Car Costs UK 2026 — Running Costs, Finance Options and Buying GuideElectric vs Petrol Car Cost Calculator UK 2026 — True Running Costs
Calculate the real cost of electric vs petrol/diesel cars. Compare purchase price, fuel, tax, insurance, and find out which is cheaper for you.
Start here: Car Costs Hub.
Electric cars have higher purchase prices but lower running costs. Here’s how to calculate which is actually cheaper for you.
Quick Comparison: £30,000 Car Over 5 Years
| Cost | Petrol | Electric |
|---|
| Purchase price | £30,000 | £35,000 |
| Fuel/electricity (10k miles/yr) | £8,750 | £2,625 |
| Road tax | £950 | £0* |
| Servicing | £2,500 | £1,250 |
| Insurance | £3,750 | £4,500 |
| ULEZ savings** | £0 | £6,250 |
| 5-Year Total | £45,950 | £43,625 |
| Annual Cost | £9,190 | £8,725 |
*£0 until April 2025, then standard rates apply
**If driving daily in ULEZ
Electric is £2,325 cheaper over 5 years despite costing £5,000 more to buy.
Fuel vs Electricity Costs
Cost Per Mile Comparison
| Vehicle Type | Efficiency | Fuel Cost | Cost Per Mile |
|---|
| Petrol (small) | 45 mpg | £1.40/L | 14p |
| Petrol (medium) | 35 mpg | £1.40/L | 18p |
| Petrol (SUV) | 28 mpg | £1.40/L | 23p |
| Diesel (medium) | 50 mpg | £1.45/L | 13p |
| Electric (home) | 3.5 mi/kWh | 12p/kWh | 3.4p |
| Electric (public) | 3.5 mi/kWh | 65p/kWh | 19p |
Annual Fuel Costs by Mileage
| Annual Miles | Petrol (18p/mi) | EV Home (3.5p/mi) | Saving |
|---|
| 5,000 | £900 | £175 | £725 |
| 8,000 | £1,440 | £280 | £1,160 |
| 10,000 | £1,800 | £350 | £1,450 |
| 12,000 | £2,160 | £420 | £1,740 |
| 15,000 | £2,700 | £525 | £2,175 |
| 20,000 | £3,600 | £700 | £2,900 |
Electricity Cost by Charging Method
| Charging Type | Cost Per kWh | Cost Per Mile | For 250 Miles |
|---|
| Home (standard rate) | 12p | 3.4p | £8.50 |
| Home (EV tariff) | 7.5p | 2.1p | £5.25 |
| Home (Octopus Go) | 7.5p | 2.1p | £5.25 |
| Workplace (free) | £0 | £0 | £0 |
| Public slow (7kW) | 40p | 11p | £27.50 |
| Public rapid (50kW+) | 65p | 19p | £47.50 |
Road Tax (VED) Comparison
2026/27 Rates
| Vehicle | First Year | Years 2+ |
|---|
| Petrol (avg CO2 130g/km) | £240 | £190 |
| Diesel (avg) | £260 | £190 |
| EV (pre-Apr 2025 registered) | £0 | £0 |
| EV (post-Apr 2025) | £0 | £190 |
5-Year Road Tax Cost
| Vehicle | 5-Year Cost |
|---|
| Petrol (from new) | £1,000 |
| EV (registered 2024) | £0 |
| EV (registered 2026) | £760 |
EV road tax exemption ends April 2025 for new registrations.
Insurance Costs
Typical Insurance Comparison
| Factor | Petrol | Electric |
|---|
| Average premium | £550/year | £680/year |
| Why higher for EV | Repair costs, battery | |
| Gap closing? | Yes, rapidly | |
EV insurance is 15-25% higher on average, but the gap is narrowing.
