Many Canadians are considering switching to an electric vehicle, but one of the most common questions is: How much does it actually cost to own an EV in Canada for 5 years?
While electric vehicles have lower running costs, the total ownership cost depends on several factors such as purchase price, insurance, electricity, maintenance, and resale value. In this article, we will break down the real 5-year cost of owning an EV in Canada with proper research and comparison.
Assumptions for This Calculation
To make the comparison fair and realistic, we are using the following assumptions:
- Vehicle: Mid-size electric SUV (e.g. Tesla Model Y Long Range or similar)
- Purchase Price (after federal rebate): $55,000
- Annual driving: 15,000 km per year
- Ownership period: 5 years
- Electricity rate: Average $0.18 per kWh (varies by province)
- Gas price: Average $1.70 per litre
- Resale value after 5 years: Estimated based on current market trends
5-Year Cost Breakdown of Owning an EV in Canada
Here’s a detailed breakdown of the major costs:
1. Purchase Price (After Incentive)
- Average price of a popular EV after the $5,000 federal rebate: $50,000 – $60,000
- Many buyers also pay extra for home charger installation ($1,000 – $2,500)
2. Insurance Cost
- EV insurance is generally 15–30% higher than gas cars.
- Average annual insurance for a mid-size EV: $2,000 – $2,800
- 5-year total: Approximately $10,000 – $14,000
3. Electricity Cost (Fuel Equivalent)
- Average EV efficiency: 18–20 kWh per 100 km
- Cost to drive 15,000 km/year: Roughly $500 – $700 per year
- 5-year total: Approximately $2,500 – $3,500
4. Maintenance Cost
- EVs have fewer moving parts, so maintenance is lower.
- Average annual maintenance: $300 – $500
- 5-year total: Approximately $1,500 – $2,500
5. Depreciation / Resale Value Loss
This is one of the biggest costs. Most EVs lose 40–55% of their value in 5 years.
- Purchase price: $55,000
- Estimated resale value after 5 years: $25,000 – $32,000
- Depreciation loss: Approximately $23,000 – $30,000
5-Year Total Cost Comparison (EV vs Gas Car)
| Cost Category | Electric Vehicle (5 Years) | Gas Car (5 Years) |
|---|---|---|
| Purchase Price (after incentive) | $55,000 | $45,000 |
| Insurance | $12,000 | $9,500 |
| Fuel / Electricity | $3,000 | $12,000 |
| Maintenance | $2,000 | $5,500 |
| Depreciation (Resale Loss) | $26,000 | $18,000 |
| Total 5-Year Cost | $98,000 | $90,000 |
Key Takeaways from the 5-Year Cost Analysis
- Electricity cost is significantly lower than gasoline.
- Maintenance cost is much lower for EVs.
- Depreciation is currently higher for EVs, which increases the total cost.
- Overall, the 5-year total cost of owning an EV is still slightly higher than a gas car in most cases (as of 2026).
- However, if you keep the EV for 7+ years, the savings on fuel and maintenance usually make up for the higher depreciation.
Factors That Can Change the Total Cost
The actual cost can vary depending on:
- Province (electricity rates and incentives differ)
- Driving habits (more km = more savings on fuel)
- Home charging vs public charging
- Vehicle model and brand (Tesla holds value better than most)
- Whether you qualify for provincial rebates
Final Thoughts
Owning an electric vehicle in Canada for 5 years is not necessarily cheaper than owning a gas car right now. While you save significantly on fuel and maintenance, higher purchase price and faster depreciation currently balance out the savings.
However, if you:
- Drive more than 15,000 km per year,
- Plan to keep the vehicle for 7+ years, and
- Can charge at home,
Then an EV can become cheaper than a gas car over time.
Would you like me to also show a 7-year and 10-year cost comparison? Or do you want this breakdown for a specific EV model (like Tesla Model Y or Hyundai Ioniq 5)?