Question 1

Is an electric car really cheaper to run than petrol?

Accepted Answer

For most drivers who can charge at home on an off-peak tariff, yes. Charging overnight at around 7–9p per kWh works out to roughly 2–3p per mile, compared with 13–16p per mile for petrol. The saving shrinks sharply if you rely on public rapid chargers at 60–85p per kWh, so the home/public charging split is the single biggest factor in whether an EV saves you money.

Question 2

How much does it cost to charge an electric car at home overnight?

Accepted Answer

On a dedicated EV tariff such as Intelligent Octopus Go, off-peak electricity is around 7–9p per kWh in 2026, versus a standard rate of roughly 25–28p. A typical EV doing 3.5–4 miles per kWh therefore costs about 2–3p per mile to charge at home. The calculator lets you enter your own off-peak rate and the share of charging you do at home.

Question 3

Do electric cars pay road tax (VED) now?

Accepted Answer

Yes. Since 1 April 2025 electric cars are no longer exempt from Vehicle Excise Duty. Most EVs now pay the standard rate of £195 a year, the same as an equivalent petrol car. Cars with a list price above the threshold also pay the Expensive Car Supplement for five years — that threshold is £40,000 for petrol and diesel but was raised to £50,000 for electric cars.

Question 4

What about charging losses when charging an EV?

Accepted Answer

Charging is not 100% efficient — some energy is lost as heat in the charger, cables and battery. Home AC charging is typically around 85–90% efficient, so you draw a little more electricity from the grid than actually reaches the battery. The calculator includes a charging efficiency figure so your cost reflects the energy you actually pay for.

Question 5

Are electric cars more expensive to insure and service?

Accepted Answer

EVs often cost a little more to insure because of higher repair and battery costs, though the gap is narrowing. Servicing is usually cheaper because there are fewer moving parts, no oil changes and less brake wear thanks to regenerative braking. The calculator lets you set insurance and servicing separately for each car so you can compare your own quotes.

EV vs Petrol Cost Comparison

Cumulative running cost (5 years)

Annual cost breakdown