EV total cost of ownership: what the price tag leaves out
Electricity may be cheaper than petrol per kilometre, but charging cost is only one part of owning a car. A sensible comparison uses the same ownership period and annual distance for every candidate, distinguishes fixed and variable costs and tests more than one scenario.
Start with depreciation and financing
Estimate purchase price minus a plausible resale value at the same future age and mileage. If you finance the car, calculate interest and fees separately from principal repayments to avoid double-counting the vehicle price. Residual values are uncertain: test lower and higher outcomes.
Model real charging behaviour
Multiply annual distance by energy use in kWh per 100 km and the weighted tariff of home, public AC and DC charging. Add charging losses if your consumption is measured at the battery rather than at the meter. Include session subscriptions or standing fees where relevant.
Include fixed running costs
Request actual quotes for insurance and relevant taxes, registration, parking, tyres, periodic service, charging equipment and optional maintenance plans. Electric cars still need tyres, brakes and repairs. Different markets have different rules, so do not copy a sample cost across countries.
Compare scenarios, not one headline
Build a low, central and high estimate for mileage, electricity prices and resale value. Check whether the result changes when public charging increases, the warranty expires or the household buys a home charger. Total cost is a decision aid, not a guarantee of future expenses.
Illustrative arithmetic
Suppose annual driving is 15,000 km at 18 kWh/100 km: that is 2,700 kWh measured at the stated consumption boundary. At a purely illustrative weighted rate of 0.30 per kWh, energy is 810 per year before any unaccounted losses or fixed fees. Add depreciation and the other categories separately.
Figures are examples, not live tariffs, investment advice or a resale forecast.