TCO Model
How we calculate total cost of ownership across fuel, maintenance, insurance, incentives, and depreciation.
Total Cost of Ownership Model
For each vehicle, we compute the total cost of ownership as:
TCO = Purchase Price - Incentives + Fuel/Charging + Maintenance + Insurance + Registration + EVSE Install - Resale Value
Fuel costs use EPA MPG/MPGe ratings multiplied by your annual miles and state-level energy prices from EIA. Maintenance costs apply a 40% reduction factor for EVs based on DOE studies (no engine oil changes, brake regeneration extends pad life, fewer moving parts). Insurance differentials are modeled from published rate comparisons.
The DOE AFLEET TCO methodology ensures our cost estimates are consistent with the framework used by fleet managers and energy economists for vehicle transition planning.