calculation |
Source: AAA Your Driving Costs 2026; fuel lines re-priced by Axis Intelligence Research with EIA data.
Two lines move against the EV in every class: depreciation and fees. Higher sticker prices mean higher finance charges and higher value-based registration taxes, and at least 42 states now add a special EV registration fee on top, from $75 in Minnesota to a scheduled $290 in New Jersey from 2028, according to the National Conference of State Legislatures. Insurance is a split decision: the EV costs more to insure in three classes and less in the medium SUV class.
For model-by-model premiums built from insurer claims data, see our EV insurance cost ranking.
Dashboard / estimator spec
What Is the Parity Gas Price (PGP)?
The Parity Gas Price (PGP) is an Axis Intelligence Research metric: the retail gasoline price at which an electric vehicle and its gas counterpart cost exactly the same to own over five years. Below the PGP, the gas car is cheaper. Above it, the EV is.
Formula: PGP = AAA gas price × (EV annual cost − gas car’s non-fuel annual cost) ÷ gas car’s annual fuel cost
All inputs come from AAA’s 2026 tables, with the EV’s charging cost set at EIA’s 18.2¢ per kWh. AAA’s base gas price is $4.152.
Worked example (compact SUV): $4.152 × ($11,895.57 − $9,274) ÷ $2,382 = $4.57 per gallon. The $9,274 is the gas compact SUV’s non-fuel cost ($11,656 total minus $2,382 fuel at AAA’s prices).
PGP readings, October 2026
| Vehicle class | PGP vs gas twin | Distance from $4.354 pump price | PGP vs hybrid twin | Source |
|---|---|---|---|---|
| Medium SUV | $4.03 | −$0.32 (EV already ahead) | $5.43 | AAA; EIA; Axis |
| Compact SUV | $4.57 | +$0.22 | $5.82 | AAA; EIA; Axis |
| Pickup truck | $5.08 | +$0.72 | $5.88 | AAA; EIA; Axis |
| Medium sedan | $9.94 | +$5.59 | $14.17 | AAA; EIA; Axis |
Source: Axis Intelligence Research PGP calculation from AAA Your Driving Costs 2026 and EIA prices.
The PGP is a baseline reading, taken October 8, 2026. It moves whenever gasoline or electricity moves, which is the point: a buyer can compare one number with the price on the station sign.
Against a hybrid, the bar is higher in every class. The cheapest hybrid comparison still needs $5.43 gas before the electric medium SUV pulls level.
Aidan Jad’s read: Gasoline gained $1.230 a gallon in a year, a 39.4% rise according to EIA’s weekly series. That single move pushed two SUV classes to or past parity. Nothing about the cars changed. If you want to know whether the EV case gets better or worse next year, watch the pump, not the press releases.
How electricity price shifts the PGP
The PGP rises as home electricity gets dearer, because charging costs more. For the compact SUV, the break-even pump price runs from $4.11 at 12¢ per kWh to $6.20 at 40¢.
| Home electricity rate | Medium SUV PGP | Compact SUV PGP | Pickup PGP | Medium sedan PGP | Source |
|---|---|---|---|---|---|
| 12¢/kWh | $3.61 | $4.11 | $4.59 | $9.48 | Axis |
| 16¢/kWh | $3.88 | $4.41 | $4.90 | $9.78 | Axis |
| 18.2¢/kWh (U.S. 2026) | $4.03 | $4.57 | $5.08 | $9.94 | Axis |
| 22¢/kWh | $4.29 | $4.85 | $5.37 | $10.22 | Axis |
| 30¢/kWh | $4.84 | $5.45 | $6.00 | $10.82 | Axis |
| 40¢/kWh | $5.52 | $6.20 | $6.78 | $11.56 | Axis |
Source: Axis Intelligence Research, AAA Your Driving Costs 2026; EIA.
To find your own rate, see our electricity cost per kWh by state ranking.
Is an EV Cheaper Than a Gas Car in My State?
EIA publishes weekly gasoline prices for nine states. Axis Intelligence Research paired each with an estimated 2026 residential electricity rate (the state’s average retail price relative to the U.S. average of 12.94¢, scaled to EIA’s 18.2¢ national forecast) and recalculated the five-year gap.
