Tesla Model Y vs Model 3: which costs less to own?

Model 3 comes out cheaper in 20 of 20 ways the next 8 years could go — by about $25 a month. That’s at US average prices and 12,000 miles a year, as of Sep 7, 2026.

Each mark is one way the next 8 years could go.

Make it yours ↓Your state and habits change it.

Live source
Weekly retail gasoline prices by state and region
U.S. Energy Information Administration
Data as of Sep 7, 2026.
Weekly average for the state where EIA reports one, otherwise for its region.
Open the source
Live source
Average residential electricity price by state (year to date)
U.S. Energy Information Administration, Electric Power Monthly table 5.6.B
Data as of Jun 2026.
Average residential price so far this year.
Open the source
Research source
2026 Tesla Model Y starting price
Cars.com
Checked Sep 14, 2026.
Standard RWD, $39,990 plus $1,640 destination and order fee. Dealers may charge more or less; type your own price for a better answer.
Open the source
Research source
2026 Tesla Model 3 starting price
Edmunds
Checked Sep 14, 2026.
Standard RWD, $36,990 plus destination and order fee. Dealers may charge more or less; type your own price for a better answer.
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Cars you’re comparing

2026 Tesla Model Y
25 kWh per 100 mi · 357 mi range
Buy new for about $41,600 · maker’s starting price
2026 Tesla Model 3
30 kWh per 100 mi · 309 mi range
Buy new for about $38,600 · maker’s starting price

Three questions

Where do you live?
How much do you drive in a year?
6,000 miMostly around town12,000 miIn between18,000 miLong commuteOtherType it in
Where would you charge?
At homePlugged in most nightsSometimes at homePlus work or publicPublic chargers onlyNowhere to plug in

Example with typical answerstruecostinsights.com

Model Y
Model 3

Model 3 comes out cheaper in 20 of 20 ways the next 8 years could go — by about $25 a month.

Model Y doesn’t win any of them.

See the 20 futures as numbers

Future	Who costs less, and by how much
1	Model 3 by $2,844
2	Model 3 by $2,719
3	Model 3 by $2,662
4	Model 3 by $2,618
5	Model 3 by $2,565
6	Model 3 by $2,514
7	Model 3 by $2,481
8	Model 3 by $2,447
9	Model 3 by $2,415
10	Model 3 by $2,384
11	Model 3 by $2,354
12	Model 3 by $2,320
13	Model 3 by $2,278
14	Model 3 by $2,247
15	Model 3 by $2,207
16	Model 3 by $2,168
17	Model 3 by $2,122
18	Model 3 by $2,061
19	Model 3 by $1,992
20	Model 3 by $1,823

Pay now: $3,200 lessfor Model 3
Each month, all-in: $25 lesswith Model 3 · about $2,400 over 8 years

What’s counted: Value lost · Gas & charging · Insurance · Upkeep & repairs · Taxes & fees · Loan interest · Home charger

Answers this uses: US average prices · 12,000 mi a year (assumed) · Charging at home (assumed) · Kept 8 years · With a loan

Live source

Weekly retail gasoline prices by state and region

U.S. Energy Information Administration

Data as of Sep 7, 2026.

Weekly average for the state where EIA reports one, otherwise for its region.

Open the source

Live source

Average residential electricity price by state (year to date)

U.S. Energy Information Administration, Electric Power Monthly table 5.6.B

Data as of Jun 2026.

Average residential price so far this year.

Open the source

Research source

2026 Tesla Model Y starting price

Cars.com

Checked Sep 14, 2026.

Standard RWD, $39,990 plus $1,640 destination and order fee. Dealers may charge more or less; type your own price for a better answer.

Open the source

Research source

2026 Tesla Model 3 starting price

Edmunds

Checked Sep 14, 2026.

Standard RWD, $36,990 plus destination and order fee. Dealers may charge more or less; type your own price for a better answer.

Open the source

Years you keep it8 years

What would change the answer

If you drive over 39,000 miles a year, Model Y comes out ahead.
If you can get Model Y for under $40,000, it comes out ahead.

Why it comes out this way

Typical amounts over 8 years. Everything counts: the car losing value, gas or charging, insurance, repairs, taxes, and loan interest.

Pay now, then every month

Car	Up front	A month, all-in	Total
Model Y	$46,804	$854	$81,954
Model 3	$43,594	$829	$79,561

“A month, all-in” spreads every cost, including the value the car loses, over the months you keep it.

Where the money goes

The biggest difference is value lost: Model 3 saves about $2,334 there.

Value lost
Model Y: $32,367
Model 3: $30,033
Gas & charging
Model Y: $6,733
Model 3: $7,897
Loan interest
Model Y: $7,801
Model 3: $7,238
Insurance
Model Y: $15,292
Model 3: $14,874
Taxes & fees
Model Y: $6,694
Model 3: $6,484
Upkeep & repairs
Model Y: $11,146
Model 3: $11,146
Home charger
Model Y: $2,204
Model 3: $2,204

Show as a table

Cost	Model Y	Model 3
Value lost	$32,367	$30,033
Gas & charging	$6,733	$7,897
Loan interest	$7,801	$7,238
Insurance	$15,292	$14,874
Taxes & fees	$6,694	$6,484
Upkeep & repairs	$11,146	$11,146
Home charger	$2,204	$2,204

Year by year

Model Y doesn’t earn back its extra up-front cost within 8 years.