Servicing and Maintenance
Annual Service Costs
| Vehicle | Annual Service | Why |
|---|
| Petrol | £400-600 | Oil, filters, spark plugs |
| Diesel | £450-650 | Oil, filters, DPF |
| Electric | £150-300 | Brakes, tyres, coolant |
Maintenance Differences
| Item | Petrol/Diesel | Electric |
|---|
| Oil changes | Every 10-12k miles | None |
| Spark plugs | Replace periodically | None |
| Exhaust system | Can fail | None |
| Brake pads | Regular replacement | Last longer (regen braking) |
| Gearbox | Can fail | None (single speed) |
| Clutch | Wears out | None |
| Battery | 12V standard | Main battery warranty 8 years |
5-Year Maintenance Estimate
| Vehicle | 5-Year Cost |
|---|
| Petrol | £2,500 |
| Diesel | £2,800 |
| Electric | £1,250 |
Total Cost Calculator by Scenario
Scenario 1: 8,000 Miles/Year, Home Charging
| 5-Year Costs | Petrol £25k | EV £30k |
|---|
| Purchase (less trade-in) | £15,000 | £18,000 |
| Fuel/electricity | £7,200 | £1,400 |
| Road tax | £950 | £0 |
| Insurance | £2,750 | £3,400 |
| Servicing | £2,500 | £1,250 |
| Total | £28,400 | £24,050 |
| EV Saving | | £4,350 |
Scenario 2: 15,000 Miles/Year, Some Public Charging
| 5-Year Costs | Petrol £30k | EV £35k |
|---|
| Purchase (less trade-in) | £18,000 | £21,000 |
| Fuel/electricity | £13,500 | £3,500 |
| Road tax | £950 | £0 |
| Insurance | £2,750 | £3,400 |
| Servicing | £2,500 | £1,250 |
| Total | £37,700 | £29,150 |
| EV Saving | | £8,550 |
Scenario 3: 5,000 Miles/Year, City Driver (ULEZ)
| 5-Year Costs | Petrol £20k | EV £25k |
|---|
| Purchase (less trade-in) | £12,000 | £15,000 |
| Fuel/electricity | £4,500 | £875 |
| Road tax | £950 | £0 |
| Insurance | £2,750 | £3,400 |
| Servicing | £2,500 | £1,250 |
| ULEZ charges (250 days/yr) | £15,625 | £0 |
| Total | £38,325 | £20,525 |
| EV Saving | | £17,800 |
When NOT to Go Electric
EV May Not Be Cheaper If:
| Situation | Why |
|---|
| No home charging | Public charging expensive |
| Very low mileage | Savings don’t offset price premium |
| Rural with no infrastructure | Charging access issues |
| Tow heavy loads frequently | Range impact |
| Keep cars 10+ years | Battery degradation concerns |
Break-Even Calculator
| EV Premium | Annual Mileage Needed to Break Even |
|---|
| £3,000 | ~5,000 miles/year |
| £5,000 | ~8,000 miles/year |
| £7,500 | ~12,000 miles/year |
| £10,000 | ~16,000 miles/year |
Company Car/Salary Sacrifice
Benefit in Kind Rates 2026/27
| Vehicle | BiK Rate | Tax on £40k Car (Higher Rate) |
|---|
| Petrol (avg) | 28% | £4,480/year |
| Diesel (avg) | 32% | £5,120/year |
| Electric | 3% | £480/year |
EV company cars are 85-90% cheaper in benefit — massive saving for company car drivers.
Salary Sacrifice Example
| £35,000 Electric Car | Petrol Equivalent |
|---|
| Gross monthly: £450 | N/A (no scheme) |
| Net cost (40% taxpayer): £300 | Buy outright: £600/month |
| Includes: Insurance, maintenance, tax | |
Depreciation
3-Year Depreciation Comparison
| Vehicle Type | New Price | 3-Year Value | Depreciation |
|---|
| Petrol (avg) | £30,000 | £15,000 | 50% |
| Electric (avg) | £35,000 | £19,250 | 45% |
EVs are holding value better than petrol — and improving.
Future Cost Trends
Changes Coming
| Factor | Direction | Impact on Case for EV |
|---|
| EV prices | Falling | Better |
| Electricity costs | Stable/rising | Slightly worse |
| Petrol prices | Rising | Better |
| Road tax on EVs | Coming 2025 | Slightly worse |
| Charging infrastructure | Improving | Better |
| Battery costs | Falling | Better |
Key Takeaways
- EVs are cheaper to run — significantly lower fuel and maintenance
- Home charging essential — 3-4p/mile vs 15-20p/mile
- Higher mileage = bigger savings — fuel difference adds up
- Company cars: EV wins hugely — 3% vs 28%+ BiK
- Break-even typically 3-5 years — depending on mileage
- Consider total cost — not just purchase price
For related content, see our salary sacrifice calculator, car finance explained, and car affordability calculator.