If You Don't Charge Your EV at Home, Do You Save Money Compared to Paying for Gas?

CNET

2 days ago

According to the AAA, the national average for gas prices is down 40 cents. That's an 11% year-on-year decrease. Yes, some US locales are seeing gas price spikes due to refinery issues. However, this drop can make you wonder: Is it cheaper to fill and use a gas-powered car in comparison to an electric vehicle?
The debate continues feverishly on social media sites like Reddit and TikTok: How much do you save when charging an EV compared with filling the tank of a gasoline-powered car?
One Reddit user says they now spend $70 more on their electricity bill from at-home charging compared with $330 a month in gas previously. Some Reddit users argue against the actual savings. One naysayer, for example, argues that public supercharging is expensive and time-consuming, and another says the cost of installing their home EV charger negated any savings.
Lowering fuel costs could be the main reason EV-curious drivers consider going all-electric in the first place. In June 2022, gas prices hit a record high, averaging more than $5 a gallon nationwide, and although gas prices have fallen to about $3.20 as of February, gas price volatility has many drivers looking at alternatives, such as EVs or hybrids.
The deeper we dove into the Reddit-rabbit hole, the more we found that not all Americans are ready to join the EV revolution. That message is echoed by a CNET survey 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.
We asked industry experts the big question: Is it cheaper to charge an electric vehicle versus fueling a gas-powered car? The verdict is in -- based on current US averages, EV charging wins out.
The price of gasoline is volatile and, in some areas, expensive. Electricity also varies in price, but "it's significantly cheaper" than gasoline, said Anastasia Boutziouvis, solution product manager at ChargePoint, a company that operates the world's largest network of EV charging stations in North America and Europe. That means recharging an EV likewise will usually be considerably less expensive than topping off a gas-powered car's fuel tank.
"Generally, I find that charging an EV is less expensive than filling up a gas-powered car even in my neck of the woods, California, where we have the second-highest energy rates in the US," said CNET's 16-year auto and EV expert, Antuan Goodwin. "That's probably because California also has the highest gas prices in the US, as well."
We'll show you the math on how much cheaper charging an EV is compared to an internal combustion engine car.
We do the math: Comparing EV charging to filling a gas tank
When considering the costs of fueling or charging an electric car versus a gas car, the differences are stark and fairly obvious. EVs are propelled by electricity that is stored in batteries, which need to be recharged.
Gas-powered cars or those outfitted with internal combustion engines are fueled by burning gasoline.
Using averages from government data sources and AAA fuel prices, we did the math and mapped out for you all the monthly charging and fueling costs side by side.
These calculations use US driving averages for both EVs and ICE cars in data points such as fuel economy, miles driven, cost of electricity and gasoline, power needed for the average EV and more. You could drive a lot more (or less) and accordingly, see your fuel costs vary remarkably.
EV charging costs vs. fuel costs (US averages)
Using US averages, we multiplied what an average cost scenario would look like for both an average electric vehicle and an average ICE car assuming 1,250 miles driven in a given month to create the above graphic. Here are the average US figures we used to do the math.
EV charging per month Gasoline car per month
Average miles driven per month
1,250 miles
1,250 miles
Average fuel cost per gallon
—
$3.16 per gallon
Average miles per gallon
—
25 mpg
Average # of gallons of fuel required
—
50 gallons
Average power needed for an EV
3 miles per kWh
—
Average kWh used per month
416 kWH
—
Average cost of electricity is (per US household)
$0.17 or 17 cents per kWh
—
Average energy cost per mile
$0.057 (or 5.7 cents)
$0.126 (or 12.6 cents)
Cost by cost monthly comparison
$70.72 monthly recharging costs
$158 monthly fuel expense
Using US averages, we found the monthly cost of charging an EV to be $70.72 versus $158 to fuel an ICE car.
Using the same figures above, here's a yearly costs comparison:
$1,896 yearly average cost to fuel an ICE car
yearly average cost to fuel an ICE car $848.64 yearly average cost to charge an EV
yearly average cost to charge an EV That's a yearly difference of $1,047.36
Again, prices for gasoline and electric vary by location -- so your actual savings may be more or less. For example, outlier states like Hawaii (39.6 cents per kWh) and California (33 cents per kWh) are far above the national average of 17 cents per kWh that we used in our math above.
The type of car or EV you have also plays a factor in cost savings. A Tesla Model 3 and a Ford F-150 Lightning -- while both EVs -- won't have the same power efficiency.
Watch this: Expert vs. AI: Is Now the Time to Buy an EV?
07:45
Monthly cost of charging an EV
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, charging your EV overnight with an at-home charging setup is likely the least costly way to recharge, and in some areas, may only cost a dollar or two; a fraction of the price of a gallon of gas.
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 said it can cost a few dollars, on average, to recharge an EV. 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's totally based on local utility rates, and those vary across the US," she said.
Overall charging cost may also depend on whether you have a fixed-rate or variable electric rate or how your chosen energy plan outlines its time-of-use rates throughout the day.
The cost of EV charging at home vs. public EV charging
Another critical aspect that EV owners need to consider is the difference in costs between charging at home versus 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. There are public charging stations in many places such as retail parking lots. Here's an in-depth guide to where you can charge for free.
At-home charging tends to be cheaper, although there can be upfront costs when installing an EV charger and possibly upgrading your home's electrical system. 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 kWh, more than double the cost of charging at home.
Home charging costs
