A vehicle is provided to include an engine, a motor operating with electrical energy of a battery, an engine clutch for switching between an operation mode including an EV mode for transferring power generated by the motor to wheels and an HEV mode for transferring power generated by the engine and the motor to the wheels, and a controller. The controller collects status information from the motor and the engine, determines an equivalence factor based on status information of the battery and load information using electrical energy of the battery and determines an operation mode in which energy consumption is minimized among a plurality of energy consumption amounts calculated based on the determined equivalent factor and the modes of the engine clutch.