Why the Purchase Price Alone Tells You Nothing
When people compare electric cars with combustion engines, they almost always look at the purchase price first. And yes: EVs are still more expensive to buy. A VW ID.3 costs around 37,000 euros in 2026, a comparable Golf starts at 28,000 euros. But the purchase price is only a fraction of the total cost. Total Cost of Ownership (TCO) includes all costs over the entire ownership period: purchase price, depreciation, energy costs, insurance, maintenance, road tax, and one-time investments like a wallbox.
Only when you add all these factors together and divide by the ownership period and mileage do you get an honest picture. And this picture often looks surprisingly different from what the first impression suggests. In many scenarios, the EV is cheaper over the total ownership period than the combustion car, even though it costs more to purchase.
Purchase Costs: EVs Still More Expensive — But By How Much?
The price difference between EVs and comparable combustion cars is about 5,000 to 12,000 euros in 2026, depending on the segment. In the compact class, the difference is typically 7,000 to 9,000 euros. In the mid-range, where the Tesla Model 3, BMW i4, and Mercedes EQA compete, the gap shrinks to 5,000 to 7,000 euros, as the combustion counterparts are also not cheap.
The federal subsidy for EVs (Umweltbonus) expired at the end of 2023. Some manufacturers compensate with their own discounts and leasing offers. Some federal states and municipalities still offer regional subsidies, particularly for wallbox installation and commercial vehicles. Tip: Check current programs with your municipality and the manufacturer before buying.
Fuel vs. Electricity: Calculation Example at 15,000 km/Year
This is where it gets interesting, because the EV has a clear advantage in energy costs. Let's calculate with the 2026 average values:
Combustion Engine (Petrol)
Consumption: 7.0 L/100km. Petrol price: EUR 1.75/L. Annual cost: 15,000 km x 0.07 L/km x EUR 1.75 = EUR 1,838. Over 5 years with 4% annual price increase: about EUR 9,960.
Electric Vehicle
Consumption: 18 kWh/100km. Home charging electricity price (70%): 35 ct/kWh. Public charging price (30%): 55 ct/kWh. Weighted electricity price: EUR 0.41/kWh. Annual cost: 15,000 km x 0.18 kWh/km x EUR 0.41 = EUR 1,107. Over 5 years with 3% annual price increase: about EUR 5,889.
The EV thus saves about EUR 4,070 in energy costs over 5 years. Those who charge at home with a solar system can reduce costs even further. However, those who charge exclusively at public fast chargers reduce the advantage to about EUR 2,000.
Maintenance: Why EVs Cost Less Long-Term
Electric cars have significantly fewer wear parts than combustion engines. There is no combustion engine with hundreds of moving parts, no conventional transmission, no exhaust system, no oil filter, no timing belt, and no spark plugs. Brakes also wear less because regenerative braking handles most of the deceleration.
Typical annual maintenance costs: EV: EUR 300-400 (inspection, brake fluid, air conditioning, tires). Combustion engine: EUR 600-800 (oil change, filters, spark plugs, timing belt, exhaust system, inspection). Over 5 years, the EV saves EUR 1,500 to 2,000 on maintenance. A significant factor that is often underrepresented in comparisons.
Insurance: The Surprising Truth
EVs were long considered significantly more expensive to insure. In 2026, the situation has normalized. In liability insurance, differences are minimal. In comprehensive coverage, EVs are 10-20% above comparable combustion cars depending on the model, as repair costs after accidents can be higher (battery, high-voltage components).
In our standard comparison, we calculate EUR 80/month for the EV and EUR 65/month for the combustion car. Over 5 years, this gives a difference of EUR 900 in favor of the combustion car. This disadvantage is more than compensated by the other cost factors.
Depreciation: The Underestimated Risk
Depreciation is the single largest item in any TCO calculation. For an EV with a EUR 38,000 purchase price and 45% residual value after 5 years, depreciation is EUR 20,900. For a combustion car at EUR 30,000 with 50% residual value, it is EUR 15,000. That is a EUR 5,900 difference.
The good news: EV residual values are stabilizing. Battery warranties of 8 years and rising demand in the used car market support prices. Nevertheless, depreciation remains the biggest risk for EV buyers. Those who prefer to lease rather than buy largely avoid this risk.
Road Tax: Free for EVs Until 2030
Electric cars are exempt from road tax until 2030, for a maximum of 10 years from first registration. For a combustion car with 1,600 cc displacement and 140 g/km CO2, annual tax is EUR 122 to 242 depending on fuel type. Over 5 years, this adds up to EUR 610 to 1,210. A clear advantage for the EV that should not be missing from any TCO calculation.
Break-Even Analysis: When Does the EV Pay Off?
The break-even point depends on three main factors: the price difference at purchase, annual mileage, and charging mix (home vs. public). In our standard scenario (EUR 38,000 vs. 30,000, 15,000 km/year, 70% home charging), the EV reaches break-even after about 4-5 years.
At 20,000 km/year and high home charging share, break-even drops to 3 years. At only 8,000 km/year and predominantly public charging, break-even can rise to 7-8 years or more. Bottom line: The more you drive and the cheaper you charge, the faster the EV pays for itself.
Conclusion: Which Vehicle Is Right for Whom in 2026?
The EV is particularly worthwhile in 2026 for: commuters with 12,000+ km/year, homeowners with a wallbox (ideally with solar panels), company car users (0.25% rule), and environmentally conscious drivers. The combustion car remains more attractive for: low-mileage drivers under 8,000 km/year without home charging, long-distance drivers without tolerance for charging stops, and budget-oriented buyers for whom the lower purchase price is decisive.
The truth is: For the majority of German drivers, the EV is cheaper or at least on par over the total ownership period in 2026. The TCO calculator shows you your personal situation.