Understanding the True Cost to Charge An EV

The cost to charge an electric vehicle (EV) can vary widely depending on how and where you charge, your local electricity rates, and whether you invest in a dedicated home charger. The best way to truly understand the cost to charge an EV is by exploring two common owner scenarios:

1. Level 1 Home Charging + Occasional Public Charging
2. Level 2 Home Charging Only with Negligible Public Charging

We’ll break down upfront equipment and installation costs, ongoing electricity expenses at home, public charging fees, and benchmark these against fueling a comparable gasoline vehicle so that you have a clear understanding of the true costs to charge an electric vehicle.

Why Understanding the Cost to Charge an EV Matters

Switching to an electric vehicle offers environmental benefits, but the financial case hinges on charging expenses. Unlike gasoline, which you simply pay at the pump, EV charging involves factors like electricity rates (cents per kWh), charger type (Level 1, 2, or DC fast), and the cost of bringing higher-power charging into your home. Understanding these elements helps you plan budgets, calculate payback periods, and maximize your savings.

Scenario 1: Level 1 Home Charging + Occasional Public Charging

Many new EV owners start by plugging into a standard 120 V household outlet (Level 1), which delivers roughly 1.2–1.4 kW of power. Although slow—adding about 3–5 miles of range per hour—this setup requires no new equipment beyond an adapter you already have with your car.

Home Electricity Costs

At the U.S. average residential rate of 13.27 cents per kWh, charging via Level 1 costs approximately:

Cost per mile = (0.1327 $/kWh) / (3.5 miles/kWh) ≈ $0.038 per mile

For a typical daily commute of 40 miles, you’d draw about 11.4 kWh, costing:

• 11.4 kWh × 0.1327 $/kWh ≈ $1.52 per day

Public (Level 3) Charging Fees

When you need speed—on road trips or urgent errands—DC fast chargers (Level 3) deliver 50–350 kW but at a premium, often $0.25–$0.40 per kWh plus session fees.

Assuming $0.30 per kWh for 40 kWh of charging:

• 40 kWh × $0.30/kWh = $12.00

Factoring in one fast-charge per week adds about $12/7 ≈ $1.70 daily to your average charging budget.

Combined Level 1 + Public Daily Cost

• Level 1 at home: $1.52
• Public charging (amortized): $1.70
• Total ≈ $3.22 per day

Scenario 2: Level 2 Home Charging Only

Upgrading to a Level 2 charger (240V) at home typically involves buying a charging station ($400–$700) and paying for installation ($500–$1,000), though prices are becoming increasingly more affordable.

Even at the high end of installation costs, level 2 charging grants faster overnight charging—adding 20–30 miles per hour versus 5 miles with Level 1.

Home Electricity Costs with Level 2

The per-kWh cost remains 13.27 cents, but charging speed jumps to 7.2–11.5 kW (30–48 amps). Efficiency still centers around ~3.5 miles/kWh, so cost per mile holds at ~$0.038.

For a 40-mile daily drive:

• 11.4 kWh × $0.1327/kWh ≈ $1.52 per day

With Level 2, you nearly eliminate reliance on public charging (aside from those occasional long distance road trips), stabilizing your daily cost at about $1.52.

The Cost To Charge An EV Compared To Gasoline

Let’s compare driving costs for an EV versus a gasoline car averaging 25 MPG, with the average cost of gas at $3.19 per gallon (obviously this can vary tremendously depending on what state you reside in).

At those rates, you recoup the high end of your Level 2 installation cost (~$1,700) in not even 2 years through fuel savings alone.

Making Your Own Calculations

1. Know Your Rate: Check your local residential electricity cost (in cents/kWh) and plug it into your EV’s efficiency (miles per kWh).
2. Estimate Daily Usage: Multiply miles driven by cost per mile to find daily and annual charging expenses.
3. Include Public Charging if Needed: Determine your typical public charge frequency and the per-kWh/session fees.
4. Factor Upfront Costs: Amortize charger and installation expenses over your expected ownership years (e.g., 5–10 years).

Conclusion

Understanding the cost to charge an EV empowers you to make informed decisions—whether you start with simple Level 1 charging and occasional fast-charges, or invest in a Level 2 home station for consistent low-cost fueling. Even accounting for equipment and installation, EV owners can expect to pay roughly 30 cents per mile less than gasoline drivers, translating into substantial savings over time. With federal credits, state incentives, and increasingly affordable charger hardware, the economic argument for EVs has never been stronger.