Big repair risk, out of 100

About how many owners in 100 pay for a new battery within 8 years.

Fewer than 1 in 100: Model Y needs a new battery

Fewer than 1 in 100: Model 3 needs a new battery

What we assumed, and where it came from

Gas, regular: $4.16 a gallon
Live source
Weekly retail gasoline prices by state and region
U.S. Energy Information Administration
Data as of Sep 7, 2026.
Weekly average for the state where EIA reports one, otherwise for its region.
Open the source
Premium and diesel: $5.17 and $5.97
Live source
National average fuel prices
U.S. Department of Energy (fueleconomy.gov)
Data as of Sep 14, 2026.
Premium and diesel are priced from how they compare with regular nationally.
Open the source
Electricity at home: 18.2¢ per kWh
Live source
Average residential electricity price by state (year to date)
U.S. Energy Information Administration, Electric Power Monthly table 5.6.B
Data as of Jun 2026.
Average residential price so far this year.
Open the source
Insurance, state average: $1,704 a year
Research source
Auto Insurance Database Report (2023 data)
National Association of Insurance Commissioners
Checked Jan 1, 2023.
2023 state averages brought to today with the BLS insurance price index (×1.18).
Open the source
Sales tax: 7.00%
Research source
State and local sales tax rates, midyear 2026
Tax Foundation
Checked Jul 2026.
Combined state and average local rate; some states tax cars at a different rate.
Open the source
Extra yearly fee for electric cars: $130
Research source
Extra registration fees for electric, plug-in hybrid, and hybrid cars
State motor vehicle and revenue departments
Checked Sep 14, 2026.
Open the source
Loan rate: 8.1%; 5 years and 15% down are our typical terms
Live source
Average 60-month new car loan rate at commercial banks
Federal Reserve Board, via FRED
Data as of May 2026.
Average 60-month new car loan rate at banks, plus 1 point for a typical borrower.
Open the source
Weather, for battery range in cold and heat: Monthly averages
Live source
Statewide monthly temperatures and heating/cooling degree days
NOAA National Centers for Environmental Information
Data as of Dec 2025.
Average temperature for each month over the last 10 years.
Open the source
Car prices you didn’t type: Segment averages
Our estimate
Average transaction prices by segment, August 2026
Kelley Blue Book / Cox Automotive
Checked Aug 2026.
Average price paid for cars in the same segment, adjusted by powertrain. Type your own price for a better answer.
Open the source

No federal clean vehicle credit is counted: it ended for cars bought after September 30, 2025. Internal Revenue Service, checked Sep 14, 2026. State and utility rebates vary; add one where the tool asks.

Every number the model uses, with its source, is on the math page.

For the curious: all the numbers

We play out 1,000 futures. Each draws its own gas and electricity prices, miles, repair bills, insurance, and resale prices, and every car lives through the same ones. The 20 dots on the answer card are evenly spaced picks from those futures.

Total cost over 8 years
Option	A good case	Typical	A bad case	Per mile
Model Y	$75,191	$81,954	$89,791	$0.85
Model 3	$73,007	$79,561	$87,318	$0.83

What moves the gap most

The unknowns whose ups and downs most change which option comes out ahead. A good or bad case is 1 future in 10 at that end.

Used EV prices when you sella lot
Your insurance ratesa lot
How much you actually drivesome
Used-car prices when you sella little
Future electricity pricesa little

Try other assumptions

Each change replays every future. Watch which coins move.

What goes into it

Typical cost of each part over 8 years, at US average prices
Cost	Model Y	Model 3
Starting price	$41,600	$38,600
Value lost	$32,367	$30,033
Gas & charging	$6,733	$7,897
Insurance	$15,292	$14,874
Upkeep & repairs	$11,146	$11,146
Taxes & fees	$6,694	$6,484
Loan interest	$7,801	$7,238
Home charger	$2,204	$2,204
All-in, each month	$854	$829

Each bar stacks the typical costs in the table, one color per cost. Money back at the end is left out of the bars.

Questions people ask

Which costs more up front, the Model Y or the Model 3?

The Model Y starts at about $42,000 and the Model 3 at about $39,000 before tax and fees. Model 3 costs $3,200 less up front, once tax, fees, and financing are in.

How long does the Model Y take to pay for itself?

Model Y doesn’t earn back its extra up-front cost within 8 years.

Which uses less fuel, the Model Y or the Model 3?

The EPA rates the 2026 Model Y at 25 kWh per 100 mi · 357 mi range and the 2026 Model 3 at 30 kWh per 100 mi · 309 mi range. At 12,000 miles a year, fuel comes to about $6,733 versus $7,897 over 8 years.

What would change the answer?

If you drive over 39,000 miles a year, Model Y comes out ahead. If you can get Model Y for under $40,000, it comes out ahead.

How sure is this?

We ran 1,000 possible futures of prices, repairs, and resale over 8 years. In 8 of 10, the result falls between Model 3 $2,000 cheaper and Model 3 $2,700 cheaper. In the middle one, Model 3 comes out $2,400 cheaper.