How to Calculate E85 Savings
E85 is typically 20-30% cheaper than premium gasoline at the pump, but it also has about 25-30% less energy content (BTUs). According to FuelEconomy.gov, this means your fuel economy (MPG) will drop when switching to E85. To determine if you're actually saving money, you need to calculate the Cost Per Mile.
The Formula
We use a simple break-even analysis:
Break Even Price = Gas Price * (E85 MPG / Gas MPG)
If the pump price of E85 is lower than this break-even number, it is the more economical choice for your daily commute. Use our MPG Loss Calculator to estimate your E85 fuel economy first.