JUNE 1, 2026

Federal calculator and CMU research show EVs cut emissions and can match gas-car costs over time, with results varying by driver and region

Rising gasoline prices have prompted renewed interest in electric vehicles, even as Republicans ended the federal EV tax credit worth up to $7,500 last year. A Department of Energy calculator comparing a 2016 Jeep Wrangler to a 2025 Chevrolet Equinox EV showed the EV becoming cheaper to own and operate after roughly five years for one Phoenix-area driver. A Carnegie Mellon University researcher and a recent MIT study both found that EVs reduce emissions and are increasingly cost-competitive across most of the United States.

For Guadalupe Higuera, a 30-year-old Phoenix resident who drives roughly 21,300 miles per year for his software development job, the question of whether to replace a 2016 Jeep Wrangler with a 2025 Chevrolet Equinox EV was shaped by two considerations: cost and climate impact. NPR reported on his case using a Department of Energy total-cost-of-ownership calculator to compare both vehicles across fuel, tires, maintenance, registration, insurance, and loan payments.

The calculator, run with NPR correspondent Camila Domonoske, showed Higuera's first-year cost of owning the Equinox EV at $10,456 versus $8,000 for continuing to own the Jeep. After five years, the cumulative difference narrowed to roughly $1,000, and beyond that point the EV was projected to be cheaper. Key factors in Higuera's favor included the $7,500 tax credit he used before it was eliminated, his high annual mileage, and his Jeep's relatively low fuel efficiency of around 20 miles per gallon.

Jeremy Michalek, director of the Carnegie Mellon University Vehicle Electrification Group and a professor of engineering and public policy, told NPR that Higuera's case would look different for a driver whose prior vehicle was a fuel-efficient hybrid like a Prius. Michalek also noted that the calculator did not account for depreciation, but said that even factoring that in, "the Equinox route is likely the better value for Guadalupe." A recent MIT study cited by NPR found that EVs are cost-competitive with gas vehicles across most of the U.S. and reduce emissions between 40% and 60% in most locations.