Despite significant progress toward application of Li-ion batteries in electric vehicles, there are still major concerns about the range of electric vehicles and battery life. Depending on the climate of the region where the vehicle is in use, auxiliary loads could also play a significant role on the battery performance and durability. In this paper, the effect of air conditioning (AC) load on the electric range and Li-ion battery life is evaluated. For this purpose, a thermodynamic model for the vehicle cabin is developed and integrated to a battery model. The thermodynamic model takes the ambient conditions, solar load, and the vehicle drive cycle as inputs and calculates the instantaneous cabin temperature and humidity. The battery model, which represents a Li-on battery pack installed on a fully electrified Ford Escape 2009, consists of a voltage source in series with a lump resistance, a thermal sub-model, and a degradation sub-model to predict the battery capacity fade. At an initial cabin temperature and a desired set point, the model is capable of predicting the required cooling load and its corresponding required battery power as well as reductions in the vehicle range and battery state of health (SOH).