Methodology & Disclaimers
Purpose
The EV TCO Simulator is designed to help consumers compare the 5-year total cost of ownership between electric vehicles (EVs), hybrid vehicles, and internal combustion engine (ICE) vehicles. Our goal is to provide transparent, data-driven insights to inform vehicle purchase decisions.
Total Cost of Ownership (TCO) Calculation
We calculate TCO over a 5-year period including:
- Vehicle Purchase Price - Manufacturer suggested retail price (MSRP) for base model
- Energy/Fuel Costs - Based on annual mileage, vehicle efficiency, and current energy/fuel prices
- Insurance Costs - National average annual insurance premiums by vehicle type
- Maintenance Costs - Estimated annual maintenance based on manufacturer service intervals
- Depreciation (Resale Value) - Projected resale value after the analysis period
Energy Cost Calculations
Electric Vehicles (EVs)
Energy Cost = (Annual Miles ÷ Miles per kWh) × Electricity Rate × Years
Hybrid Vehicles
Energy Cost = [(Annual Miles × 70%) ÷ Gas MPG × Gas Price + (Annual Miles × 30%) ÷ MPGe × Electricity Rate] × Years
* Assumes 70% gas and 30% electric driving mix, typical for plug-in hybrids
Gas Vehicles (ICE)
Energy Cost = (Annual Miles ÷ MPG) × Gas Price × Years
Data Sources
- Vehicle Prices - Manufacturer websites and automotive publications
- Efficiency Ratings - EPA fuel economy database for official MPGe and MPG ratings
- Insurance Costs - National averages from insurance comparison websites and industry reports
- Maintenance Costs - Manufacturer recommended service schedules and cost estimators
- Depreciation Rates - Automotive industry depreciation studies and resale value data
- Electricity Rates - U.S. Energy Information Administration (EIA) state averages
- Gas Prices - Energy Information Administration (EIA) and AAA national averages
Limitations & Assumptions
- All calculations are estimates and for comparison purposes only
- Actual costs will vary by location, driving conditions, and personal circumstances
- Insurance costs are national averages - your actual rates may differ significantly
- Maintenance estimates assume proper maintenance and do not account for unexpected repairs
- Depreciation projections are based on historical averages - future market conditions may vary
- Tax incentives and rebates are not included in our base calculations (users should add these manually if applicable)
- Charging infrastructure installation costs (e.g., home charger) are not included
Important Disclaimers
This tool does not constitute financial, legal, or purchasing advice.
- Consult with dealers for current vehicle pricing and incentives
- Obtain personalized insurance quotes from licensed insurance providers
- Review your specific electricity rates with your utility provider
- Consider your local tax credits and rebates which may significantly affect TCO
- Speak with a qualified financial advisor before making purchase decisions
Accuracy & Updates
We strive to maintain accurate and up-to-date vehicle data. Our database is updated quarterly with new models, pricing changes, and revised efficiency ratings. However, we cannot guarantee real-time accuracy of all data points.
If you identify errors in our data or calculations, please contact us so we can investigate and make corrections.
Last Updated: February 6, 2026