EV Total Cost of Ownership with Battery Degradation

Project the multi-year spend for an electric vehicle by combining charging costs, maintenance, and the value lost as the battery degrades. Ideal for comparing EVs to ICE vehicles or planning fleet budgets.

Sticker price after destination fees; subtract incentives separately if applicable
Use your expected yearly driving distance
Refer to EPA efficiency ratings or real-world telematics data
Average rate you pay for home or public charging
Include tires, inspections, fluid replacements, and insurance add-ons
Use current OEM pack pricing or warranty replacement estimates
Average annual battery degradation rate from fleet data or manufacturer guidance
Planned ownership horizon in years

Examples

  • Commuter EV: $42,000 purchase, 12,000 miles/year, 28 kWh/100 mi, $0.14/kWh, $450 maintenance, $12,000 pack, 2.5% loss, 7 years ⇒ $55,596.00
  • City delivery van: $35,000 purchase, 10,000 miles/year, 30 kWh/100 mi, $0.18/kWh, $400 maintenance, $9,500 pack, 3% loss, 5 years ⇒ $45,635.00

FAQ

Does the result include incentives?

No, subtract rebates or tax credits manually from the purchase price before calculating.

What if I plan to replace the battery entirely?

Set the capacity loss to 100% and years to the expected replacement interval to budget for a full pack swap.

Can I change maintenance costs by year?

Use an average annual figure; for detailed projections, break the analysis into yearly segments offline.

How do I account for residual value?

Subtract the projected resale price from the final result to compare against leasing or alternative vehicles.

Additional Information

  • Degradation cost assumes proportional loss in pack value equal to the percent capacity fade over the ownership period.
  • If you plan a full pack replacement, set capacity loss to 100% and years to the expected replacement interval.
  • Use the EV Cost per km calculator to convert total ownership into running cost metrics.
  • Pair with the Loan Payment calculator to incorporate financing charges or lease payments.

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