5-year EV-vs-gas cost gap by state, October 2026
| State | Gas ($/gal) | Est. home power (¢/kWh) | Compact SUV PGP | Compact SUV gap | Medium SUV gap | Pickup gap | Medium sedan gap | Source |
|---|---|---|---|---|---|---|---|---|
| Washington | $5.424 | 14.25 | $4.27 | −$3,297 | −$6,144 | −$2,845 | +$11,267 | EIA; AAA; Axis |
| California | $6.227 | 38.03 | $6.05 | −$507 | −$3,103 | +$1,749 | +$13,832 | EIA; AAA; Axis |
| Minnesota | $4.200 | 17.37 | $4.51 | +$882 | −$836 | +$3,518 | +$15,150 | EIA; AAA; Axis |
| Texas | $3.874 | 13.77 | $4.24 | +$1,046 | −$542 | +$3,709 | +$15,307 | EIA; AAA; Axis |
| Colorado | $4.020 | 16.98 | $4.48 | +$1,314 | −$271 | +$4,164 | +$15,552 | EIA; AAA; Axis |
| Florida | $3.970 | 17.62 | $4.53 | +$1,596 | +$77 | +$4,601 | +$15,813 | EIA; AAA; Axis |
| Ohio | $3.829 | 15.88 | $4.40 | +$1,627 | +$157 | +$4,620 | +$15,844 | EIA; AAA; Axis |
| New York | $4.380 | 27.65 | $5.28 | +$2,568 | +$1,095 | +$6,228 | +$16,705 | EIA; AAA; Axis |
| Massachusetts | $4.302 | 33.67 | $5.72 | +$4,081 | +$2,903 | +$8,610 | +$18,104 | EIA; AAA; Axis |
Negative (bold) means the EV is cheaper over five years. Gas: EIA weekly prices, October 5, 2026. Power: EIA State Electricity Profiles 2024, scaled by Axis Intelligence Research.
Washington is the clearest EV market in the table. Its hydro-heavy grid keeps the estimated home rate at 14.25¢ while gasoline sells for more than a dollar above the national average. California has the most expensive gasoline in the table, $6.227, but its power is the dearest too; the EV still wins two classes there. Massachusetts and New York show the opposite case: average gas prices and expensive power push every class toward the gas car.
Aidan Jad’s read: People argue about EVs in national averages. The decision is local. A compact SUV buyer in Seattle and one in Boston face a $7,378 swing on the same two cars, and the only inputs that differ are the utility bill and the pump.
How Many Miles Do You Have to Drive for an EV to Pay Off?
The Break-Even Mileage (BEM) is the annual distance at which an EV’s five-year cost equals its gas twin’s. Every extra mile saves fuel and maintenance, but it also costs resale value, and AAA’s data show EVs losing more value per extra mile than gas cars.
| Vehicle class | BEM (miles per year) | Annual operating savings at 15,000 mi | Source |
|---|---|---|---|
| Medium SUV | 13,033 | $2,341.06 | AAA; EIA; Axis |
| Compact SUV | 16,124 | $2,270.32 | AAA; EIA; Axis |
| Pickup truck | 19,500 | $2,707.47 | AAA; EIA; Axis |
| Medium sedan | 98,258 | $1,827.35 | AAA; EIA; Axis |
Source: Axis Intelligence Research BEM calculation. Fuel and maintenance scale with miles; depreciation scales with AAA’s published 10,000- and 20,000-mile adjustments.
A medium SUV driver covering more than 13,033 miles a year comes out ahead with the EV at today’s prices. The electric sedan never breaks even at any realistic mileage.
Fuel and maintenance savings at 1, 3 and 5 years
Running costs are the part of the comparison that grows in a straight line, so they can be read at any horizon. Depreciation cannot: AAA measures it as a five-year average, which is why the full totals above are five-year figures only.
| Vehicle class | 1 year | 3 years | 5 years | Source |
|---|---|---|---|---|
| Pickup truck | $2,707.47 | $8,122.41 | $13,537.35 | AAA; EIA; Axis |
| Medium SUV | $2,341.06 | $7,023.18 | $11,705.30 | AAA; EIA; Axis |
| Compact SUV | $2,270.32 | $6,810.96 | $11,351.60 | AAA; EIA; Axis |
| Medium sedan | $1,827.35 | $5,482.05 | $9,136.75 | AAA; EIA; Axis |
Source: Axis Intelligence Research, from AAA 2026 fuel and maintenance lines at EIA October 2026 prices, 15,000 miles a year.
