The cost of running an electric car

It’s a common belief that EVs are cheaper to run. Charging is generally cheaper than fuel, but hidden costs like battery replacement, depreciation and insurance can all add up and increase the real cost of running an electric car.

To help you understand the different electric car costs to consider, we’ve broken down the main expenses, including charging, servicing and maintenance, battery replacement, insurance and depreciation. We’ve also got a handy comparison table showing the cost of running an electric car vs petrol or diesel, and explain how financing an EV can change the real monthly cost.

How much does it cost to charge an electric car?

How much it costs to charge an electric car depends mainly on where you charge, your electricity tariff and how efficiently your EV uses energy. 

Home charging costs

Home charging is usually the cheapest way to charge an EV, but the cost depends on the electricity tariff, your car’s battery size and the charging efficiency. Electric car charging costs in the UK are cheaper with an EV tariff. This is a home energy plan that offers cheaper electricity at off-peak time (usually overnight), helping you save a fair amount when you charge your EV.

According to Ofgem, the average standard electricity rate in Great Britain is 26.32p per kWh (October to December 2026). For a typical EV, that works out at around 8p per mile. Off-peak rates on EV tariffs from suppliers like Octopus and EDF Energy are considerably lower, at around 6.5p to 9.5p per kWh. That's roughly 2p to 3p per mile, although your actual cost will depend on your car and tariff.

This difference can really add up, so it’s worth looking into your tariff options to save cash over time.

"Your electricity tariff makes the biggest difference to home charging costs. The average standard rate currently is around 26p per kWh, but many EV tariffs offer off-peak rates of 6.5p to 9.5p. That can make home charging roughly 70% cheaper, just by charging overnight."  - Louis Rix, Car Finance 247

Public and rapid charging costs

Electric car charge costs are significantly higher per kWh at public charge points. They charge a pay-as-you-go flat rate determined by how fast they deliver the charge. According to Zapmap, slow or fast public chargers cost around 54p per kWh, while rapid and ultra-rapid chargers cost around 77p per kWh.

That works out at roughly 16p per mile for slower charging and around 23p per mile for rapid or ultra-rapid charging. That’s considerably more than charging at home, even without an EV tariff. So, if you have access to a home EV charger, using it regularly could help keep your charging costs down over time. 

When working out your own costs, consider how many miles you typically drive each year. Your annual mileage will determine how much you spend on charging. The more miles you drive, the more often you'll need to charge.

Knowing roughly how much it costs to charge an electric car allows you to budget properly. Once you’ve worked it out, you can use our free car finance calculator to see what your monthly repayments could look like if you're considering financing your EV.

Electric car servicing and maintenance costs

Electric car servicing costs are typically lower than those for petrol or diesel cars because EVs have fewer moving parts. There’s also no engine oil to change or oil filter to replace, and regenerative braking can reduce wear on brake pads and discs.

That doesn't mean EVs are maintenance-free, though. You’ll still need to replace tyres, windscreen wipers and other wear-and-tear parts, and these costs are similar to those of a petrol or diesel car.

To give you an idea of cost, KwikFit prices its full EV service from £230.95, while a full service for petrol and diesel starts at £246.95. Prices vary though, as make, model and size all factor into the cost. It’s also a good idea to shop around, as service prices vary between garages. 

When budgeting for electric car maintenance costs, it's important to factor these services in, and it’s worth checking the manufacturer's recommended service schedule beforehand if you have a specific EV in mind. Servicing is one of the costs that can be easy to overlook. We go over this and other hidden costs of car finance you should consider before getting a car on finance.

"EVs don't need oil changes, but they still need regular servicing. Brakes and tyres are worth watching, as regenerative braking can lead to corroded discs and the extra weight can wear tyres faster. Sticking to the manufacturer's schedule also helps keep your battery warranty valid."  - Louis Rix, Car Finance 247

Electric car battery costs

Electric car battery costs are often a concern for people considering an EV. And while a replacement can be costly, most batteries carry long manufacturer warranties. The length and conditions vary between makes and models, but the RAC says most new electric car batteries have manufacturer warranties of approximately eight years and 100,000 miles.

If you're buying a new or used EV, check the manufacturer's battery warranty and what it covers. This is particularly important for a used electric car, where some or all of the original warranty may have already expired.

How much does a replacement battery cost?

The cost of replacing an electric car battery in the UK depends on the make and model of your car and the size of the battery. According to Bumper, EV battery replacements typically cost between £5,000 and £15,000. 

The cost also depends on whether the car needs a new OEM (Original Equipment Manufacturer) battery pack or if it can be fixed with a module repair. It’s worth noting that full replacements aren’t that common now due to the long manufacturer warranties and the potential for module repair instead of replacing the whole battery.

Battery degradation - what to expect

Battery degradation means the gradual loss of range over years. EVs use lithium-ion batteries and these wear out over time. Simply put, this means that an older EV won't usually travel quite as far on a full charge as it did when it was new. It won’t affect the acceleration or how it drives, but you will need to charge it more often.

