How Long Does It Take for Electric Cars to Pay for Themselves?

The popular Ford F-150 series makes a straightforward case study.

Electric cars don't come cheap. At least, not the popular ones like the Tesla Models 3 and Y, or the Ford F-150 Lightning. You can shell out less than $20,000 for a cheap electric vehicle (EV) with low mileage, but most folks like being able to drive more than 100 miles before filling the tank (or charging the battery).

So we compared popular gas cars to popular, high-range electric vehicles. Electric cars are generally more expensive to purchase than their gas counterparts.

For example, a gas-powered 2022 Ford F150 Pickup 2WD costs about $31,000. An all-electric 2022 Ford F-150 Lightning 4WD Automatic (A1) costs about $40,000 to purchase. Not cheap.

However, electric cars are generally cheaper to operate. That's because EVs demand cheaper fuel and less maintenance than gas cars.

So, what's the better buy? Electric or gasoline?

It depends. How long do you intend to keep the car? The longer you drive it, the more time your EV has to lower your total cost of ownership. Even so, a $60,000+ Model Y might never break even with a $20,000 Toyota Corolla.

However, some EVs make up for their price premiums by being cheaper to drive. In that way, electric cars can pay for themselves.

Ford F-150 Pickup vs. Ford F-150 Lightning

The Ford F-series is one of the bestselling series among American drivers. The lineup includes the gas-powered F-150 and the all-electric F-150 Lightning.

Over three years, the Ford F-150 Lightning costs about $3,000 less to own and operate than the traditional F-150, according to a rough analysis by Car and Driver. That doesn't consider a potential $7,500 EV tax credit, which would save drivers thousands more.

Estimates like these are rough. Costs vary by state, annual mileage, and tax credit status. It's especially tricky to compare prices across brands -- comparing a Toyota to a Ford isn't straightforward.

The best way to compare cars may be to use the US Department of Energy (DoE) cost calculator. I directly compared F-150 costs based on how much I drive, my home state, and other things. It took me less than five minutes to figure it out.

Here's what I learned: My Ford F-150 Lightning would pay for its premium without the EV tax credit in about seven years. My truck would pay for itself in the first two or three years with the credit. (I'll remember that the next time I go car shopping!)

Insurance prices matter, too. The best car insurance companies offer the most bang for your buck.

So what?

If you're the type to swap vehicles every few years, owning traditional gas versions of comparable cars is probably cheaper. But car owners who like to hang onto a car for a long time may save by purchasing electric vehicles that pay for themselves.

Here are two things to consider when comparing electric to gas-powered vehicles:

1. Does the electric car qualify for an EV tax credit?
2. How long do I plan on owning the car?

If the answers to these questions are “yes” and “longer than five years,” absolutely compare prices on the U.S. Department of Energy website. You could end up saving thousands of dollars.