The savings are real in every class. They are not large enough to pay for the extra depreciation in three of them. The annual depreciation gap runs from $1,730 (compact SUV) to $3,456 (medium sedan).
For per-mile charging costs at home versus public chargers, see how much it costs to charge an EV at home vs public chargers.
What Moves the Total Cost of Owning an EV?
Gas price. The single biggest swing factor. Each class has its PGP; when the pump crosses it, the verdict flips.
Where you charge. Every figure on this page assumes home charging. Paying public fast-charging rates for most of your miles raises the charging line severalfold and pushes every PGP up; our home vs public charging data show by how much.
Resale value. Depreciation is the largest line for every EV in AAA’s study. Anything that changes it, from a manufacturer price cut on new cars to battery-health guarantees, moves total cost more than any electricity tariff.
The tax credit is gone. The federal New Clean Vehicle Credit of up to $7,500 is not available for vehicles acquired after September 30, 2025, according to the IRS. Every 2026 figure here is unsubsidized at the federal level.
State fees. At least 42 states charge an annual EV registration fee (NCSL). It is small next to depreciation but recurring.
The charger. A home Level 2 installation is a one-time cost outside AAA’s figures. See EV charger installation cost for the installed range.
How Long Does It Take an EV’s Price Premium to Pay Back?
Sticker gaps between same-brand twins have narrowed. Axis Intelligence Research compared starting prices read from manufacturer websites on October 8, 2026, using each brand’s own pricing convention for both models.
| Pair | EV starting price | Gas starting price | Sticker premium | Years to recover from fuel and maintenance savings | Source |
|---|---|---|---|---|---|
| 2027 Chevrolet Equinox EV LT 1 vs 2027 Equinox LT | $34,995 | $29,300 | $5,695 | 2.51 | Chevrolet; Chevrolet; Axis |
| 2027 Hyundai IONIQ 5 SE Standard Range vs 2026 Tucson | $35,250 | $29,700 | $5,550 | 2.44 | Hyundai; Axis |
Payback = sticker premium ÷ $2,270.32, the AAA compact SUV operating savings at October 2026 prices. Hyundai prices exclude freight. Source: manufacturer websites; Axis Intelligence Research.
A sticker premium recovered in about two and a half years sounds decisive, and it is the number EV marketing leads with. It leaves out the second half of the bill: a higher price also means a larger amount losing value, a larger loan and, in many states, a larger registration tax. The PGP accounts for all of it.
Should You Buy an EV, a Hybrid or a Gas Car in 2026?
If you want the lowest five-year cost, buy the hybrid. AAA’s hybrids beat both the EV and the gas car in all four classes, and stay ahead even at October 2026 gas prices.
Choose the EV when you are SUV-shopping, charge at home and pay more than the PGP at the pump. In a medium SUV, that bar is $4.03 nationally; in Washington and California the EV already wins two or more classes.
Skip the electric sedan if cost is your reason. Its PGP is $9.94, and its BEM is 98,258 miles a year.
Drive more than average? Run the BEM. Above 16,124 miles a year, the electric compact SUV comes out ahead at today’s national prices.
Price the resale, not the sticker. Depreciation is roughly half of an EV’s ownership cost in AAA’s data. For Tesla-specific resale curves, see our Tesla cost of ownership analysis.
EV vs Gas Cost Questions Buyers Ask Before They Sign
At what gas price does an EV become cheaper than a gas car?
It depends on the class. Axis Intelligence Research’s Parity Gas Price is $4.03 for medium SUVs, $4.57 for compact SUVs, $5.08 for pickups and $9.94 for medium sedans, at 18.2¢ per kWh home electricity, as of October 8, 2026.
Does an electric pickup cost more to own than a gas pickup?
