EV vs Petrol: What It Really Costs Per Mile With Home Charging

The idea of switching to an electric vehicle (EV) is appealing, but for many households, the decision comes down to one crucial question: will it actually save me money? Whilst the initial purchase price of an EV can be higher than a comparable petrol car, the day-to-day running costs tell a very different story. The biggest saving by far comes from ‘fuelling’ your car, especially if you can charge it at home.

In this guide, we’ll compare the real-world cost per mile for both petrol and electric cars, explore how specialist EV energy tariffs can slash your charging expenses, and look at the other costs you need to consider, including maintenance and road tax. For most people with off-street parking, the savings are significant.

The Core Cost: Pence Per Mile

The most direct way to compare running costs is to look at how much it costs to drive one mile. This strips away differences in vehicle size and efficiency, giving a clear picture of the fuel expense.

Petrol Car Costs

The cost of running a petrol car is dictated by two things: the price at the pump and the car’s fuel efficiency, or miles per gallon (MPG). Pump prices have been notoriously volatile over the past few years, making it difficult for drivers to budget.

The chart below tracks the UK average pump price week by week over the past five years, which takes in the 2022 spike and everything since.

UK Petrol Price Trend

The headline average hides a wide spread, and a driver chooses which end of it to pay. The table below gives today’s petrol price across the UK, listing supermarket forecourts, other filling stations and motorway services separately, with the gap between the cheapest and dearest and what shopping around is worth per litre. Filling up away from the motorway is the one petrol saving available without changing anything else about the car or the journey.

Petrol Pump Prices Today

For a typical family car that achieves around 40 MPG, current petrol prices translate to a running cost of 15p to 22p per mile. To drive 100 miles would cost roughly £16 - £22.

Electric Car Costs with Home Charging

For an EV driver, the cost per mile depends on the price of electricity. This varies hugely depending on your energy tariff. If you charge your car at home on a standard electricity tariff - the kind most of us are on - you’ll be paying the rate set by the Ofgem price cap, which is currently around 26p per kWh. At this rate, a typical EV costs about 8p per mile to run - already less than half the cost of petrol.

However, the real savings are unlocked with a specialist EV energy tariff. These tariffs offer a window of super-cheap electricity overnight, often as low as 7p per kWh. By scheduling your car to charge during these hours, the cost plummets to just 2p to 5p per mile. That’s a potential saving of over 80% compared to filling up with petrol.

Over a year of driving 10,000 miles, a petrol driver might spend £1,500 - £2,200 on fuel. An EV driver on an off-peak tariff could spend as little as £200 - £500. That’s an annual saving of more than £1,000.

Those figures are averages, and your own cost per mile turns on the car, the tariff and when you plug in. The calculator below takes the battery size, the charge you add, the miles the car returns per kWh and the rate you pay, and gives the cost of a charge and the cost per mile, so an off-peak rate can be set against the standard one on your own numbers.

Unlocking the Savings with an EV Energy Tariff

An EV tariff is an electricity plan designed for electric car owners. It works by offering much cheaper electricity during off-peak hours, usually for several hours overnight. The goal is to encourage charging when demand on the national grid is low and renewable energy is often more plentiful.

There are two main types of EV tariff:

• Two-rate tariffs: These are the most common. You get a cheap rate for a fixed period overnight (e.g., 12am to 5am). Crucially, this cheap rate applies to all electricity used in your home during that window, so you can save money on running your dishwasher or washing machine, too.

• Smart or ‘add-on’ tariffs: These are more advanced. They offer a cheap rate specifically for charging your car, which can happen at different times. The supplier, via a smart charger or your car’s app, controls when the charging happens to best balance the grid. Your home’s other electricity use is billed at a standard rate. OVO’s Charge Anytime is a well-known example.

To access these tariffs, you will almost always need a smart meter. You can learn more about how they work in our Guide to Home Energy Prices.

Other Costs to Consider

Fuel is the biggest expense, but it’s not the only one. Here’s how EVs and petrol cars stack up on maintenance and tax.

Maintenance and Servicing

EVs are mechanically much simpler than internal combustion engine (ICE) cars. They have no engine oil, spark plugs, clutches, exhaust systems or timing belts. This means there are far fewer parts to wear out and replace, making servicing significantly cheaper. An annual service for an EV can be 30-40% cheaper than for a comparable petrol model.

EVs also use regenerative braking, where the electric motor slows the car down and recovers energy. This means the traditional brake pads and discs are used less often and last much longer. The one area where EVs can be more expensive is tyres. Due to their weight and instant torque, EVs can wear through tyres 25-30% faster than petrol cars.

Vehicle Excise Duty (Road Tax)

For years, a key perk of owning an EV was being exempt from Vehicle Excise Duty (VED), or road tax. However, this exemption was removed in April 2025. Now, new EVs registered from that date pay a first-year rate of £10, followed by the standard annual rate, which is £200 for the 2026/27 tax year.

Furthermore, the government plans to introduce a new mileage-based tax called ‘electric Vehicle Excise Duty’ (eVED) from April 2028. The proposed rate is 3p per mile for fully electric cars. For a driver covering 10,000 miles a year, this would add an extra £300 to their annual tax bill, narrowing the running cost gap with petrol cars.

Getting Set Up: Home Charger Grants

To get the cheapest charging rates, you need a home charger. Whilst homeowners in houses now have to pay the full cost, the government still offers help for certain groups through the EV Chargepoint Grant.

This scheme provides a grant that covers up to 75% of the cost of buying and installing a home charger, capped at £500. You may be eligible if you:

• Own and live in a flat.

• Rent any residential property (including houses).

To qualify, you must have dedicated off-street parking and own an eligible EV. The grant is claimed on your behalf by your approved installer, who will deduct it from your final bill. The scheme is confirmed to run until 31 March 2027.

Frequently Asked Questions

What if I Can’t Charge at Home?

If you don’t have off-street parking, you’ll have to rely on the public charging network. Whilst convenient, this is much more expensive than charging at home. Rapid chargers at motorway services can cost 60p-80p per kWh, making the cost per mile similar to, or even more than, a petrol car. This significantly weakens the financial case for switching to an EV.

Do I Need a Smart Meter for an EV Tariff?

Yes, in almost all cases you will need a functioning smart meter to sign up for an EV tariff. The supplier needs the meter to track your usage during the cheap off-peak hours and bill you correctly. If you don’t have one, your supplier can install one for free. You can find out more in our guide: Are Smart Meters Worth It? A Guide for UK Households.

How Much Does a Home Charger Installation Cost?

The total cost for a home charger and installation typically ranges from £800 to £1,200. If you are eligible for the EV Chargepoint Grant, this could reduce your cost to as little as £300 - £700. The final price depends on the charger you choose and the complexity of the installation.

The Verdict: Is an EV Cheaper to Run?

For the majority of UK drivers who can charge their car at home, the answer is a clear yes. An electric car is significantly cheaper to run than a comparable petrol model. The savings on fuel alone can easily exceed £1,000 per year, especially if you switch to an off-peak EV energy tariff.

When you add in the lower maintenance costs, the financial argument becomes even stronger. Whilst the end of the VED exemption and the future introduction of a mileage-based tax will reduce the gap, EVs are expected to maintain a healthy running cost advantage for the foreseeable future. The key, however, is access to cheap home charging; for those who rely solely on the expensive public network, a petrol car may still work out cheaper.