The sticker price of a Tesla tells only part of the story. The real cost of owning any car includes fuel, maintenance, insurance, and depreciation over the years you drive it. When you add all of these together, a Tesla is often cheaper to own than a comparable gas car — sometimes by a wide margin. Here's how the math works in 2026.
Fuel Costs: Electricity vs Gasoline
This is where Tesla ownership pays for itself. The national average electricity rate is approximately $0.16 per kWh. The national average gasoline price hovers around $3.40 per gallon. Using these figures for a driver covering 12,000 miles per year:
A Model 3 Premium RWD consumes approximately 25 kWh per 100 miles (246 Wh/mi). That's 3,000 kWh per year, costing about $480 in electricity. A Toyota Camry averaging 32 MPG costs about $1,275 in gas per year. The Model 3 saves roughly $795 per year on fuel alone.
A Model Y Premium RWD at approximately 27 kWh per 100 miles costs about $518 per year. A Toyota RAV4 averaging 30 MPG costs about $1,360. The Model Y saves approximately $842 per year.
Over five years, that's $3,975–$4,210 in fuel savings for typical driving. If you charge primarily at home with off-peak rates (often $0.08–$0.12/kWh in many markets), savings increase further. If you Supercharge frequently, costs rise to roughly $0.30–$0.40/kWh — still cheaper than gas, but the advantage narrows. For a detailed charging cost comparison, see our Supercharger vs Home Charging Cost Comparison.
| Vehicle | Annual Fuel/Energy Cost | 5-Year Fuel Cost | 5-Year Savings vs Gas |
|---|---|---|---|
| Model 3 Premium RWD | ~$480 | ~$2,400 | ~$3,975 vs Camry |
| Model Y Premium RWD | ~$518 | ~$2,590 | ~$4,210 vs RAV4 |
| Toyota Camry (32 MPG) | ~$1,275 | ~$6,375 | — |
| Toyota RAV4 (30 MPG) | ~$1,360 | ~$6,800 | — |
Maintenance Costs
Tesla's maintenance advantage is substantial. With no engine oil, transmission fluid, spark plugs, timing belts, or exhaust system, the maintenance schedule is dramatically simpler than any gas car. Tesla's recommended service includes cabin air filter replacement every 2 years (~$60–$80 at a service center, or DIY for ~$20), brake fluid testing every 4 years (~$100), and A/C desiccant bag replacement every 4–6 years (~$130). Tire rotations are recommended every 6,250 miles (~$50–$75 each, or free at many tire shops). For a full breakdown, see our 2026 DIY Maintenance Checklist.
Regenerative braking means brake pads last dramatically longer — often 100,000+ miles — versus 30,000–50,000 miles on a gas car. There are no oil changes ($60–$100 each, typically 2–3 per year on gas vehicles).
Over five years and 60,000 miles, typical Tesla maintenance costs total approximately $1,200–$1,600. A comparable gas sedan runs $4,500–$6,500. A gas SUV like the RAV4 can reach $5,000–$7,000. That's a savings of $3,000–$5,400 over five years.
The main recurring cost for Tesla owners is tires. Tesla's instant torque and vehicle weight wear tires faster than most gas cars — expect replacement every 25,000–35,000 miles at $600–$1,000 per set depending on wheel size. To learn which wheel size minimizes tire costs, see our Best Wheel Size for Model 3 and Best Wheel Size for Model Y guides.
Insurance Costs
Insurance is the one area where Teslas typically cost more than comparable gas cars. The Model 3 Standard RWD averages approximately $3,466 per year nationally for full coverage, compared to roughly $2,100–$2,500 for a Toyota Camry. The Model Y averages slightly higher. The premium reflects Tesla's higher repair costs (aluminum body panels, specialized parts, calibration requirements) rather than accident frequency.
Tesla's own insurance program, available in most states, uses a real-time Safety Score based on your driving behavior. Careful drivers can see rates significantly below the national average. Third-party insurers like State Farm tend to offer competitive Tesla rates as well — averaging around $2,069/year for a Model 3 through State Farm. For a full guide, see our Tesla Insurance in 2026 article. Always compare at least three quotes.
