How Much Does It Cost To Run An Electric Car?
Key Insights:
Electric vehicles cost approximately half as much per mile to run compared to petrol cars (6p vs 12p), saving drivers around £600 annually on fuel costs alone, with additional savings of £150-200 on maintenance.
Home charging is significantly more economical than public charging, with specialised EV tariffs offering rates as low as 7.5p/kWh during off-peak hours compared to 45-69p/kWh at public charging stations.
While EVs have higher upfront costs, their lower maintenance requirements (with 18% cheaper servicing than petrol/diesel vehicles) and improving depreciation rates (premium EVs retaining 55-60% of value after three years) contribute to better long-term value.
Electric vehicles continue to gain momentum in the UK market, with BEV uptake projected to rise by 20.9% to 462,000 units in 2025, representing a 23.7% market share, though still short of the mandated 28% target.
While EVs have higher purchase prices, their lower running costs make them more economical over time. Before making the switch, consider the total ownership costs, including charging, home installation, maintenance, and purchase price, to fully understand the financial benefits. In this blog, we’ll get to the bottom of how much an EV actually costs to run.
Electric Car Running Costs Explained
Understanding the complete financial picture of EV ownership goes beyond the initial purchase price. Running costs include daily charging expenses, home charging infrastructure, regular maintenance, insurance, and tax implications. These factors combined determine the true cost of ownership and potential long-term savings that electric vehicles offer.
| Make & model | Powertrain | Approximate cost per mile | Approximate annual fuel cost | Annual VED (from April 2025) | Average annual maintenance costs |
|---|---|---|---|---|---|
| Ford Focus | Petrol | 12.1p | £1,230 | £190-£245 (depending on emissions) | £350-£400 |
| Volkswagen ID.3 | Electric | 6.2p | £630 | £195 | £200-£250 |
| MG4 | Electric | 5.8p | £590 | £195 | £180-£220 |
| BYD Dolphin | Electric | 5.9p | £600 | £195 | £190-£230 |
A few disclaimers: annual fuel costs are based on 10,000 miles per annum. Electric charging costs have been calculated using the average home electricity rate of approximately 28p/kWh. Petrol costs are calculated at an average of 145p per litre. Maintenance costs include routine servicing, but exclude unexpected repairs. First-year VED for new EVs from April 2025 will be £10, rising to £195 in subsequent years. Ford Focus VED varies based on the specific model's emissions rating.
This table shows that electric vehicles like the Volkswagen ID.3, MG4, and BYD Dolphin are significantly cheaper to run than the petrol Ford Focus. EVs cost roughly half as much per mile (around 6p versus 12p), resulting in annual fuel savings of approximately £600. From April 2025, all vehicles will pay similar road tax, but EVs still maintain their advantage with lower maintenance costs, saving drivers an additional £150-200 annually.
Charging your EV
While the purchase price is crucial, it's equally important to consider additional costs associated with electric vehicles. Home charging points play a pivotal role in the convenience of owning an EV.
The cost of purchasing and installing a home charging station varies, depending on factors such as charging speed, brand, and installation requirements. Despite this initial investment, home charging stations can be cost-effective in the long run, offering savings compared to fueling up at traditional gas stations.
Charging At Home
This table compares the charging economics of four popular electric vehicles. While the Mini Cooper Electric offers the lowest full charge cost at £8.91, its smaller 33 kWh battery provides just 143 miles of range. The BYD Dolphin delivers excellent value with 265 miles from a £16.51 charge. The premium models, Hyundai Ioniq 6 and Kia EV6, require about £21 for a full charge but offer substantially more range at 323-328 miles, making them more suitable for longer journeys.
| Make & Model | Battery Size (kWh) | Range (miles) | Fully charge cost |
|---|---|---|---|
| Mini Cooper Electric | 33 | 143 | £8.91 |
| BYD Dolphin Hatchback | 60 | 265 | £16.51 |
| Hyundai Ioniq 6 | 77 | 323 | £20.79 |
| Kia EV6 | 77.4 | 328 | £20.90 |
The average cost for refuelling a petrol or diesel car falls within the range of 19 to 21 pence per mile. In contrast, charging an electric car at home can be as economical as 3p per mile. Lamppost chargers typically cost between 53p and 55p per kWh, which translates to 14p to 16p per mile.
Using Public Chargers
Rapid chargers are typically located in motorway service stations and are generally one of the most expensive methods to charge your electric vehicle (EV). DC rapid chargers are typically rated at 50 kW and can charge an EV from empty to 80% in less than an hour. As of May 2023, most network rapid chargers cost 74p/kWh, which equates to £19 for 30 minutes of charging.
Ultra-rapid chargers, with a rating of 100kW and above, can charge an EV to 80% in approximately 20 minutes. Despite being the most expensive way to charge your EV, they are perfect for those in a hurry. If you wish to delve into more information about the various types of chargers and the current state of public chargers in the UK, visit our blog post titled "Celebrating 50,000 Electric Car Charge Points in the UK."
Interestingly, Tesla used to provide an incentive for the Model S and X, offering free charging on Tesla Superchargers for the first few years after selling these models. This was an enticing offer due to the potential savings available.
