How to calculate the ROI of an electric last-mile fleet

Investing in an electric last-mile fleet only makes sense if the numbers add up. Calculating return on investment (ROI) rigorously lets you build a solid business case and decide between purchase, leasing, or Fleet as a Service (FaaS).

What the ROI of an electric fleet measures

ROI compares the accumulated savings the electric vehicle generates against its cost, relative to the combustion alternative. The most useful indicator for fleets is the payback period: how many months it takes for savings to cover the investment.

Key variables you need

• **Vehicle cost** (purchase) or monthly rental (FaaS)

• **Kilometers driven per day** and days of operation per month

• **Current cost per kilometer** of your combustion fleet (fuel + maintenance)

• **Cost per kilometer of the electric vehicle** (electricity + reduced maintenance)

• **Tax incentives** that apply, plus the vehicle's residual value

The payback formula

In its simplest form: Payback (months) = Initial investment ÷ Monthly savings. Monthly savings are the difference in cost per kilometer multiplied by monthly kilometers. The higher the daily mileage, the faster the investment is recovered — which is why intensive last-mile operations are the ideal use case.

A worked example

If a vehicle runs high-mileage urban routes and cost per kilometer drops by 40% to 70%, monthly savings on fuel and maintenance can cover much — or all — of a FaaS monthly payment, making cash flow favorable almost from day one.

Levers to accelerate ROI

• **Maximize utilization:** assign electric vehicles to the highest-mileage routes

• **Charge during off-peak hours** to reduce cost per kWh

• **Capture incentives** — tax deductions and local exemptions

• **Optimize routes** with the telemetry that electric vehicles integrate natively

FaaS: ROI with no upfront investment

With an outright purchase, ROI starts once CAPEX is recovered. With FaaS, since there is no upfront investment, the comparison is direct between the monthly fee and operating savings: if savings per km exceed the rental cost, the model is profitable from the first month, without tying up capital.

The fastest way to get your number is to model your real operation. Our savings calculator estimates savings and payback using your own route and cost data, and our team can help you refine the business case in a demo.