01

Short answer

Extra mileage increases variable cost directly while many fixed costs stay unchanged. Calculate energy precisely, add maintenance and test incremental depreciation as a separate range.

02

Important variables

  • Equal holding period and mileage
  • Net sale proceeds and contract cost
  • Energy, maintenance and insurance
  • Liquidity and finance rate
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03

Worked example

5,000 km at 20 kWh/100 km and €0.40/kWh costs €400 electricity. At 7 l/100 km and €1.85/l it is €647.50 fuel.

04

Break-even: What changes the result?

Test the main driver as a cautious, central and optimistic range. Also check whether the ranking reverses at a crossover or remains robust across the range.

05

Common mistakes

  • Comparing monthly payments only
  • Treating resale as certain
  • Omitting one-offs or mileage
07

Sources & assumptions

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