Is an electric van worth it? Break-even calculator
An electric van pays back when its lower running costs cover the higher price. The biggest factors are miles a year and where it's charged: on depot electricity it costs about 10.1p a mile against 25.2p for a 36 mpg diesel van this week. The plug-in van grant takes up to £5,000 off, road tax is now the same £360, and the van benefit charge is nil.
Rates checked 28 October 2026: GOV.UK, DESNZ, DfT. Purchase prices are yours to enter.
Electric van break-even calculator
The example figures are placeholders, not market prices. Replace them with your quotes.
Keeping diesel vans for now? A 60 mph limit cuts their fuel on every fast mile while you plan the switch.
Book a free consultationTotals are purchase price, less grant and resale, plus charger, fuel or charging and servicing over the years you set, with no discounting or finance costs. Road tax (£360) is the same for both and left out; insurance, tyres and finance are yours to add. Van benefit charge is personal tax and shown below, not in the totals.
What changes the answer most?
Where you charge
Depot electricity at 24.51p a kWh gives about 10.1p a mile. Public rapid charging at 79p gives 32.5p, more than diesel. See the EV charging cost calculator.
Miles a year
The running cost saving builds with every mile, so high-mileage vans pay back the price gap first. Low-mileage vans may not pay back within the years you keep them.
Tax for drivers
If drivers can use vans privately beyond commuting, the van benefit charge is £4,170 a year for diesel and nil for electric in 2026/27: £834 a year less tax for a basic-rate driver and £1,668 for a higher-rate driver.
Guides
Questions people ask
Is an electric van worth it?
It depends on three numbers: the price gap after the plug-in van grant, how many miles the van does, and where it is charged. High-mileage vans charged at the depot pay back fastest; low-mileage vans that rely on public rapid chargers may never pay back. Put your own quotes into the calculator.
What grant is there for electric vans?
The plug-in van grant gives up to £2,500 off eligible small vans and up to £5,000 off eligible large vans in 2026/27, applied by the dealer at purchase. It is scheduled to run to 31 March 2030 or until the funding runs out.
Do electric vans pay road tax?
Yes, since 1 April 2025. From 1 April 2026 most vans up to 3,500kg, including zero emission vans, pay £360 a year, so road tax no longer separates diesel and electric vans.
Is there company van tax on an electric van?
No. For 2026/27 the van benefit charge is £4,170 a year for a diesel or petrol van used privately, plus £798 if the employer pays for private fuel. For a zero emission van it is nil, which saves a basic-rate taxpayer £834 a year and a higher-rate taxpayer £1,668.
Does a speed limiter change the break-even?
Yes. It cuts the diesel van's running cost, which moves the break-even later. On the Department for Transport's curves a diesel van uses 14.5% less fuel per mile at 60 mph than at 68. If you are keeping diesel vans for a few more years, limiting them is the cheapest fuel saving available while you plan the switch.
Sources and method
- GOV.UK, Plug-in van grants. Plug-in van grant, up to £2,500 for small vans and £5,000 for large vans in 2026/27, for eligible models while funding lasts. Scheduled to run to 31 March 2030.
- GOV.UK, Vehicle tax rates for vans. Vans up to 3,500kg registered from 1 March 2001, including zero emission vans, from 1 April 2026; £375 from 1 April 2027 (Budget 2026).
- GOV.UK, Van benefit and fuel benefit charges 2026 to 2027. Van benefit charge £4,170 and van fuel benefit charge £798 for 2026/27 (£4,310 and £825 from 6 April 2027, Budget 2026); nil for zero emission vans.
- HM Treasury, Budget 2026: overview of tax legislation and rates, Annex A (fuel duty). 52.95p a litre to 30 June 2027, 60.59p from 1 July 2027
- Department for Energy Security and Net Zero, Weekly road fuel prices. Diesel 199.2p a litre, week of 26 October 2026
- Depot or workplace, DESNZ average non-domestic price, April to June 2026 (incl. Climate Change Levy, excl. VAT). 24.51p a kWh
- Electric van: DfT TAG data book v2.03, average electric LGV, 2026 (Tables A1.3.8 and A1.3.10). 2.43 miles per kWh
- DfT TAG data book v2.03 (May 2026), Table A1.3.8. Diesel van fuel against speed
Work it out in the calculator above.
DfT's fuel curves show a diesel van at 60 mph uses 14.5% less fuel per mile than at 68 mph.
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