Gas vs Electric Car Cost Calculator Ontario

Deciding between a gas-powered and electric vehicle in Ontario requires careful consideration of both upfront costs and long-term ownership expenses. This calculator helps you compare the total cost of ownership for gas and electric cars over a 5-year period, taking into account fuel costs, electricity rates, maintenance, and other factors specific to Ontario.

Introduction

The choice between gas and electric vehicles depends on several factors, including fuel costs, electricity rates, vehicle efficiency, and government incentives. In Ontario, electricity rates are generally lower than gas prices, but electric vehicles have higher upfront costs and different maintenance requirements.

This calculator provides a comprehensive comparison of the total cost of ownership for gas and electric cars in Ontario. By inputting your vehicle specifications, driving habits, and financial preferences, you can determine which type of vehicle offers better value over time.

How to Use This Calculator

Enter the purchase price of your gas and electric vehicles.
Input your estimated annual mileage.
Provide the current gas price and electricity rate in Ontario.
Enter the fuel efficiency (MPG) for your gas vehicle and the electric range (miles per charge) for your electric vehicle.
Click "Calculate" to see the total cost comparison.

The calculator will display the total cost of ownership for both vehicle types over 5 years, including fuel costs, electricity costs, and depreciation.

Key Cost Factors

Gas Vehicle Costs

Purchase price
Fuel costs (gasoline price × annual mileage ÷ MPG)
Maintenance and repairs
Insurance
Depreciation

Electric Vehicle Costs

Higher purchase price
Electricity costs (electricity rate × annual mileage ÷ electric range)
Lower maintenance costs
Insurance (may be higher for new EVs)
Depreciation

Note: Ontario's electricity rates are generally lower than gas prices, but electric vehicles have higher upfront costs and different maintenance requirements.

Gas vs Electric Car Comparison

To compare the costs of gas and electric vehicles, we calculate the total cost of ownership over a 5-year period. The formula used is:

Total Cost = Purchase Price + (Annual Cost × 5) Annual Cost = (Annual Mileage ÷ Efficiency) × Cost per Unit

Where:

For gas vehicles: Efficiency = MPG, Cost per Unit = Gas price
For electric vehicles: Efficiency = Electric range, Cost per Unit = Electricity rate

The calculator also accounts for depreciation, which is estimated at 20% per year for both vehicle types.

Worked Example

Let's compare a gas vehicle and an electric vehicle with the following specifications:

Specification	Gas Vehicle	Electric Vehicle
Purchase Price	$25,000	$40,000
Annual Mileage	15,000 miles
Gas Price	$1.50 per gallon
Electricity Rate	$0.15 per kWh
MPG	25 MPG	-
Electric Range	-	300 miles per charge

Gas Vehicle Calculation

Annual fuel cost = (15,000 miles ÷ 25 MPG) × $1.50 = $900

Total cost over 5 years = $25,000 + ($900 × 5) = $29,500

Electric Vehicle Calculation

Annual electricity cost = (15,000 miles ÷ 300 miles per charge) × $0.15 = $7.50

Total cost over 5 years = $40,000 + ($7.50 × 5) = $40,037.50

In this example, the gas vehicle is more cost-effective over 5 years.

Frequently Asked Questions

Which is cheaper to run, a gas or electric car in Ontario?

In Ontario, gas cars are generally cheaper to run than electric cars due to lower electricity rates. However, electric vehicles have lower operating costs over time and may be more cost-effective in the long run depending on your driving habits and electricity rates.

What factors affect the total cost of ownership for gas and electric cars?

The total cost of ownership is affected by purchase price, fuel/electricity costs, maintenance, insurance, depreciation, and government incentives. Electric vehicles typically have lower fuel costs but higher upfront costs and different maintenance requirements.

How does the Ontario electricity rate affect the cost of owning an electric car?

The Ontario electricity rate is a key factor in determining the cost of owning an electric car. Lower electricity rates make electric vehicles more cost-effective, while higher rates may make gas cars more economical.

Are there any government incentives for buying an electric car in Ontario?

Yes, Ontario offers various incentives for buying an electric car, including rebates, tax credits, and reduced registration fees. These incentives can significantly reduce the upfront cost of an electric vehicle.