This is one of the EV car battery costs worth noting. But the good news is that the RAC estimates that drivers can expect far more than 10 years or 100,000 miles of use before this happens. In this sense, an EV lifespan is actually comparable to that of a petrol or diesel car.

Electric car insurance costs

EVs can sit in higher insurance groups than equivalent petrol or diesel models, and this should be factored into any running-cost total. According to data from MoneySuperMarket, the average annual electric car insurance costs £556. This is compared to £536 for a diesel car and £510 for a petrol car.

There are several things that factor into the added expense, including the price of the EV, the cost of the battery, and the cost of repairs. To make sure you’re getting the best deal, be sure to shop around and compare quotes. You can also consider increasing your excess, or choosing a smaller car, which tend to be in a lower insurance group.

Electric car depreciation

"With PCP, the lender sets a Guaranteed Future Value at the start. If your EV is worth less than that at the end, you can hand it back and the lender takes the loss. Just remember to stay within your agreed mileage and keep the car in good condition, or you could face extra charges."  - Louis Rix, Car Finance 247

Depreciation is another one of the hidden costs of owning an electric car. An EV can lose value over time, just like any other car. But increasing changes in technology, new model prices and demand for used EVs means they depreciate quicker than petrol or diesel cars. According to Cox Auto statistics from November 2025, EV depreciation was around 38-42% after three years, compared with 35-40% for petrol vehicles.

Depreciation is why PCP or leasing can appeal to some EV buyers more than HP or buying outright, because the lender shares the depreciation risk via the Guaranteed Future Value (GFV). 

With PCP, the lender sets the GFV for the car at the start of the agreement. This becomes the main part of the final balloon payment if you want to keep the car. If the car is worth less than the agreed GFV at the end, you can return it instead of dealing with the depreciation yourself, provided you've kept within your mileage limit and the car is in good condition, otherwise you may face extra charges. Or, if it’s worth more, you can put that equity into a new deal. Similarly, with leasing, you pay to use the car for an agreed period and never own it, so you don't have to think about depreciation yourself either. 

But with buying outright or getting a HP deal, you take on the car's depreciation, because the car is (or will be) yours. If it depreciates in value, you could make a loss if you come to sell it.

To find out how much your car is worth now, you can use our free valuation tool.

Electric car running costs vs. petrol and diesel

If you’re still deciding whether an EV is right for you, this table gives an at-a-glance comparison of the typical cost per mile and per year for electricity or fuel, servicing and insurance. This gives you a clearer picture of electric vs petrol car costs and how they can differ from the cost of running an electric car vs diesel car. For more guidance, check out our guide on car fuel efficiency.

Sources: 

https://www.kwik-fit.com/servicing, https://www.moneysupermarket.com/car-insurance/electric-car
https://www.smarthomecharge.co.uk/guides/home-charging-costs/ 

https://www.ofgem.gov.uk/news/changes-energy-price-cap-between-1-october-and-31-december-2026

https://octopus.energy/smart/#ev 

https://www.edfenergy.com/electric-cars/ev-tariffs

https://www.zapmap.com/ev-stats/charging-price-index

How financing your electric car affects your true running cost

Thinking about financing your EV? Finance lets you spread the cost of an EV rather than paying the full amount upfront, but it's important to make sure the repayments are affordable for you.  These payments then need to be factored into the total cost of running an electric car and need to be budgeted for on top of charging, servicing and insurance.

However, whichever type of finance you choose, you’ll have predictable monthly payments to plan for. PCP, HP and electric car lease costs are all spread over an agreed term, so you'll know exactly how much and how often you’ll need to pay. The amount you pay will depend on the car you choose, the length of the agreement and the type of finance you use, so it’s a good idea to compare options. 

Remember to factor in depreciation too. With PCP, the lender's Guaranteed Future Value means you can hand the car back at the end of the agreement if it's worth less than expected, as long as you've stayed within your agreed mileage and kept the car in good condition. If you want to keep the car, you'll need to pay the optional final payment, and PCP can cost more overall than HP. 

You can understand more about the different types of car finance. 

"If you're financing an EV, your monthly payment should usually be your biggest running cost. A car that's cheap to charge isn't necessarily cheap to run, so look at the total cost of the agreement to make sure it fits your budget."  - Louis Rix, Car Finance 247

Electric car running cost calculator

Now you have a good idea of the maintenance, servicing and electricity costs of running an electric car, you can use our car finance calculator to see what your monthly payments could look like with a HP or PCP deal on top. This should give you a better idea of how much you might need to budget for each month.

Conclusion: what does this mean for your budget?

The average running cost of an electric car is generally cheaper day-to-day than petrol or diesel cars, particularly when it comes to energy and servicing. However, insurance, potential battery-related costs and faster depreciation are all worth planning for. It's important to factor these into your budget, as they give you a better idea of the true cost of running an electric car. 

How much an electric car costs to run will depend on the car you choose, how you charge it and how much you drive. You’ll also need to consider whether you’re buying the car outright or spreading the cost over more manageable monthly payments with a finance agreement. With both options, be sure to think about the short and long term costs in your budgeting plan.