The costs of charging at home will, as noted, depend on what you pay for electricity, which will vary depending on where you live. Electricity tends to be more expensive in Hawaii, New England and California and less expensive in western and Midwestern states, such as North Dakota, Utah and Washington. 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 additional incentives available to EV drivers. Some states "offer really cool plans where they'll give you [EV] charging for free," said Boutziouvis. She also mentioned certain energy providers may offer incentives that are "almost like a cellphone plan, with unlimited charging for $20 per month" or something similar.
Read more: You Can Choose Your Electricity Provider in These States With Deregulated Markets
Those plans or incentives vary from state to state. In Texas, for example, TXU Energy and Gexa offer energy plans designed to entice EV drivers with free charging periods.
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 a degree of control over your operating costs, said Goodwin. "I can save money by charging at home or pay more for the convenience of fast charging on longer trips"
"Or you go to the extreme of investing in solar or home energy storage for even more flexibility and energy independence in the long run -- versus combustion cars where I'm simply at the mercy of gas prices," said Goodwin.
Public charging costs
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. Tesla is a notable example. It has its own fleet of charging stations, and in addition to the cost of electricity, it charges 50 cents per minute in "idle fees" to encourage you to drive away and free up chargers for other users.
Aside from Tesla chargers, other stations typically charge either a flat rate, a fee based on consumption or a fee based on the amount of time 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.
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). Effectively, DC charging is much faster and likely more expensive at a public charging station. "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%. Conversely, "AC public charging could be a couple of bucks," she said.
"Two to three hours gets you enough range to get back on the road," said Goodwin. "A true full charge at Level 2 could take 6 to 12 hours depending on your car and the charging station." This is why Goodwin recommends the practice of fully charging your EV overnight at home. "That's usually the cheapest, most convenient option," he said.
Put another way: The faster the charger, the more expensive it's going to be. You could also find free public charging at some locations.
There are more ways to save on electric driving costs that require some planning, says Goodwin. "Taking advantage of off-peak charging at home if you're able, capitalizing on free EV charging at work or while shopping and maximizing local incentives are great starting points."
The cost of level 2 vs. level 3 charging
The difference between level 2 and level 3 charging mostly involves speed and how much electricity is moving through a charger and into an EV's battery.
Level 2 charging
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. That might get the typical EV 30 or 40 miles of range if they charge for a couple of hours. Given that the charging is slower, it may cost a few dollars to charge your EV at a level 2 public charging station. Some public EV charging stations are even free.
Level 3 charging
Level 3 or DC fast-charging, on the other hand, delivers between 50 and 350 kilowatts within the same time frame. Given that many, if not most, EV homeowners charge at home and overnight, it's typically not practical to have a level 3 charging setup at home, so these chargers are generally found in public locations. Given that they're faster, it may cost between $10 and $30 to charge at one, as Boutziouvis mentions.
The costs of EV home charging equipment
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.
The cost really hinges on whether your at-home electrical setup can handle the addition of a charger. If not, you may need an electrician to replace your electrical panel (the breaker box is likely located in your basement or garage). That can be expensive depending on where you live and other factors.
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. More distance means higher costs, as more materials are required. If you do need an upgraded electrical setup, a new electrical panel can cost a few thousand dollars.
Note that there are tax credits and incentives available for home-charging installation costs. 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. There may be some utility discounts and incentives, too. Duke Energy, for instance, provides a one-time credit of more than $1,100 per charger in some areas.
A good rule of thumb: If you plan on shopping around for a charger, check with multiple companies, check with your utility for credits and rebates and explore all applicable tax incentives to ensure you get the best deal.
Read more: Best Home EV Chargers for 2025
How we do the math on the costs of filling a gas tank or charging an EV
How we do the math to determine average monthly gasoline costs
Step 1: Take the miles driven per month and divide it by the miles per gallon for your vehicle. 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 vehicle] = [Gallons of fuel required monthly]
Example using US averages: 1,250 miles / 25 MPG = 50 gallons
Step 2: Take the gallons needed per month to power your combustion car and multiply it by the cost of gasoline per gallon. This will tell you the monthly cost to fill up your car each month.
Here's the formula: [Gallons of fuel required for the month] x [Price of gas per gallon] = [Monthly fuel expense]
Example using US averages: 50 monthly gallons x $3.20 per gallon = $160 monthly fuel expense
How we do the math for monthly electric vehicle charging costs
Step 1: Take the average miles driven per month and divide it by the average miles per kWh your EV is capable of. This gives you the expected amount of kWh needed to power your EV each month.
Here's the formula: [Miles driven per month] / [EV miles per kWh]] = [kWh used per month for EV]
Example using US averages: 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 (kWh) by the total kWh needed to power your EV in a month. This will give you the total cost to charge your EV per month.
Here's the formula: [Cost per kWh for electricity] x [kWh 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 fixed-rate for electricity, then your cost per kWH could vary each month.