Petrol vs Electric Car Cost Calculator
Compare the true total cost of a petrol, diesel, hybrid, or electric car over 3 or 5 years — including purchase price, fuel, tax, insurance, and depreciation.
True Cost of Car Ownership
Purchase price and fuel are only part of the story. Full cost includes: fuel, Vehicle Excise Duty (VED/road tax), insurance, servicing and maintenance, MOT and repairs, depreciation (the largest single cost for most cars), and parking/charging infrastructure. Depreciation alone accounts for 40–60% of total ownership cost for most cars in the first 3 years. A £30,000 car that is worth £18,000 after 3 years has depreciated £12,000 — more than many years' fuel costs combined.
Electric Car Economics
Electric cars have high purchase prices but very low running costs: fuel at home charging (7p/kWh off-peak) costs 2–3p per mile vs 15–20p for petrol. Servicing is simpler (no oil changes, fewer brake replacements due to regenerative braking). VED is £0 for zero-emission vehicles. The break-even point depends heavily on the price premium over equivalent petrol, annual mileage, and whether you can charge at home. For high-mileage drivers with home charging, EVs are clearly cheaper. For low-mileage
Depreciation by Fuel Type
Depreciation rates vary significantly by fuel type and model. Petrol: mainstream models typically retain 40–50% of value after 3 years. Diesel: similar to petrol but uncertainty around future diesel restrictions has increased depreciation in urban areas. Electric: higher initial depreciation (40–50% in first 3 years) due to technology improvement reducing second-hand values, though this is improving. Hybrid: strong residuals (50–60% retained) due to high demand for fuel-efficient used cars. Alwa
BIK and Company Cars
For company car drivers, Benefit in Kind (BIK) tax is a significant consideration. Electric vehicles have very low BIK rates (2% of list price in 2026/27, rising 1% per year to 2027/28) — making them dramatically cheaper than petrol equivalents for higher-rate taxpayers. A £40,000 EV at 2% BIK vs an equivalent petrol at 32% BIK: the BIK difference alone is worth £2,800–4,800/year in tax for a 40% taxpayer. For company car users, the shift to EVs is financially compelling regardless of personal u
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