Over five years, expect to pay $3,000–$5,000 more in insurance for a Tesla versus a comparable gas car, depending on your insurer and driving record. This partially offsets fuel and maintenance savings.
Depreciation
Depreciation is the largest single cost of owning any new car, and Teslas are no exception. However, Tesla resale values have been stronger than most EVs and competitive with popular gas cars. Edmunds estimates the 2026 Model Y's 5-year depreciation at approximately 45–50% of MSRP. The Model 3 depreciates slightly less, around 42–48%.
For context, a Toyota Camry depreciates approximately 40–45% over five years, and a RAV4 around 38–43%. Tesla's depreciation has been influenced by periodic price cuts — when Tesla drops new-car prices, used values adjust accordingly. The flip side is that Tesla's software updates add value over time (a feature no gas car offers), and the Supercharger network remains a significant resale advantage.
If you're buying used, Tesla's steeper early depreciation can work in your favor. A 2–3 year old Model 3 with 30,000 miles often represents excellent value. See our Used Model 3 Buying Guide and Tesla Depreciation & Resale Guide for more.
The 5-Year Total Cost Comparison
Let's add it all together for a Model 3 Premium RWD ($44,130 with destination) versus a Toyota Camry XSE (~$35,000 with destination), both driven 60,000 miles over five years:
| Cost Category | Model 3 Premium RWD | Toyota Camry XSE |
|---|---|---|
| Purchase Price | $44,130 | ~$35,000 |
| 5-Year Fuel/Energy | ~$2,400 | ~$6,375 |
| 5-Year Maintenance | ~$1,400 | ~$5,500 |
| 5-Year Insurance | ~$17,300 | ~$12,500 |
| 5-Year Depreciation | ~$19,900 | ~$15,750 |
| Total 5-Year Cost | ~$85,130 | ~$75,125 |
| Cost Per Mile | ~$1.42 | ~$1.25 |
The Model 3 is approximately $10,000 more expensive over five years in this scenario, largely due to its higher purchase price, insurance, and depreciation. However, the gap narrows significantly for drivers who cover more miles (the fuel and maintenance savings scale linearly), who have access to low electricity rates, or who qualify for state-level EV incentives. See our 2026 EV Tax Credits & Incentives Guide for current federal and state programs.
For the Model Y Premium RWD ($46,630) versus a RAV4 XLE Premium (~$38,000), the cost structure is similar — the Tesla costs more upfront but saves significantly on fuel and maintenance. The total 5-year gap is typically $8,000–$12,000 in favor of the RAV4 for average-mileage drivers, and closer to break-even for high-mileage drivers (20,000+ miles per year).
Where Tesla Wins on Cost
High-mileage drivers: If you drive 20,000+ miles per year, the fuel and maintenance savings compound faster and can make a Tesla cheaper to own than a comparable gas car within 3–4 years.
Home chargers with low electricity rates: Drivers with off-peak rates under $0.10/kWh spend as little as $250–$300 per year on fuel for a Model 3. For home charging setup guidance, see our complete guide.
Multi-car households: Eliminating gas station trips for even one vehicle in a two-car household adds meaningful time savings and convenience — a real but hard-to-quantify benefit.
Where Gas Cars Still Win on Cost
Lower purchase price: Entry-level gas sedans and SUVs remain $5,000–$10,000 cheaper than comparable Teslas. This is the single biggest cost advantage.
Lower insurance: Gas cars from mainstream brands cost less to insure due to simpler repairs and cheaper parts. This gap may narrow as EV repair infrastructure matures.
Better depreciation (for now): Popular gas models like the Camry and RAV4 hold value exceptionally well. Tesla's occasional price adjustments create uncertainty that affects resale.
The Bottom Line
A Tesla is not universally cheaper to own than a gas car — but it's much closer than most people think, and for high-mileage drivers it can be cheaper outright. The fuel and maintenance savings are real and significant: $7,000–$9,000 over five years compared to a gas equivalent. Insurance and depreciation work against the Tesla. The right choice depends on your mileage, electricity rates, and how much you value the Tesla driving experience — which is difficult to put a dollar figure on.
Browse the full specs for every Tesla trim in the Tesla Model Archive, or start with our Model 3 Buyer's Guide or Model Y Buyer's Guide.