Yes, at today’s national prices. The electric pickup costs $3,132.65 more over five years than its gas twin, mostly from $2,178 a year of extra depreciation. It reaches parity at $5.08 gas, or above 19,500 miles a year.
Why do EVs depreciate faster than gas cars?
AAA’s 2026 data show EVs losing more value in every class, up to 2.04 times the gas car’s annual depreciation for medium sedans. AAA calculates depreciation from actual purchase price and expected resale, so higher prices and weaker used-EV demand both feed the gap.
Is it still worth buying an EV without the $7,500 tax credit?
In the medium SUV class, yes on cost alone: the electric version is $1,195.32 cheaper over five years with no federal credit, which the IRS ended for vehicles acquired after September 30, 2025.
How much does an EV save on fuel and maintenance each year?
At 15,000 miles a year and October 2026 prices, $1,827.35 (medium sedan) to $2,707.47 (pickup), according to Axis Intelligence Research’s re-pricing of AAA data.
Is a hybrid cheaper to own than an EV?
In every AAA class in 2026. An electric compact SUV costs $3,046.75 more than the hybrid over five years; an electric medium SUV costs $2,717.82 more.
Which state makes owning an EV cheapest compared with gas?
Of the nine states with EIA weekly gas prices, Washington: the EV beats its gas twin in three of four classes, by $6,144 for a medium SUV over five years.
Methodology
Base data. AAA’s Your Driving Costs 2026 compares top-selling electric, gas and hybrid models in four classes (medium sedan, compact SUV, medium SUV, pickup truck) across six cost lines, averaged over five years and 15,000 miles a year. AAA based fuel costs on $4.152 per gallon and home charging at 18.0¢ per kWh.
Re-pricing. Axis Intelligence Research multiplied each gas and hybrid fuel line by 4.354 ÷ 4.152 (EIA U.S. regular gasoline, week of October 5, 2026) and each EV charging line by 18.2 ÷ 18.0 (EIA’s 2026 residential forecast, October 2026 STEO). All other AAA lines are unchanged. Five-year totals are annual totals × 5.
Parity Gas Price (PGP). PGP = 4.152 × (EV annual cost − gas non-fuel annual cost) ÷ gas annual fuel cost. A state PGP substitutes the state electricity estimate.
Break-Even Mileage (BEM). Annual miles at which the EV and gas totals are equal. Fuel and maintenance scale linearly with miles. Depreciation scales by AAA’s published category adjustments for 10,000 and 20,000 miles, applied to each vehicle as a share of its 15,000-mile depreciation.
State estimates. Residential electricity = state average retail price (EIA 2024) ÷ 12.94 × 18.2, the same method as our electricity-price page. Gas = EIA weekly state price.
What this does not capture. AAA’s figures are class averages for selected models, not quotes for a specific car or driver; home charging is assumed; insurance and depreciation are AAA’s national figures.
About This Dataset
The dataset holds AAA’s 2026 cost lines for 12 vehicle-class/powertrain combinations, EIA fuel and electricity prices, NCSL and IRS policy facts, manufacturer starting prices, and every Axis Intelligence Research calculation on this page (re-priced totals, PGP, BEM, state gaps), each row with its source URL and retrieval date. 415 rows. License: CC BY 4.0.
Download: ev-vs-gas-car-cost-of-ownership.csv
How to Cite This Page
APA: Axis Intelligence Research, & Jad, A. (2026, October 8). EV vs gas car total cost of ownership 2026: The gas price where each EV wins. Axis Intelligence. https://axis-intelligence.com/ev-vs-gas-car-cost-of-ownership/
MLA: Axis Intelligence Research, and Aidan Jad. “EV vs Gas Car Total Cost of Ownership 2026: The Gas Price Where Each EV Wins.” Axis Intelligence, 8 Oct. 2026, axis-intelligence.com/ev-vs-gas-car-cost-of-ownership/.
Chicago: Axis Intelligence Research and Aidan Jad. “EV vs Gas Car Total Cost of Ownership 2026: The Gas Price Where Each EV Wins.” Axis Intelligence, October 8, 2026. https://axis-intelligence.com/ev-vs-gas-car-cost-of-ownership/.