The table below shows the price difference between a home charger (7 kWh) and a public rapid charger (22-100 kWh) when charging a BMW iX3-e Estate (80 kWh battery). Home charging proves £4.86 cheaper, emphasising the convenience of home charging.
| Home charging | Public rapid charging | |
|---|---|---|
| Full charge for BMW iX3 with an 80kWh battery | £10.97 | £15.83 |
| Provider rates | Standard tariff: ~ 28p/kWh Octopus Go: ~ 7.5p/kWh EDF GoElectric: 9p/kWh OVO Drive: 10p/kWh | InstaVolt: 65p/kWh IONITY: 69p/kWh Tesla Supercharger: 55-67p/kWh Connected Kerb: 45p/kWh Ubitricity: 50p/kWh |
As you can see above, home charging costs can be significantly reduced with an EV-specific electricity tariff. For example, Octopus Go offers rates as low as 7.5p/kWh during off-peak hours (typically 12:30 - 4:30 am), potentially reducing the above home charging cost to just £4.50. Other providers like EDF GoElectric and OVO Drive offer similar competitive overnight rates.
Public charging costs vary considerably between networks: InstaVolt (65p/kWh), IONITY (69p/kWh), and Tesla Superchargers (55-67p/kWh depending on location). Connected Kerb offers more competitive urban charging at around 45p/kWh, while Ubitricity lamppost chargers average 50p/kWh for convenient neighborhood charging.
EV Maintenance And Servicing Costs
While electric cars are initially more expensive to purchase than their petrol or diesel counterparts, they do require less maintenance and incur lower servicing costs. The electric vehicle drivetrain has fewer moving parts compared to an internal combustion engine, making maintenance simpler and cost-effective. Concerns about battery degradation often deter potential electric car buyers, especially regarding the perceived high cost of battery replacement.
To address these concerns, several manufacturers, including Jaguar, Nissan, Renault, and Tesla, offer eight-year warranties on batteries. Real-world evidence suggests that battery decay rates are generally lower than feared, with some manufacturers expecting their batteries to outlast the entire vehicle, particularly when properly maintained.
In case of battery degradation, replacing specific sub-optimal cells is more likely than replacing the entire battery. A new EV battery would set you back £7,200+! It is important to note that these situations are very rare.
Moving on to other maintenance aspects, the process for electric cars is akin to that of petrol cars. Regular maintenance, such as maintaining recommended tyre pressure, is crucial. Electric cars, being generally heavier due to the battery's weight, can accelerate tyre wear, a factor worth considering. While electric cars feature conventional disc brakes, they primarily serve as an emergency backup to regenerative braking, which is more frequently used when braking in an EV.
When it comes to servicing, the average cost for an electric car service is £143. In comparison, servicing a petrol or diesel car would cost £174. This translates to an 18% higher servicing cost for internal combustion engine (ICE) cars than for electric vehicles, as less testing and time are required for EV servicing.
Buying An EV In 2025
The electric vehicle market continues to mature in 2025, with prices becoming increasingly competitive. Entry-level models like the MG4 (from £26,995) and BYD Dolphin (from £30,990) offer excellent value, while mid-range options such as the Kia EV6 (from £45,995) and Hyundai Ioniq 5 (from £39,900) balance performance with practicality. Premium EVs, including the BMW i4 (from £49,995) and Polestar 2 (from £44,950), have also adjusted pricing to remain competitive.
Price trends show manufacturers responding to increased competition by offering more standard features while maintaining or reducing entry points. The recent Tesla Model 3 Highland refresh brought improved build quality and features without significant price increases, setting a benchmark other manufacturers are following.
Popular models gaining traction include the refreshed Tesla Model Y, which combines practical space with strong performance, and the Volkswagen ID.3, which has addressed early software issues to become a reliable family option. The Kia EV9, though premium-priced, has also gained popularity for those needing seven-seat practicality with electric benefits.
EV Depreciation
Electric vehicle depreciation rates have stabilised significantly compared to previous years. While early EVs often suffered steep depreciation due to rapidly advancing technology and battery concerns, 2025 models are showing more conventional depreciation curves.
Premium brands like Tesla, Polestar, and BMW typically retain 55-60% of their value after three years, compared to 45-50% for mainstream electric models. This narrower gap represents a significant improvement from earlier generation EVs, which sometimes lost over 60% of their value in the same period.
Battery longevity has become less concerning for buyers as manufacturers offer 8 to 10-year warranties, making used EVs more attractive. The market is also benefiting from increased buyer confidence in EV technology, with many consumers now seeing electric as their default choice rather than an experimental alternative.
For buyers concerned about depreciation, models with proven track records like the Tesla Model 3 and Kia e-Niro tend to hold value better than newer market entrants. Alternatively, nearly-new vehicles (6-18 months old) offer exceptional value, having already absorbed the steepest portion of their depreciation curve while retaining most of their warranty protection.
What Are We Doing At The Electric Car Scheme?
The Electric Car Scheme enables UK companies to offer salary sacrifice for electric vehicles as an employee benefit. Employees save 20-50% by paying for their chosen EV through pre-tax salary deductions, eliminating upfront costs and making electric cars more accessible.
Our quote tool clearly shows monthly costs and savings for hundreds of available models, helping employers support sustainability goals while enhancing their benefits package.
Last updated: 14.04.25
