Total Cost of Ownership
Every dollar of owning a Tesla versus a gas car — depreciation, interest, energy, insurance, maintenance, tires, taxes and fees — over the years you plan to keep it. See which one wins, why, and how sensitive the answer is.
Every pound of owning a Tesla versus a petrol car — depreciation, finance interest, energy, insurance, servicing, tyres, VED, MOT and the coming pay-per-mile charge — over the years you plan to keep it. See which one wins, why, and how sensitive the answer is.
Tesla saves
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Tesla total
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Gas car total
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Break-even
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Where the money goes
By category
+ = Tesla savesCumulative cost if sold at the end of each year
Value lost + every running cost to dateSensitivity
How the gap moves when one input changesYear by year
How this is calculated
- Depreciation = purchase price − estimated resale value at the end of each year. Tesla resale uses our typical curve for the model family; the gas car uses the curve you enter. Both are nudged for mileage: about 0.3% of value per 1,000 miles above or below 12,000 mi/yr. Rebates are subtracted in year 1.
- Financing = loan interest actually paid during the years you own the car (the loan covers price + tax + fees minus your down payment). If you sell before the loan ends, the balance is paid off from the sale, so only interest to date counts. Cash buyers have no financing line.
- Energy: Tesla kWh = miles × Wh/mi ÷ 1000, split between home (plus charging loss) and Supercharging. Gas = miles ÷ mpg × price per gallon. Each grows by its own yearly price change.
- Tires are prorated per mile: miles ÷ tire life × set price. EVs are heavier and torquey, so sets usually wear out sooner.
- Taxes & fees = sales tax and one-time fees in year 1, plus registration every year (and the EV surcharge for the Tesla).
- Break-even is when the Tesla's cumulative cost drops below the gas car's (interpolated between year-ends).
- Depreciation = list price − estimated resale value at the end of each year. Tesla resale uses our typical UK curve for the model family; the petrol car uses the curve you enter. Both are nudged for mileage: about 0.3% of value per 1,000 miles above or below 10,000 mi/yr. Any grant or discount is subtracted in year 1.
- Finance = Hire Purchase interest actually paid during the years you own the car (the agreement covers the price plus one-offs minus your deposit). If you sell before it ends, the settlement comes out of the sale, so only interest to date counts. Cash buyers have no finance line. PCP costs similar interest but a lower monthly payment — see the car finance calculator.
- Energy: Tesla kWh = miles × Wh/mi ÷ 1000, split between home (plus charging loss) and Supercharging. Petrol = miles ÷ imperial mpg × price per gallon (pence per litre × 4.546). Example: 7,400 mi ÷ 45 mpg × 137p/L × 4.546 ≈ £1,024 a year.
- Tyres are prorated per mile: miles ÷ tyre life × set price. EVs are heavier and torquey, so sets usually wear out sooner.
- Tax, MOT & fees = one-offs in year 1, then Vehicle Excise Duty every year: the Tesla pays £10 in year 1 and the standard rate after; the petrol car pays a first-year rate set by its CO₂ band, then the standard rate. Either car pays the Expensive Car Supplement in years 2–6 if its list price is over the threshold. The MOT applies from year 3, and the Tesla adds eVED pay-per-mile from April 2028 if switched on.
- Break-even is when the Tesla's cumulative cost drops below the petrol car's (interpolated between year-ends).
Why count depreciation instead of the purchase price?
Because you get part of the price back when you sell. The money you truly spend on the car itself is the value it loses while you own it. That's why the horizon matters so much: year 1 typically has the steepest drop, and each later year costs less.
What isn't included?
Opportunity cost of cash (what the money could earn invested), a home charger install (often $500–$2,000), parking, tolls, and any FSD purchase or subscription. Add a home charger to the Tesla's fees field if you need one. Maintenance is held flat; real gas-car maintenance usually rises with age, which would favor the Tesla on longer horizons.
What isn't included?
Opportunity cost of cash (what the money could earn invested), parking permits, the London Congestion Charge and ULEZ (EVs now pay the Congestion Charge too), tolls, and any FSD subscription. Add a home charger to the Tesla's one-offs if you need one. Servicing is held flat; real petrol-car servicing usually rises with age, which would favour the Tesla on longer horizons. Company-car drivers should look at the salary sacrifice calculator instead.
How good is the insurance estimate?
It's a rough average: a national full-coverage figure scaled by your state's index, with Teslas set 15% higher because repairs tend to cost more. Your age, record, credit and insurer can move it far more than that. Use the Insurance Estimator for a closer figure, or paste in real quotes.
How good is the insurance estimate?
It's a rough average for an experienced driver with a good no-claims record, scaled by your region's index. Teslas sit in insurance groups 47–50 (out of 50), so they start well above a typical petrol car. Age, postcode, No Claims Discount and excess move it far more than that. Use the Insurance Estimator for a closer figure, or paste in real quotes.
What is eVED and is it certain?
The government has announced a pay-per-mile charge for electric cars of about 3p a mile from April 2028 (plug-in hybrids about half that), collected alongside VED. Rates and details can change before it starts, so it's a switch here — and the rate is editable. At 7,400 miles a year, 3p/mile is about £222 a year.
Are the resale curves reliable?
They're typical-market estimates, not guarantees. Used EV prices have swung hard when new-car prices were cut. The Depreciation Forecast lets you stress-test with a market-shock slider. Prices, incentives and financing offers change often — verify current terms before you buy.