One of the most common questions FFV owners ask is whether E85 actually saves money. The answer isn’t as simple as comparing the price per gallon at the pump - you need to factor in fuel economy differences to calculate the true cost per mile. Let’s break down the real economics of E85 versus gasoline.
The Price Per Gallon Misconception
When you see E85 priced at $2.50/gallon next to regular gasoline at $3.20/gallon, it looks like an obvious savings. But E85 contains about 27% less energy than gasoline, which means your vehicle will use more fuel to travel the same distance.
The key metric isn’t price per gallon - it’s cost per mile.
Understanding Fuel Economy Differences
On average, flex fuel vehicles experience a 15-27% reduction in fuel economy when running on E85 compared to regular gasoline. The exact reduction depends on:
- Your specific vehicle model
- Driving conditions (city vs. highway)
- The actual ethanol content in the E85 (varies seasonally)
- Your driving habits
Real-World Example
Let’s say your FFV gets:
- 25 MPG on regular gasoline
- 19 MPG on E85 (24% reduction)
If gasoline costs $3.20/gallon and E85 costs $2.50/gallon:
| Fuel Type | Price/Gallon | MPG | Cost per Mile |
|---|---|---|---|
| Gasoline | $3.20 | 25 | $0.128 |
| E85 | $2.50 | 19 | $0.132 |
In this example, despite E85 being $0.70 cheaper per gallon, it actually costs slightly more per mile!
When Does E85 Save Money?
E85 saves money when the price discount is large enough to offset the fuel economy penalty. The general rule of thumb:
E85 needs to be at least 20-25% cheaper than gasoline to break even.
Break-Even Calculation
If your vehicle experiences a 25% fuel economy reduction on E85, then E85 needs to cost 25% less than gasoline just to break even.
Formula: Break-even E85 price = Gasoline price × (1 - MPG reduction %)
Example: If gasoline is $3.20/gallon and your MPG drops 25%:
- Break-even E85 price = $3.20 × 0.75 = $2.40/gallon
If E85 costs less than $2.40, you save money. If it costs more, gasoline is cheaper per mile.
Regional Price Variations
E85 prices vary dramatically by region:
Midwest States (Best Prices)
- E85 is often 30-40% cheaper than gasoline
- Closer to ethanol production facilities
- More stations and competition
- Usually saves money on E85
Coastal States (Higher Prices)
- E85 may only be 15-20% cheaper
- Transportation costs add to price
- Fewer stations, less competition
- May or may not save money
Calculating Your Personal Savings
To determine if E85 saves you money, follow these steps:
Step 1: Measure Your Actual Fuel Economy
Track your MPG on both fuels over several tank fills:
- Fill your tank completely
- Reset your trip odometer
- Drive normally until nearly empty
- Fill again and note gallons used
- Calculate: Miles driven ÷ Gallons used = MPG
Do this for at least 3 tanks of each fuel for accuracy.
Step 2: Calculate Your MPG Reduction
MPG Reduction % = (Gasoline MPG - E85 MPG) ÷ Gasoline MPG × 100
Example: (25 MPG - 19 MPG) ÷ 25 × 100 = 24% reduction
Step 3: Calculate Cost Per Mile
For each fuel: Cost per mile = Price per gallon ÷ MPG
Step 4: Compare and Decide
If E85’s cost per mile is lower, you save money using E85. If it’s higher, stick with gasoline.
Factors That Affect Savings
Vehicle-Specific Efficiency
Some FFVs handle E85 better than others:
- Modern FFVs with optimized engines may only see 15-20% MPG reduction
- Older FFVs may see 25-30% reduction
- Turbocharged FFVs may actually see better performance on E85
Driving Patterns
- Highway driving: Smaller MPG penalty, E85 more likely to save money
- City driving: Larger MPG penalty, savings less likely
- Cold weather: Larger MPG penalty due to cold-start issues
Seasonal Variations
- Summer: E85 contains more ethanol (up to 83%), larger MPG reduction
- Winter: E85 contains less ethanol (as low as 51%), smaller MPG reduction
Beyond the Numbers: Other Value Considerations
Environmental Benefits
E85 produces up to 46% fewer greenhouse gas emissions. If environmental impact matters to you, that has value beyond pure dollars.
Supporting Domestic Agriculture
E85 is made primarily from American-grown corn. Using E85 supports domestic farmers and reduces dependence on foreign oil.
Performance Benefits
E85’s 100-105 octane rating can provide:
- Smoother engine operation
- Better performance in some vehicles
- Reduced engine knock
- Potentially longer engine life from cooler combustion
Fuel System Cleaning
Ethanol’s solvent properties help keep your fuel system clean, potentially reducing maintenance costs over time.
Practical Tips for Maximizing E85 Savings
Shop Around for E85 Prices
Prices can vary by 20-30 cents per gallon even within the same city. Use our E85 station locator to find the best prices near you.
Buy E85 in the Midwest
If you’re road-tripping through corn country, fill up with E85 - it’s usually significantly cheaper there.
Mix Fuels Strategically
Your FFV can run on any blend. Consider:
- Using E85 when it’s cheap enough
- Switching to gasoline when prices are close
- Mixing 50/50 for a balance of savings and range
Track Prices Over Time
E85 prices don’t always follow gasoline prices. Sometimes the spread widens, making E85 a better deal.
The Bottom Line
Whether E85 saves you money depends entirely on local prices and your specific vehicle’s fuel economy. There’s no universal answer.
E85 typically saves money when:
- It’s 25% or more cheaper than gasoline
- You live in the Midwest
- You do mostly highway driving
- Your vehicle has a smaller-than-average MPG penalty
Gasoline is usually cheaper when:
- E85 is less than 20% cheaper
- You do mostly city driving
- Your vehicle has a larger MPG penalty
- E85 isn’t readily available (convenience cost)
The only way to know for sure is to calculate your actual cost per mile with both fuels. Once you do that math, the answer becomes clear for your specific situation.
