Article

Received 11.02.2026

Revised 03.06.2026

Accepted 25.06.2026

Published 06.07.2026

Retrieved from Vol. 30, No. 2, 2026

Pages 53 -64

Porfirenko, V., & Luhovtsov, A. (2026). Break-even analysis of electric vehicles in business operations. The National Transport University Bulletin, 30(2), 53-64. https://doi.org/10.33744/2308-6645-2026-2-30-53-64

Break-even analysis of electric vehicles in business operations

Volodymyr Porfirenko*, Anton Luhovtsov

porfirenko@gmail.com

The electrification of commercial transport is regarded as a promising approach to reducing operating costs and local emissions; however, the economic benefits of electric vehicles are not universal and depend on the conditions of use. The relevance of this study is driven by the need for businesses to have quantitative criteria for choosing between an electric commercial vehicle and a comparable fossil-fuel-powered alternative under different operating conditions and energy pricing structures. The aim of the study was to develop a calculation-based approach for determining the break-even annual mileage above which the use of an electric vehicle becomes economically viable, as well as the maximum acceptable purchase price of an electric vehicle below which its acquisition is economically justified. The research methods included a comparative analysis of the economic feasibility of alternative technologies; analysis of secondary data on prices, tariffs, and maintenance costs to establish model input parameters; economic and mathematical modelling based on total cost of ownership; analytical methods for deriving break-even formulas; scenario analysis of different electric vehicle charging options; and consideration of the time value of money through the application of a discount rate and an annuity present value factor. Within the framework of a model case study (10-year horizon, 5% discount rate), it was established that the break-even annual mileage of an electric van ranges from 34,529 to 200,932 km depending on the tariff and charging method, while at an annual mileage of 60,000 km, the maximum economically justified purchase price ranges from UAH 2.25 million to UAH 4.44 million. The article analyses the factors determining the feasibility of transitioning to electric vehicles, evaluates the impact of initial investments, operating costs, and existing support mechanisms on the overall economic viability of electric vehicle use in business activities, and proposes formulas for calculating both the break-even mileage of electric vehicles and the maximum initial purchase price below which their acquisition is economically advantageous for different types of commercial use. The practical value of the study lies in the possibility of applying the proposed formulas by transport and logistics companies and commercial fleet operators to support fleet renewal decisions based on the present value of ownership costs

total cost of ownership; annual mileage; operating costs; threshold purchase price; internal combustion engines; economic viability
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https://doi.org/10.33744/2308-6645-2026-2-30-53-64