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Put Both Cars on One Five-Year Ledger
An EV can cost less per kilometre and more over the full holding period. A petrol car can cost less upfront and lose after enough driving. The answer comes from one ledger with the same purchase date, sale date, annual distance and cost boundary.
Use the EV-versus-petrol calculator for your own inputs. This guide shows what each input means and how the result should reconcile.
Cost rule
Do not call the EV cheaper until its energy saving recovers its value-loss, road-tax, insurance, maintenance and charging-access differences under a realistic charging mix.
Use one ownership-cost equation
Five-year ownership cost = all-in purchase price − exit proceeds + energy + road tax and insurance + maintenance + charging-access costs.
Add financing when loan amounts or terms differ. Keep parking and ERP out only when they are genuinely identical. Compare value loss rather than price alone so a higher purchase price and higher exit value are both represented once.
Worked example: 16,000 km a year
The figures below are hypothetical and illustrate the method. Both purchase prices are final drive-away amounts after any applicable incentive or surcharge.
| Input | Petrol car | EV |
|---|---|---|
| All-in purchase price | S$128,000 | S$142,000 |
| Exit proceeds after five years | S$44,000 | S$50,000 |
| Five-year value loss | S$84,000 | S$92,000 |
| Annual distance | 16,000 km | |
| Energy use | 6.8 L/100 km | 18.2 delivered kWh/100 km |
| Energy price | S$2.80/L | S$0.44/kWh weighted charging mix |
Calculate the energy bill
| Energy calculation | Petrol car | EV |
|---|---|---|
| Annual energy | 16,000 × 6.8 ÷ 100 = 1,088 L | 16,000 × 18.2 ÷ 100 = 2,912 kWh |
| Annual cost | 1,088 × S$2.80 = S$3,046.40 | 2,912 × S$0.44 = S$1,281.28 |
| Five-year cost | S$15,232 | S$6,406.40 |
| EV energy saving | S$8,825.60 over five years | |
The petrol energy cost is S$0.1904/km. The EV cost is S$0.08008/km. At this mix, the EV saves S$0.11032/km.
Complete the five-year total
| Five-year item | Petrol car | EV |
|---|---|---|
| Value loss | S$84,000 | S$92,000 |
| Petrol or electricity | S$15,232 | S$6,406.40 |
| Road tax and insurance | S$12,500 | S$17,980 |
| Maintenance allowance | S$5,000 | S$2,500 |
| Charging access or subscription | S$0 | S$600 |
| Total | S$116,732 | S$119,486.40 |
At 16,000 km a year, the petrol car costs S$2,754.40 less. The EV's cheaper energy and maintenance do not yet recover its S$11,580 non-energy disadvantage.
Find the annual break-even distance
Annual break-even distance = S$11,580 ÷ S$0.11032 ÷ 5 = 20,993 km a year, rounded.
At 21,000 km a year, five-year energy saving is S$11,583.60, leaving the EV only S$3.60 ahead. Treat that as a tie, because a small change in consumption, charging price, insurance or exit value reverses it.
Change the charging mix before trusting the threshold
If all charging costs S$0.65/kWh, EV energy rises to S$0.1183/km. The energy advantage over petrol falls to S$0.0721/km, and break-even increases to about 32,122 km a year. Build the actual mix with the delivered-kWh charging worksheet.
Apply 2026 Singapore incentives and tax once
For an eligible fully electric car registered in 2026, NEA and LTA state that EEAI provides a 45% ARF rebate capped at S$7,500 and the VES A-band rebate is S$22,500, for a stated combined maximum of S$30,000. EEAI ceases from 1 January 2027.
Use the seller's final all-in price rather than subtracting these amounts again. Record net ARF because VES and EEAI rebates can affect later PARF proceeds. LTA calculates electric-car road tax from power rating and applies an Additional Flat Component, currently S$700 a year. Use the exact vehicle lookup and an actual insurance quote.
Pressure-test the costs that can reverse the result
| Input | Base evidence | Weak case |
|---|---|---|
| Exit proceeds | Comparable listings and dealer offers | Reduce the EV estimate before reducing both equally |
| Delivered EV consumption | Metered kWh ÷ kilometres | Add charging loss and less efficient usage |
| Charging price | Share of kWh at each accessible tariff | Increase the public and fast-charging share |
| Annual distance | Past odometer records | Use a lower-distance year |
| Insurance and tyres | Variant-specific written quotes | Use the higher credible renewal or replacement cost |
Write the decision sentence
“We choose the EV only if the all-in price stays below S$[amount], its weak-case exit proceeds stay above S$[amount], charging averages no more than S$[rate]/kWh, and annual distance remains above [break-even] km.”
If cost passes, test whether access is workable with home versus public charging and the four-week no-home-charging trial.
FAQ
Is an EV cheaper than a petrol car in Singapore?
It depends on the exact all-in prices, exit values, distance, charging-price mix, road tax, insurance, maintenance and charging-access costs. Cheaper energy per kilometre does not prove a lower five-year total.
How do I find the EV break-even mileage?
Calculate the EV's non-energy cost disadvantage across the holding period, then divide it by the energy saving per kilometre. Divide again by the holding years.
How should I include 2026 EV incentives?
Use a final all-in purchase quote after applicable EEAI and VES benefits. Do not subtract them again. Record net ARF separately because rebates can affect later PARF proceeds.
Should I use dashboard EV consumption?
Use electricity measured at the charging-payment boundary where possible, because that is what you pay for. If only vehicle consumption is available, add a stated charging-loss assumption and test a weaker case.
Sources
- NEA and LTA — 2026–2027 VES and EEAI changes
- Land Transport Authority — Vehicle emission schemes and net ARF treatment
- Land Transport Authority — Electric-car road tax
- Land Transport Authority — Transitioning to EVs
Last updated: 25 Sep 2026 · Editorial Policy · Advertising Disclosure · Corrections